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Compliance & Legal

Hiring or relocating employees across borders involves much more than immigration and tax.

Employment law, payroll, social security, corporate registrations, permanent establishment, taxation, posted worker regulations and local compliance all need to work together.

At Relocare, we help companies navigate this complexity.

Some organisations only need advice on a specific compliance issue. Others need a partner to manage the entire process—from the first planning meeting until the employee and family are fully settled.

Our consultants combine practical relocation experience with specialist knowledge in immigration, taxation, employment law, payroll and international compliance. Together with Relocare Sweden AB and our carefully selected international partners, we support companies across the Nordic region and around the world.

Whether you are hiring one specialist in Denmark, expanding into Sweden, establishing activities in Norway or managing assignments across multiple countries, we help you build the right solution—while ensuring compliance for both the company and the employee.

Explore our areas of expertise

International expansion starts long before the employee boards the plane.

Successful Global Mobility is about much more than arranging a relocation. Before an employee starts working in another country, companies need to consider employment law, immigration, taxation, payroll, social security, permanent establishment (PE), corporate registrations and local compliance.

The right solution depends on both the assignment and the country.

Should the employee be hired locally or seconded? Is there a Permanent Establishment risk? Is a local entity required? Which country’s social security legislation applies? Should local payroll or Shadow Payroll be established?

These decisions should be made before the assignment begins—not after.

At Relocare, we help companies build the right compliance framework from the outset. Through Relocare Sweden AB, our Nordic expertise and our carefully selected international partners, we coordinate every aspect of international employment while providing one dedicated point of contact.

Our role is simple:

We reduce compliance risk, simplify international employment and ensure that both the company and the employee get off to the right start.

Read more about Global Mobility Management →

When employees cross borders, employment obligations follow.

International assignments are about far more than moving employees from one country to another. Employment law, taxation, social security, payroll, immigration and local compliance all influence how an assignment should be structured.

Should the employee remain employed in the home country or be hired locally? Which country’s employment law applies? How should salary, holiday entitlement, pensions and benefits be handled? Will immigration rules require changes to the employment contract?

At Relocare, we help companies build compliant international employment structures that protect both the business and the employee—before the assignment begins.

Read more about Secondments & Employer Law →

Tax, net salary and lifestyle planning before the candidate says yes

The right candidate does not simply choose a job. They choose a financial and personal future for themselves and their family.

Relocare gives international candidates a realistic understanding of their tax position, expected net salary, social security and the cost of the life they want to build in Denmark.

Through personalised calculations and a guided desktop meeting, we explore real housing options, schools, insurance, transport, leisure activities, travel home and other priorities that matter to the individual family.

By the end of the process, both the employer and the candidate understand the financial framework of the offer and what the salary can realistically support.

Greater clarity creates more confident decisions—and stronger recruitment and retention.

Read more about Candidate Attraction & Decision Support

Immigration that supports both compliance and the employee experience

International employees need to be able to start work quickly and confidently – without the company compromising on compliance.

At Relocare, we provide work and residence permit services as an integrated part of Global Mobility. We look beyond the immigration application itself and consider the employee’s entire assignment, the family’s needs and the company’s overall compliance obligations.

One Global Mobility setup – complete transparency

Local specialists in Denmark and Sweden

Relocare’s own specialists manage all communication with the relevant authorities, work and residence permits, and local registrations, including CPR registration in Denmark and personal identity number registration in Sweden. We provide nationwide support across both Denmark and Sweden.

Global expertise – local specialists

Through our international partner network, we work with carefully selected, owner-managed immigration law firms, immigration specialists and relocation companies with extensive experience, comprehensive professional insurance and proven track records. Together, we support international assignments throughout Europe, North America, Asia-Pacific and many other destinations worldwide.

Relocare is your single point of contact. We coordinate home country departure, host country immigration, taxation, social security and relocation into one integrated Global Mobility solution.

Since 2014, we have operated with a transparent service fee. We do not receive or pay referral fees or hidden commissions to our partners.

Why choose Relocare?

Immigration legislation changes continuously, and even small mistakes can have significant consequences for both employers and employees.

Relocare combines immigration expertise with in-depth knowledge of Global Mobility, taxation, social security and relocation. This enables us to deliver compliant solutions that support the entire international assignment—not just the immigration process.

We offer

  • More than 20 years of experience in Danish immigration and Global Mobility
  • Specialist advice for HR, Global Mobility teams and international employees
  • Experience ranging from individual specialists to large international project teams
  • Close cooperation with SIRI, the Danish Immigration Service and other relevant authorities
  • Immigration integrated with relocation, tax, social security and payroll
  • Advice before, during and after the employee’s relocation to Denmark

We do not only focus on obtaining a work permit. We look at the employee’s entire assignment and help companies establish compliant solutions that work both now and in the long term.

At Relocare, our objective is not simply to secure an approved permit. Our goal is to help companies make the right decisions before, during and after an international assignment, allowing both the business and its employees to focus on what matters most—a successful international employment experience.

Denmark–Sweden Cross-Border Employment

Cross-border employment between Denmark and Sweden involves far more than determining where tax should be paid. Employers must also consider social security, payroll, expatriate tax regimes, remote working, employment structures and ongoing compliance in both countries.

Relocare provides integrated advice to HR, Global Mobility, Payroll and Compensation & Benefits teams, helping organisations establish compliant cross-border employment solutions that work in practice—for both the business and the employee.

