EU Cross-Border Remote Work Checklist 2025: Tax, Payroll, and Immigration

EU Cross-Border Remote Work Checklist 2025

Managing employees who live in one EU country and work for an employer in another demands careful coordination. This 2025 checklist covers the essentials for HR, payroll, and finance teams.

Tax Residency Review

Track physical presence days to determine residency using the 183-day rule and tie-breakers. Confirm whether double taxation treaties allocate income tax rights to the employer’s country, employee’s country, or both.

Social Security Coordination

File A1 certificates to keep workers under the employer’s social security system if they work less than 50% abroad. Otherwise, register in the employee’s residence country and adjust payroll contributions.

Payroll and Reporting

Decide between shadow payrolls, employer-of-record solutions, or establishing local entities. Ensure payslips comply with local language and statutory information requirements. Handle exchange rates for salaries paid in foreign currencies.

Immigration and Work Authorisations

EU nationals can relocate freely, but non-EU citizens require updated permits aligned with the host country. Monitor remote work bans in certain visas and update HR files accordingly.

Data Protection and Health & Safety

Update GDPR documentation, DPIAs, and remote work policies. Provide risk assessments for home offices and ensure ergonomic support crosses borders.

Action Steps: Create a central register of remote workers, assign compliance owners, and review arrangements quarterly to adapt to legislative updates.