There are situations where you can work remotely abroad on a simple tourist visa and situations where you can’t. Before you decide which is the best path for you in your unique situation, the best place to start would be to check out the embassy of the country you are going to.
They usually have a website in your home country, written in your own language as well as the official language(s) of that country.
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Can you work remotely in another country without a visa?
Technically you can work remotely in another country without a visa, though all countries have their own particular rules as far as the workplace are concerned.
If you are there legally and are not engaged in local employment for a local employer but engaged in employment from an employer back in your home country and you’re doing work over the internet, then technically, that is not considered working in the country you’re currently in.
How can I travel while working remotely?
First and foremost, you will need a reliable laptop, if you want to travel while working remotely.
Second, if you’re working remotely while you travel and you require meetings face to face, then you will also need a good internet connection so you can have reasonably good quality calls over Zoom or Skype.
You will also need an internet connection, preferably with high speed internet. Internet speeds vary, not only from country to country, but from city to city, so always be aware of that if you’re planning to work remotely and travel.
What is a Digital Nomad Visa and do I need one?
With the rise of online work and improvements in internet speed and connectivity along with the increasing number of jobs which can be done on the internet, more and more people have become what is now known as digital nomads.
Many smaller countries who want to attract capital realize that digital nomads normally make much more than their local inhabitants.
They also have come to realize the spending power these digital nomads and what that can bring to their economies.
As a result, some countries have begun to set up what is called a “Digital Nomad Visa”.
More countries are either looking into this or have already set one up. A couple of countries I can name off hand is first, Estonia and the Republic of Georgia.
Croatia is also looking into setting up its own Digital Nomad Visa. There are other countries as well. Basically a Digital Nomad Visa allows you to live and work in their country for an extended period of time.
A Digital Nomad Visa differs from a normal tourist visa in that it allows you to stay much longer than the customary 3 month tourist visa.
Digital Nomad Visas can range from 6 months to a year, even 2 years, depending on the country.
However, you do have to fill out an application and there are minimum income requirements that you will need to show proof of in the form of bank statements, customer invoices etc depending on the country.
A Digital Nomad Visa is quite useful for those who don’t want to bounce around from country to country every two to three months.
It is also can be much more economical if you prefer to live a broad since your housing costs should be greatly reduced due to the fact that you will be staying longer and can usually work out deals with landlords etc.
Where to live if you can work remotely?
If you can work remotely, you should live where it is most either economical for you or interesting.
You can work remotely and live in your home country for example. Let’s say you are able to secure work, whether full-time employment or freelance, in high cost areas like New York City, San Francisco, Miami, LA etc.
However, you choose to live in a smaller town or city in another state. You can use a form of what’s called “Geo Arbitrage” to in effect raise your standard of living.
You should note though that some companies may require you to make in person visits from time to time and you should take that into account when deciding on a location.
Is working remotely legit?
Working remotely is not only legit. It is becoming more and more common, especially since 2020 with the Covid-19 pandemic.
In fact, working remotely is changing the way our society does business in general and will have long-term lasting effects on how we interact professionally with each other, our employers and colleagues as well.
However, working remotely does require a lot more responsibility on your part, if you choose to work remotely.
You must be self-disciplined, be aware of your activity and time as well as taking into account your personal life and responsibilities.
Do I need a visa to work remotely for a US company?
If you are going to live in another country while working remotely for a US company, you may need a visa if you are going to stay longer than the customary 3 month tourist visa.
Each country has their own rules and regulations regarding this and your best bet is to seek legal counsel in the country you wish to work remotely in. You can also start at the Embassy website of the country you wish to work remotely in.
Can I work remotely for a US company from Europe or another country outside of Europe?
You can work remotely for a US company either from Europe or another country outside of Europe.
All countries have their own rules regarding employment. In addition, although some countries are slowly catching on to the value of the digital nomad and the professional who only needs their laptop and an internet connection in order to conduct business, other countries aren’t.
So basically, if you’re going to work remotely from another country or from Europe, your best bet is to go there as a tourist legally.
