Disclaimer: Please note that this article contains general legal information and doesn’t contain legal or tax advice, and isn’t intended to constitute legal or tax advice.
You can work remotely from another country as long as you follow the immigration, tax, and employment laws of both your home country and the country you’re working from.
In this article, you’ll find potential risks but more importantly mitigation strategies on how to work remotely abroad worry-free.
How to Do Remote Work From Another Country?
Let’s start with: What does remote work mean? Remote work is often defined as work completed in an environment other than the employer’s workplace which involves telecommuting, virtual, or cloud working.
Understanding the differences between freelancing and traditional employment isn’t merely advisable – it’s critical for your career trajectory. Both of these paths offer their own set of advantages and challenges, accompanied by specific responsibilities and legal rights. It’s well worth getting to know the typical characteristics of an employee & typical characteristics of self-employment. This knowledge serves as a foundational element in making an informed and strategic career decision.
IMPORTANT: The following checklist is predicated on the assumption that you have a comprehensive understanding of your work status while operating remotely from another country. Specifically, it is crucial to know whether you will be engaged as:
a) an employee, widely known as a remote worker or digital nomad,
b) a self-employed individual, commonly referred to as a freelancer, or
c) a business owner.
This clarity is essential for navigating the legal and logistical complexities associated with cross-border remote work.
If you’re a freelancer taking on your own clients, in a host country, you might also ask yourself if you should form an LLC, or other questions relevant to the structure of your business.
Working Remotely From Another Country Legally – Checklist
The global legal landscape for remote work is not in any way uniform – each country has its own distinct set of regulations around (remote) work.
There are many benefits of living in another country as a freelancer, digital nomad, remote worker, or online business owner. However, ensuring that your remote work abroad in a given country is fully compliant – and mitigating the biggest risks – involves careful research and due diligence.
Below is a table that provides a more detailed overview of the legal issues, associated risks, and recommended actions for individuals – whether you’re an employee or a self-employed person – considering working remotely from another country.
By following these steps, you can avoid complications and ensure a smooth stay in the country of your choice.
| If you’re an employee: • Employer approval & communication • Employment contract review | ➡ Failing to inform your employer that you’ll be working remotely from another country can lead to complications, such as visa violations and tax issues, as well as professional risks like breach of contract and data security concerns. ➡ This lack of transparency can erode trust, potentially affecting your career progression and team dynamics. ➡ If your employer is unaware, they can’t assist you in navigating the legal and logistical challenges. | • Obtain explicit approval in writing from your employer to work abroad remotely. • Discuss your intentions, clarify any concerns or expectations, and ensure that the arrangement aligns with your employment contract, any relevant company policies, and other agreements concluded with your employer. • When reviewing your employment contract, pay particular attention to clauses addressing remote work or working from abroad. • Keep open lines of communication with your employer. |
| If you’re a freelancer (self-employed individual): • Client communication • Contractual obligations: terms of your service agreements with your clients | ➡ The absence of thorough planning when relocating abroad to operate a freelance business can lead to breach of your service agreement, financial penalties, loss of client. ➡ Further, violating the terms of a service agreement, such as failing to meet deadlines, can lead to contract termination, financial penalties, legal action, reputational damage, and strained client relationships. | • Inform your clients about your plans to work remotely from another country, if your response times might be affected by time zone differences. • Be transparent with clients about any potential disruptions or changes in availability due to the move. • Ensure you can still meet all your service agreement terms. • Be mindful of time zone differences and schedule your work accordingly to align with your deadlines. |
| Entry requirements: valid ID/passport, visa, authorization for temporary stay, etc.) | ➡ Being denied entry into another country: You could be sent back to your home country upon arrival, often at your own expense. ➡ Any pre-paid accommodations, travel bookings, or other arrangements may be forfeited, if you don’t have a free cancelation option. | • Research the entry requirements for the host country, including visa types. • Review whether you meet all the eligibility criteria such as minimum financial means, vaccinations, etc. • Gather all the required documents, such as bank statements, proof of accommodation, and travel insurance, as specified by the host country. • Ensure your passport is valid for at least 6 months from the date you plan to return to your home country, or as otherwise specified by the host country. • Pay any required visa application or processing fees. |
| For extended stays: a long-term visa or residence permit. • To legalize your stay in a foreign country for periods exceeding 90 days (or a different duration specified by the country), it’s typically necessary to secure the appropriate long-term visa or residence permit. | ➡ You may be required to pay heavy fines for violating immigration laws. ➡ Some countries may ban you from re-entering for a certain period, as a result of the violation. | • Visit the official immigration or consulate website, read the visa guidelines, and reach out to the nearest consulate or embassy to ensure you have a clear understanding of the information. • For intricate scenarios, consult an immigration attorney well-versed in the immigration regulations of the particular country. • Consider locations offering a Digital Nomad Visa as ‘preferred’ destinations, or opt for an EU country if you are an EU citizen • Stay informed: Immigration regulations and visa guidelines are subject to change. |
| Work authorization: a work visa or work permit, if required by the host country. • Primarily for extended stays, but not exclusively: In numerous countries, if you aim to work remotely as an employee, operate as a self-employed individual, or start a business there, you must have the correct work authorization (e.g., citizenship, permanent residency, or a valid work visa or permit). • The term “working” has varied definitions across different jurisdictions, with many establishing their unique national visa criteria. | ➡ Participating in unauthorized work can result in serious consequences, such as visa cancellation, inability to modify or prolong your immigration status, removal or deportation from the host country, and potential bans on future visa applications. ➡ If you’re an employee: Both you and your employer might face penalties. | • Secure the necessary work authorization for the host country, if required by the host country. • Comply with all terms of your work visa or permit, when relevant. • Document everything and store all essential papers like visa documents, work permits, insurance policies, and IDs securely. Ensure digital copies are also safeguarded. • Always have proof of your overseas employment or business (i.e. outside of your host country) and payment receipts from foreign entities or clients, in your bank records. |