Read more here

Mobility, Assignments, Business Travelers, and Commuters

When businesses operate across borders, there are significant taxation and compliance consequences for both employees and employers. For employees, working internationally may trigger foreign tax liabilities, administrative obligations, and strict compliance requirements. For employers, it is essential to establish a clear strategy that ensures tax compliance and minimizes financial risks, unexpected costs, and potential legal challenges.

There is a growing global focus on securing tax revenues and proper social security coverage, which places increased demands on companies to stay compliant. This is driven by international trade, digitalization, web-based services, seamless global access, and open borders.

At Relocare, we have a dedicated team with many years of experience in global mobility, international taxation, business travel, and international assignments. We offer tailored advice that ensures full compliance and peace of mind for both employees and companies.

Our expertise ensures:

*Clear understanding of complex cross-border tax regulations

*Effective management of compliance processes

*Risk mitigation and reduced financial exposure

*Practical support for employees and HR teams

We help you find practical, compliant, and cost-efficient solutions that support your international activities and ensure a smooth mobility process for employees, whether it’s an international assignment, regular commuting, or business travel.

Click here today if you need professional support in international taxation, global mobility, and tax compliance.

Employer’s Social Security Obligations and the Importance for Assignments

The employer’s obligation to pay social security contributions follows the coverage. Since contributions can range from minimal to up to 20-40% of the salary, it is crucial to determine the social security jurisdiction before an assignment begins. This enables optimal structuring of salary packages and accurate cost management for projects or other work-related tasks.

Relocare Assists with Social Security Planning and Compliance

At Relocare, we provide expert advice and calculations for social security for companies, employees, and their families. We assist with applications, assess assignment length, purpose, and policies—always in close connection with tax and labor law considerations.

We can help with:

*Drafting employment contracts and assignment agreements

*Contract wording aligned with assignment policies and local employment or collective agreement requirements

*Calculating social security contributions in the host country

*Applying for social security coverage or maintaining coverage in the home country

‘Registering individuals and companies

*Advising on social rights at home and abroad, including EURES transfers

Social Security for Business Travelers – A Legal Requirement

For all business travelers, social security coverage is mandatory. Companies must ensure that employees carry a valid A1 certificate for every business trip—even short day trips. The A1 certificate confirms the right to maintain social security in the home country while working abroad.

Failure to have a valid A1 certificate can result in hefty fines and compliance issues for the company, as well as risk loss of employee benefits such as unemployment, sickness, and maternity benefits. This is also confirmed by the Danish Employers’ Association in their publication “Jobs Abroad” (as of 01/02/2020).

Differences in A1 Application Processes Across Europe

Although the A1 application form is standardized across Europe, data requirements and application procedures differ by country. Some require manual submission, but most now offer online application options. The EESSI system facilitates efficient data exchange between countries.

Posted Workers Directive

The Posted Workers Directive is an EU regulation ensuring that workers temporarily sent by their employer to another EU/EEA country are protected under fair working conditions.

A “posted worker” is not a local hire – they remain employed by a company in one country but perform services in another EU/EEA country for a limited time.

 

How Relocare helps organisations stay compliant

Automated Decision Tool

*Employees answer a few key questions when a travel is registered — about their trip’s duration, purpose, and whether work will be performed. Based on the destination country’s rules, the Relocare Compliance App tells them (and HR) if registration is required.

Instant Alerts for HR

*HR receives immediate notifications when a registration is required, including who, where, when,

and how to register.

Smart Dashboards

*Easily track your team’s travel and compliance status across all EU/EEA countries. Reports generated can be used for other compliance matters too, like tax and payroll.

Built-in A1 Form Handling

*Integrated auto-filling for Denmark and Sweden and data handling for all EU/EEA countries.

Companies and sectors supported:

*Relocare Compliance App supports all sectors and companies except for Aviation, EOR companies or Temp-Team agencies. 

 

When is a worker considered ‘posted’?

A worker is considered posted, when an employee is sent abroad temporarily to another EU/EEA country to carry out a service, while maintaining their employment contract in their home country and with no employment contract in the destination country. In short, this is what many companies would call a “business traveler” or “project worker”. That is why many companies unintentionally overlook the demand for compliance.

What are the risks of non-compliance?

*Large financial penalties

*Bans from worksites

*Disqualification and exclusion from public tenders

*Disruption to your mobile workforce

Each country in the EU has its own rules, registration portals, deadlines and required documentation — making compliance across borders extremely complex for HR teams.

Payroll Instruction & Compliance

When salary is paid in one country, but tax rules stretch across borders.

Have you outsourced your payroll processing—but lack specialists who can instruct your provider on exactly how to handle gross/net salary, A-income, benefits in kind, and split payroll for internationally assigned employees?

With Relocare as your tax advisor, your payroll vendor receives clear, timely, and audit-ready instructions—ensuring every payslip line is right the first time.

Why Choose Relocare for Payroll Instruction?

1: Independent Advice – We don’t run payroll ourselves and have no behind-the-scenes deals or kickbacks. Our sole focus is getting your numbers right.

2: 360° Alignment – Our instructions are fully integrated with our immigration, social security, and employment law advice. One source—no disconnects.

 

Common Challenges We Solve

*Split payroll across two or more countries

*Taxation of stock options at vesting and exercise

*Expat gross salary schemes with tax equalisation or protection

*Short-term assignments (<183 days) without permanent establishment

*Reimbursement of relocation expenses (payback clauses and tax treatment)

 

To find out how Relocare can assist you and your employee, please visit the Destination Services page