Work Remotely Abroad Without Making Tax and Visa Mistakes

You've found the perfect remote working setup. Your laptop, decent WiFi, and the freedom to work from anywhere.

But most people don’t realise that working remotely from another country without proper authorization is not explicitly permitted in most locations, even if you work for a company back home.

Here’s how the scenario typically unfolds...

Remote workers land in a new country on a tourist visa, set up shop, and think they're good to go. What they don't know is that they could be at risk of visa violations, unexpected tax bills from multiple countries, or worse—deportation and entry bans.

Employees also risk jeopardizing their relationship with their employer if they don’t ask permission to work abroad, or if they trigger permanent establishment, which can expose the company to unexpected tax, reporting, and compliance obligations in that country.

The good news is that staying compliant isn't complicated when you know the rules. You just need the right visa, proper tax setup, and a system to track it all.

This guide shows you exactly how to work remotely overseas legally—from choosing the right digital nomad visa to managing cross-border taxes. Whether you're an independent contractor, employee of a global company, or employer supporting distributed teams, you’ll learn how to avoid the costly mistakes that can trip up digital nomads.

What are your remote work visa options?

It depends on the purpose and length of your stay. Most tourist visas don’t explicitly permit work, but some don’t prohibit it either. As a result, if you’re planning to stay in a country for only a few months and don’t intend to engage with the local labor market, you may be able to enter on a tourist visa, which is often quick and easy to obtain.

Digital nomad visas require more planning in advance, but explicitly allow you to work remotely abroad.

If you’re traveling specifically for a conference or other business activity, a business visa is typically more suitable.

Let’s explore each visa type in more detail below:

Tourist visa

Tourist visas are generally intended for short-term visits and leisure travel. However, the rules around remote work can be a grey area. Some countries do not explicitly prohibit remote work on a tourist visa, provided it is not the primary purpose of entry, does not involve engaging with the local labor market, and is short-term and incidental to tourism.

It’s best to check each country’s specific immigration guidance or consult an official authority before traveling.

Working remotely as a freelancer or contractor is generally the safest arrangement for both you and the hiring company if you plan to work abroad frequently or for extended periods of time. In this setup, it’s your responsibility to ensure you don’t violate the conditions of a tourist visa—and if you do, your client is not liable, as can be the case in an employment relationship.

Digital nomad visa

A digital nomad visa is a legal permit allowing foreign nationals to reside in a country and work remotely for non-local employers or clients for a set period—typically six to twelve months, with some programs offering extensions.

Unlike tourist visas, digital nomad visas explicitly authorize remote work as long as the work is performed for companies or clients outside the host country.

Business visa

Business visas permit activities such as attending meetings, conferences, or negotiations, but generally do not permit ongoing remote work or employment. They’re intended for temporary business engagements, not sustained work arrangements.

Here’s how the different visas compare:

If you’re not sure which visa is the right choice for you, or need help planning your visa application, Deel Immigration can help.

Which countries offer digital nomad visas?

UAE, Spain, Portugal, Italy, and Greece are all examples of countries offering digital nomad visas. But more than 40 countries now offer these visas, leaving remote workers with plenty of destinations to choose from.

UAE (Dubai)

The UAE virtual working program allows remote work for foreign employers. One-year visa, renewable. No income tax makes it financially attractive for high earners.

Spain

One-year visa, extendable up to five years. You must work remotely for a company registered outside Spain or provide freelance services to mostly non-Spanish clients. Requires proof of stable income and health insurance.

Portugal

One of the earliest adopters. The D7 visa allows remote work and can lead to permanent residency. Lower income requirements than many European programs make it accessible to more professionals.

Italy

Targets highly skilled professionals in technical and creative fields. Requires demonstrating specialized expertise, stable income, and comprehensive health coverage. Can work for non-Italian employers remotely.

Greece

Offers a one-year digital nomad visa, extendable up to two years. Applicants must demonstrate stable income from foreign employers or clients and maintain health insurance. Tax incentives may apply for longer stays under certain residency programs.

