When taking up dependent employment or self-employment in another EU Member State, the key question is which social security system applies and where insurance coverage is compulsory. Central importance is attached to Regulation (EC) No 883/2004 of 29 April 2004 on the coordination of social security systems (as amended by Regulation (EC) No 988/2009 of 16 September 2009).
Under Article 11(1) of Regulation 883/2004, the basic rule is that, for an activity carried out within the EU, a person is subject to the legislation of only one Member State. The specific Member State whose legislation applies is determined by Articles 11 et seq. of the Regulation.
Note: This guidance is also available as a PDF titled “Rules on compulsory social insurance when taking up work in another EU country.”
1) Activity or employment in only one Member State
Where a person pursues dependent employment or self‑employment in only one Member State, Article 11(3)(a) provides that they are subject exclusively to the legislation of that State. However, the person may remain insured under their original system if an exception under Articles 12 et seq. applies. In particular, the Regulation provides exceptions for:
- secondment of employees for no longer than 24 months, and
- temporary self‑employment in the territory of another Member State (self‑secondment) for no longer than 24 months.
In detail:
a) Secondment of employees
Article 12(1) requires the following conditions to be met:
- an employment relationship with an employer in one Member State;
- an actual secondment;
- continued employment with the sending employer during the secondment; and
- a time-limited assignment.
To avoid improper social security contributions being levied in the host country, the employee can present an A1 certificate to the competent social security institution in the host State as proof that the legislation of the sending State applies.
For persons insured under the statutory scheme, A1 certificates are issued by their health insurer.
Voluntarily insured persons must apply to the German Pension Insurance (Deutsche Rentenversicherung Bund).
b) Temporary self‑employment in another Member State
For self-employed persons who temporarily work in another Member State, Article 12(2) provides for the continued application of the legislation of the original (sending) State, provided that the anticipated duration of the activity does not exceed 24 months.
Any extension beyond this 24-month period requires the approval of the competent authority in the host State.
c) Exceptional agreements
If it is clear from the outset that the activity in another Member State will exceed 12 months, an exceptional agreement may be concluded under Article 17 of Regulation (EEC) No 1408/71 (a legacy provision), provided that the activity is not intended to be permanent.
Applications for such agreements must be submitted to the DVKA (Deutsche Verbindungsstelle Krankenversicherung – Ausland) in Bonn.
In practice, most Member States agree to exemptions from their national legislation for periods of up to five years..
2) Activity or dependent employment in more than one Member State
For both employees and self-employed persons who are active in more than one Member State, the general rule is as follows:
- If the person also pursues their activity in their State of residence, they are subject to the legislation of that State.
- If no activity is pursued in the State of residence:
- Employees are insured in the State where their employer is established.
- Self-employed persons are insured in the State where they pursue their principal activity.
3) Simultaneous employment and self‑employment in different Member States
As a rule, Article 13(1) of Regulation (EC) No 883/2004 assigns a person’s overall activity to the legislation of the State governing their dependent employment.
However, where self-employment is pursued in certain Member States (e.g., Greece), Article 13(3), in conjunction with Annex VII, allows for dependent employment and self-employment to be subject to the legislation of different States.
(Status: March 2013. All information without guarantee.)