Working in several countries

European legislation includes special provisions for individuals working simultaneously or alternately in two or more European countries. Different rules apply to employees and self-employed individuals. Here, too, only the social security law of one country is applied in each case and double insurance is avoided.

The same is true for the United Kingdom on the basis of the Trade and Cooperation Agreement between the EU and the United Kingdom.

If artists work for two or more employers simultaneously in several EU/EEA countries, Switzerland or the United Kingdom, they are considered to be "ordinarily gainfully employed in more than one country" under EC law. It does not matter whether the employment is temporary or permanent.
Since the EC regulations dictate that only the legal provisions of one country can and should apply in the area of social security, it is necessary to determine which legal provisions should apply to all employment relationships.

The basic rule is as follows:

• If an artist works for an employer in several countries and if at least 25% of their working hours and remuneration are allotted to the employment relationship in the country of residence, the legal provisions of the country of residence apply uniformly to all employment relationships; otherwise, the legal provisions of the country in which the employer is registered apply.

• If an artist works for several employers in several countries and if at least 25% of their working hours and remuneration are allotted to the employment relationship in the country of residence or if the employers are based outside the country of residence of the employee, the legal provisions of the country of residence shall apply uniformly to all employment relationships. If less than 25% of the work is carried out in the country of residence, the legal provisions of the country outside the artist's country of residence in which the employer is registered apply.

• If an artist works for several employers, at least two of which have their registered office in a Member State other than the employee's country of residence, the legislation of the employee's country of residence applies.

Marginal activities (i.e. those that amount to less than 5% of the person's working hours/remuneration) are not taken into account.
 

What does country of residence mean?

A definition of the country of residence is provided in Article 11 of EC Regulation No. 987/2009. Details on how to interpret the concept of 'place of residence' can be found in Part III of the Practical Guide of the EU Commission.

Consequence: As the employment relationship in Germany accounts for more than 25% of the pianist's working hours and remuneration, German social security law is applicable to both employment relationships.

The artist requires an A1 certificate (see below) as proof of existing social security coverage. Copies of this certificate must be provided to all parties involved (the German and Dutch employers as well as the German and Dutch social security institutions).

The Dutch employer must pay contributions and report to the responsible German authorities in the same way as an employer based in Germany would. Foreign employers can find more information on this on the Arbeitgeberportal Sozialversicherung portal (Social Security Employer Portal) (only available in German).

Consequence: The employment relationship in Poland accounts for more than 25% of the journalist's working hours and remuneration. Polish social security law is therefore applicable to both employment relationships. As Polish law does not recognize mini-jobs, the German employer must pay contributions and report to the responsible Polish authorities in the same way an employer based in Poland would.

Further information can be obtained from the responsible office in the country of employment. In Poland this is the ZUS. Specialised tax consultants or payroll accounting companies may also be able to assist.

Consequence: The employment activities in Luxembourg and the Netherlands each account for less than 5% of the journalist's total working hours and therefore do not need to be taken into account. Of the remaining working time (in Germany and Belgium) of 38 hours, more than 25% is worked in his country of residence, Germany. Since the journalist performs a substantial part of his work in Germany, he is subject to German social security legislation. The journalist requires an A1 certificate (see below) as proof of existing social security coverage. Copies of this certificate must be provided to all parties involved (the employers as well as the social security institutions affected).

To top

If an artist is self-employed in Germany and takes up additional employment in another country, only the legal provisions of the country of employment apply to them.

A self-employed artist in Germany who plans to take up employment in another European country must first contact the GKV-Spitzenverband, Deutsche Verbindungsstelle Krankenversicherung – Ausland, DVKA (Central Federal Association of Statutory Health Insurance Funds) (only available in German). The DVKA is responsible for clarifying which law applies to the individual in question. It has linked corresponding questionnaires (in German) on the website under the heading "Arbeitgeber und Erwerbstätige" (Employers and Employees) (only available in German), which can be used to submit a request for clarification.

Contact the DVKA: website (only available in German)

Important: The classification of an activity as employment or self-employment depends on the regulations of the country in which the activity is performed. The DVKA is bound by this classification in its decision. The information provided about an activity must be confirmed by both the artist and the employer. Tax consultants, management consultants, etc. can also be authorized to help with the procedure. In this case, the DVKA requires a copy of the authorization.

If a self-employed artist wants to continue to be subject to the German legal regulations when working in another European country, an exemption agreement must be concluded. Such an exemption must be applied for via the DVKA.

