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What was the core OBSTACLE in undertaking the activity? Taxation differences between countries hinder cross-border movement of labour. In the case of Valga-Valka: Citizens who work in one country, but live in the other, are paid differently than those citizens who live and work in the same country (e.g. no income tax free minimum can be taken into account when calculating monthly salary; a part of the income tax of such persons is not received by the municipality of residence, etc).

Furthermore, there are mother obstacles for cross border labour movement. In the case of Valga-Valka: Non citizens who are employed at companies in Valga have to apply for a residence permit for work (which they, in essence, do not need asthye might be living only a couple of hundred meters from their work).

Which were the main CAUSES of the OBSTACLE?
Which were the main EFFECTS of the OBSTACLE?
Please, describe briefly the factor(s) which mostly (3-4) aggravated the persistence of the Obstacle
Institution Valga County Government
Contact details Rainer Kuutma, Head of International Cooperation,Valga County Government,

+372 76 66165, Rainer.Kuutma@valgamv.ee

Year of record 2012