Remote work from abroad: 5 things to consider before you say ‘yes’

With all those Instagram reels and LinkedIn posts about happy people working remotely from abroad, you may be receiving more and more requests from employees who are eager to post about this as well. This is certainly something we notice, in any case.

While the idea may sound straightforward at first, the reality is more complex, as a range of legal, tax, and operational aspects should be considered that can vary by country. Overlooking (one of) these factors can expose your company to compliance risks, unexpected costs, operational issues and (sometimes) even envy at the workplace.

This blog highlights key considerations to keep in mind when evaluating requests from employees to work remotely from abroad on a temporary basis. To keep this blog manageable, we’ll focus on the main areas you’ll need to consider:

• Immigration and right to work

• Employment law

• Social security

• Tax

• Practical stuff

For tailored guidance and to ensure all bases are covered, we’re just a call away.

1. Can your employee actually work remote?

One of the first questions to address is whether your employee is legally allowed to work in the country they have in mind. Immigration rules vary widely depending on the country, the employee’s nationality, and the duration of their stay.

In cases where the employee’s nationality doesn’t match the country where they plan to work, you may need to explore additional permits or exceptions. Overlooking these requirements can lead to complications down the line, so it’s crucial to confirm right-to-work status before moving forward with any remote work arrangement.

2. Employment law (abroad)

Allowing an employee to work remotely from another country brings local employment laws into play. This means that, aside from complying with Dutch employment standards, you may need to meet specific local requirements for working conditions, employee protections, privacy and data security. In addition, you may want to restrict employees to work in countries that are considered unsafe.

Apart from that, you also want to have a clear agreement with the employee on what is allowed and what isn’t, when the remote work ends and how the “remote work office” should look like.

3. Social security when working remotely?

When an employee starts working remotely from another country, social security regulations may shift depending on their destination and the duration of their stay. In some cases, even double social security coverage could apply. Different sets of rules should be considered, based on the country of residence of the employee and the place of remote work (EU/EER or not, country with social security treaty or not).

4. Remote taxes

What about tax? As usual, it depends on the facts and circumstances. The tax consequences can differ greatly depending on whether a tax convention exists and what’s in that specific tax convention. Local tax legislation may also introduce unique requirements that impact your company’s responsibilities. You do want to check this upfront.

5. The practical side of working remote abroad

Apart from the legal stuff, you also should consider the practical stuff. While remote work may be feasible for some roles, it’s essential to assess whether the employee’s position is truly suited to working from abroad. For roles requiring frequent team interaction or in-person client meetings, a remote setup at the other side of the globe might introduce challenges that could disrupt the workflow.

Data security can also become an issue as don’t want your valuable company data in some crook’s hands. Some countries have strict or unique technology regulations that you need to consider: some regions even forbid the use of certain digital tools like VPNs.

In any case, you want to check in with the manager and/or colleagues of the employee for some insights in the operational needs, before approving a request to work remotely from abroad.

Summarizing

As tempting as remote work from abroad may be for employees, these arrangements come with a range of considerations for employers. From immigration and employment laws to tax and operational challenges, each area brings its own set of requirements to ensure compliance and avoid risks. And this is only the tip of the iceberg.

Taking these steps helps protect your organization while supporting your employees’ remote work goals. Our team is here to give tailored advice, whether you’re establishing remote work policies or determining appropriate durations for remote work assignments abroad. For any questions or guidance, feel free to reach out! We’re happy to show you the ropes.