Can you work remotely from another country? What you need to know

Here’s what you need to know before you take your job abroad as a freelancer, contractor, or full-time employee. This guide explains how to work remotely abroad – without running into legal or tax trouble.

Is it legal to work remotely from another country?

In most cases, yes – but it depends on how long you stay and what kind of visa you have.

Many countries don’t allow remote work on a standard tourist visa, even if you’re working for a company based outside their borders. This is a common misconception and a significant legal risk. Foreign countries forbid travelers from engaging in work activities on tourist visas, and overstaying or working without proper documentation can lead to fines, deportation, or even visa bans.

The good news? More countries are introducing digital nomad visas that let remote workers stay legally while working for foreign employers. As of now, dozens of countries offer remote work visas and new programs launch regularly.

What to consider as a remote professional?

• Research local labor laws that may affect your working relationship.
• Understand visa requirements and work permit obligations in a foreign country.
• Consider time zone differences when planning your remote work arrangement.

Who can work remotely for a U.S. company?

U.S. citizens living abroad

You can still work remotely for a U.S. company while living abroad. However, you’ll need to file U.S. taxes each year. While you may be able to exclude a portion of your foreign-earned income through the Foreign Earned Income Exclusion (FEIE), remember that U.S. citizens are subject to U.S. taxation on their worldwide income. You may also owe taxes in your country of residence, so you should learn about tax treaties between the U.S. and your host country to avoid double taxation.

Non-U.S. Citizens

Non-citizens can also work for U.S. companies remotely, either from their home country or abroad. However, you’ll need to:

• Follow local employment and tax laws.
• Have the proper work permits for the country you’re staying in.
• Make sure your classification (employee vs. contractor) is correct.
• Understand specific tax rules that apply to your situation.

Remote worker classification: employee or contractor?

Your classification affects your taxes, benefits, and visa options when working from another country. If you’re misclassified, you could face legal or financial issues.

Some companies use an Employer of Record (EOR) to handle local compliance. In that case, the EOR becomes your legal employer abroad, while you keep working for your original company. This can make remote work from another country easier and safer.

Independent contractors

Independent contractors usually have more freedom to work internationally. You’re responsible for your own tools, hours, and taxes. Many digital nomads choose this route because it’s flexible and doesn’t require your client to manage international compliance.

Just be careful: If your client starts controlling your schedule or work methods, you may actually be acting as an employee, which could lead to legal trouble for both of you due to misclassification.

Remote employees

As a remote employee, your company typically withholds taxes and provides benefits. But working abroad complicates things. Your employer might need to:

• register in your host country,
• follow local labor laws,
• handle new tax and payroll responsibilities.

Most remote workers abroad choose the contractor route because it offers greater flexibility – especially when it comes to living in different time zones or countries. 

💡 You don’t always have to look for a full-time job. Freelance work often comes with more flexibility, and platforms like Useme help you stay compliant with invoicing and payments – even across borders. Still, always check if your destination country requires additional paperwork for tax or immigration purposes.

Pros and cons of working remotely from another country

Is the grass truly greener on the other side? For many, working remotely abroad offers incredible advantages, but it’s not without its challenges. Let’s talk briefly about them.

Benefits of working remotely

• Lower cost of living

Many remote workers choose to live in countries where daily expenses are significantly lower than in their home country. Imagine earning in dollars or euros but spending in Thai baht, Colombian pesos, or Albanian lekë. This geographic arbitrage allows you to enjoy a higher quality of life, afford better housing, or simply save more.

• Better work-life balance

Without the daily commute or rigid 9–5 office hours, you can structure your day around your energy levels, family, or hobbies. Whether it’s surfing in the morning or a midday museum break, remote work abroad puts your time back in your hands. Many freelancers report higher productivity and lower stress when they control their environment and schedule, achieving a better work-life balance than traditional office workers.

• Personal growth and new experiences

Living in a different country encourages you to step outside your comfort zone, learn a new language, and connect with people from vastly different backgrounds. It’s not just about travel – it’s about building resilience, adaptability, and cultural intelligence, which can even make you more valuable professionally. Understanding cultural differences becomes a valuable skill that enhances your professional capabilities.

• Financial flexibility and smarter spending

Working abroad often means spending less while maintaining or even increasing your income. That gives you room to invest, pay off debt faster, or take career risks (like starting your own freelance business). And if you’re an independent contractor, you can often optimize your taxes, depending on where you live and how your income is structured (with professional advice, of course).