To top

If self-employed artists work simultaneously in several EU/EEA countries, Switzerland or the United Kingdom, they are considered to be "ordinarily gainfully self-employed in more than one country" under EC law and the regulations in the Trade and Cooperation Agreement between the EU and the UK. It does not matter whether the self-employment is temporary or permanent.

Important: Whether the gainful activity is to be classified as employment or self-employment depends on the regulations of the country in which the activity is carried out. It is therefore quite possible that an activity is classified differently in another country than in Germany.

You should contact the competent authorities in the destination country in good time before starting the activity. The DVKA (only available in German) provides information on which institution is responsible in another EU/EEA country, Switzerland or the United Kingdom in its country-specific fact sheets.

Since the EC regulations dictate that only the legal provisions of one country can and should apply in the area of social security, it is necessary to determine which legal provisions should apply uniformly to individuals with several self-employed activities in several countries.

The basic rule is as follows:

• Artists who ordinarily pursue their self-employed activity in more than one Member State are subject to the legislation of their country of residence if a substantial part (at least 25%) of their activity is carried out there.

• If less than 25% of their activity is carried out in the country of residence, the legislation of the Member State that is the focus of the activity applies.

Marginal activities (i.e. those that amount to less than 5% of the person's working hours/remuneration) are not taken into account.

Consequence: Since the share of the self-employed activity attributable to the country of residence is at least 25%, German law applies to all areas of social security for both the self-employed activity carried out in Germany and that carried out in Spain. The Spanish income is therefore subject to the same social security contributions in Germany as if it were earned in Germany. The DVKA issues an A1 certificate (see below) as proof of the applicable law.

If the musician is insured through the Artists' Social Security Fund (KSK) in Germany, he must notify the KSK of the activity abroad and include the foreign income in his income estimate.

Information (in German) provided by the KSK on Secondary Activities (only available in German) and information on Stays Abroad – Consequences for Social Security Coverage (only available in German).

Consequence: Since at least 25% of his self-employed activity now relates to the gainful activity carried out in Spain, the artist is subject to Spanish law in all areas of social security from 1 February.
He must inform the responsible authorities in the countries involved (the DVKA in Germany and the Tesoreria General de la Seguridad Sozial in Spain) about the move.

Note: Sometimes an individual may not wish to change social security systems. In such cases, it should be noted that most countries, including Germany (DVKA), are not willing to agree to a change in the applicable law on the basis of an exemption agreement.

Therefore, in case of a change of residence, the effects regarding the applicable social legislation should always be considered, since they affect not only all areas of social security but also, for example, child benefit and parental benefit.

To top

While the decision on the applicable law in the case of (self-)postings is made by the competent health insurance fund or, in individual cases, by the competent pension insurance institution in Germany, the DVKA (only available in German) is responsible for making this decision in the case of activity in several countries – whenever Germany is the country of residence (centre of life).

If the centre of life is in another country, the decision is made by the competent institution in the country of residence. The DVKA can provide information on the respective authorities upon request and details can also be found in the country-specific fact sheets (only available in German).

Contact the DVKA: website (only available in German)

Submitting applications

The following applies in the case of persons who are ordinarily gainfully employed in two or more countries:

As of 1 January 2021, an employer based in Germany must submit an electronic application to determine the applicable legal provisions (cf. Section 106 SGB IV) if the employee ordinarily works only for this employer in several countries. Employers use their system-tested payroll programmes to complete this process.

In all other cases, e.g.

• if employed artists work for employers based in different countries but reside in Germany or
• in all cases where self-employed artists ordinarily work in two or more European countries,

the applications must still be submitted via the online pdf application forms on the DVKA website (the application forms can be found here- only available in German).

If the DVKA review concludes that German law applies uniformly to the gainful activities carried out in several countries, it will issue an A1 certificate and inform all parties involved accordingly.
This means that German contributions law applies to the income earned abroad. The social security declarations must be made as if all activities were carried out in Germany.

In the case of self-employed artists who are members of the Artists' Social Security Fund (KSK), there may be consequences for the implementation of social insurance coverage according to the Artists' Social Insurance Act (KSVG).
Information (in German) from the KSK on Secondary Activities (only available in German) and information on Stays Abroad – Consequences for Social Security Coverage (only available in German).

If, on the other hand, the DVKA determines that German law does not apply, it will also inform all parties involved accordingly, including the respective competent authority in the country whose legal regulations apply instead. An A1 certificate is then issued, certifying that the legal provisions of the respective country apply.
The law of that country will then apply uniformly to all declarations and contributions.

To top