Working from Home Across Borders: What Expenses Can Your Company Reimburse?
October 2026 - Working from home involves costs for both employees and employers. But if you manage an international team, you’ll have to deal with different tax rules. After all, Belgium, the Netherlands, France, and Germany each have their own amounts, conditions, and exemptions.
Belgium: Flat-Rate Allowance for Fixed Costs
In Belgium, employers can grant a flat-rate work-from-home allowance to employees who work from home on a regular basis. In practice, this means, on average, at least one full day per week, two half-days per week, or one full week per month.
For 2026, the maximum lump-sum allowance is 160.99 euros per month. This amount is considered compensation for costs incurred by the employer and is exempt from taxes and social security contributions under certain conditions.
In addition, several specific allowances are available:
20 euros per month for the use of a private internet connection
20 euros per month for the use of a personal computer and peripherals
10 euros per month when only private peripherals are used
The monthly work-from-home allowance covers, among other things, costs for the workspace, utilities, and office supplies. For certain purchases, the employer may also reimburse the actual costs. Examples include an office chair, desk, lamp, keyboard, or mouse. This is possible if, as an employer, you also provide such equipment at the regular workplace.
Netherlands: Allowance per Day of Remote Work
The Netherlands has opted for a different system. Starting in 2026, employers there will be able to provide a tax-free allowance of 2.45 euros per day of remote work. This arrangement is separate from any tax-free allowances for IT equipment.
Internet costs may also be reimbursed. This may be done on a pro-rata basis based on the number of days the employee works from home. In the case of a combined subscription for internet, telephone, and television services, only the portion covering the internet connection may be taken into account.
In addition, there is an exemption for so-called occupational health and safety provisions. This refers to aids that support the safety and ergonomics of the home workspace, such as an ergonomic office chair, footrest, or computer glasses.
The Netherlands also distinguishes between a regular workspace in the home and a formal workplace. The latter must, among other things, have its own entrance and restroom facilities and be used effectively for work. If the conditions are met, certain amenities at that workplace may be treated as having a zero value for tax purposes.
France: Registration Is Essential
France also uses a flat-rate allowance for working from home. For 2026, a maximum of 2.70 euros per day worked from home can be granted tax-free. For employees who work entirely from home on a regular basis, this amounts to a maximum of 59.40 euros per month.
Under certain conditions, a sector-specific collective bargaining agreement or interprofessional agreement may result in a higher tax-exempt monthly amount, up to 72.60 euros.
As an employer, you must also keep accurate records of the days worked from home. The allowance cannot simply be combined with certain other daily or travel allowances. The professional use of personal IT equipment may also be reimbursed. For flat-rate subscriptions, a maximum of 55.20 euros per month may be granted for this purpose. However, this reimbursement cannot be added to the flat-rate allowance for working from home if that allowance already covers the use of personal IT equipment.
Germany: Less Leeway for a Work-from-Home Flat-Rate Allowance
Germany takes a much more cautious approach. There is currently no general tax-free allowance for working from home.
However, there is the option of a flat-rate allowance for the professional use of a personal phone line. Under this arrangement, 20 percent of the subscription costs can be reimbursed, up to a maximum of 20 euros per month.
Internet costs can also be reimbursed, but that reimbursement is generally taxable. Under certain conditions, the employer may choose to pay a flat-rate tax of 25 percent itself, thereby exempting the employee from taxes and social security contributions on that benefit.
A Single Work-from-Home Policy for Four Countries?
For a company with employees in different countries, a single, uniform policy is therefore not a given. Even when employees perform similar work and work from home for the same number of days, the tax implications can vary.
An international work-from-home policy therefore requires attention to factors such as:
the country where the employee works
the number of days worked from home
the IT resources used
internet and phone costs
the setup of the home office
the conditions for lump-sum allowances
An amount that can be granted tax-free in Belgium is not automatically as advantageous in the Netherlands, France, or Germany. For SMEs with cross-border workers, foreign branches, or employees who regularly work from abroad, it is therefore worthwhile to take local regulations into account when developing a work-from-home policy.
