Cross-Border Remote Work: The New 34-Day Rule in the German–Dutch Tax Treaty

German member firm, Keller-Menz, shares recent developments in international tax law, bringing new flexibility and new responsibilities for cross-border remote work across Germany and the Netherlands. 

Germany and the Netherlands have signed a protocol amending their Double Taxation Agreement (DTA), introducing a so-called “34-day rule.”

This rule allows employees who normally work in one country but occasionally perform work from home in the other country to do so for up to 34 days per calendar year without triggering a change in taxation rights.

What’s new?

Until recently, the OECD (Organisation for Economic Co-operation and Development) Model Tax Convention and most DTAs allocated taxation rights based on the place where work is physically performed. 

This meant that even a few days of home-office work in another country could shift part of the employee’s income taxation; a major administrative challenge for HR, payroll and tax teams. 

The new Germany–Netherlands protocol (April 2025) softens this approach: 

• Employees who are cross-border commuters or international teleworkers may now work from home in their country of residence for up to 34 days per year without affecting the taxation of their salary in the employer’s country 
• The threshold applies per employee, per year, and must be monitored and documented by the employer
• Beyond 34 days, income may become taxable in the employee’s home country, creating payroll withholding obligations there 

Entry into force

The 34-day rule will enter into force 30 days after the formal exchange of the ratification instruments between Germany and the Netherlands. Germany has concluded the ratification on 24^th October 2025. Ratification on the Dutch side is still pending. 

Implications for HR and Global Mobility 

For HR teams, this new flexibility is welcome, but it also adds layers of compliance responsibility: 

• Tracking Work Locations: 
  HR and payroll systems must be able to record home-office days abroad accurately
• Contractual Clarity: 
  Employment contracts or addenda should clearly define the “regular place of work” and whether occasional home-office days are allowed
• Social Security Coordination: 
  Note that the 34-day rule concerns taxation only. 
  Social security remains governed by EU Regulation 883/2004, meaning employees working abroad may still require an A1 certificate if they perform part of their duties in another EU member state
• Communication and Policy: 
  HR should inform staff about the limit and implement a remote-work-day tracker to prevent accidental breaches

Looking ahead 

Germany and Luxembourg already have a similar arrangement (34-day rule since 2024), and other cross-border tax partnerships, particularly with Belgium and France, are under discussion. 

This trend signals a policy shift toward more pragmatic treatment of hybrid and remote work within the EU, acknowledging that mobility and flexibility are now part of everyday employment. 

Key Takeaways for HR 

• 34 days of home-office abroad can be tax-neutral under the new Germany-Netherlands DTA protocol, presumably from spring 2026
• The rule does not affect social security obligations
• HR must implement tracking, contractual updates, and employee communication to ensure compliance 

Expect similar bilateral agreements in other border regions soon.