Colombia

Recently introduced a digital nomad visa with flexible requirements. Valid for up to two years and ideal for freelancers or remote employees working for non-Colombian companies. Affordable cost of living makes it especially appealing.

Canada

Allows remote workers under its digital nomad initiative, which permits stays of up to six months while working for foreign employers. Those who secure Canadian job offers can transition into longer-term work or residency pathways.

Japan

Japan’s new digital nomad visa offers six-month stays for remote workers meeting higher income thresholds. Applicants must work for non-Japanese employers and carry comprehensive travel and health insurance. Ideal for professionals seeking cultural immersion while maintaining international employment.

Ireland

Ireland offers visa-free entry for up to 90 days for citizens of 87 countries, during which remote work is permitted under certain conditions. While not a dedicated digital nomad visa, this exemption provides flexibility for short-term remote work arrangements without formal visa sponsorship.

EU citizens in EU countries

Many European Union (EU) countries allow EU citizens to work visa-free across member states. However, non-EU nationals typically need a visa to work remotely within the EU, even if employed by a company outside the bloc.

See also: Digital Nomad Visas for Remote Work: The Complete 2025 List

What are some common digital nomad visa requirements?

Most digital nomad visas share common requirements, though specifics vary by country. Typically, you’ll need to obtain proof of employment or long-term contracts, meet income thresholds, and have health insurance, a clean criminal record, and proof of accommodation.

Proof of remote employment or freelance income

You'll need an employment contract, client agreements, or a portfolio showing ongoing work. Countries want assurance that you won't seek local employment.

Minimum income thresholds

Ranges widely—€3,000 to €4,500 per month in Europe, $24,000+ annually in Asia. Some countries want bank statements showing consistent income over 3-6 months.

Health insurance

International coverage or local insurance meeting minimum thresholds. Must cover your full stay duration.

Clean criminal record

Police clearance certificate from your home country or anywhere you've lived long-term.

Proof of accommodation

Rental agreement, hotel booking, or letter from a host.

Digital nomad visa processing can take anywhere from a few weeks to several months. Fees typically range from $100 to $1,000 depending on country and visa duration.

Deel Immigration streamlines this process by:

• Assessing which visas you qualify for based on your profile
• Preparing all required documentation with expert review
• Submitting applications on your behalf
• Tracking deadlines and sending renewal reminders
• Providing legal support if issues arise
• Access to relocation support

Managing income tax while working remotely abroad

Cross-border taxes are where many remote workers slip up. Misunderstanding tax residency rules or failing to file properly can result in penalties, back taxes, or double taxation.

Tax residency determines where you owe taxes

Most countries use a 183-day rule—if you spend more than 183 days in a calendar year, you become a tax resident. As a tax resident, you're typically required to report and pay taxes on your worldwide income in that country. Don’t worry, though. Many countries have treaties allowing you to claim foreign tax credit or exclusions, so you won't need to pay taxes in both your home and destination country. More on this below.

The US taxes citizens on their global income

If you're a US citizen, you owe US taxes no matter where you live or work. This creates potential double taxation if you also become a tax resident in another country.

Dual taxation risks

When both your home country and host country claim the right to tax your income, such as in the US, you could end up paying taxes twice on the same earnings.

See also: A Guide to International Taxes When Working Remotely

Tax treaties

Many countries have treaties allowing you to claim foreign tax credits or exclusions. But treaty benefits require proper filing and documentation. You can't just assume you're covered.

Real-world examples

• US and UK: A tax treaty between the US and UK prevents residents from being taxed twice on the same income. Depending on residency and time spent working abroad, income is typically taxed in one country, with credits applied in the other.
• Netherlands: Under many Dutch tax treaties, employees who stay fewer than 183 days may remain taxable only in their home country.
• Spain: Spain has a large network of double-taxation treaties with around 90+ countries worldwide. This means that as an employee from one of these countries, you will only need to pay tax in Spain.
• Germany: Germany has an extensive network of double-taxation treaties with around 90–100 countries, designed to prevent the same income being taxed in both Germany and the treaty partner country.

Social security contributions

Social security is often overlooked—but it’s important. Some countries require digital nomad visa holders to pay into the local social security system.

