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EU Salary but living in Ireland

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  • 08-11-2021 1:22pm
    #1
    [Deleted User]
    Posts: 0 ✭


    (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?



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    #2
    whomitconcerns
    Registered Users Posts: 4,319 ✭✭✭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



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    #3
    Mrs OBumble
    Registered Users Posts: 25,722 ✭✭✭✭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.



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    #4
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,035 Mod ✭✭✭✭Jim2007


    https://www.boards.ie/discussion/2058216980/eu-salary-but-living-in-ireland

    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.



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    #5
    HalfAndHalf
    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 👍



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