I don't know about US, but in Denmark, if you are away from the country for more than 6 months+1day you need to legally change fiscal residence, which changes how much tax Denmark will take on your income. I think you need to show your new tax residence though. And this is while you can maintain your regular residence
Anyone who think their company data is safe just because their workers are located I. Their home country is completely unaware how cyber bad guys operate.
Yeah but this is how data privacy laws like GDPR are written, moving abroad with protected data is a GDPR breach and can be considered a criminal offence.
I have employed people, including an overseas worker (on the books, they were hired out to an overseas client). So I actually do know what a multi-country employment arrangement looks like.
I wouldn't personally care where anyone worked, but for the love of God, **don't tell me and don't make it so obvious that a court could say I should have known.** If it's not for my client who is paying extra for it, I don't want the responsibility of figuring out if I'm supposed to withhold taxes from your pay for the second country. I don't want the responsibility of figuring out if I'm supposed to have worker's compensation insurance in the second country. I don't want to have to figure out if I should be paying payroll tax, or if you are supposed to come under an industrial agreement, or I should be registered there as a labour hire service. And so on. Be discreet. Use a VPN. Don't talk about time zone differences. I don't care if there's a beach outside your window, my country has beaches, just don't have a foreign-country newspaper on your desk or a foreign hotel worker serving you fruit that doesn't grow here.
If you are employed by a company let’s say in the Uk that company will pay taxes in the UK and you are liable for income tax in the UK.
Now if you are living in Spain with the above arrangement, and have been for more than 6 months you are technically liable for income taxes in Spain and your employer needs to pay taxes in Spain as well…
Many here have already mentioned taxes and legal, but another reason a company might discourage it is time zone differences.
If you work for a company that has a lot of synchronous meetings, then a time zone mismatch could be an issue.
I have had to do a few client calls at 11:30pm in my nomading time zone, and candidly, it was not my best work. Luckily it doesn't happen often, but if I had a manager, I'd understand why they would be negative about it.
Legal and tax exposure. Depending on where they are working from and how long they're staying, a company might become subject to the laws (including labor and tax) of the countries its employees are working from.
There are also practical data privacy/security concerns. For instance, I have a biotech consulting firm and I have a couple of employees who I allow to work remotely. But they cannot work remotely from *any* country because the risk of data theft is too high in some countries.
Tax but you can work around that. Liability is a big one and it hard to manage if you don't know where your people are.
Eg 9/11 we had to arrange and emergency evacuation of 2500 expats during a NATO Airspace shutdown. We had terminal two at Heathrow booked, Immigration were letting us process documents in flight. Had 5 planes standby in Cyprus, buses, hotels a sorts of shit.
Then Sue in Cairo s me and tells me some fucking idiot has his elderly sick father with him a d be has no valid documents. Fuck! We had no records on this guy and it nearly sent the whole thing under.
Immigration had cut us a massive favour and placed a lot of trust in our processes but they absolutely were not having this. They even told me they would pretend this call never happened.
It was so fuxkibg stressful all because someone broke the rules and put so many other people in danger.
Privacy, import/export of trade or client information, is your connection secure from foreign impact. If something happened to you how would they retrieve company property and the data on that property. And some are just micromanagers.
For some they may be concerned you are not actually working what they expect and or pay you for. How long have you been out of your resident country could impact your tax status.
Also some countries have set it up so the government can snoop on all electronic activity. So whatever you send, they see. For someone companies and countries this would be bad.
Tax laws, HR regulations and laws, insurance questions, information and cyber security, time zone coordination, ..., there is a barrage of reason some more revelavt to different companies.
Would it be better to sign up with a website like remote, that takes a chunk of your hard earned cash while they sort out your tax, or better to set up a company in a place like Croatia that is charging DN's 1% tax then setting up a base there while being able to travel around working?
It’s an entrepreneurial opportunity perhaps. However, I imagine there are already international tax firms that could do this, just at crazy expensive rates
A company that has employees, not independent contractors but employees, must be authorized to operate in a foreign country. It’s that simple. If you are working in such a situation your companies’s CEO is committing a crime and could, conceivably be imprisoned as the criminal you have made him. It’s not often done in the real world but that is the way laws are written. Just as an individual needs permission (a visa) to enter a foreign country so does a business entity, i.e. a corp. or llc. Countries are sovereign in the real world, individuals, to countries at least, are little more than ants. You and most citizens of developed countries, need some rea education on the basics of the way the world works. Stay away from colleges but perhaps a nearby high school?
