Social security when working and doing business abroad

Do you live in a country other than the country where you work? Or do you receive a benefit from a country other than the country where you live? When working and doing business abroad, it is not only important to know in which country your income is taxed. It is also important to know in which country you are covered by social insurance.

Social insurance schemes

Social insurance schemes are insurances that provide income or allowances in certain situations. This might be unemployment benefit or study finance but might also be reimbursement of medical expenses.

National insurance schemes

The national insurance schemes form part of the social insurance schemes. For these national insurance schemes, you have to pay contributions. This contribution is calculated on your contribution base. The national insurance schemes are:

  • General Old Age Pensions Act (AOW)
  • Surviving Dependants Act (Anw)
  • Long-Term Care Act
  • General Child Benefit Act (AKW for which no contribution is collected)

The national insurance contributions are deducted from your wage along with the wage tax, or levied along with the income tax in 1 tax assessment.

In certain cases, it could be that you are not covered by the national insurance schemes. In that case, you do not have to pay any contributions but you also do not have the right to the tax credit for the national insurance contribution.

Please note!

Always work out for yourself what the consequences of the social insurance are for you and your partner. This especially applies if you receive pensions or social insurance benefits from abroad. You may be eligible for exemption from certain national insurances. If you are entitled to an exemption, you have to send in a request for it yourself.

See also

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