Amendment to the Dutch–German Tax Treaty as of 1 January 2026: impact on cross-border workers

The changes are particularly relevant for cross-border employees who work from home on an incidental basis and for public sector personnel. The amendment aims to reduce double taxation and provide greater legal certainty in cross-border working situations.

Cross-border home working (Article 14)

The Netherlands and Germany have agreed on a home-working threshold of up to 34 days per calendar year. Employees who live in one country and work for an employer in the other may work from home in their country of residence for up to 34 days per year without affecting the allocation of taxing rights on their employment income. In such cases, the taxing right remains fully with the employer’s country.

This arrangement applies to regular employees (excluding statutory directors) and is intended for incidental remote working. Employees who exceed the 34-day threshold fall outside this arrangement and remain subject to the regular treaty rules.

Public sector employees (Article 18)

A comparable threshold arrangement has also been introduced for public sector personnel. The amendment clarifies the application of Article 18 and aligns the Dutch and German interpretation of the taxing rights for government employment income. This reduces the risk of double taxation in cross-border (home-working) situations involving public officials.

Future developments

While the amendment represents a positive step towards greater flexibility for cross-border workers, it does not address situations involving structural or long-term remote working. The Netherlands and Germany have therefore signed a declaration of intent to continue discussions on a more comprehensive remote-working arrangement, taking into account earlier EU developments in the field of social security.

If you have any questions about how these changes may affect your specific situation, please feel free to contact us - we would be happy to assist.