| Tax obligations • Engaging in remote work from a foreign country can introduce tax considerations in both your home nation and the country you’re working from. • Tax regulations can be intricate and differ across countries. | ➡ Failure to adhere to tax laws or incorrect filings can result in double taxation, penalties, late fees, and additional charges. ➡ Many countries classify tax evasion as a criminal act, potentially leading to legal prosecution. ➡ If you’re an employee: Incorrect tax withholdings or unreported employee income in the host country could also expose your employer to financial penalties. | • Investigate if a Double Taxation Agreement exists between your home and host countries to prevent dual taxation. • Familiarize yourself with the host country’s tax year, which might differ from that of your home country. • Engage with a tax expert proficient in international taxation to clarify tax duties tied to your employment or business model across both jurisdictions. • Familiarize yourself with the criteria defining tax residency in both your home and host countries. • Monitor the duration you reside in each country, as it can influence your tax residency status. • Maintain all invoices, receipts, and any other documents that can serve as proof of your income and expenses, since, even if your host country doesn’t require it, you might need it in other countries. |
| Social security and other contributions obligations • Your obligations will differ depending on whether you’re an employee or self-employed. | ➡ Non-compliance in making mandatory contributions can result in penalties. ➡ Unsettled or insufficient contributions might accrue interest. ➡ Neglecting these obligations could jeopardize your eligibility for social security benefits, encompassing healthcare, unemployment benefits, and retirement pensions. | • Familiarize yourself with social security and related responsibilities in both jurisdictions. • Monitor the length of your professional engagement in the host country, as it can determine your eligibility for benefits. Ensure you compile all relevant records. • Investigate the presence of bilateral or multilateral social security agreement between your home and host countries, as these can impact your obligations. • Assess the implications of overseas work on your retirement contributions and accounts. • If you’re an employee: Collaborate with your employer to confirm they’re fulfilling any mandatory contributions for you. |
| Insurance coverage • Certain countries stipulate health or travel insurance evidence as prerequisites for visa or residency permits. • Remote work abroad introduces you to a spectrum of risks, from health emergencies to professional liabilities. Insurance acts as a safeguard, offering a buffer when adversities arise. | ➡ In the absence of insurance, you’re responsible for all medical expenses, which can be exorbitantly high in some countries. ➡ If you’re liable for an accident or incident without liability insurance, you could face substantial financial repercussions in terms of damages or compensations. | • Check if the visa you are applying for has any specific insurance requirements. • Ensure you’re equipped with either international health insurance, local insurance, or travel insurance for digital nomads that covers you in your host country and is tailored to your needs. • If you’re a freelancer (self-employed individual): Consider getting professional liability insurance to protect against legal claims arising from your professional services. • Always have your insurance policy details handy, including your policy number and your insurer contact information. • Keep an emergency contact list, including your insurance provider’s emergency helpline and the closest embassy or consulate of your home country. |
| Cross-border data security and privacy • Engaging in remote work from overseas requires careful consideration of data security and privacy. It’s imperative to establish necessary cybersecurity measures to safeguard both company and personal data. | ➡ Your inability to secure company and client data can lead to termination of your employemnt or service agreement. ➡ Many countries impose hefty fines for data breaches or noncompliance with data protection laws. ➡ If you’re a freelancer (self-employed individual):, the onus of settling these fines lies directly with you. Moreover, your clients might initiate legal proceedings, demanding reparations for violations of data protection regulations or contractual terms. ➡ If you’re an employee: Breaching data security regulations can be a valid ground for termination of employment. | • Acquaint yourself with the data privacy and protection regulations of your host country. • Check if the host country adheres to international data protection agreements, treaties or standards, such as the GDPR in the European Union. • Activate multi-factor authentication for access to confidential data. • Regularly update your devices and software. |
Embarking on a journey to freelance and work remotely abroad can initially feel daunting, perhaps even tempting you to reconsider the entire endeavor. However, I assure you, the rewards of such an experience are unparalleled.
While the information I’ve compiled may seem extensive, it’s because I’ve distilled the most vital aspects for you, ensuring you’re well-equipped for this exciting venture. Embrace the challenge; the benefits of working remotely abroad are truly worth the effort!
FAQs – Working Remotely From Another Country
Whether you need a visa at all, and what type of visa you’ll need, depends on the country you plan to work remotely from. Some countries offer specific “digital nomad” visas for remote workers, while others may require a standard work visa. Find out about the easiest digital nomad visas in the EU and see if you can move to Europe as a freelancer.
You may be liable for taxes in both your home country and the country you’re working from, depending on various factors like the length of your stay and income sources. Some countries have tax treaties to avoid double taxation. Read about tax rates and benefits in the 5 top countries for freelancers.
Yes, it’s generally good practice to inform your clients, especially if the change in location could affect your availability, response times, or the quality of your work. Transparency is key to maintaining a good client relationship. Additionally, your service agreement may have clauses that require you to notify clients of such changes. Nevertheless, always ensure you can still meet all of your service agreement terms.
It depends on your insurance policy. Many domestic health insurance plans don’t offer coverage outside your home country. Even if they do, the coverage might be limited and may not include emergency evacuation or other essential services. It’s advisable to purchase a comprehensive international health insurance policy that covers you in the host country and when you keep moving. You can also check our comparison of several travel insurance providers tailored to digital nomads’ needs.