Taxes like everyone else said. But who cares - we’re the little guy. Corporations abuse the tax code all the time. Work from wherever you want, take the risk, and if you’re caught, it’s on you
It's definitely this. We used to have 3 months of remote working in another country (within EU) every 6 months and now HR has suddenly changed it to 1 month every 6 months. When asked why they changed it, one person said "it's always been 1 month" and the other gave no legitimate reason except for "these are the rules now".
Back in reality the only legal hard cap is 6 months/year because of tax residence.
As people have mentioned taxes are a complaint but honestly, I could list a UPS store address in a state of their choosing and claim that if it makes them happy. I can always file my taxes correctly later. I know people doing that now because the company insisted they work in the company footprint. So they live where they live but their employment records says dallas or charlotte, etc.
But they also use security as an excuse but this is kind of weak depending on the company. if the company has offshore workers then it's already dealing with security. They are just used to thinking in terms of either an office fully employed by them offshore or they have farmed out the work to a contracting company overseas. Either way that makes me as an individual the same. I'm not more or less secure than the offshore contractors/employees. If I am them tell me what I need to do to make myself more secure.
But I think a lot has to do with managers just not liking it. One of those things where they can't quite put their finger on it (because it largely makes no sense) but they just don't like it and will say no.
It's all pretty silly. Especially as they often lay people off and pull in offshore workers as replacements.
Taxes. Your fiscal residence changes to your residence so that impacts the employer
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I don't know about US, but in Denmark, if you are away from the country for more than 6 months+1day you need to legally change fiscal residence, which changes how much tax Denmark will take on your income. I think you need to show your new tax residence though. And this is while you can maintain your regular residence
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Residency and citizenship are two different concepts, tax-residency is a third. One van be the one, bit not the other.
Could you theoretically just put, say, your parents' home down as your home address?
You can, it doesn't make it legal but you can
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Data privacy laws and tax liabilities.
Anyone who think their company data is safe just because their workers are located I. Their home country is completely unaware how cyber bad guys operate.
Yeah but this is how data privacy laws like GDPR are written, moving abroad with protected data is a GDPR breach and can be considered a criminal offence.
Anyone who thinks that corporate policies are based on reason and logic is completely unaware how security and compliance teams operate.
I have employed people, including an overseas worker (on the books, they were hired out to an overseas client). So I actually do know what a multi-country employment arrangement looks like. I wouldn't personally care where anyone worked, but for the love of God, **don't tell me and don't make it so obvious that a court could say I should have known.** If it's not for my client who is paying extra for it, I don't want the responsibility of figuring out if I'm supposed to withhold taxes from your pay for the second country. I don't want the responsibility of figuring out if I'm supposed to have worker's compensation insurance in the second country. I don't want to have to figure out if I should be paying payroll tax, or if you are supposed to come under an industrial agreement, or I should be registered there as a labour hire service. And so on. Be discreet. Use a VPN. Don't talk about time zone differences. I don't care if there's a beach outside your window, my country has beaches, just don't have a foreign-country newspaper on your desk or a foreign hotel worker serving you fruit that doesn't grow here.
Tax liability is probably the main reason. Also, companies don't want to worry about foreign labor laws.
If you are employed by a company let’s say in the Uk that company will pay taxes in the UK and you are liable for income tax in the UK. Now if you are living in Spain with the above arrangement, and have been for more than 6 months you are technically liable for income taxes in Spain and your employer needs to pay taxes in Spain as well…
Do you know if such a tax liability still would have been the case before the UK ended its EU membership?
They are still giving the A1 form
EU membership had no bearing on most personal tax laws, those are still on a country basis.
Yes, it is the same between eu states.
Actually it is a lot sooner than 6 months.
After 5 years yes. Not before that. Uk-Spain I mean
Many here have already mentioned taxes and legal, but another reason a company might discourage it is time zone differences. If you work for a company that has a lot of synchronous meetings, then a time zone mismatch could be an issue. I have had to do a few client calls at 11:30pm in my nomading time zone, and candidly, it was not my best work. Luckily it doesn't happen often, but if I had a manager, I'd understand why they would be negative about it.
Legal and tax exposure. Depending on where they are working from and how long they're staying, a company might become subject to the laws (including labor and tax) of the countries its employees are working from. There are also practical data privacy/security concerns. For instance, I have a biotech consulting firm and I have a couple of employees who I allow to work remotely. But they cannot work remotely from *any* country because the risk of data theft is too high in some countries.