Digital nomads’ challenges

• Time zone differences

Your dream destination may be 12 hours ahead of your client’s office, which can mean late-night Zoom calls or waking up at dawn for meetings. Time zone differences can hurt your sleep, social life, or ability to collaborate effectively – especially if you’re in a client-facing role. Scheduling meetings across multiple time zones becomes a constant challenge.

💡Tip: Choose time zones with overlapping working hours, or set clear async communication norms with clients.

• Risk of burnout

The freedom to work “whenever you want” can backfire. Without set hours or boundaries, many remote workers find themselves always on – checking emails at midnight, saying yes to too many gigs, or feeling guilty for taking time off. Add travel logistics, culture shock, or visa runs, and it’s easy to get overwhelmed. Maintaining a healthy personal life becomes more challenging when work hours extend beyond traditional boundaries.

• Legal and tax complexity

International remote work comes with real red tape. Every country has different rules for:

• tourist vs. work visas,
• digital nomad visas,
• tax residency (especially the 183-day rule),
• social contributions or insurance obligations.

Missteps here can mean tax penalties, legal trouble, or even being barred from re-entry. It’s vital to understand your tax obligations, keep paperwork up-to-date, and work with platforms like Useme that simplify invoicing and cross-border payments.

👉 How to invoice as a contractor: tips, mistakes to avoid, and tools to save time

• Loneliness and lack of community

Remote life abroad can feel isolating, especially when you’re far from friends and family, time zones make real-time chats tough, and you’re in a place where you don’t speak the language.

It’s easy to feel left behind without an office space or a support system nearby. That’s why many nomads seek out co-working spaces, expat meetups, or remote work communities.

Process: How to work remotely from another country legally

Here’s a step-by-step checklist to make sure you’re on the right side of the law.

Step 1: Assess feasibility

• Confirm your role and company policy toward remote international work.
• Check whether you need a work visa or residence permit in the destination country.
• Make sure you have a reliable internet connection and a suitable work environment.

Step 2: Understand your classification

• Are you an employee or a contractor?

Remember: employees need company approval and may trigger compliance requirements for their employer, while contractors can usually work from anywhere, but must manage their own taxes and legal standing.

Step 3: Talk to your employer or client

• Set clear expectations around time zones, availability, and communication.
• Establish communication channels that work across international borders.
• Ensure your work agreement reflects your remote status and location.

Step 4: Get the right visa

Before booking flights, check your destination’s visa and work permit requirements.

Short-term stays (up to 90–180 days)

Many countries allow remote workers to stay for up to 90 or 180 days on a tourist visa. However, most tourist visas explicitly prohibit any form of work, even for a foreign company. 

Engaging in remote work on a tourist visa is often a legal grey area. Some countries may allow it informally for short stays, but others enforce strict visa rules. It’s best to check with immigration authorities or consider applying for a digital nomad visa when available.

Medium-term stays (6 to 24 months)

Dozens of countries now offer digital nomad visas, including Portugal, Estonia, Barbados, and Costa Rica. These are designed for remote workers earning income abroad and typically require:

• proof of income,
• health insurance,
• remote employment or freelance contracts.

Long-term or permanent stays

If you plan to stay indefinitely, you’ll likely need a residence permit or work visa. You may also need to register with local authorities and contribute to social insurance schemes. Employees must inform their employer of their change in tax residency, as it can affect the company’s obligations.

Step 5: Stay compliant and pay taxes

Understanding your tax obligations is one of the most complex parts of working remotely abroad. This largely depends on your citizenship and where you establish tax residency.

The 183-day rule

Many countries consider you a tax resident – and subject to income tax – if you spend 183 days or more there in a calendar year. This is a common threshold, but exact rules vary by country and may be influenced by tax treaties. Other factors like your primary home, financial ties, or habitual abode may also determine your tax obligations.

Tax policy for U.S. citizens & green card holders

As a U.S. citizen or green card holder, you’re taxed on your worldwide income, regardless of where you live or where your income is earned. This means you must still file a U.S. tax return annually. However, you may be able to reduce your U.S. tax liability through mechanisms like the Foreign Earned Income Exclusion (FEIE) or by claiming tax credits if you pay taxes in your host country. Consult with a tax professional specializing in international taxation to make the best decision.

Tax policy for non-U.S. citizens working for a U.S. company

If you’re a non-U.S. citizen working remotely for a U.S. company while living outside the U.S., you generally don’t owe U.S. income tax, provided:

• you don’t perform work while physically present in the U.S.
• you aren’t considered a U.S. tax resident under the substantial presence test.

Instead, you’ll primarily owe taxes in your country of tax residence. However, if any part of your income is considered U.S.-sourced under IRS definitions, or if you hold equity or receive dividends from a U.S. company, additional tax obligations may apply.

