Do I need a work permit overseas?

This depends on your nationality and the country where you want to work.

The fundamental freedom of movement of workers guaranteed by the European Union, the European Economic Area (Iceland, Liechtenstein and Norway) and Switzerland, provides a huge labour market open for European citizens who have the same rights as locals.

This freedom of movement is fully applicable between the first 15 Member States of the EU (Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxemburg, Netherlands, Portugal, Spain, Sweden and the United Kingdom – EU 15); Cyprus and Malta who joined on 1 May 2004, the EEA Member States and Switzerland (thanks to bilateral agreements between the EU and Switzerland, extended to the EEA).

On the other hand, the right to free movement of workers from, to and between the Member States that joined the EU on 1 May 2004 (Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia, Slovakia – EU 10) and on 1 January 2007 (Bulgaria, Romania) may be restricted during a transitional period of maximum seven years after accession.

The EU-10 States apply the full freedom of movement between each other and, except for Hungary which applies reciprocal measures, have opened their labour markets to citizens from the EU-15 and EEA States and Switzerland.

Bulgaria and Romania have also opened their labour markets completely to citizens from all Member States of the EU and EEA and Switzerland.

Regarding the accession of 10 New Member States on 1 May 2004, 11 Members of the EU15 have opened their labour markets completely: Finland, France, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden and the United Kingdom.

Austria, Belgium, Denmark and Germany still apply transitional rules and citizens from the EU-8 countries (EU-10 less Cyprus and Malta) need work permits. In general, the procedures to obtain work permits have been simplified.

Hungary is the only EU-8 country which still uses the possibility of reciprocal measures, meaning that citizens from Austria, Belgium, Denmark, Germany and Norway still need to go through some work permit application procedure.

During the first transitional period for Bulgaria and Romania (1 January 2007 until 31 December 2008), ten EU-25 Member States (Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Poland, Slovenia, Slovakia, Finland and Sweden) have liberalised the access of Bulgarian and Romanian workers to their labour markets under national law. In Finland, Cyprus and Slovenia, employment must subsequently be registered for monitoring purposes.

The remaining EU-25 Member States have maintained work permit systems, albeit sometimes with modifications and simplified procedures.

For more information on individual situations, please either consult our International Tax Guides or contact us.