{"id":31343,"date":"2026-03-18T08:48:33","date_gmt":"2026-03-18T08:48:33","guid":{"rendered":"https:\/\/artus.at\/?p=31343"},"modified":"2026-03-18T08:48:33","modified_gmt":"2026-03-18T08:48:33","slug":"taxation-of-expats-part-2-employment-of-employees-abroad-or-vice-versa","status":"publish","type":"post","link":"https:\/\/artus.at\/en\/blog\/taxation-of-expats-part-2-employment-of-employees-abroad-or-vice-versa\/","title":{"rendered":"Taxation of Expats \u2013 Part 2: Employment of Employees Abroad or Vice Versa"},"content":{"rendered":"

Foreign Employer Employing an Austrian Employee \u2013 Tax and Social Security Implications\u00a0<\/span><\/h4>\n

When domestic employees\u00a0enter into\u00a0an employment contract with a foreign employer, or when a domestic employer hires foreign employees,\u00a0a number of\u00a0tax and social security consequences\u00a0must be carefully assessed.<\/p>\n

This article takes a closer look at these two\u00a0practically relevant\u00a0scenarios and their respective implications.<\/p>\n

\u00a01. Employment of Employees Abroad<\/span><\/h3>\n

If an Austrian company\u00a0staffs\u00a0employees who live abroad together with their families (and are therefore tax resident in that country), the following\u00a0tax considerations arise:<\/p>\n

As a general rule, employees who do not perform any work in Austria do not create a tax liability in Austria. Under the place-of-work principle\u00a0pursuant to\u00a0Article 15(1) of the OECD Model Tax Convention, taxing rights in such cases lie with the employee\u2019s state of residence.
\nHowever, if the activity is also carried out in Austria, Austria becomes relevant as the source state.<\/p>\n

Example:\u00a0<\/strong>
\nMs. Meyer is employed in Germany. The employment contract stipulates that she works three days per week from her home office in Germany, while two days per week she physically works on site in Austria.<\/p>\n