{"id":31361,"date":"2026-04-20T09:20:53","date_gmt":"2026-04-20T09:20:53","guid":{"rendered":"https:\/\/artus.at\/?p=31361"},"modified":"2026-04-20T09:20:53","modified_gmt":"2026-04-20T09:20:53","slug":"workation-and-teleworking-tax-and-social-security","status":"publish","type":"post","link":"https:\/\/artus.at\/en\/blog\/workation-and-teleworking-tax-and-social-security\/","title":{"rendered":"Workation and Teleworking \u2013 Tax and Social Security\u00a0"},"content":{"rendered":"<p><span data-contrast=\"auto\">Flexible working models such as teleworking and workation have become an integral part of modern working life and have\u00a0been\u00a0established\u00a0in Austria as well. Temporary or permanent work performed\u00a0abroad\u00a0however\u00a0may lead\u00a0to tax and social security issues, which are examined in the following article.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Teleworking primarily refers to working from a home office\u00a0but also includes working from another location chosen by the employee, using information and telecommunications technology. The term \u201cworkation\u201d is a combination of \u201cwork\u201d and \u201cvacation\u201d and refers to temporarily working from a holiday destination.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h3><span style=\"color: #99cc00;\">Teleworking or Workation in Austria\u00a0<\/span><\/h3>\n<p><span data-contrast=\"auto\">In the case of teleworking or workation within Austria, there are\u00a0generally no\u00a0changes:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Taxation continues\u00a0through payroll tax withholding in Austria.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Social security contributions continue to be paid in Austria.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">The home office lump sum (up to EUR 3 per day for a maximum of 100 days) can be claimed.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">If at least 26 home office days are worked, costs for ergonomic furniture of up to EUR 300 per year are tax deductible.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<h3><span style=\"color: #99cc00;\">Workation or Teleworking Abroad\u00a0<\/span><\/h3>\n<p><span data-contrast=\"auto\">Workation or teleworking outside Austria may become tax-relevant\u00a0for the employer and\/or the employee:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><strong><span style=\"color: #99cc00;\">1. From the employer\u2019s perspective:<\/span><\/strong><\/p>\n<p><span data-contrast=\"auto\">Depending on the duration and nature of the activity, a permanent establishment of the employer may be created abroad, particularly in the case of long-term (exceeding six months) or recurring stays of the employee. The risk increases if the employer rents the workspace abroad. Due to the lack of clear OECD guidance\u00a0regarding\u00a0the creation of a permanent establishment in the context of workation, national regulations and case law must be\u00a0taken into account. In some cases, parallels may be drawn with a home office permanent establishment.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><strong><span style=\"color: #99cc00;\">2. From the employee\u2019s perspective:<\/span><\/strong><\/p>\n<p><b><span data-contrast=\"auto\">a) Workation<\/span><\/b><\/p>\n<p><span data-contrast=\"auto\">Short-term stays are\u00a0generally unproblematic\u00a0from a tax perspective. The decisive factor is the 183-day rule. If the stay exceeds 183 days in a calendar year or a 12-month period, the income becomes taxable on a pro rata basis in the state where the work is performed, to the extent that working days are carried out there. All days spent in that country count toward the 183 days (i.e.\u00a0both working days and leisure or vacation days). If fewer than 183 days are spent in the\u00a0workation\u00a0state, taxing rights\u00a0remain\u00a0entirely (100%) with the state of residence.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">b) Teleworking<\/span><\/b><\/p>\n<p><span data-contrast=\"auto\">If the activity is carried out in the employee\u2019s foreign state of residence, income attributable to working days in that state and in third countries is taxed in the state of residence.\u00a0Income attributable to working days in the employer\u2019s state is subject to taxation there.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h3><span style=\"color: #99cc00;\">Social Security for Teleworking and Workation in Austria\u00a0<\/span><\/h3>\n<p><span data-contrast=\"auto\">For teleworking and workation with the place of work in Austria, social security\u00a0remains\u00a0unchanged:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Austria\u00a0stays\u00a0responsible for social security, and social security contributions continue to be paid in Austria.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<h3><span style=\"color: #99cc00;\">Social Security for Teleworking and Workation Abroad\u00a0<\/span><\/h3>\n<p><span data-contrast=\"auto\">Special rules apply to workation and teleworking abroad:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><strong><span style=\"color: #99cc00;\">1) EU\/EEA and Switzerland:\u00a0<\/span><\/strong><\/p>\n<p><span data-contrast=\"auto\">Within the EU\/EEA and Switzerland, a person may only be insured in one country. Social security coverage may remain in the employer\u2019s state provided that no substantial activity is carried out in the member state of residence. A substantial activity exists if at least 25% of the activity is performed and is measured based on working time and\/or\u00a0remuneration. If, in addition to workation at a holiday destination, at least 25% of the activity is carried out in the member state of residence, social security responsibility shifts to the state of residence; otherwise, it\u00a0remains\u00a0with the employer\u2019s state.