Stay for the amount of time you can stay legally as a tourist. Then just open up your laptop and do your thing.
Most of the time, actually all the time, if you work online, your payments either from your employer or your clients will be directly deposited to you in your bank account at home.
You can then extract any money you need in local currency using a simple ATM machine, which are in the majority of countries around the world. It’s as simple as that.
How do taxes work when you work remotely?
Taxes of course vary from country to country and even from state to state, province to province.
I can only speak from experience in the United States. In the US you are taxed as a US citizen on your worldwide income, regardless of country.
The US does have many double taxation treaties with countries around the world. So I would check the IRS website at irs.gov to start with and see which countries the US shares double taxation treaties with.
Also consulting a tax specialist who specializes in foreign earned income can be of great help as well.
In addition, you may be liable for state taxes in the state that you are technically a legal resident in.
Residency requirements vary from state to state. But they can be as simple as a few utility bills, mail to you at a particular address in the state, a bank account or any property that you may own in a particular state could technically make you a resident of that state and liable for that state’s income taxes as well.
However, if you’re working online and you’re working either freelance or for an employer, you may either get a normal W2 form or if you’re working freelance and you’re working with several clients, some will issue a 1099 form if it’s over $600.
Though for the most part, you have to keep track of your own income because those you receive income from will report that to the IRS in their own tax filings, which will put you on record.
Therefore, make sure you have your own income records organized so you have time to file and you’re good to go.
How do remote workers get paid?
Remote workers normally get paid via direct bank transfer. Even if you’re not remote and you work for a physical employer receiving a paycheck, a physical paycheck for that matter on paydays is becoming much less common, especially in the United States.
Most employers simply have your bank account of choice in their employment records and transfer the money directly into your account.
Remote workers get paid in a similar fashion, usually by direct deposit.
However, if you are a freelance worker you may need an additional payment processor, for example PayPal to issue invoices and collect payments from the clients.
I can only speak about PayPal, but PayPal allows you to also transfer money from your PayPal account to your bank account and this transfer is normally free of charge.
However, PayPal does charge you per transaction when you bill someone and they send you a payment.
So you also have to take those fees into consideration as well.
Can an employee work from another country?
If your employees work remotely from home, there’s no reason why, where that home is located should be of any real consequence to you or your business.
However, you should take into consideration if your employee is not a citizen of your country, nor if they have the legal right or documents to work in your country.
However, for US citizens, whether they work from home in Chicago or from Chiang Mai, Thailand, it shouldn’t make a real difference.
As far as productivity is concerned, if you already have an arrangement with them to work remotely, then I’m sure you will have goals and tasks that they need to perform in a timely manner.
Also, it’s important for you to consider the time zone differences, if they do choose to work from another country.
This is especially important if they are required to be in regular contact with your home office or with clients in the country.
As far as paying employees working remotely from another country, it’s similar to how you would pay them if they were working in the United States, by simple bank transfer or direct deposit.
Employees can withdraw their salary from anywhere in the world with an ATM machine.
Working remotely on a tourist visa is possible, but for how long?
If governments are usually quite slow to adapting to workplace trends, then bureaucracies are twice as slow. My point is, most countries haven’t adapted to the remote work, digital nomad business models that have been sweeping the globe for the last 15 years.
However, with literally millions of employers, employees, even freelancers and entrepreneurs having to adapt to working remotely from home in their current countries.
The current pandemic has only accelerated the current trend. It’s only a matter of time before countries not only see the value and potential impact on their local economies a remote, digital workforce will have.
As such, you are beginning to see more and more countries adopting “digital nomad” long term visas, etc. However, before you get too excited, more and more countries will also look for new ways of “taxing” digital nomads and remote workers regardless of where they come from or where their income is based.
So, benefit while you can and make the most out of the current system, because it may not last. Those digital nomad visas digital nomads have been screaming for may soon have additional costs, obligations and liabilities with them. Be careful what you wish for, you just might get it.