What impact does Brexit have on cross-border commuters in Europe?
November 4, 2022 | 60,00 EUR | answered by Thomas Schottmann
Dear Tax Advisor,
My name is Xenia Evers and I am a cross-border commuter between Germany and Great Britain. With the upcoming Brexit, I am concerned about the potential impact on my professional situation. So far, it has been relatively straightforward for me to commute between the two countries and work in both. But how will this change when Great Britain is no longer part of the EU?
Currently, I work in Germany and have my residence in Great Britain. What are the tax implications of Brexit for me as a cross-border commuter? Should I expect higher taxes or other financial burdens? Are there potential changes in the social security system that could affect me?
Furthermore, I am concerned about possible bureaucratic hurdles that could arise due to Brexit. Will it become more difficult for me to work in Germany and pay taxes on my income in Great Britain? Is there a possibility that I may not be able to continue my work in Germany after Brexit?
I would greatly appreciate if you could provide me with information on the potential impact of Brexit on cross-border commuters in Europe. Are there already concrete regulations or recommendations that I should be aware of? What steps can I take to best prepare myself for the changes?
Thank you in advance for your support and expertise.
Sincerely,
Xenia Evers
Dear Mrs. Evers,
Thank you for your inquiry regarding the potential impact of Brexit on your professional situation as a cross-border commuter between Germany and Great Britain. As a tax advisor specializing in cross-border issues, I can provide you with some information on this topic.
First and foremost, it is important to know that the tax consequences of Brexit for cross-border commuters depend on various factors. An important aspect is the double taxation agreement between Germany and Great Britain. This agreement regulates how the income of cross-border commuters is taxed in order to avoid double taxation. It is possible that changes in this agreement may result from Brexit, which could have an impact on your tax situation.
One possible consequence of Brexit could be that as a cross-border commuter, you may have to pay higher taxes. This could be the case, for example, if tax rates in Great Britain change or if there are new regulations regarding the taxation of cross-border commuters. It is therefore advisable to stay informed about changes in tax law and, if necessary, seek professional advice.
The Brexit could also have implications for you as a cross-border commuter in terms of social security. It is possible that the regulations for social security for cross-border commuters between Germany and Great Britain may change. This could have financial implications for you, and it is important to understand how these changes will affect your professional situation.
In terms of bureaucratic hurdles post-Brexit, it is quite possible that it may become more difficult to work in Germany and pay taxes on your income in Great Britain. For example, there could be new regulations regarding work permits in Germany or additional bureaucratic requirements for cross-border commuters. Therefore, it is advisable to stay informed about current developments and take timely measures to address potential bureaucratic obstacles.
There are already some information and recommendations for cross-border commuters regarding Brexit. It is recommended to stay informed about current developments, seek professional advice if necessary, and learn about possible preparatory measures. For example, it may be useful to explore alternative employment opportunities in Germany or Great Britain in order to be able to respond more flexibly to changes.
I hope that this information has been helpful to you and I am happy to assist you with any further questions. Please do not hesitate to contact me if you need further support.
Best regards,
Thomas Schottmann
