Working remotely from popular destinations like Bali, Mexico, or Spain has become a trend among digital nomads. However, this lifestyle comes with legal risks, ranging from tax obligations to potential deportation. Many employees engage in such practices without informing their HR departments. This lack of transparency can lead to legal complications for both the employees and the employers.
Isabelle Wildhaber, a law professor at the University of St. Gallen, and founder of Vamoz, a startup supporting companies in implementing remote work abroad, emphasizes the legal risks associated with working internationally. Establishing a permanent presence in another country can have tax implications and other consequences for both employees and employers.
Navigating the legal landscape can be complex, as regulations vary from country to country. This complexity often discourages companies from allowing remote work abroad due to the fear of legal repercussions. Sometimes, employees secretly work from abroad until issues arise, highlighting the need for clear legal guidelines and understanding between employers and employees.
There are five key areas to consider when working remotely abroad: visa requirements, tax liabilities, data protection laws, social security laws, and labor regulations. Understanding and complying with these aspects is crucial to avoiding legal pitfalls and ensuring a smooth remote work experience.
While working remotely provides flexibility and freedom, it also necessitates careful consideration of legal implications. Employers and employees must align on legal obligations, maintain transparency
