Working Remotely Overseas: What To Know Before the Leap

Seeing all those digital nomads on social media makes everyone want to start their workday on a beach in the Caribbean. If you’re toying with the idea of starting your workday in another country, it’s good to know it’s possible - but it will not be as easy as social media shows.

Being a digital nomad and working remotely in another country comes with its own set of challenges. Different countries have different regulations about working remotely. Not all of them allow visas that will allow you to visit the country and work at the same time.

It’s a gray area for a short time. But, for longer periods, you need to have some aspects of working remotely in a foreign country straightened out before you move.

So, let’s get into the gory details of working remotely abroad.

Working Remotely from Another Country: Key Things to Know

When you start planning to be working remotely abroad, there are several things you should take into consideration. The first one is your employer. The second is the country you’d like to work from, and its visa requirements. Lastly, you need to understand what taxes you should pay and to which country - as this may differ from country to country.

3 Things to Know Before Considering Remote Work Abroad

The main three things to prepare for when planning remote work from another country are your employer, visas, and taxes. Let's get into more detail.

Consider your employer

Working remotely internationally is simple if you are a freelancer or work as an independent contractor on a project-by-project basis. But, if you have an employment contract, it may be tricky.

The first step in moving abroad while maintaining your job is discussing it with your employer. If you are already working remotely as a part of a global team, this might be a fairly easy conversation.

However, your employer might have plans for everyone to return to the office soon. Or, they may need you to maintain the working hours - which can get tricky if you plan to live in another time zone.

If they do approve of you moving, it’s important to establish the proper relationship. There are two types of employment you might consider.

1. Full-time employee through an EOR

It would be best to discuss an EOR solution with your employer to maintain the current working relationship. Your employer needs to meet certain requirements under tax laws and provide employee benefits. They cannot do it if they don’t have a presence in the country you are moving to.

But, hiring you from another country is possible through an EOR. An EOR will be your “legal” employer in a new country, meeting all the requirements. With an EOR, the company can stay compliant with labor laws in foreign countries. They can also provide you with statutory benefits even though you are not in the same country.

2. Independent contractor

The easiest way to move to another country while working remotely is to change your status to an independent contractor. This way, you can live abroad and establish your business in a new country. Keep in mind that immigration laws vary from country to country. It’s best to inform yourself on the relevant local authorities' websites whether this is possible before making the jump.

In terms of your employer, hiring you as an independent contractor instead will help avoid potential tax and other hiccups. However, your employer should mind the difference between independent contractors and employees. It’s important to classify employees properly to avoid costly penalties and fees.

Visas and work permission

There are different types of visas available to you, depending on the country you are looking to move to. The easiest visa to obtain is certainly a travel visa. However, most foreign countries forbid travelers from working while in the country on a tourist visa.

Types of visas you should try to get if you want to work abroad usually fall under three categories:

1. Work visa

The most common way to move to another country for work is a work visa. Most countries do require you to have an employer as a sponsor to obtain it.

The length of this type of visa will typically depend on your contract with your employer.

However, your employer needs to have a legal presence in the country you want to work in to be a sponsor. If your current employer doesn't have a presence in the country you are looking to move to, it might be best to consult with an EOR to help you relocate.

2. Freelancer visa

Some countries have implemented a digital nomad visa, which allows you to apply as a freelancer or independent contractor. This visa allows working remotely from abroad for a few months to a few years. The length of this visa depends on the specific country.

These have a different set of requirements, and you don’t need a sponsorship from an employer. Rather, for most freelancer’s visas, you need to submit proof that you can meet the minimum income threshold.

The amount for this varies, as well as other requirements. For example, for Malasia’s freelancer visa, you need to prove that you earn at least $2,000 per month. Dubai’s freelancer visa also requires a freelancer’s permit.

Some countries also require you to have a work permit. It’s best to inform yourself of what type of right-to-work permit is required in the country you want to move to.

3. Permanent visa

If you are looking to stay and work in your chosen country indefinitely, the best option is to try and obtain a permanent residency. This is a valid option if you meet certain criteria. For example, many countries offer permanent visas if you have a family in the country or if you lived there for a long period.

Each country has its own set of rules for obtaining a visa for permanent residency. It’s important to inform yourself of the requirements in your chosen country.

Navigate taxes, permits, and other paperwork

One of the main questions people ask when moving to another country while working remotely is “Do I have to pay taxes if I work remotely in another country?” The answer depends on both the country you are moving from and the chosen country.

The biggest tax complication you'll have to navigate is if your stay triggers a permanent establishment. This typically happens after six months of staying in the country. Permanent establishment means that you become a tax resident under most tax laws. You are obliged to pay income tax in that country. This can create complexities with taxes in your country of residence and lead to double taxation.

For example, U.S. residents working from abroad will still have to report their earnings to the IRS. As an independent contractor, you would still have to meet quarterly estimated tax payments.

However, most countries have double taxation agreements, which save your income from being taxed twice. Under these agreements, the tax you pay in the country you work in will be offset against the taxes in your country of residence. In other cases, your income may be exempt from tax in your country of residence if you pay tax in the country it was earned.

Keep in mind that the taxes of the two countries will likely be different. You will be expected to pay the higher taxes between the two, regardless if it is offset or if you are exempt from paying them in the other country.

To make sure you are compliant, it’s best to consult with an accountant, your EOR, or another entity that is familiar with the tax laws of the specific country. Tax implications may vary significantly, so it is best to be informed on which taxes you need to meet.

