An employee asks if they can spend six weeks working from their parents’ house in Portugal. Another wants to “do a workation” in Spain over the summer. A third has been working from Italy for a few months already and mentions it casually on a call. Most managers have heard the same reassurance: it’s fine as long as they’re under 183 days.
The 183-day figure is real, but it’s a test from tax treaties, and it only answers one question - whether the employee’s salary becomes taxable in the other country. Immigration, social security, your company’s corporate tax exposure and local employment law each follow their own rules, and several apply from day one. Since 10 April 2026, the EU’s Entry/Exit System has also recorded the days of non-EU nationals on short stays in the Schengen area automatically, so stays that used to go unnoticed now leave a record.
This guide explains each of those rules, where the usual limits sit, and how the rules differ across Peak’s 12 specialist European markets. It’s written for HR, people and finance leads who need to say yes or no to requests to work from abroad, and for founders writing their first work-from-anywhere policy. If the employee is moving for good, an employer of record can employ them in their new country.
The short answer: there’s no single legal limit. Within the EU, short stays of a few weeks are usually manageable from home payroll with an A1 certificate and day tracking. Beyond around three months, or with repeated stays, immigration, tax, social security and permanent establishment risks build up, and employing the person locally is usually safer.
Disclaimer
This article provides general information only and does not constitute legal or tax advice. Tax, social security and immigration rules are country-specific, depend on individual circumstances and change frequently. Always take local advice before approving extended work abroad.
What is the 183-day rule?
The 183-day rule is a test found in most double tax treaties, based on Article 15 of the OECD Model Tax Convention. It says an employee who works temporarily in another country stays taxable only in their home country if three conditions are all met: they’re present in the other country for no more than 183 days in the relevant period (often any 12-month period, sometimes the tax year), their salary is paid by an employer that isn’t resident in that country, and the salary isn’t borne by a permanent establishment the employer has there. Days are counted by physical presence, not working days: under the OECD commentary, any part of a day spent in the country counts, so weekends, holidays and business trips all add to the total. This includes the days of arrival and departure.
Fail any one condition and the other country can tax the salary, potentially from the first day worked there. And the rule only applies where a treaty exists and the employee remains tax resident at home; the other country’s own residence rules can make them tax resident there regardless. For example, an employee who spends fewer than 183 days a year in Ireland can still become Irish tax resident under the 280-day test across two consecutive tax years, and the UK’s Statutory Residence Test can make someone a UK resident with well under 183 days.
The 183 days is a tax test, not a permission
Staying under 183 days doesn't give anyone the right to work in a country, doesn't decide which country's social security applies, and doesn't stop your company creating a taxable presence there. Treat it as one test among several.
The five rules that apply when an employee works abroad
Scroll the table sideways to see every column. Thresholds are general rules and indicative only; treaties and national laws vary.
| Area | The usual threshold | What triggers a problem | Key rule |
|---|---|---|---|
| Immigration | Visa-free non-EU visitors: 90 days in any 180 days across the Schengen area. EU, EEA and Swiss citizens: free movement. UK visitors: incidental remote work for an overseas employer permitted since January 2024 | Working without the right to, or remote work becoming the main purpose of the visit | Schengen Borders Code; UK Appendix Visitor |
| Social security | Within the EU, EEA and Switzerland, one country’s system applies at a time. Home-country cover can continue for temporary work abroad, evidenced by an A1 certificate (posting rules: up to 24 months, subject to conditions) | No A1 in place; habitual work in the other country | EU Regulation 883/2004; the 2023 Framework Agreement on cross-border telework; the UK-EU Trade and Cooperation Agreement protocol |
| Employee income tax | 183 days of physical presence under most treaties, if salary isn’t paid or borne locally | Exceeding the days, a local recharge, or becoming tax resident there | Article 15 of tax treaties; national residence rules |
| Corporate tax (permanent establishment) | OECD guidance: a home office used less than 50% of working time over any 12 months is generally not a place of business of the employer | Long-term or majority working from there, especially concluding contracts or serving local clients | Article 5 of tax treaties; 2025 OECD commentary |
| Employment law | No fixed number of days | Local mandatory rules (minimum wage, working time, holiday) can apply to work habitually done there, whatever the contract says. Temporary work abroad doesn’t, on its own, change the habitual place of work (Rome I, Article 8(2)) | EU Rome I Regulation and national law |
The Framework Agreement doesn't cover workations
The 2023 Framework Agreement on cross-border telework lets an employee who lives in one signatory country and works for an employer in another telework from home for up to 49.99% of their time while staying in the employer country's social security system. It covers people working from their country of residence. It doesn't cover an employee who lives in Ireland taking a two-month workation in Spain. Those cases fall back on the standard EU rules, usually with an A1 certificate.
