Newly regulated home office provision between Germany and the Netherlands

The home office provision in the Income Tax Treaty between Germany and the Netherlands came into effect on January 1, 2026. The amending protocol of April 2025 was ratified on November 28, 2025, and officially promulgated in mid-December 2025 in the Federal Law Gazette (BGBl. 2025 II No. 307 of December 19, 2025).

Pursuant to the new Article 14(1a) of the Income Tax Treaty, employees may work from home for a maximum of 34 working days per calendar year in a home office located in their state of residence or in a third country without triggering taxation of those working days in the state of residence. However, the so-called 183-day rule under Article 14(2) of the Income Tax Treaty continues to take precedence.

It should be noted that a (home office) working day is deemed to exist if the employee works from home for at least 30 minutes. Accordingly, careful documentation of home office days is recommended. Special rules apply, for example, to on-call duties, payments during leave of absence, and employment in the public sector.

The amendment to the Germany–Netherlands Income Tax Treaty follows similar provisions already included in other income tax treaties, such as the Germany–Luxembourg Income Tax Treaty. Overall, it creates greater clarity for employees and employers and reduces the administrative burden for affected companies. At the same time, it reflects the new realities of the modern working environment. However, it should be borne in mind that the social security assessment may still differ from the tax assessment and should in any event be reviewed separately.