EU ruling may make life easier for self employed expats

A recent European Union ruling is set to benefit self-employed expats in Europe’s member states.

The ruling by the European Court of Justice was triggered by a case involving an EU citizen working in Ireland in a self-employed capacity. The expat was afraid for his access to welfare and right to residence after he stopped working after four years due to a lack of demand for his services. He’d been denied unemployment benefits in Ireland although he’d paid taxes as required during his four years as a sub-contracting plasterer.

Irish authorities had maintained he was no longer entitled to his self-employed status and refused his benefits as a result as well as ruling he was no longer entitled to stay in the country. As far as the authorities are concerned, only employees are allowed to benefit from rights to residence and benefits.

The case was referred by the Irish Court of Appeal to the European Court of Justice for clarification, with the referral resulting in the ECJ ruling against the Irish court’s decision by citing Article 7 of the free movement directive. As a result, the ruling allows the self-employed expat the right to remain in Ireland and to keep his status as a self-employed person due to the Free Movement Directive as it applies to EU citizens’ rights to live and work in other EU member states.

According to the ECJ, Article 7 is not intended to exclude self-employed workers as its purpose is simply to define the difference between inactive citizens and students and economically active citizens. Given the increasing numbers of expat entrepreneurs and digital nomads choosing self-employment rather than seeking jobs, the ruling may have a positive effect on EU citizen expats giving up self-employment due to a lack of suitable opportunities.

The receipt of unemployment benefits as well as the right to remain in the chosen country gives the additional right to look for a job whilst staying solvent, and may make all the difference to the progress from self-employment to a money-making start-up.