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Cross Border Worker Employed by a German Company

An Irish individual working for a German company came to us seeking advice on her tax obligations. Because she commuted weekly to Germany but resided in Ireland, she was uncertain about her tax obligations and whether taxes withheld from her salary in Germany were final. She also wanted to ensure her social insurance record was up to date.

A man sitting at a desk behind a computer being given a piece of paper with a difficult task to complete.
A man sitting at a desk behind a computer being given a piece of paper with a difficult task to complete.

Problem

  • With a family home in Cork and a regular presence in Ireland, she anticipated being an Irish tax resident. However, as a cross-border worker, tax matters can be more complex than this.
  • With separate tax assessments also being required for her and her Irish resident husband, our client required expert guidance to determine their optimal tax approach while ensuring regulatory compliance.

Process

  • Our team was able to prepare our client’s Irish tax returns for the relevant years, taking into account her status as a cross-border worker. Through careful analysis, we determined that she qualified for trans-border worker relief, which allowed her Irish tax liability to be fully offset by the German tax paid and withheld from her salary.
  • As a result, no Irish tax was due. We also worked closely with her overseas tax advisor to ensure compliance with German tax regulations and ensured that her social insurance contributions were optimised.
A woman writing out a detailed list of procedures on a piece of paper.
A contemplative, worry-free man sitting on a mountain side looking at mountains with a blue sky back drop.
A contemplative, worry-free man sitting on a mountain side looking at mountains with a blue sky back drop.

Outcome

  • Due to our understanding of both Irish and international tax laws, as well as the application of trans-border worker relief, we were able to provide a tailored solution that minimised the client’s tax liability and enhanced their financial well-being.
  • By leveraging our experience, we ensured that the client’s tax affairs were brought up to date, regulatory compliance was achieved, and substantial tax savings of over €20,000 per annum were realised.

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