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">An A1 certificate must be applied for in the competent social security state. This certificate confirms which state\u00a0is responsible for\u00a0social security, preventing other states from levying social security contributions.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">If an exception agreement is concluded\u00a0on the basis of\u00a0the multilateral framework agreement for habitual cross-border teleworking, up to 50% of the activity may be carried out in the member state of residence without triggering a change in social security responsibility.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Requirements:<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Both involved states are signatory states<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Employees regularly perform teleworking using IT<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">The extent of teleworking is between 25% and less than 50%<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><strong><span style=\"color: #99cc00;\">2) Third countries:\u00a0<\/span><\/strong><\/p>\n<p><span data-contrast=\"auto\">The relevant bilateral social security agreements must be examined to\u00a0determine\u00a0whether they provide rules for\u00a0allocating\u00a0social security responsibility in cases of multi-state employment. If not, the instrument of an exception agreement may still be used to prevent double social security contributions in two countries. If no social security agreement exists with the respective third country, there is likewise a risk of double social security contributions.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h3><span style=\"color: #99cc00;\">Summary of Recommendations to Avoid Tax and Social Security Risks\u00a0<\/span><\/h3>\n<ul>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Establish clear workation and teleworking policies<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Define maximum durations and\u00a0permitted\u00a0countries<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Carry out tax and social security assessments in advance<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Apply for A1 certificates\u00a0in a timely manner<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">In addition, labor law aspects should also be\u00a0taken into account.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<h3><span style=\"color: #99cc00;\">Conclusion\u00a0<\/span><\/h3>\n<p><span data-contrast=\"auto\">If work is physically performed in other countries\u2014whether from a foreign residence or a holiday destination\u2014this\u00a0might\u00a0entail\u00a0tax and social security risks. To ensure that neither the employee nor the employer becomes subject to taxation abroad (e.g.\u00a0at a holiday destination), it must be ensured that the employee does not stay abroad for more than six months. However, if the employee works from a foreign home office where they are also tax resident, tax liability arises there from the first working day.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">In order for\u00a0social security responsibility to remain with the employer\u2019s state in cases of multi-state employment within the EU\/EEA\/Switzerland, it must be ensured that the employee does not perform a substantial activity in the member state of residence.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">With clear regulations and careful planning, Austrian employers and their employees can make legally compliant use of the advantages of flexible working models.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Your ARTUS advisors are happy to\u00a0assist\u00a0you with advice and support (<span style=\"color: #99cc00;\"><a style=\"color: #99cc00;\" href=\"mailto:info@artus.at\">info@artus.at<\/a><\/span>).<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Teleworking primarily refers to working from a home office\u00a0but also includes working from another location chosen by the employee, using information and telecommunications technology.<\/p>\n","protected":false},"author":15,"featured_media":31259,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1802,1801],"tags":[1814,2240,1979],"class_list":["post-31361","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international-en","category-law-taxation","tag-social-security","tag-teleworking","tag-workation-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/artus.at\/en\/wp-json\/wp\/v2\/posts\/31361","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/artus.at\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/artus.at\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/artus.at\/en\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/artus.at\/en\/wp-json\/wp\/v2\/comments?post=31361"}],"version-history":[{"count":6,"href":"https:\/\/artus.at\/en\/wp-json\/wp\/v2\/posts\/31361\/revisions"}],"predecessor-version":[{"id":31414,"href":"https:\/\/artus.at\/en\/wp-json\/wp\/v2\/posts\/31361\/revisions\/31414"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/artus.at\/en\/wp-json\/wp\/v2\/media\/31259"}],"wp:attachment":[{"href":"https:\/\/artus.at\/en\/wp-json\/wp\/v2\/media?parent=31361"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/artus.at\/en\/wp-json\/wp\/v2\/categories?post=31361"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/artus.at\/en\/wp-json\/wp\/v2\/tags?post=31361"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}