Workation describes combining work and holiday, usually abroad. There is no legal entitlement; it rests on an agreement. Key topics are social insurance (A1 certificate within the EU/EEA), tax and the 183-day rule including the risk of a taxable permanent establishment (Betriebsstätte), residence and work permits outside the EU, the applicable labour law with the ArbZG and occupational safety, and data protection. A clear policy and a limit on duration are advisable.
At a glance
- No statutory right: a workation requires an explicit agreement
- Social insurance (Sozialversicherung): within the EU/EEA an A1 certificate (A1-Bescheinigung) is usually required to prove continued membership of the German system (EU coordination, SGB IV)
- Tax: the 183-day rule and any double taxation treaties must be checked; there is a risk of a taxable permanent establishment (Betriebsstätte) of the employer
- Outside the EU, residence and work permits must also be clarified
- Labour law: the applicable law, the Working Hours Act (Arbeitszeitgesetz, ArbZG) and occupational safety still apply, as does data protection
- A clear policy and a limit on duration are advisable
What employers should watch
- Social insurance: apply for the A1-Bescheinigung before departure (EU/EEA); outside the EU, separate rules or social security treaties govern
- Tax: 183-day rule and permanent-establishment risk; regular decision-making or contract-signing abroad can create a Betriebsstätte
- Residence: check visa or work permit outside the EU
- Working time and safety: ArbZG and duty-of-care obligations continue; manage time zones and availability
- Data protection: secure access to personal data from abroad
FAQ
Is there a right to a workation?
No. A workation is a voluntary offering based on agreement. Employers can set the conditions, eligible countries and duration in a policy.
What is the A1-Bescheinigung about?
Within the EU and EEA, EU law coordinates which social insurance system applies. The A1 certificate proves that a person remains subject to the German system. It should be applied for before the workation begins.
What does the 183-day rule say?
Broadly, a stay abroad of fewer than 183 days often keeps taxation in Germany. The rule applies only under further conditions and is shaped by double taxation treaties; it does not replace a case-by-case assessment.
What is the permanent-establishment risk?
If a person regularly exercises decision-making authority abroad or concludes contracts there on behalf of the company, the local tax authority may assume a taxable Betriebsstätte of the employer, even if the person stays below the 183-day threshold.
Last updated: August 2026
This article provides general information and is not a substitute for legal advice in individual cases.
