The pandemic has led a significant portion of the global workforce to opt for working remotely. Without the need to report to a particular office every day, employees are taking the opportunity to work in different countries. What better way to achieve work-life balance than to boot up your laptop in the country of your choice, allowing you to be closer to family, or taking the opportunity to experience something different than would otherwise have been feasible?
I would venture to say that when folks envision their ideal remote work location, taxation is not top of mind. This is quite understandable, as their employer, salary, and manner of compensation will not change, so a change in tax status may not be obvious.
From a tax point of view, however, working in a different country can have significant consequences for both the employer and the employee.
Many countries tax income based on where services are actually performed. Thus, even though an employee may be receiving their wages from an employer in one country, the employee’s new resident country may seek to tax any income earned while performing work services there.
Additionally, many countries treat an individual as a tax resident if that individual is physically present in...
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