Workcation – Flying under the Radar or to a Country Approved by the Employer: Income Tax and Social Security Implications

This article explores the tax and social security implications of cross-border remote work, focusing on “workcations”, i.e. temporary work in another jurisdiction. Using two scenarios, it analyses the interaction between EU Regulation 883/2004 and tax treaty rules for short and longer-term cases. It highlights the legal uncertainty and administrative burdens, especially when employers are unaware of such work. Although recent initiatives, like the Administrative Commission’s Guidance Note on telework, offer progress, key issues remain. The article proposes measures to improve legal certainty, lower compliance costs and enhance coordination between tax and social security systems.