Home office in the EU abroad
November 4, 2021 | 35,00 EUR | answered by Steuerberater Knut Christiansen
As a German entrepreneur currently still a sole proprietorship with EÜR until 01.01.2021, I want to establish a GmbH and Co KG and hire an EU citizen to work remotely (100%) from their country (Austria). How do I proceed in this case? What should I consider when calculating the salary?
Hello,
Thank you for your inquiry, to which I would like to provide the following initial information.
In principle, the employee is subject to social insurance in Austria if he performs the activity 100% in his home office there (state of activity). Therefore, you would have to register him in Austria and pay contributions there.
Furthermore, due to his residence and the fact that he exclusively performs the activity in Austria, he is subject to tax in Austria. There are no domestic income (in Germany) here. So his income would basically be taxed in Austria.
The payroll would then have to be done in a way that takes into account that he pays his taxes in Austria. Furthermore, it would have to be checked to what extent you as the employer have to pay the social contributions directly to the social insurance funds in Austria or if the employee has to pay the contributions.
As it is a bit more complex, you should hire service providers near the border to carry out the payroll.
I would like to point out that this forum cannot replace a detailed and personal tax consultation, but is mainly intended to provide an initial tax assessment. Adding or omitting relevant information could result in a different legal assessment of your issue.
Kind regards,
Knut Christiansen
Tax consultant
