Money and insurance
Working from another country: the tax questions to ask yourself
This is not a tax guide, it is the list of the right questions. Which concepts to handle, what depends on your case and who to ask.
Claudia Ferrán 6 min Photo by Patrick Schneider on Unsplash A warning from the first line: this is not tax advice and it cannot be. What it can do is lay out the concepts and the questions, so that when you talk to someone who can advise you, the conversation lasts twenty minutes rather than two hours.
The four concepts to handle
| Concept | What it means |
|---|---|
| Tax residence | Which country you pay tax to on your worldwide income |
| Right to stay | Whether the visa you enter on allows you to work, even remotely |
| Social security | Where you pay contributions and what health cover you have |
| Double taxation treaty | The agreement between countries that stops you paying twice for the same thing |
All four are independent: you can be tax resident in one place, pay contributions in another and be visiting a third. Confusing them is the origin of nearly every mess.
The questions to take to an adviser
- How long can I spend away before my tax residence changes?
- Does the visa I enter on allow remote work for a company based elsewhere?
- Do I have to do anything if my employer knows I am away? And if they don't?
- What happens to my health cover while I am there?
- Is there a treaty between my country and that one, and what does it cover?
The third is the one most people skip and the one with the biggest consequences, because it affects your employer too and not only you.
Remote work visas
Several countries have created specific permits for people working remotely for companies based abroad. They usually ask for a minimum income, health insurance and a clean record, and in exchange they give you a clear status, which is exactly what a tourist permit does not.
How to set up the practical side of remote work is in working while travelling: setting up the connection.
Not being asked at the border doesn't mean the permit you are carrying lets you do what you are about to do.
Frequently asked questions
Can I work remotely on a tourist visa?
It depends on the country: many tourist permits don't cover it. Several countries have created specific visas for remote work.
When does my tax residence change?
It depends on the time you spend away and on other criteria set by each set of rules and each treaty. That is a question for a tax adviser, not for a blog.
Do I have to tell my employer?
It is the question with the biggest consequences, because it affects the company as well. Best resolved before leaving, not afterwards.
What is a double taxation treaty?
An agreement between two countries so the same income isn't taxed twice. They exist with many countries and each one covers different things.