What about working remotely from another country temporarily?

If you are only looking to travel for a bit in another country for a week, you might be better off taking a holiday instead. Typically you’re not allowed to work in another country while on a travel visa.

Most countries have taxation laws, and these include the type of work that will be taxed while you are working in the country. It can create tax issues for both you and your employer.

Depending on the sensitivity of the information you have to manage within your workload, it can create legal issues for your employer. You should be mindful of general data protection regulation guidelines, or unsecured internet connection you may have to rely on as a remote worker.

Talk to your employer if you want to spend up to a month in another country. They may or may not allow it. For a few weeks, the safest option is to take a holiday.

Which countries offer a digital nomad visa?

Currently, 54 countries offer a type of digital nomad visa, with more countries joining the gig economy.

In Europe, Italy, Portugal, and Norway all offer digital nomad visas. Most European Union countries don't require this type of visa for EU citizens if the length is shorter than 90 days. Australia also allows people to work remotely on a freelance visa. You can also freelance from Mexico.

Latin American countries that offer this type of visa to independent contractors and freelancers are Ecuador, Brazil, and Colombia. Thailand, Japan, Dubai, and Indonesia are countries in Asia that offer a digital nomad visa.

It’s important to understand the requirements and processes for these visas in detail. Check whether there are any additional work permits you need to obtain for remote work in another country.

Other considerations when moving abroad while working remotely

The process of obtaining visas can be troublesome. But, it is only a part of the journey of moving abroad to work remotely. It’s also important to lock down your living arrangements, understand your health insurance options, and navigate any permits you need to have to be able to work remotely from abroad.

You also need to be mindful of other aspects of remote work that will certainly affect your personal life.

1. Time zone differences

It is important to find ways to adapt to the new arrangement if your employer approves your move abroad. One of the main obstacles you’ll have to overcome is different time zones which will affect your working hours. Many remote workers who are living abroad experience difficulties with scheduling meetings. Or, they end up working odd hours.

If the time difference is significant, this is something you should discuss with the employer in great detail. Consider discussing and implementing asynchronous communication. It will take some practice at first, but you should find communication channels that work for both you and your employer.

Also, make sure to establish a contact system in case of emergencies while you are working remotely abroad. If the work is time-sensitive, you need to be able to plan and organize your day around a different schedule.

2. Currencies

Navigating local currencies can also be tricky. It’s important to calculate the accurate cost of living in a particular country before you move abroad. It should include rent, food, utilities, transportation, and other necessities. Keep in mind that you will have some additional expenses for exchange rates. International payments and bank transfers may also come with hidden fees.

You should also ensure that your employer is paying you fairly and per your new cost of living. Adjust your rates accordingly if you decide to move as an independent contractor. Also, make sure to include unexpected expenses in your rates. You should cover your days off, emergencies, and other expenses.

3. Staying connected

Another important factor you have to consider while remote working is connectivity and security. Relying on public Wi-Fi can be tricky. Your employer might not appreciate you connecting through insecure public Wi-Fi to handle sensitive company information. Plus, not all countries have a strong WiFi network easily accessible.

Look up your options in the country you want to move to. Purchasing a local SIM card might be a good investment when compared to potential roaming charges, for example. Discuss security measures with your employer, as they may want you to rely on a VPN, or implement other security measures before you log in to work.

4. Productivity

Balancing exploring your new country with your current workload can be tricky, and your productivity may suffer as a result. To remedy this, try to create a healthy work-life balance.

Not only should you establish asynchronous work, but you should also set the hours for yourself and meet them. It may be tempting to go out and explore during your work hours, but it will likely cause work to spill into your free time and on weekends.

Try to develop a strong and realistic routine to help you maximize your productivity during working hours. Make sure to disconnect and log out after your working hours and enjoy the main perk of being a remote worker in another country.

5. Employee well being

Possibly the main con of moving abroad for work many digital nomads agree on is the sense of isolation and loneliness. While your company may help offset this through team-building activities that help remote workers feel like a part of a team, it may not be enough.

You should consider joining online groups connecting digital nomads in the same area. Try to find time for personal hobbies, or become a local community member. Learning the language upfront may also be beneficial when working remotely from another country.

Can I Move to Another Country if I Have a Remote Job?

Overall, it’s not as complicated to move abroad if you are already working remotely. It is important to discuss your move with your employer first and agree on a way to make it possible.

You should also inform yourself of visa requirements in the country you are moving to. You may need to navigate tax implications and different work permits to work in the country of your choice.

Other expats who work remotely from another country agree that you should do your best to learn the language before you move, be mindful of cultural differences, and try to create a healthy work-life balance while working abroad.

FAQs:

Can I work remotely from another country without my employer knowing?

This depends on the company and its level of cyber-security measures. It is generally not recommended. A better route is to discuss the relocation with your employer and find a middle ground on how you can work remotely.

How long can you legally work remotely in another country?

The length of which you can work remotely from another country depends on the type of visa you have. Some countries offer freelancer visas valid for a couple of months or a couple of years. If you work remotely as an independent contractor and have obtained a permanent visa, you can work in another country for as long as you’d like.

Do I need a visa to work remotely from another country?

Yes, to be able to work remotely from another country, you typically need a work visa. Most countries forbid working while on a tourist visa. Some countries do offer freelancer or digital nomad visas. These will allow you to stay and work in a country of your choice, without requiring your employer to have a presence in the country.