"Rolling 12 months" means stays add up
Several of these tests count days across any 12-month period rather than per trip or per calendar year. Three separate four-week stays in the same country can add up to the same exposure as one three-month stay.
Short trip, extended stay or permanent move?
Scroll the table sideways to see every column. This is a general guide to where risk usually sits, not a safe harbour.
| Situation | A few days to around two weeks | One to three months | Three to six months, or repeated stays | Over six months, or the main place of work |
|---|---|---|---|---|
| Immigration | Usually fine as a visitor for EU, EEA and Swiss citizens; non-EU nationals within visa-free limits, with remote work kept incidental | Check entry rules; non-EU nationals in Schengen approach the 90-day cap | Non-EU nationals will usually exceed visa-free limits; a permit is likely needed | Residence and work permit needed for non-EU nationals |
| Social security | Home system, with an A1 for EU/EEA/Swiss trips | Home system, with an A1 | Home system may continue with an A1; check the facts | Moves to the new country once it becomes the habitual place of work; a genuine temporary posting can stay on the home system with an A1 for up to 24 months |
| Income tax | Usually home only | Usually home only if treaty conditions are met | Treaty test under pressure; local tax residence possible | Likely taxable in the new country |
| Permanent establishment | Low | Low unless the role is client-facing locally | Rising, especially with repeated stays | Needs a proper review |
| Sensible route | Approve under policy | Approve case by case, with an A1 and day tracking | Take advice; consider local employment | Employ locally - own entity or employer of record |
The honest answer: short stays of a few weeks are usually manageable from home payroll if you get the paperwork right, and refusing every request costs you goodwill for little gain. Beyond about three months, or once stays become a pattern, the cumulative risk across immigration, social security, tax and permanent establishment usually outweighs the convenience. At that point the clean answer is to employ the person in the country where they actually work, through your own entity or an employer of record. And if the employee wants a digital nomad visa instead, note that an EOR can’t employ them on it - see our digital nomad visa guide.
Country by country: Peak’s specialist markets
Scroll the table sideways to see every column. Status is as of October 2026 and subject to change.
