Working in the European Economic Area

Special rules made under the European Community Treaty protect your rights when you work in the European Economic Area (EEA) if you are:

An EEA national; or Stateless person or refugee permanently living in the EEA

If you are not a national of an EEA country or a Swiss national but are moving between these countries to work you may also be covered by these special rules if you are legally resident in an EEA country.

Tell me about:

The main European Economic Area rules for:

Employees

The main rules made under the European Community Treaty that determine where you pay contributions when you work in the EEA or Switzerland:

Basic rule – You pay contributions in the country where you work

If you work in another EEA country or Switzerland for an EEA or Swiss employer (this includes a UK employer), you are usually insured under the social security laws of the country you work in. You will not usually have to pay UK National Insurance contributions. But this may not always be the case.

If you are taken on by a UK employer when you are resident abroad, you will not have to pay UK National Insurance. You will be insured under the social security scheme of the country you work in.

Exception for people sent to work in an EEA country or Switzerland for up to 12 months

Your UK employer may send you to work in another EEA country or Switzerland. If the work there is not expected to last for more than 12 months, you will usually carry on being insured in the UK and have to pay National Insurance in the UK. Your UK employer should apply for form E101 from HMRC Residency (Newcastle) before you go.

Employment that unexpectedly lasts for more than 12 months

If your job in another EEA country or Switzerland lasts longer than 12 months, although you did not expect it to, you can carry on being insured under the UK scheme for not more than another 12 months. But this is only if the insurance authorities of the country you are working in agree to this extra time. The UK employer must ask for this extra time. They must ask before the end of the first 12 months you are working in the other EEA country or Switzerland. They need to apply for form E102 from HMRC Residency (Newcastle).

Where you are covered by an E102 you and your employer will continue to pay National Insurance in the UK and be exempt from paying contributions in the other country.

Special groups

There are special EEA rules for Mariners working on vessels flagged in an EEA country.

If you are from the UK and in one of the following groups you will be required to continue to pay contributions to the UK and be exempt in the country you are going to. Before going abroad you or your employer should contact HMRC Residency (Newcastle) for advice.

  • Civil Servants
  • Members of Her Majesty's (HM) Forces, civilians who work for an organization that serves HM Forces, or for HM Forces in Germany.

People who work in diplomatic missions, consular posts and people who work for a member of the staff of a diplomatic or consular post, who are UK nationals, are able to remain in the UK scheme.

There are also special rules for certain groups including:

  • People who normally work in two or more EEA Member States
  • International Transport Workers (e.g. aircrew, train drivers ) who normally work in two or more EEA Member States
  • People who are simultaneously self employed in one country and employed in another; and
  • Frontier workers – where your employer has its registered office or place of business on the border between UK and the Republic of Ireland.

If you are in one of these groups, where you pay your contributions will be determined by where you live, where you perform your duties or where your employer is based. Before going abroad you or your employer you should contact HMRC Residency (Newcastle) for advice.

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Self Employed

The main rules made under the European Community Treaty that determine where you pay contributions when you work in the EEA or Switzerland:

Basic Rule - You pay contributions in the country where you work

The basic rule is that a person who is self-employed in an EEA member State is insured in that country. However, there are exceptions to this rule.

Exception for people who work in an EEA country for up to 12 months

If you are normally self-employed in the UK and go to work in another EEA Country and do not expect to be there for more than 12 months, you will carry on being insured under the UK National Insurance scheme. To qualify you must have significant activities in the UK.

You will have to pay Class 2 and possibly Class 4 NI contributions as if you were still in the UK. You will not have to pay into the scheme of the other EEA country.

Before you start work abroad you should apply for form E101 from HMRC Residency (Newcastle).

Self-employment that unexpectedly lasts for more than 12 months

If your job in another EEA country lasts longer than 12 months, although you did not expect it to, you can carry on being insured under the UK scheme for not more than another 12 months. But this is only if the insurance authorities of the EEA country you are working in agree to this extra time. You must apply for form E102 from HMRC Residency (Newcastle).

You will have to pay Class 2 and possibly Class 4 NI contributions as if you were still in the UK. You will not have to pay into the scheme of the other EEA country.

You must ask to carry on being insured under the UK scheme before the end of the first 12 months of your work. You will need to fill in form E102.

Normally self-employed in two or more EEA countries

If you are normally self-employed in two or more EEA countries, you will be liable to pay social security contributions to the insurance scheme of the country you live in. But you must do some of your work there.

If you do not do any of your work in the country you live in, you will be liable to pay social security contributions to the scheme of the country where you do most of your work. But if this means you will not accrue entitlement to a state pension based on the payment of social security contributions, then you will be liable to pay social security contributions to the insurance scheme of one of the other countries in which you are self-employed.

For advice about this you should contact HMRC Residency (Newcastle).

Where you are UK insured under these rules you will be eligible to apply for form E101. You will have to pay Class 2 and possibly Class 4 NI contributions as if you were still in the UK. You will not have to pay into the scheme of the other EEA country.