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Let's assume someone is a citizen of the Netherlands, he has a home address there, and has a job there at a Dutch company.

Now, this person wants to move to Sweden to live with his partner there. He would get a second residential address there, and live there most of the time. He wants to continue working for the Dutch employer remotely from the address in Sweden. He could keep the address in the Netherlands as well.

The question is: Given that he is a EU citizen, is this legally possible? And if so, what does it imply for taxation and health insurance? Are there any implications for the employer?

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  • Double taxation treaties I'm familiar with call for taxing earned income based on where the earner is when it's earned. Thus your income would be taxable in Sweden.
    – phoog
    Mar 14 at 14:57

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Article 15.1 of the Sweden-Netherlands Treaty says that if you perform your dependent personal services while located in Sweden, the income you earn while doing so may be taxed in Sweden. However, when this happens (article 24.1), you are allowed to subtract the tax you pay to Netherlands from the tax that you are due to Sweden.

You can calculate the amount that you earned while in Sweden by dividing your total salary by the number of days you worked, and multiplying by how many days you worked while in Sweden. Then my recommendation is to go ahead and to file the tax for this income, and to use the provision that allows you to subtract the Netherlands tax from the tax you might owe.

As long as you are registered in Netherlands and that address remains connected with the employer, there should be no issues for the employer.

When I was in your situation, I lived in non-EU countries, so I had to check with my health insurance providers regarding the coverage; only about a quarter of them covered stays abroad. However, thanks to the remark by Tomas-By, the health insurance is EU-wide, so you will be covered regardless of the country where you are located.

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  • My comment has nothing to do with the US but is generally a feature of tax treaties, including (I now know) the Netherlands-Sweden treaty. (Furthermore, the description here of US tax law is incorrect.) The procedure described here is for determining the status of a resident of both countries, but the treaty nonetheless provides for income earned in the state where the person is not a resident to be taxed in the state where it is earned rather than in the state of residence, subject to some conditions that probably do not apply here.
    – phoog
    Mar 14 at 23:59
  • @phoog I removed the description of the US law, because it's irrelevant here to be perfecting the description. It turns out are correct for this particular country combination; however, for a lot of other tax treaty country combinations, what is being looked at is where the company is having the work done. So if a company gets a project in Country B, then it's taxed there; but if the company project remains in Country A, then that's where the income is taxed. I just haven't encountered the situation here yet, in all the country combinations I myself have dealt with.
    – Alex
    Mar 15 at 1:06
  • thanks all! this is very helpful
    – michapach
    Mar 15 at 12:31

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