Working remotely from anywhere but home can sound ideal. Every morning, you can wake up to different scenery, experience breathtaking views, new cultures, and tantalizing cuisines.
This may seem like a dream, but it’s actually a very real goal. As of August 2024, 22.8% of US employees worked remotely at least partially, and that’s just within the nation.
You may now be wondering: Can I work remotely in another country? It’s a much bigger goal, after all, and it may not be feasible for some people.
So read on to find out if this ambition is realistic for you and what it’ll entail if you want to proceed with this new chapter in life.
Can I Work Remotely in Another Country?
In short, yes, Americans can work remotely in another country. The basics of what you need to be a remote worker are:
- A reliable internet connection
- A laptop or remote PC setup
- A job that allows flexibility in location
What’s great is that since remote work has risen in popularity, more and more coworking spaces and nomad-friendly communities have popped up. This makes it easier than ever to plug into your career while enjoying life in another part of the world.
However, it’s not as simple as picking up and jetting off whenever you wish. There are a few drawbacks, so don’t expect remote work to be all sunshine and rainbows.
How Can I Work From Abroad?
As you might’ve already guessed, remote work isn’t a one-size-fits-all situation. There are different approaches you can use, depending on what your goals are, your lifestyle, and how much work you’re willing to do regarding bureaucracy.
Here are the main ways you can work from abroad, and each method has different time periods in terms of how long you can stay.
Tourist Visa (Short-Term Stays)
With this route, you’d have an American employer, and you’d enter another country based on a regular tourist visa. Depending on the country, you can typically stay 30 to 90 days.
For example, the Schengen Area in Europe allows you to stay up to 90 days in any 180-day period. Otherwise, countries like Thailand are on the lower end and let you stay for 30 days (extendable to 60 days in some cases), while countries like Mexico are on the higher end and let you stay up to 180 days.
This remote work path is best for short stays or slow travel. Also, if you’re up for moving between countries to avoid overstaying, it’s good for you too.
Do note that this choice falls in a gray area. Technically, you aren’t supposed to work on a tourist visa, even if your employer and income comes from abroad. However, many remote workers do this quietly, and enforcement is inconsistent, so it’s a risk several people are willing to take.
Digital Nomad Visas (Mid-to-Long-Term Stays)
A growing number of countries now offer visas that are specifically for remote workers, and they’re called digital nomad visas. It’s one of the few 100% legal ways to work abroad remotely without risking visa or tax troubles, and in some situations, you can stay for longer periods without becoming a full tax resident.
Typically, these visas allow you to stay between six months to 2 years, often with renewal options. For instance, Portugal has a one-year digital nomad visa that’s renewable.
Here are the general requirements you’ll need to meet:
- Proof of remote work/income from outside of the country
- Minimum income threshold (often $2,000-$5,000/month)
- Health insurance
- Clean criminal record
If you want to live in one place without having to do “visa runs” or gray-area guessing, then a digital nomad visa is ideal for you. In that case, consider the best digital nomad cities before making your move.
Work Visa
This isn’t technically a remote work option, but it’s a way for you to get paid in a different country while living there. It’s rare for remote roles, but you’d get a work visa through a local company that sponsors your visa.
With a work visa, employees can usually stay one to two years in their new home country. However, the exact length of time depends on the job and contract.
Of course, this is completely legal, but because you’re expected to work for the company sponsoring your visa, it’s not great for those with freelance clients or foreign-based employers. This makes it best for professionals who are relocating abroad with a job offer in hand.
Visa-Free Countries or Special Agreements
Some countries have reciprocal agreements with others, which allow their citizens to stay longer without a visa or with minimal paperwork. In some cases, these agreements even let people to work legally (not always).
As we’ve said above, Mexico allows Americans to stay for up to 180 days without needing visas. And you can stay in Georgia (the country) for up to one year without a visa. If you’re looking for something closer to home, some South American nations have 90-180-day visa-free stays.
You should know that while staying in these countries is legal, working remotely may not be. It’s another gray area unless you specifically apply for a visa allowing remote work. But if you’re okay with this uncertainty, then it’s excellent for those who want flexibility without paperwork.
Residency or Citizenship (Long-Term Stays)
Do you want a stable home base or want to establish legal roots abroad? Then think about obtaining residency or citizenship abroad. Some ways you can do this are through:
- Ancestry (Irish, Italian descent, for example)
- Retirement visas
- Investment or real estate programs
- Marrying a local
How long you can stay will depend on the type of residency or citizenship. But in a lot of circumstances, you can stay indefinitely. You can even work remotely without worry if your country of residence doesn’t tax foreign income.
Taxes for Remote Workers
The good news is that there are countries that don’t have income tax, or at least lower rates than the US. In addition, they often have a lower cost of living, which makes working remotely even more appealing.
But the reality is that it’s easy to trigger tax residency rules; most nations consider you a tax resident if you spend more than 183 days there. Once you’re a tax resident, you may be liable to pay taxes on all your income (global).
And unless you’re living in your home country and working under your own tax convention system, you’re going to be operating in a gray area. Some countries have double-taxation treaties, but not all, and it can get complicated really fast.
Plus, if you’re employed, you may put your employers at risk for legal issues if you don’t inform them that you’re working from another country. To avoid this, many employers require you to stick to specific locations.
Ways to Mitigate Your Tax Obligations
The easiest way to mitigate your tax obligations is to be a short-term traveler. It involves hopping in and out of countries on tourist visas and staying under 90 days (or the legal limit) to avoid tax residency. However, this can be tiring for those who like to stay put for longer.
You can always apply for a digital nomad visa, which is easier for setting up a home base. But this comes with paperwork that you may not want to deal with.
And there’s the option of being a gray-zone nomad, where you can fly under the radar without declaring anything. While it’s commonly done, it does come with tax and legal risks.
Set Up an LLC in a Tax-Free State
A much better choice is to set up an LLC in a tax-free state like Wyoming and run your income through there from abroad. Not only is there no state income tax, but there are low annual fees, too. Also, Wyoming doesn’t require you to publicly list members or managers, which makes it great for anonymity.
How this works is that your clients would pay your Wyoming LLC, not you personally. This will reduce self-employment taxes through deductions or S-corp elections. From your LLC, you can pay yourself a salary or distributions, depending on your company’s tax election.
If you’d like to explore this route, then use our free business registration service. We’ll take care of all the paperwork, and you can have your LLC up and running in as little as two working days.
Start Working Remotely
If you’re asking, “Can I work remotely in another country,” then the answer is “yes.” The issue is that in several scenarios, you’re in gray areas, which can put you at risk legally.
The solution is to use one of the choices we’ve presented to you, especially the one involving an LLC setup. Not only can you reduce your tax obligations, but you can also get a layer of protection for your assets, as well as enjoy several other benefits from this business structure.
Sign up with Business Anywhere to use our free business registration service. You’ll get a free year of registered agent services, too.
