Blog post: What are the implications of pseudo-self-employment for the two parties?

In principle, it has greater consequences for the client abroad if the contractor is found to be in pseudo-self-employment. Since, from the point of view of the law, this is in fact an employment relationship, the client is obliged to pay a proportion of the social security contributions for the contractor.

For the contractor, the determination of pseudo-self-employment has no financial consequences, but they must either enter into a “proper” employment relationship with their client abroad or otherwise ensure that the determined pseudo-self-employment is dissolved.

The contractor can solve this by either working for several clients so that they are not financially dependent on a single one, or by registering as an ANobAG if it is indeed an employment relationship with the client abroad.