Consequences of COVID-19 coronavirus on 183 day rule

Due to the measures regarding the coronavirus your work situation may look different. For example if you normally work and reside in different countries you will now probably work more in one place during the corona crisis, in the Netherlands or abroad. Or if you are an international working full-time in the Netherlands you may suddenly be working remotely for your Dutch employer from your home country.

These unexpected situations can have tax consequences, since the country where you reside while working is most relevant for the tax calculation. If The Netherlands is your usual country of residence and work location The Netherlands will have the exclusive right to levy income tax in 2020 instead of abroad. The Netherlands will tax your world income. But in case you unexpectedly work more than 183 days outside of the Netherlands this year it may be that the other country may levy tax. Or it could be the other way around.

Example situations of 183 day rule and the coronavirus

Pay attention! With the 183-day scheme, small nuances in situations can already lead to different outcomes whether or not the scheme is applicable.

Due to COVID-19 you worked more than 183 days remote from Spain for your Dutch employer.

You are working for a Dutch company for almost half a year now. The original plan was that you would work and live in the Netherlands but due to the COVID-19 situation you got stuck in Spain. As you feel things are still uncertain in the Netherlands, you would prefer to keep on working remote for your employer. However they warned you about the 183 day rule and said that you cannot work for more than 183 days from abroad. You want some advice about possible tax consequences for you and your employer if you decide to stay out of the NL more than 183 days.

Indeed, staying in Spain more than 183 days whilst working, and living officially, in NL creates a challenge. We will be glad to help out and look at the consequences possibilities. An important question is whether you were indeed already living officially in the Netherlands before you were stuck in Spain or are a non-resident. If you are a resident your employer might perhaps post you to Spain using a A1 certificate. In that case you could pay social security in NL as well as health insurance. The tax consequences can be straightened out with a tax return. You will then have to declare the income earned in Spain whilst living in Spain to the Spanish authorities. A further option would be for your employer to set up a Spanish subsidiary and employ you in Spain.

You are registered in NL, but have been working mostly from France where your wife lives.

You are an employee in The Hague since the 1st of July 2020 and are registered as a resident and have your flat here. Your wife lives and works in France having her residence there. The original plan was that she would come regularly to visit. But due to corona you are more often at her place in France and working from there. You just want to make sure that you still stay a Dutch tax resident. So far you have spent more days in France than in The Hague in 2021 (including holidays). How does it work with the 183 day rule? And does it have an impact that I am married and my wife being a France resident and tax payer?

I understand you wish to remain a NL resident tax payer. For this it is important that your center of life remains in NL. In your situation this is something that can be argued about as the inspector may easily state that France is your center of life and you should pay tax there for the days worked from France. If your center of life is clearly in NL there should be no tax consequences in France as long as you remain less than 183 days in France including weekends, holidays etc. Normally a married partner is also a fiscal partner and the joint center of life is in one place. If you center of life is actually in France you should not be registered which means you are a non-resident tax payer only taxable for the physical Dutch days. The other days would then become taxable in France. The regulation concerning Corona could indeed have a consequence if France remains your center of life. The situation could indeed result to challenges when submitting your tax return. We will be glad to help.

Due to the corona crisis you have worked from your home in the NL for your employer in the UK.

You own an apartment in The Hague, but have been working for a company in the UK. Before the coronavirus crisis started, you were working in the UK from a rented place most of the time. But since April 2020, his UK employer has agreed that you could work from your home in the Netherlands.

In 2020, you are taxable for your worldwide income and wealth in the Netherlands. Any tax paid in the UK will need reclaiming. You will also need to pay social security in the Netherlands. There are ways to make your tax situation easier. We would be happy to assist you with that. For example: your employer could set up a Dutch pay roll, keeping your UK health insurance via an A1 procedure.

You are an expat in NL but have been working remote from your home country due to COVID-19.

You have been living and working in the Netherlands since 2017. Last year, you travelled back to your home country for half a year, to improve your situation and be closer to relatives during COVID-19 restrictions. During this time, you continued working (from home) for your current employer. You did stay registered in the Netherlands, continued with your insurance and everything else as if you lived in the Netherlands

It is important that you have not exceeded the 183 days in your home country – or otherwise you should bear in mind that her home country might send you a tax bill. If the 183 days are exceeded, then the Netherlands should grant double taxation deduction in proportion to the days worked abroad.

You are both working remotely from Spain and are wondering what the tax consequences are if it would exceed 183 days.

You and your wife own a house in the Netherlands and are both living and working full-time in the NL for Dutch employers. Since the beginning of this year though your employers have allowed you to work remotely working from your home country Spain. You do not own assets in Spain, but you are staying in a vacation home that belongs to your family and you did not register at any municipality and are not paying rent. It might be that you will be staying there for more than 183 days. You are wondering what the tax consequences are

If the Italian tax office would question the situation this would result in due tax and possibly social security contributions. It may also have consequences for your Dutch health insurance if your center of life is no longer NL. It is important that your employer is aware of the consequences also for themselves as an NL employer with an employee in Italy. If you wish to prevent any issues you should at least return before your spent 183 days in Italy. On the other hand, it is a relatively short and incidental period.

You live in NL but stayed in Greece extensively during 2020/2021.

You are employed and normally resident in the Netherlands. During 2020 /2021 you have been working remotely from your Greek residence due to the Covid situation for most of the year, while you were receiving your salary (and paying tax) in the Netherlands. For your 2020 tax return you need tax advice on how to proceed to prevent having to pay tax in both countries.

I understand you live in NL but stayed in Greece extensively during 2020/2021. Did you stay for more than 183 days in Greece in any 12 month period? If that is the case Greece can tax you and we should reclaim NL tax. Has your employer taken measures to keep the social security and health insurance in NL (e.g. via A1 procedure)?

Untaxing Taxes!

Other relevant pages:

Example situations of 183 day rule and corona
183 day rule
Coronavirus tax return consequences
Living in the Netherlands working abroad
Leaving the Netherlands
M form Netherlands
Moving to the Netherlands
Tax advice
Tax return Netherlands

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