This study aims to enhance the understanding of work-related cross-border life events in the Nordic and Baltic countries, contributing to the Nordic Vision 2030 goal of becoming the most integrated region in the world. Life events are significant milestones, transitions, and changes in an individual's personal or professional life that typically require interaction with public authorities.
Technological development in the public sector across the EU and EEA has led to new regulations and initiatives in digitalization, including an ambitious target of making 100% of key public policies available online by 2030. This development has resulted in increasing digitalization of life events in the Nordics and Baltics. Despite technological advancements being a common feature in the region, differences in national digitalization strategies, accessibility, and traditions persist – especially when life events cross borders. These disparities can significantly impact the region's citizens and businesses as they interact with various authorities and services when moving between countries.
To address these challenges, the Nordic Council of Ministers (NCM) has initiated this study to identify common practices and key challenges for Nordic and Baltic workers' cross-border employment and settlement within the region. This report provides insights into how existing legal and procedural frameworks for handling cross-border life events are experienced by cross-border workers, focusing on necessary interactions and services.
The report presents results of an in-depth study of three specific life events:
Moving to another country for work,
Working abroad while residing in the home country, and
Starting a business abroad while residing in the home country.
The study underscores the importance of harmonizing cross-border life event management systems with EU and EEA initiatives to strengthen digital cooperation and economic integration across the Nordic-Baltic region. The findings aim to guide policymakers in addressing existing gaps and fostering innovative solutions to create a unified and sustainable framework for cross-border life events. By providing knowledge on inefficiencies and identifying best practices, the study seeks to enhance the implementation of strategies for Nordic cooperation in the labour market and increase workforce mobility.
Specifically, the report includes: an overview of cross-border life events with digital implications in the Nordics and Baltics, including relevant national policies; detailed visualizations of journey maps for three prioritized life events related to cross-border work; and perspectives on cross-border challenges, systemic inefficiencies, best practices, and potential improvements in efficiency.
The study has identified three key foundational elements crucial for developing digital support for cross-border work. These elements will be presented in this executive summary, followed by a summary of key insights from the analysis of the three specific life events. By emphasizing these foundational elements, policymakers can significantly boost the effectiveness of initiatives that address cross-border digital services, ensuring a streamlined and cohesive approach across various scenarios. The elements include harmonizing digitalization strategies, improving accessibility, and addressing systemic inefficiencies. By focusing on these areas, policymakers can enhance user experiences and interactions, streamline cross-border services, and foster a more integrated and efficient digital ecosystem in the Nordic-Baltic region.
Interoperability as a key enabler for cross-border services
Efforts to enhance interoperability between national systems are essential for facilitating digital interactions across borders. Differences in legal frameworks, procedures, data governance, and authentication methods create barriers that must be addressed through common standards, mutual recognition mechanisms, and aligned digital infrastructures.
Balancing digital advancements with inclusion
Despite the push for digitalization, concerns persist regarding accessibility and the diminishing role of in-person interactions. Ensuring inclusive solutions that accommodate individuals with limited digital skills or access remains a central challenge. Best practices emphasize hybrid approaches that combine digital efficiency with human support.
Trust and security drive adoption
Public trust in digital solutions depends on strong security measures, transparency, and clear legal frameworks. This is particularly important regarding cross-border activity, as personal information must be shared between national systems. Countries that successfully implement digital life event services prioritize robust data protection, user control over personal information, and clear governance structures to foster confidence in digital interactions.
Building upon these foundational elements, the study also present life event-specific key takeaways that critically affect the efficiency and resource usage of cross-border interactions. By addressing these specific insights, policymakers can develop tailored solutions that enhance the overall experience for individuals navigating cross-border administrative processes. Across the three life events analysed in-depth within the scope of this study, certain elements critically affect whether they function efficiently or result in resource wastage. The following key insights emerge from the analysis of all three life events:
Streamlining procedures to obtain national personal identification
A personal identification number is imperative across all life events, acting as a gateway to essential administrative services. Efficient access to personal identification simplifies processes, such as registering for healthcare, opening bank accounts, and validating legal status. One significant challenge is the requirement to physically appear to obtain this ID, which can be seen as inefficient and burdensome, especially in highly digitalized countries. Additionally, if individuals do not relocate to the country, they may receive a more limited personal identification number, restricting access to certain services. Harmonizing these procedures and expanding the functionality of personal identification numbers could drastically improve cross-border interactions and reduce administrative delays.
Navigating tax obligations effectively
Tax registration and management are pivotal in all life events, each presenting distinct challenges. For instance, commuting cross-border or starting a business abroad involves continuous management of tax filings in multiple jurisdictions. Differences in digitalization impact the ease of handling tax matters; some countries have optimized digital tax systems, while others rely heavily on manual processes. Being aware of ongoing tax obligations and ensuring compliance through professional advice can help mitigate risks of double taxation and legal complications. It is crucial to have a robust framework for managing cross-border tax responsibilities to ensure smooth and compliant operation regardless of the specific life event.
Leveraging technology for digital processes
The extent of digitalization varies significantly across countries, affecting the efficiency of administrative interactions. Highly digitized systems allow for smoother and faster processing of essential tasks, such as obtaining personal IDs, registering businesses, and managing tax obligations online. Manual processes that require physical presence can be time-consuming and challenging. Navigating these systems successfully often requires digital literacy and resources, highlighting the importance of digital competences and access to technology. It is vital to create inclusive solutions that cater to individuals who are not digitally competent, ensuring that no one is disadvantaged due to a lack of digital skills. Addressing discrepancies in digitalization can reduce resource wastage and offer a more unified approach to cross-border administrative tasks.
Harnessing future EU regulations for efficiency
Upcoming EU regulations like eIDAS 2.0, SDGR, and OOTS have the potential to solve current resource wastages across life events. eIDAS 2.0 introduces the EU Digital Wallet, simplifying identity verification and digital document management. The Single Digital Gateway Regulation (SDGR) aims to streamline interactions with public administrations, ensuring citizens do not need to resubmit information already held by another authority. The Once Only Technical System (OOTS) aims to facilitate seamless document transfers across borders, enhancing efficiency in tax reporting and other administrative processes. These regulations promise to create a more integrated and user-friendly digital ecosystem, reducing bureaucratic hurdles and promoting smoother cross-border activities. Implementing these solutions effectively can transform administrative procedures and improve the overall experience for EU residents and businesses.
The insights presented in this executive summary underline the importance of harmonizing digital processes, improving accessibility, and integrating new EU regulations to foster a more efficient and inclusive digital ecosystem. By addressing these key areas, policymakers can significantly enhance cross-border interactions, benefiting both citizens and businesses in the Nordic-Baltic region.