Financial residence
Posted by Final_Researcher_605@reddit | expats | View on Reddit | 8 comments
I am asking this question on behalf of someone else: I am an Italian citizen and I am an employee of an Italian company. My job consists of public affairs work in the EU framework. I will soon change my residence to another EU country, where my company does not have any offices. Regarding the financial residence and taxes, what are the conditions to be able to continue working for this company?
Captlard@reddit
Typically: The company sets up an office in said country and you become an employee or you become self employed and bill the company for your services. You will need to become fiscally resident in the new country and follow their rules / laws.
Final_Researcher_605@reddit (OP)
What if the company does not set up an office? Can one still work for that company?
Captlard@reddit
You need to check with the regulations of said country, but generally no, as they have to pay social security, pensions etc OR as I said, you go freelance, and bill them your time (plus all that entails for you: You paying your taxes, sales taxes etc).
Greyzer@reddit
There are some exceptions where countries have bilateral agreements for border workers, but as you said, generally this is not allowed.
Captlard@reddit
Absolutely. Good point. OP doesn't sound like a border worker imho.
hyperion-ledger@reddit
In the EU, tax residency is generally determined by where you spend the majority of your time (usually over 183 days a year), where your main economic interests lie, and where your primary professional activities take place.
Your Italian company can continue to employ you, but you and your employer need to be on the same page regarding your tax and social security obligations in both countries. This setup can be complex, so getting personalized advice from a tax professional familiar with EU regulations is highly recommended to avoid any surprises.
Final_Researcher_605@reddit (OP)
Where can I get personalised professional advice?
hyperion-ledger@reddit
I would look for a tax attorney or a financial advisor that you can trust is knowledgeable in EU regulations. If you'd like, I can recommend you someone to talk to. But I would encourage you to do your own research as well.