When a Remote Employee Wants to Move Countries

In today’s hyper-connected, remote-friendly world, it’s not uncommon for remote workers to consider changing their location—even across borders. But when a remote employee wants to move countries, what seems like a personal decision can ripple into complex legal, tax, and operational implications for employers.

Whether it’s to be closer to family, explore a new culture, or improve quality of life, international relocation by remote employees is becoming increasingly common. As exciting as it sounds, this move can present a maze of regulatory, compliance, and logistical challenges for businesses.

In this article, we’ll break down everything employers need to know—and do—when a remote employee wants to move countries.

Why Do Remote Employees Want to Move Countries?

Let’s start with the obvious: people are mobile, and remote work enables greater freedom than ever before. Some common reasons employees might want to relocate internationally include:

• Lower cost of living or better lifestyle
• Access to family, friends, or support systems
• Personal safety or political stability
• Healthcare or educational benefits
• Visa, citizenship, or residency opportunities
• Travel and cultural exploration

While the personal reasons may vary, the professional impact is consistent: employers must make careful decisions about whether they can support such a move—legally, financially, and logistically.

Key Considerations for Employers

Before giving the green light, here are critical factors employers must evaluate when a remote employee wants to move countries:

1. Legal and Immigration Requirements

• Work Authorization: Is the employee legally allowed to work in the new country as a remote worker?
• Visa Restrictions: Some countries don't permit remote work under tourist or temporary visas.
• Employment Law Compliance: Labor laws differ globally, including working hours, holidays, termination rights, and benefits.

For example, in the European Union, even temporary relocation could trigger obligations under local employment laws. Employers must consult with local legal counsel to ensure compliance.

2. Tax Implications

Employers and employees can face unexpected tax burdens when relocating across borders.

• Permanent Establishment Risk: If an employee is working from a new country, the business could be seen as operating there and become liable for local corporate taxes.
• Payroll and Withholding: Companies may need to register as a foreign employer and comply with local payroll taxes and social security requirements.
• Double Taxation Treaties: Check whether the new country has tax treaties with your country of incorporation. The IRS provides a list of U.S. treaties, which can prevent double taxation.

3. Data Privacy and Cybersecurity

Relocating to a new country could impact how employee data is handled and stored.

• Data Residency Laws: Some jurisdictions, like the EU with its GDPR, impose strict data protection rules.
• Remote Access Risks: Companies must ensure secure remote access, especially from high-risk countries or regions with limited cybersecurity protections.

4. Cost and Benefits Adjustments

Cost-of-living and statutory benefits vary widely from country to country.

• Should salary be adjusted up or down?
• Are new mandatory benefits applicable (e.g., pensions, parental leave)?
• Will relocation costs be reimbursed?

Employers may need to benchmark salaries against the local market or consider localized compensation packages.

Possible Options for Employers

When a remote employee wants to move countries, employers typically have three routes:

1. Reject the Request
   Not all companies can legally or logistically support international relocations. If risks outweigh benefits, employers may deny the move.
2. Use an Employer of Record (EOR)
   EORs can help legally employ someone in another country without setting up a local entity. This option reduces compliance risk and allows continued collaboration.
3. Set Up a Local Entity
   If you foresee long-term growth in a particular country, establishing a legal presence can be a strategic move—but it’s costly and time-consuming.

Communication Is Key

A transparent and structured process helps avoid misunderstandings. Here’s how to approach the conversation:

• Document the Request: Ask the employee for details—where they’re moving, for how long, and why.
• Evaluate Internally: Legal, tax, IT, and HR teams should assess feasibility.
• Formalize the Arrangement: If approved, document the new arrangement with a contract addendum outlining expectations, responsibilities, and duration.

Practical Tips for a Smooth Transition

If you decide to approve the move, follow these best practices:

• ✅ Consult international legal and tax advisors
• ✅ Consider using a global payroll or EOR provider
• ✅ Update the employment agreement to reflect the new jurisdiction
• ✅ Schedule regular compliance reviews
• ✅ Set boundaries on working hours if the new time zone differs significantly

Conclusion: Flexibility with Foresight

Letting a remote employee move countries can enhance retention and morale, but it’s not without its hurdles. By approaching international moves with a strategic mindset, employers can balance flexibility with compliance.

International mobility is no longer a trend—it’s part of the remote work reality. The businesses that adapt thoughtfully will be the ones best positioned to attract and retain global talent.

Frequently Asked Questions (FAQs)

1. Can a remote employee move countries without informing their employer?
Technically, yes—but it can lead to serious legal and tax consequences for both the employee and employer. Employees should always notify their company before making such moves.

2. Will my company have to pay taxes if I move countries?
Yes, potentially. If a remote worker triggers a “permanent establishment” in a new country, the company could be liable for local corporate taxes and compliance obligations.

3. What is an Employer of Record (EOR)?
An EOR is a third-party organization that legally employs workers on behalf of another company, managing payroll, benefits, and compliance in the employee’s country.

4. Can salary be adjusted if I move to a lower-cost country?
It depends on the employer’s compensation policy. Some companies adjust pay based on local cost-of-living benchmarks; others offer location-agnostic salaries.

5. Are there countries that don’t allow remote work on a tourist visa?
Yes. Many countries prohibit working remotely on a tourist visa and may impose fines or deport individuals found in violation.