Remote work Poland-Norway – what is the best way to settle accounts?

It happens that Poles receive an offer of remote work in Norway. Or the other way around: Poles living in Norway want to work remotely for a Polish employer.

We then ask ourselves: how do I have to settle this with the office? In which NOKaj do I have to pay my contributions? What does it look like with tax? How can I do this so that it is most beneficial for me?

You will find the answers to these questions in this article.

The most important rules

• As a rule, we should pay social security contributions only in one country. If you have a job/company in both Poland and Norway, you should pay ZUS only in NOKaj, your tax residence.
• We should also pay income taxes depending on the place of tax residence, place of work and form of settlement (employment or B2B - own company).

 

 

Remote work from Poland for a Norwegian employer

 This is one of the most common situations among our compatriots, often in the IT sector.

Assuming that our tax residence is in Poland and we do not have a company in Norway, we are left with 3 additional options:

1. We set up a business in Poland or use the one we already have and settle accounts with the employer by issuing invoices. This is the simplest and most common method of settling accounts with a foreign employer.
   • If we have a company only in Poland, we also pay ZUS only in Poland.
   • In this situation, we also pay income tax only in Poland.
2. We are employed in a Norwegian company as a foreign employee. This causes additional difficulties and complications:
   • We must register in Poland as a payer of ZUS contributions and report to ZUS every month on our own or with the help of an accountant.
   • We also have to additionally pay income tax advances for ourselves, as if we were our own employer.
   • We should send an A1 document to Norway (obtained from ZUS). This document exempts us from social security contributions.
   • We also send a letter to the Tax Office in Norway (Skatteetaten) exempting us from taxes.
   • In this situation, the employer transfers the total gross amount to our account and we settle it with the office.
   • We include all income in the Polish settlement and tax it here.
3. We are employed in the Polish branch of a Norwegian company. It only applies when a Norwegian company has a branch in Poland.
   • In this case, ZUS contributions, advance payments and tax are normally paid by the employer. Exactly as if we were working for a Polish employer.

Remote work from Norway for a Polish employer

 Also a common situation when, for example, our partner works in Norway and we want to live with him without giving up work in Poland. In such a situation:

1. The most advantageous solution will be to establish a sole proprietorship company in Norway, the so-called enkeltpersonforetak. Above all, this allows us, apart from simplifying accounting and taxes, to avoid restrictions resulting from the Labor Code, such as restrictions on working hours or holidays. With this form of cooperation:
   • If we have a company only in Norway, we pay social security contributions only in Norway.
   • All earnings should be taxed in Norway, and if we also work partially in Poland and have tax residence there, the income from Poland should also be taxed in Poland.
2. We are employed in the Norwegian branch of a Polish company. This only applies if a Polish company has a branch in Norway.
   • In this case, contributions, advance payments and tax are normally paid by the employer. Exactly as if we were working for a Norwegian employer.

There are, of course, more solutions, but they can be problematic and not very profitable. The ones presented above are definitely the simplest and most profitable.

Questions? If you would like to consult your case individually, you can use the contact tab and write or call us.