| Country | Short stays for visa-free non-EU visitors | Cross-border telework Framework Agreement | Note for employers |
|---|---|---|---|
| United Kingdom 🇬🇧 | UK visitor rules (not Schengen). Incidental remote work for an overseas employer allowed since January 2024; remote work can’t be the main purpose | Not applicable (UK-EU coordination runs under the TCA) | UK-EU social security coordination runs under the Trade and Cooperation Agreement, separately from EU rules |
| Ireland 🇮🇪 | Irish rules (not Schengen); Common Travel Area with the UK | Signed, effective 1 June 2024 | Ireland has no digital nomad visa. Longer stays generally need an employment permit, which requires an Irish employer (such as your own entity or an EOR) or an intra-company transfer |
| Germany 🇩🇪 | Schengen: 90 days in any 180 | Signed (from 1 July 2023) | A1 certificate: A1-Bescheinigung. Framework Agreement applications go to the GKV-Spitzenverband (DVKA) |
| France 🇫🇷 | Schengen: 90 days in any 180 | Signed (from 1 July 2023) | A1 certificate: certificat A1 |
| Spain 🇪🇸 | Schengen: 90 days in any 180 | Signed (from 1 July 2023) | A1 certificate: certificado A1, issued by the TGSS (Tesorería General de la Seguridad Social). Has a digital nomad visa; EOR doesn’t apply to its holders |
| Italy 🇮🇹 | Schengen: 90 days in any 180 | Signed, effective 1 January 2024 | A1 certificate: modello A1. Has a digital nomad visa; EOR doesn’t apply to its holders |
| Poland 🇵🇱 | Schengen: 90 days in any 180 | Signed (from 1 July 2023) | A1 certificate: zaświadczenie A1, issued by ZUS |
| Portugal 🇵🇹 | Schengen: 90 days in any 180 | Signed (from 1 July 2023) | A1 certificate issued by the Instituto da Segurança Social. Has a digital nomad visa; EOR doesn’t apply to its holders |
| Denmark 🇩🇰 | Schengen: 90 days in any 180 | Declined (October 2023) | A separate Denmark-Sweden arrangement allows up to 50% home working for cross-border workers between the two |
| Sweden 🇸🇪 | Schengen: 90 days in any 180 | Signed (from 1 July 2023) | See the Denmark-Sweden arrangement |
| Finland 🇫🇮 | Schengen: 90 days in any 180 | Signed (from 1 July 2023) | - |
| Switzerland 🇨🇭 | Schengen: 90 days in any 180 | Signed (from 1 July 2023) | Swiss social security coordination with the EU follows the EU-Swiss agreement |
Outside Europe, the same five rules apply, but treaty networks, visitor rules and social security agreements vary far more. For stays beyond these markets, check the specific country pair, or see the 180+ countries Peak covers.
Why this matters now
Schengen stays are now logged automatically. The Entry/Exit System has been fully operational at all Schengen border crossings since 10 April 2026, recording non-EU travellers’ entries and exits digitally instead of with passport stamps. ETIAS, the online travel authorisation for visa-exempt visitors, still has no confirmed start date. The EU removed its “last quarter of 2026” target from the official ETIAS portal in July 2026 and says it will announce a date several months before launch.
The OECD has drawn a 50% line for home offices. The 2025 update to the OECD Model Tax Convention commentary, approved on 18 November 2025, says a home or other place an employee works from in another country is generally not the employer’s place of business if used for less than 50% of total working time over any 12-month period. Crossing 50% doesn’t automatically create a permanent establishment, but it does require a closer look, including whether there’s a commercial reason for the person being there. The commentary is guidance, not law, and national tax authorities adopt it at different speeds.
More countries have joined the telework agreement. Estonia became the 23rd signatory of the Framework Agreement on 1 February 2026, following Italy (January 2024) and Ireland (June 2024). Denmark declined to sign; the UK, no longer covered by EU social security coordination, is outside the agreement.
EU social security coordination is being reformed. EU member states confirmed a provisional agreement on 29 April 2026 to revise Regulation 883/2004. It includes a new prior notification obligation for postings, with an exception for business trips and short postings of up to three days, a three-month prior-affiliation requirement before posting, and a two-month break between postings. Most provisions are expected to apply 24 months after publication.
What to do now
Prioritise in this order.
Step 1: Find out who is already working abroad
Ask managers and run a simple, no-blame survey. The biggest risks are usually the arrangements nobody approved.
Step 2: Set a default limit in a written policy
Many employers allow a set number of working days abroad a year, on approval, with destinations limited to countries where the employee already has the right to be. Exclude roles that sign contracts or serve local clients, because those carry the highest permanent establishment risk.
Step 3: Get the paperwork for every approved stay
For work in the EU, EEA or Switzerland, or between the UK and the EU, apply for an A1 certificate before the trip. Check entry rules for the employee’s nationality.
Step 4: Track days, not trips
Record every day each employee is physically present in each country - weekends, holidays and part-days included - across a rolling 12 months, so repeat stays don’t quietly cross a threshold. Track working days separately for the permanent establishment test, which looks at working time.
Step 5: Know when it has become a move
If stays are long, frequent or open-ended, treat it as a relocation and employ the person where they work. An employer of record can employ them locally in the new country while they keep working for you.
