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How to Work from Anywhere (Legally and Compliantly)

‍Learn how to work from anywhere without breaking labor laws or compromising on compliance. This step-by-step guide covers everything from finding global employers to handling taxes, visas, and data security.

  • Understand misconceptions about working from anywhere
  • Learn compliance essentials like visas, taxes, and labor laws
  • Access a digital nomad visa directory and key legal advice
  • Prepare to navigate cultural and time-zone challenges
How to Work from Anywhere (Legally & Compliantly)
David Oragui
Author
David Oragui
Last Updated
Dec 12, 2024
Editorial Transparency
This article was originally written by the author. AI has since been used to maintain accuracy and comprehensiveness.

Today, we're specifically covering "how-to" work from anywhere. In this series, we shared a live database of all WFA employers who are currently hiring. Next, we shared a comprehensive list of jobs and careers you can do from anywhere, and today we're closing the chapter with a hyper-specific guide on "how-to" make this employment model work for you.

Why is this important?

There are many challenges involved with distributed work, hiring globally and working from anywhere. You can't just hop on a plane to the Bahamas and start working indefinitely without answering to anybody. That's a surefire way to break local labour laws and put yourself & your employer in legal hotwater. So in this article, we're going to share with you how to work from anywhere, legally and compliantly.

Misconceptions about 'Work from Anywhere'

Before we dive in, it's crucial to understand what 'working from anywhere' really means. There is a lot of discourse flying around the internet surrounding everything WFA, and whilst there are many definitions, it commonly boils down to 1 central idea:

"Work from anywhere is the idea that you can literally work from any country, city, town or location on planet Earth — indefinitely; as long as you have an internet connection and a laptop".

This is an idea that was born from Dotcom tech entrepreneurs, who knew they could become competitive in commercial and talent marketplaces by not having to follow the standard operating procedures of running a company that traditional firms have done in years prior.

  • No expensive downtown offices to lease or purchase
  • No need to hire local staff full-time on huge wages

They could hire people as contractors just as talented from the Philippines for 10% of the cost.

This resulted in extreme cost savings which could be generated and used to focus on building the best product possible.

Fundamentally, this is good, but comes with several legal challenges.

Some of these include:

  • Triggering PE (permanent establishment) rules therefore being subjected to corporate taxes in each jurisdiction for your staff
  • Contractor misclassification‍
  • International labour laws
  • Global data and privacy regulation

Step-by-step guide to working from anywhere

Here's a simple guide / flowchart you can use to check whether you can work from anywhere legally and compliantly.

1. Join a company that is globally distributed

There are thousands of employers that have experience hiring globally across many countries. The first step is to apply for a job at an organisation that openly hires from everywhere. You can find a list of 200+ vetted employers here. These employers typically have the most flexible, yet thorough WFA policies.

2. Determine whether your employer allows for work-from-anywhere arrangements

Every employer is different. If you're currently working, check your employee handbook for information, allowances, and restrictions as it pertains to working abroad.

Look for details about time limits (e.g., maximum duration of 6 months), approved locations, and any other constraints such as required manager or HR approval.

In many instances, employers may adjust your compensation to account for the change in cost of living; especially if you'll be spending an extended amount of time in your new location.

For example, some companies apply "geographical pay differentials," reducing or increasing salaries based on your destination's cost of living.

Others may require you to work in time zones that align with team schedules, which could affect where you can realistically relocate. Be sure to refer to your organisation's compensation philosophy and global mobility policies for more details on what this may entail.

3. Ensure you have the legal permits to work where you live or will move to

Securing the correct legal permits is a cornerstone of working abroad. Start by determining the specific visa or work authorization needed for your destination.

These can vary widely depending on the country, your nationality, and the nature of your work (e.g., employed by a local entity, remote work for a foreign employer, or freelance).

Additionally, many countries impose restrictions on the duration and type of work allowed under certain visas. For instance, tourist visas typically prohibit professional activities, and overstaying can lead to penalties or bans.

Some countries, like Estonia and Barbados, have introduced specific digital nomad visas that allow for remote work under certain conditions.

In future, we'll be working on a comprehensive digital visa directory, so you can see which countries have visas of this nature for you to apply to, and the criteria needed to meet to gain eligibility.

For example, Brazil requires that you're in active employment earning a minimum monthly income of $1,500 or maintaining a bank balance of at least $18,000 to qualify for their digital nomad visa. This ensures that applicants can support themselves without relying on local employment or resources. 

4. Double-check your tax liabilities and implications

Working abroad for extended periods of time sounds great on paper, but you need to ensure your move won't incur additional penalties you weren't aware of.

Whilst this article doesn't substitute as legal or tax advice, we recommend that you have savings and emergency funds to last you at least twice as long as you intend to stay.

Whilst your employer's people operations and legal teams have a responsibility to ensure they're paying the right amount of foreign corporate taxes; in most cases, you are responsible for ensuring all your income taxes and national insurance contributions are paid to the right authorities. Be sure to seek professional legal and tax advice before travelling.

5. Data Security and Privacy

Working remotely comes with unique challenges to ensure your data and privacy remain secure. When working from anywhere, it’s crucial to comply with both your employer’s security protocols and local data protection laws.

Use secure internet connections, preferably a VPN, to safeguard your work from potential breaches. Avoid public Wi-Fi networks for handling sensitive information.

Furthermore, many countries enforce stringent data protection regulations, such as the GDPR in Europe or the CCPA in California, which may affect how you handle and store client or company data.

Ensure you understand your employer’s policies regarding data storage, sharing, and deletion, and invest in encryption tools or secure devices when necessary.

6. Health Insurance

Before relocating, verify that your health insurance coverage extends to your destination. Many standard health insurance plans don’t offer full coverage for international travel or long-term stays abroad.

Explore international health insurance providers, which can cater to expatriates or digital nomads and include services like emergency evacuation or repatriation.

Some countries mandate health insurance for visa applications. For instance, Germany requires expatriates to show proof of comprehensive health coverage before granting residence permits.

Check if your employer offers a global health insurance plan or if you'll need to secure one independently.

7. Managing Time-zones and Cultural Differences

Time-zone differences can disrupt work-life balance and team collaboration. Establish a clear schedule and communicate your availability to your team. Tools like shared calendars and scheduling software can help manage overlapping work hours effectively.

Cultural differences may also require adjustments in communication and work styles. Research local customs, holidays, and etiquette to foster stronger relationships with local colleagues or clients.

Taking time to understand cultural nuances can improve collaboration and help avoid unintentional miscommunications.

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