IELA News

Income tax for posted workers

Do you know to which country should you pay taxes as an European posted worker? If your work assignment was for less than six months, you will not be liable to pay income tax in your country of destination.

National laws or tax agreements between EU countries may specify, however, there are no EU-wide laws dictating which country can tax your income during a posting.

Then, to which country should you pay taxes?

There are no EU-wide rules that say how EU nationals who live, work or spend time outside their home countries are to be taxed on their income. 

However, the country where you are a resident for tax purposes can usually tax your total worldwide income, earned or received. This includes wages, pensions, bonuses, income from property or from any other sources, as well as capital gains from the sale of property, worldwide.

Normally you are resident in your home country if you don’t spend more than 6 months a year in another EU country. Otherwise, you will be considered tax-resident in the UE country where you spend more than 6 months.