Last updated: 15 September 2026
Yes, an employee can move abroad and keep their job, but not on your UK payroll alone. Once they live and work in another country, its tax, social security and immigration rules apply. In Sweden, for example, the full employer contribution is 31.42% on top of gross salary, per Skatteverket. Someone registered in that country has to run that payroll.
You have two ways to keep them. You can set up your own company in the new country, or an employer of record (EOR) can become their legal employer there. An EOR employs people in other countries on your behalf, while they keep doing the same job for you. This guide covers Finland, Sweden, Portugal, Ireland, the Netherlands, Belgium and Luxembourg.
What has to be true before they move?
Three things must be true before the move: the right to work, a local employer, and no new tax problem for your company. Miss one and the move can go wrong for you, the employee or both, so check all three early.
First, they need the right to live and work there. EU nationals generally do not need a work permit anywhere in the EU, per the European Commission's Your Europe guide. UK citizens are no longer EU nationals, so most will need one. Ireland is the exception. Under the Common Travel Area, British citizens can live and work there.
Second, a registered employer in that country must run their payroll. UK payroll only meets your UK duties. HMRC's guidance on working in the EU says you will usually pay social security in the country you work in. Its guide on paying employees working abroad warns that the other country's tax authority may want to take tax from their pay.
Third, their work must not create a taxable presence for you, called a permanent establishment. What the employee does, and whether they sign deals for you, can matter. Our guide to paying an overseas employee from a UK company explains the risk.
What it costs in each country
What you pay on top of salary depends on the country. Sweden's full employer contribution of 31.42% is the largest single rate here. Portugal adds 23.75% and pays salary in 14 instalments a year, so a year costs more than twelve months of pay.
Some countries charge one combined rate. Others split the cost into lines for pension, health and unemployment. The table shows the main 2026 employer lines and the usual permit route for someone from outside the EU and EEA.
| Country | Employer costs (2026) | Permit route (non-EU/EEA) | Breakdown |
|---|---|---|---|
| Finland | TyEL pension 17.10% average, health 1.91%, unemployment from 0.31% | EU Blue Card or specialist permit | Cost breakdown |
| Sweden | Full employer contribution 31.42% | Work permit or EU Blue Card | Cost breakdown |
| Portugal | Social security (TSU) 23.75% | Residence visa for work as an employee, then a residence permit from AIMA | Cost breakdown |
| Ireland | PRSI 11.25%, then 11.40% from 1 October 2026 | Critical Skills Employment Permit. British citizens need none. | Cost breakdown |
| Netherlands | No single rate. Several employer insurance contributions, some set per employer. | Highly skilled migrant permit, through an IND-recognised employer | Cost breakdown |
| Belgium | Basic rate 25% (private, for-profit), plus smaller extra contributions | Single permit, applied for by the employer | Cost breakdown |
| Luxembourg | Pension 8.5%, health 2.8% plus 0.25% | EU Blue Card | Cost breakdown |
Sources for costs: Finland: ETK, Vero and the Employment Fund. Sweden: Skatteverket. Portugal: gov.pt and the Labour Code. Ireland: gov.ie. Netherlands: Belastingdienst. Belgium: National Social Security Office. Luxembourg: Gouvernement.lu and Guichet.lu.
These are the main employer lines only. They leave out job-based accident insurance and the employee's own deductions. To model a real salary, use the employer cost calculator. It shows the full cost and what the employee takes home.
Which work permit will they need?
An EU national needs no work permit in these seven countries, but most other people need one before they start work. British citizens moving to Ireland are the main exception. A permit is often the slowest step, so find the route before you agree a move date.
In most of these routes, the employer in that country applies for the permit or must be registered there. That matters when your company has no presence in the country, because the application usually needs a local employer behind it. Decision times vary by country and route.
Moves also tend to arrive with little warning. Get the move date in writing, and check the permit route before the employee gives up their home. Set the contract start date by the permit, not the flight. Which route fits depends on the person and the role.
How an employer of record keeps them
An employer of record keeps them by becoming their legal employer in the new country, while they keep working for you day to day. You agree the new salary and terms with the employee first. The EOR then issues a local employment contract that meets local law, and runs local payroll each month.
Their UK employment ends when the new contract starts, so plan notice, holiday and benefits with them before the switch. After that, the EOR takes local tax from their pay and pays social security. You still set their work, their goals and their place in your team.
If you plan to build a lasting team in that country, your own company there can cost less at some point. That point depends on the country, salaries and headcount, so there is no single number. You can test your own numbers in the crossover calculator. If your whole business is moving, read our guide to relocating a business without a local entity instead.
Every move depends on the person, the role and the country. Talk to an Expert at Teamed to work through yours.