Foreign residents receiving citizenship benefits face a tax bill of approximately 33,000 euros from the local employment agency
Unemployment Benefits and Staying Abroad: A Closer Look
Unemployment benefits are a crucial safety net for many individuals, but what happens when recipients decide to travel or live abroad? Let's examine the rules and regulations in Germany, Norway, and Denmark, as well as the EU/EEA, to provide a clearer understanding of this complex issue.
In Germany, recipients of Bürgergeld (local welfare) are not allowed to live abroad for extended periods without prior written approval from the Jobcenter. The general rule is that individuals can travel or leave their home area for up to 21 calendar days per year with permission. However, staying abroad for longer periods without approval or failing to notify the Jobcenter can result in benefit payments being stopped and repayment orders, as was the case for a couple from Bremen who had to repay over €33,000 for claiming benefits while living in Nigeria without authorization.
Contrastingly, in Norway, while the standard rule requires residing in Norway to receive unemployment benefits (dagpenger), exceptions exist. For instance, if you have worked in Norway and travel temporarily to your home country, or if you return to Norway after working in another EEA country, you may still receive benefits. Additionally, allowances exist for holidays and traveling abroad for short periods, but you must report and comply with the relevant rules.
In Denmark and more broadly within the EU/EEA, unemployment benefits can be transferred when moving to another EU/EEA country, allowing recipients to continue receiving benefits for up to three months while job-seeking abroad. If no new work is found, recipients must return and register as unemployed in Denmark before the end of that period to continue receiving benefits. Working abroad usually requires canceling membership in the Danish unemployment insurance, but protections exist to transfer earned insurance rights across EEA countries.
To summarize, most countries require recipients to live in the country paying the benefits to continue receiving them. Short-term travel abroad is permitted in some countries with notification or prior approval, typically limited to a few weeks. Extended stays abroad usually lead to the suspension or loss of benefits unless specific bilateral or EU/EEA transfer rules apply. Notification is essential to inform the benefits authority before traveling or residing abroad to avoid overpayments or penalties. EU/EEA transfers allow the continuation of benefits for limited periods during cross-border job searching with strict registration requirements.
Each country's rules may vary, so recipients should always check with their local unemployment or social security office and get formal approval before any extended stay abroad to maintain benefit eligibility and avoid repayments.
In the context of personal-finance and business, an individual's unemployment benefits may be affected when they choose to live abroad. For example, in Germany, staying abroad for extended periods without approval can lead to the termination of benefits and potential repayment orders. On the contrary, Norway allows temporary travel to the home country or return from another EEA country while still receiving unemployment benefits, but there are rules to comply with. In Denmark and the EU/EEA, unemployment benefits can be transferred when moving abroad for job-seeking, but strict registration requirements apply. It's crucial for individuals to check with their local unemployment or social security office and get formal approval before traveling or residing abroad to maintain benefit eligibility and avoid repayments.
