With part-time and freelance employment more common, employees may find themselves in situations where different countries’ rules on social security, taxation and employment legislation apply.
Social security and health insurance for persons working in more than one country
Persons who work in two or more countries at the same time are generally covered by the social security of their country of residence, if they also work in that country. So if you live and work in Finland and you also work in another EU/EEA country, you are generally covered by Finnish social security. Then for example if you fall ill you can get sickness allowance from the Social Insurance Institution of Finland, and you will also get any parental benefits from the Social Insurance Institution of Finland.
If your employment in Finland is not extensive (at least 25% of all the work you do), you are covered by the social security of your employer’s domicile. In this case it is necessary for your employer to be the same both in Finland and the other country. If you have different employers in Finland and the other country, you are covered by the social security of your country of residence.
In the situations above you can apply to the Finnish Centre for Pensions for certificate A1 to prove that you are covered by social security in Finland.
If you are covered by social security in your country of employment, you are also covered by health insurance in your country of employment. You are nonetheless entitled to use the services of the Finnish public health service on the same conditions as persons insured in Finland. Ask Kela for a Certificate of entitlement to medical care in Finland. This proves your right to medical care in the public health service.
Persons covered by health insurance in non-Nordic EU/EEA countries need to request a health insurance certificate (S1) from the health insurance institution of their country of employment and send it to the Social Insurance Institution of Finland for registration.
More information available from the Social Insurance Institution of Finland.
Social security contributions in Finland
Persons covered by Finnish social security pay health insurance contributions to Finland for the insured person of around 2% of earned income. Employers pay the contribution and deduct part of it from the employee’s pay.
Health insurance contributions may often be charged to insured persons even though their earned income is not taxed in Finland. Health insurance contributions can also generally be charged to the earned income of persons with limited tax liability (living abroad).
Health insurance contributions are not charged from the pay of persons coming to work in Finland from another country if they come with certificate A1.
If you become unemployed
If you become unemployed whilst working in more than one country at the same time, you can apply for unemployment benefit from the country where you are covered by social insurance. This is also the procedure to be followed if you lose your job in the country whose social insurance system you do not belong to.
Taxation of persons working in more than one country
Regarding taxation, the main rule is that a person remains generally liable for taxation in the country that is considered the person’s primary country of residence. If, however, a person works in another country for more than half the year (183 days or more in a year), the person’s country of tax residency (generally liable for tax) can move to this country of employment. You can be generally liable for tax in only one country at a time.
Tax residency means that a person must declare their income from all countries to the tax authority of the country where they are generally liable for tax. However, Nordic agreements prevent so-called double taxation, meaning that income that has already been taxed in another Nordic country cannot be taxed again in Finland. Income earned in other Nordic countries must nonetheless be declared in the Finnish tax declaration if a person is generally liable for tax in Finland.
You are non-resident for tax (liable to tax, but with restrictions) in those countries where you are not resident for tax (generally liable for tax). Tax non-residency means that a person is liable for tax only on income from the country concerned and does not need to submit a tax declaration at the end of the year.
If you need more information on taxation, take a look at the Nordic Tax Portal.
A person who works daily in one country and lives in another country and returns home at least once a week is considered a frontier worker. The unemployment insurance of a frontier worker is in the country where the person works. Frontier workers are covered by special rules for frontier workers. Frontier workers generally pay tax in their municipality of residence only. Read more in the article Unemployment insurance for frontier workers:
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NB! If you have questions regarding the processing of a specific case or application, or other personal matters, please contact the relevant authority directly.