If you have a new account but are having problems posting or verifying your account, please email us on [email protected] for help. Thanks :)
Private profiles - please note that profiles marked as private will soon be public. This will facilitate moderation so mods can view users' warning histories. All of your posts across the site will appear on your profile page (including PI, RI). Groups posts will remain private except to users who have access to the same Groups as you. Thread here
Some important site news, please read here. Thanks!

EU Salary but living in Ireland

  • 08-11-2021 12:22pm
    Posts: 0 ✭✭✭ [Deleted User]

    (Asking for a friend)

    Is there anyone about here with knowledge / experience of working a job in another EU country - but moving back to living at home in Ireland while doing so? Specifically in an IT job where the person is working 95% from current home office anyway.

    What are the practicalities and issues with this that might not be obvious? How does paying Tax work - and medical insurance - and pensions? Anyone noticed any good resources or links on the topic?

    Are there other less obvious hurdles / red tape / bureaucracy / drawbacks that might not immediately occur up front?


  • Registered Users Posts: 4,114 ✭✭✭ whomitconcerns

    There are certainly tax issues as you pay tax based on your normal residency. There would also be medical insurance issues due to you not residing in the country that your insurance is based.

    Also there may be some local law issues due to workforce protection etc.. But those would be specific to only a few countries.

    Tldr It's not so easy as it would seem

  • Registered Users Posts: 24,120 ✭✭✭✭ Mrs OBumble

    Either you need to be a self employed contractor, or the company has to operate the PAYE system here for you. There are likely some legal requirements they have to meet to do that.

    An intermediate option is that you or the company contracts a local umbrella company to employ you. You will have to pay for this service, though.

  • Moderators, Business & Finance Moderators Posts: 8,072 Mod ✭✭✭✭ Jim2007

    If the company is aware of the tax and social responsibility implications for it, then it is unlikely that they would even agree to such a situation.

    If the company does not already have an Irish branch, then the most suitable solution is that your friend becomes a contractor/external consultant/external employee or whatever they want to call themselves rather than an employee. Instead they are employed by a payroll company, who in turn invoices the company once a month for the services provided my your friend and pays them after deducting a fee.

    This is a widely discussed topic in the IT sector, so your friend should have no problem getting information from colleagues.

  • Registered Users Posts: 827 ✭✭✭ HalfAndHalf

    This is exactly what I do, work for a company in the U.K. in IT but work remotely from home here. I go to the London office once a month for 5 days.

    It’s a bit of a dose but my advice would be to get an accountant who knows ‘foreign income’ tax regulations and pay them to do your Form 11 each year.

    Your friend will likely be paying PAYE in the other country so a Form 11 self assessment will be needed each year.

    One thing to look out for is double social payments, you should only pay this in one country (I got caught out by this and have double paid for 2.5 years)

    I didn’t realise this was the case so have just submitted the required form to the PRSI dept of Revenue, they will then give me a cert that I’m required to pay social charges here as this is where I live and I forward that to HMRC in the U.K. who stop my social payments there.

    Hope that helps a bit, I tried to muddle through Form 11 myself but it covers a whole host of incomes outside of PAYE and it just made sense to pay an expert, you don’t mess with Revenue!

    Jim2007’s advice could also be a good bet, I’ve not looked down this route but may be even easier if their company is happy to do that 👍