Amendment to tax treaty eases remote work rules cross-border workers the Netherlands & Germany

On April 14, 2025, the Netherlands and Germany announced an amendment to their tax treaty aimed at providing more flexibility for cross-border workers who work from home. This adjustment allows cross-border workers to work from home for up to 34 days per year without triggering taxation in the home country of the employee.

Currently, the state of residence of the employer is allowed to tax the working days in that country. The home country then has the taxation rights for the days the person works from home. In practice, this meant that every physical working day of a cross-border worker could have tax implications in the home country, creating a significant administrative burden. This new arrangement reduces uncertainty around the net income of cross-border workers and lowers administrative burdens, such as filing complex tax returns in both countries.

Not all cross-border workers benefit from this arrangement—particularly those who work from home one or two days a week on a regular basis. For this reason, the Netherlands and Germany have signed a declaration of intent to explore whether the number of permitted work-from-home days can be increased.

Before the treaty amendment takes effect, it must first be submitted to the Dutch Council of State, after which it will be sent to parliament for approval. The German parliament must also approve the amendment.

Questions?

If you have any questions on the above, please don’t hesitate to contact our colleagues Peter Karman, Audrey Mol or Maarten de Vries.