Can I be employed in an EU state but be fully resident in Ireland

Spinnaker

Frequent Poster
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23
Hi

I am resident in Ireland but have a full time employment opportunity as a Sales professional covering Europe with a US-based technology company. The role would involve frequent travel around the EU.

The company do not have an Irish subsidiary and some leaders there, for now are reluctant to take on the admin overhead just for one new employee.

The company however have subsidiaries in other EU states. Remote working is very much part of their culture.

Q1: Considering Freedom of Labour in Europe and recent directives (*) is it possible, to be employed by a subsidiary in one state and be fully resident in another ?

Q2: Are there circumstances under which this would be possible.

(*) Reference: http://www.europarl.europa.eu/factsheets/en/sheet/41/free-movement-of-workers

Thank you
 

NoRegretsCoyote

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792
This is a useful guide.

You can be resident in country A and work in country B within the EU. But it seems to qualify as a cross-border worker you need to be working in country B and returning to country A at least once a week.
 

Setanta12

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1,097
You can be resident in country A and work in country B within the EU. But it seems to qualify as a cross-border worker you need to be working in country B and returning to country A at least once a week.
This is an Irish tax definition, other countries have their own reliefs.
 

Setanta12

Frequent Poster
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1,097
Hi Spinnaker. As pointed out above, it is very possible and hundreds of thousands do it every week; some other quick comments...

i Likely your foreign employer (!) will still have to register for Irish PAYE purposes. Double Taxation agreements don't affect PAYE law, and the rules for entry into the Irish payroll regime are surprisingly easy. If your foreign employer doesn't register for PAYE, another group company within your group could be obliged to.

ii You do need to get some kind of internal agreement from your HR team that you won't suffer a cash shortfall as a result of possibly double deductions of PAYE/other country payroll tax. While this seems fantastical, it happens more frequently than realised. The non-alignment of income tax years between Ireland and the UK doesn't help either - IIRC correctly this more concerns UK-tax but Irish-tax-non-resident workers coming to Ireland.

iii beware home-to-work rules for BIK. Concessionally from the Irish Revenue travel from Irish home to Dublin airport is not a BIK, but no such concession exists for foreign hotel to Irish workplace! The UK's concessions work in both directions, as might be expected. The rules may have changed here in the last 18mths when last I looked into this area. (Ensure that any liability arising here for business travel should not ultimtaely come out of your pocket. I assume from your post you are not a proprietary director, in which case the rules are different again.

Long story short - your scenarios happens all the time. But care is required by you to ensure that you know how much take-home pay you are in fact taking home. Get this in agreement with your employer. Ensure you know how your expenses could be taxed.
 
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