In Spain, for example, foreign employers may need to withhold and pay Spanish social security on behalf of their employees, usually through a local representative. In some cases, employees can avoid this if they obtain a special certificate from their home country’s tax authority allowing them to keep contributing to their domestic system instead.

For self-employed contractors, the rules are different. Contractors may need to register locally as self-employed and make their own social security contributions in the destination country.

The bottom line is that social security obligations depend on visa type, worker status, and local law—and getting it wrong can be costly.

How to ensure tax compliance as a digital nomad

1. Track your days in each country carefully
2. Understand your home country’s tax obligations for citizens abroad
3. Research host country tax residency rules and filing deadlines
4. Determine if a tax treaty exists and how to claim benefits
5. File all required returns in both countries, even if you owe no tax
6. Keep detailed records of income, expenses, and time spent in each location

Penalties for non-compliance

Non-compliance can impact both the employee and the employer.

For employees:

• Back taxes owed
• Interest charges (can compound quickly)
• Fines and penalties (often 25–50% of unpaid taxes)
• Audits in multiple countries at the same time
• Criminal charges in extreme cases

For employers:

• Fines for immigration or tax violations
• Payroll and tax liabilities in the foreign country
• Permanent establishment (PE) risk, which can trigger corporate tax obligations if a worker operates without the correct visa or engages with the local market
• Increased scrutiny from tax and immigration authorities

Choosing the right visa and tax support services

Choosing the right visa and tax support service is the fastest way to avoid delays, reduce costly mistakes, and stay compliant as you move between countries. While you can manage everything yourself, expert-backed platforms save you months of work and significantly lower your risk.

Types of support services

DIY platforms

These offer templates, checklists, and basic guidance. They work well for simple cases if you’re comfortable managing the process yourself. The trade-off: limited personalized advice.

Immigration law firms

Ideal for complex scenarios or employer sponsorship. They provide full legal representation and deep expertise, but costs are higher.

All-in-one immigration platforms like Deel

A hybrid solution that combines visa support, payroll, and compliance. Perfect for distributed teams or individuals who want full service without law-firm pricing.

Key features to look out for

✓ Multi-country coverage – Supports the destinations you're considering
✓ Automated reminders – Never miss a deadline for renewals or filings
✓ Expert support – Immigration and tax specialists available when you need them
✓ Integration – Connects with payroll, HR, and bookkeeping tools for seamless management
✓ Regulatory updates – Keeps you informed as laws change

Deel Immigration combines expert legal support with technology that automates documentation, tracks deadlines, and provides real-time status updates. We manage over 50 digital nomad visa programs worldwide and support alternative hiring and relocation methods as needed.

Common visa mistakes (and how to avoid them with Deel)

Visa issues rarely come from one big mistake. They usually come from small ones that pile up, such as missing documents, poor translations, or late filings. Deel helps you avoid these issues but centralizing your documents and ensuring they meet local requirements.

Missing or inconsistent documents

Mismatched details, outdated forms, or unclear proof can derail an application. Deel Immigration centralizes documents, checks for inconsistencies, and flags issues before submission.

Poor translations

Uncertified or automated translations are a common reason for rejections. Deel works with accredited translators so your documents meet local requirements.

Late filings and missed renewals

Starting too late is one of the biggest risks. Deel tracks deadlines, renewal windows, and application status so nothing slips through the cracks.

Slow responses to immigration authorities

Delays often happen when follow-up requests are missed. Deel manages communication and keeps applications moving.

See also: How HR Can Streamline Visas & Immigration for Global Talent

Stay compliant wherever you work with Deel

Working remotely abroad offers incredible freedom. But only if you do it legally.

The visa and tax rules are complex, but they're not impossible. You just need the right guidance and systems to stay on top of everything.

Deel Immigration handles visa applications, tax support, and ongoing compliance for remote workers worldwide. We combine expert legal support with technology that automates the tedious stuff—so you can focus on your work, not paperwork.

Ready to work remotely abroad without the compliance headaches? Book a free consultation today or explore our visa services for individuals.