Say yes to work from anywhere, safely. Peak is a people-first employer of record and a certified B Corp (December 2025, B Impact Score 90.2). We’re a fully remote team ourselves, with our own entities in 11 European countries and coverage in 180+ countries. When a short stay turns into a move, your named account manager helps you employ your person locally, with all-inclusive pricing from €600 per employee per month, no setup fees and no lock-ins.
Book a call · How our employer of record service works · Why we’re a B Corp
Frequently asked questions
How long can an employee work from another country?
There's no single limit. An employee working temporarily from another country is subject to several separate rules: immigration (for example, 90 days in any 180 for visa-free non-EU visitors in Schengen), social security (home cover can continue with an A1 certificate within the EU), income tax (the 183-day treaty test) and permanent establishment risk (the OECD's 50% home office guideline). Short stays of a few weeks are usually manageable; beyond around three months, or with repeated stays, the risks build up and local employment is often the safer route.
Is it legal to work remotely from another country on a tourist visa?
It depends on the country and on how much work is involved. The UK expressly allows visitors to do incidental remote work for an overseas employer, but not to make remote work the main purpose of the visit. Schengen countries don't apply a single EU-wide rule on remote work during a short stay, and interpretations differ. EU, EEA and Swiss citizens working within the EU, EEA and Switzerland have free movement rights. For anything more than occasional, incidental work, check the specific country's rules.
Does the 183-day rule mean my employee won't pay tax abroad?
Not on its own. Under most tax treaties, salary for work done in another country stays taxable only at home if the employee is there for no more than 183 days in the relevant period, the employer isn't resident there, and the salary isn't borne by a permanent establishment there. If any condition fails, or the employee becomes tax resident in the other country under its own rules, that country can tax the salary. The rule also doesn't apply where there's no tax treaty. Days are counted by physical presence, so weekends and holidays spent in the country count too.
What is an A1 certificate and when does an employee need one?
An A1 certificate confirms which country's social security system applies to someone working in another EU or EEA country, or Switzerland (or between the UK and the EU). If an employee works temporarily in another member state, an A1 issued by their home country shows they remain insured at home, so the host country shouldn't demand local contributions. Employers should apply before the work starts, including for short trips, because some countries check A1s during inspections.
Can an employee working from home abroad create a permanent establishment?
Yes, it can. Under OECD guidance updated in November 2025, a home office in another country is generally not treated as the employer's place of business if the employee works there less than 50% of their total working time over any 12-month period. Above that, it depends on the facts, including whether there's a commercial reason for the employee being in that country, such as serving local clients. Roles that negotiate or conclude contracts carry extra risk. That risk is assessed under a separate test, the dependent agent rule in Article 5(5) of tax treaties, which can apply whatever share of working time is spent there.
What is the EU Framework Agreement on cross-border telework?
The Framework Agreement on cross-border telework, in force since 1 July 2023, lets an employee who lives in one signatory country and works for an employer in another telework from home for up to 49.99% of their working time while staying in the employer country's social security system. Both countries must have signed. It doesn't cover workations in a third country. Denmark has not signed and the UK is outside it; Ireland, Italy and Estonia joined after launch.
When should a temporary stay become local employment?
A temporary stay usually needs to become local employment once it's long-term, open-ended, or the employee's main place of work - roughly beyond six months, or earlier with repeated stays or a client-facing role. At that point the new country's tax, social security and employment law are likely to apply. The usual options are your own local entity or an employer of record, which employs the person locally while they keep working for you.
How can an employer of record help when an employee wants to work abroad temporarily?
For short stays, you usually don't need one. A few weeks of work abroad can normally stay on home payroll if you have a written policy, an A1 certificate for trips within the EU, EEA or Switzerland, and a record of the days spent in each country. An employer of record becomes useful once the stay turns into the employee's main place of work, typically after several months or with repeated, open-ended stays. At that point it employs the person locally in the new country, handling the contract, payroll, tax and social security, while they keep working for you.