• The case of Form W-8BEN

If you’re a non-U.S. citizen working remotely for a U.S. company, you may be asked to complete IRS Form W-8BEN. This certifies that:

• You aren’t a U.S. tax resident.
• You aren’t subject to U.S. tax withholding.

Once submitted, the form is valid for 3 years and typically removes the obligation to file a U.S. tax return (as long as you don’t enter the U.S. to work and don’t have other U.S.-sourced income).

Learn more about employee’s eligibility to work in the United States and other aspects of remote work in the U.S. from the official IRS page.

Step 6: Handle social security & benefits abroad

Even while living abroad, contractors are generally encouraged to continue paying into their home country’s social system (where applicable) to maintain access to:

• pension programs,
• public health services,
• unemployment benefits,
• statutory benefits.

Check local laws to see if your new country offers any social agreements with your home country. Some nations have reciprocal social security treaties (also known as “totalization agreements”) in place that can prevent double taxation on social security contributions.

How to get paid while working abroad

When working internationally, your payment method can make a big difference in fees, exchange rates, and accessibility. Choosing the right method helps you keep more of your hard-earned money and avoid financial headaches.

For remote employees

For remote employees, the options are often more straightforward, but not without some associated costs.

Direct deposits to a local bank

Some global companies can arrange direct deposits into a local bank account in your country of residence. However, availability depends on your employer’s payroll setup and local banking laws.

This is often the most convenient and secure method. However, you should check for any foreign transaction fees or high ATM charges when using a card tied to your home country’s bank.

Using digital banks

Services like Wise, Revolut, or Payoneer are excellent for international spending. They allow you to hold multiple currencies in one account, use the real mid-market exchange rate for conversions, and often come with a debit card that works globally with low or no foreign transaction fees. This can save you a significant amount on currency conversion costs and help you avoid hidden fees.

For independent contractors

As an independent contractor, you have more freedom to choose your payment method, but also more responsibility. Here’s a breakdown of the most common ways to get paid:

Direct bank transfer (Wire Transfer/ACH)

It’s a highly secure and reliable system, especially for large, one-time payments. It’s a standard method for business-to-business transactions. However, such international payments often incur significant fees for both the sender and the recipient, and the exchange rate may not be the most favorable. They also require specific banking details like a SWIFT code, which can be a hassle.

Payment platforms (like PayPal, Wise, Payoneer)

• PayPal: Widely accepted and easy to use. However, its fees for international transfers and currency conversion can be very high, eating into your profits. Account freezes can also be a risk for freelancers.
• Wise: A favorite among freelancers for its transparency. It uses the real mid-market exchange rate and has low, clear fees. You can also get local bank details in several currencies (like USD, EUR, GBP) to receive payments as if you had a local bank account, avoiding international transfer fees.
• Payoneer: Another popular choice for freelancers, especially those working on platforms like Upwork. It offers a prepaid Mastercard that you can use anywhere, and the fees for receiving money are generally competitive. It’s well-suited for a global-first business model.

💡Check our comparison: Wise vs. Payoneer – choosing the best platform for your international payments 

Integrated invoicing platforms

Many freelance platforms like Useme have built-in payment systems that manage the entire process, from client payment to a payout to you. Useme simplifies this even more, helping you invoice U.S. clients and receive payments securely, without needing a registered company. This is especially useful for direct client relationships where you need to send a compliant invoice.

Want to see how it works? Check out our invoicing process step by step and learn everything you need to know when settling freelance deals with clients.

Top U.S. companies that hire remote workers internationally

Looking to join a company that supports remote-first living? Here are some forward-thinking U.S. businesses offering work-from-anywhere roles:

These companies prove that location doesn’t limit contribution. With the right tools and culture, distributed teams can thrive globally. Check out the full list of 50+ top companies that hire remotely and how to get hired.

Remote work abroad is possible (if you plan it right)

Working remotely from another country is more achievable than ever, but it’s not something you can jump into without preparation.

To make it work, you need to:

• Understand your work classification and right to work entitlements.
• Research local visa regulations and tax laws.
• Keep communication clear with your client or employer.
• Avoid risky activities that could create a permanent establishment.
• Consider tax implications and consult with a tax professional when needed.
• Understand visa requirements for your destination country.

Whether you’re freelancing your way around the world or taking your full-time job on the road, plan ahead. It will let you enjoy the benefits of global remote work without the legal headaches. Many remote workers find that proper preparation leads to a more sustainable and enjoyable experience working in remote locations.

Need a way to invoice clients from abroad as a freelancer? Useme helps independent professionals issue compliant invoices, receive payments, and work across borders – without setting up a company.