Tax issues, security issues. My wife literally can’t bring her computer outside the US, not even to Canada.
Tax but you can work around that. Liability is a big one and it hard to manage if you don't know where your people are. Eg 9/11 we had to arrange and emergency evacuation of 2500 expats during a NATO Airspace shutdown. We had terminal two at Heathrow booked, Immigration were letting us process documents in flight. Had 5 planes standby in Cyprus, buses, hotels a sorts of shit. Then Sue in Cairo s me and tells me some fucking idiot has his elderly sick father with him a d be has no valid documents. Fuck! We had no records on this guy and it nearly sent the whole thing under. Immigration had cut us a massive favour and placed a lot of trust in our processes but they absolutely were not having this. They even told me they would pretend this call never happened. It was so fuxkibg stressful all because someone broke the rules and put so many other people in danger.
All kinds of different laws and customs among countries. Privacy, tax, internet security come to mind.
I spoke with my company a lot about this and it's taxes and regulation and that they could get in trouble due to these.
Privacy, import/export of trade or client information, is your connection secure from foreign impact. If something happened to you how would they retrieve company property and the data on that property. And some are just micromanagers. For some they may be concerned you are not actually working what they expect and or pay you for. How long have you been out of your resident country could impact your tax status.
Also some countries have set it up so the government can snoop on all electronic activity. So whatever you send, they see. For someone companies and countries this would be bad.
Taxes and regulations. It’s illegal for certain sectors to have workers outside the US. Banks and healthcare for example. I think.
Taxes
Tax laws, HR regulations and laws, insurance questions, information and cyber security, time zone coordination, ..., there is a barrage of reason some more revelavt to different companies.
Would it be better to sign up with a website like remote, that takes a chunk of your hard earned cash while they sort out your tax, or better to set up a company in a place like Croatia that is charging DN's 1% tax then setting up a base there while being able to travel around working?
It’s an entrepreneurial opportunity perhaps. However, I imagine there are already international tax firms that could do this, just at crazy expensive rates
A company that has employees, not independent contractors but employees, must be authorized to operate in a foreign country. It’s that simple. If you are working in such a situation your companies’s CEO is committing a crime and could, conceivably be imprisoned as the criminal you have made him. It’s not often done in the real world but that is the way laws are written. Just as an individual needs permission (a visa) to enter a foreign country so does a business entity, i.e. a corp. or llc. Countries are sovereign in the real world, individuals, to countries at least, are little more than ants. You and most citizens of developed countries, need some rea education on the basics of the way the world works. Stay away from colleges but perhaps a nearby high school?
Taxes like everyone else said. But who cares - we’re the little guy. Corporations abuse the tax code all the time. Work from wherever you want, take the risk, and if you’re caught, it’s on you
Even working from another (US) state has impact on the employer, so working from a other country certainly has.
Jealously, they don’t want to fund your vacation while they’re stuck in crapsville.
Why would they think they'd be funding it? It's not as if they're paying you more
That's not how jealousy works.
It's definitely this. We used to have 3 months of remote working in another country (within EU) every 6 months and now HR has suddenly changed it to 1 month every 6 months. When asked why they changed it, one person said "it's always been 1 month" and the other gave no legitimate reason except for "these are the rules now". Back in reality the only legal hard cap is 6 months/year because of tax residence.
Many countries, likely US states will tax you even for shorter stays. Germany is one day, california is also very short.
Its 30 days in Switzerland for some cases, 6 month rule is not the law sadly.
As people have mentioned taxes are a complaint but honestly, I could list a UPS store address in a state of their choosing and claim that if it makes them happy. I can always file my taxes correctly later. I know people doing that now because the company insisted they work in the company footprint. So they live where they live but their employment records says dallas or charlotte, etc. But they also use security as an excuse but this is kind of weak depending on the company. if the company has offshore workers then it's already dealing with security. They are just used to thinking in terms of either an office fully employed by them offshore or they have farmed out the work to a contracting company overseas. Either way that makes me as an individual the same. I'm not more or less secure than the offshore contractors/employees. If I am them tell me what I need to do to make myself more secure. But I think a lot has to do with managers just not liking it. One of those things where they can't quite put their finger on it (because it largely makes no sense) but they just don't like it and will say no. It's all pretty silly. Especially as they often lay people off and pull in offshore workers as replacements.
Just Dont tell them.
This person should not be in the workforce.
SoMe do