Remote Work Compliance: Visas, Permanent Establishment and Labour Law

Can I work abroad on a tourist visa?

In most countries, no. Immigration law attaches to the activity performed on the territory, not to where the client sits or where the money comes from, so work for foreign clients can still count as employment. Short stays are rarely policed in practice, but that does not change the legal position and it can surface at entry, at extension or in a later visa application. Anyone who wants to work predictably uses a permit that explicitly allows it.

Digital nomad visas and their limits

Many countries now offer permits for location independent work, typically requiring a minimum income, health cover and income sourced outside the country. They solve the immigration problem but say nothing final about taxation: some programmes include exemptions or special regimes, others lead to ordinary tax residency once a stay threshold is passed. Check the tax treatment before applying, not just the entry requirements.

When you become tax resident somewhere

The widely quoted 183 day rule is only one criterion. Countries also look at domicile, habitual abode, the centre of vital interests or a permanently available home, and some apply far lower thresholds. Where several ties exist, treaty tie breaker rules decide, assuming a treaty is in place. Solid records of your stays are therefore not bureaucracy, they are the basis of any argument you might have to make.

Permanent establishment risk for your own company

A permanent establishment can arise where a fixed place of business is used in the country, such as a permanently leased office, or where a person habitually concludes contracts in the company's name there. On top of that, if the company is effectively managed from that location, it can be treated as resident there entirely. Both create local tax obligations and, until allocation is settled, a real risk of double taxation.

Employees abroad: employer obligations

If an employee works permanently from another country, payroll withholding and registration duties can arise there for the employer, along with social security obligations. Inside the EU, coordination rules determine which system applies, documented by the A1 certificate. Outside the EU, bilateral social security agreements or national law decide, and without checking, double contributions are a realistic outcome.

Labour law and local protections

Even where the employment contract is governed by foreign law, mandatory protections of the host country can apply, covering working time, leave, dismissal protection or minimum wage. For those engaging freelancers, misclassification risk is assessed under local criteria. Employer of record providers can handle much of this, but they do not remove responsibility from the engaging business entirely.

Data protection, contracts and insurance

Working from third countries can raise data protection questions, particularly where personal data of EU clients is accessed. Also check whether professional liability and health cover extend to the country you are in, since many policies are limited by region or duration of stay. Client contracts should clearly state jurisdiction, governing law and place of performance.

Documentation that holds up

You must be able to evidence where you were, when, and where decisions were taken. That means entry stamps and boarding passes, lease and coworking agreements, transactions with a location trail, and minutes of shareholder resolutions stating place and date. These records are created as you go or not at all, because they cannot be credibly reconstructed later.

Next steps

Map the next twelve months: which countries, for how long, under which permit, and where your company is actually managed. That exposes the points where a review is needed before a threshold is crossed. Binding tax and employment law positions are provided case by case by licensed advisers in the relevant country.

Frequently asked questions

Can I work remotely on a tourist visa?

In most countries no, even when your clients are abroad. What counts is the activity performed in the country, not where the client sits, so predictable working requires a suitable permit.

What does the 183 day rule really mean?

It is one of several tests for tax residency. Domicile, habitual abode and centre of vital interests can create a tax liability even below 183 days.

When does remote work create a permanent establishment?

When a fixed place of business is used in the country or a person habitually concludes contracts there for the company. Effective management on the ground can also shift the company's residency.

Do I need a digital nomad visa?

It makes sense as soon as you intend to work in a country for longer than a short holiday. It creates immigration clarity but does not automatically settle taxation.

What do I need to consider if my employee works from abroad?

Check payroll withholding, which social security system applies, mandatory local labour law and possible permanent establishment risk. Inside the EU the A1 certificate documents which system applies.

Does my home country employment contract still apply abroad?

It remains valid but can be overridden by mandatory protections of the host country, for example on working time or dismissal. A blanket choice of law clause does not prevent that.

How should I document my days per country?

Keep a running log backed by entry stamps, boarding passes, accommodation records and transactions. Maintain it continuously, because retrospective reconstructions rarely convince.

Is working from a country without a tax treaty riskier?

Yes, because without a treaty there are no tie breaker rules and no credit mechanism. Double taxation then becomes difficult to avoid.