The Boring Stuff - that you absolutely need to know!

The Boring Stuff - that you absolutely need to know!

Generally speaking, all actions have consequences… So you want to have it all – the desirable work - life balance we always hear about, talk about, but very few of us ever attain… Sure, you can have it all – you can thrive – but only if you take care of the little detail and that is why we are here – to guide you through and take away the headache of the admin.
So what are the key considerations?

Well, there are tax and right-to-work implications if you are working abroad. Many digital nomads and freelancers ignore this, but if you are working in a country you are not a citizen of, you’ll need a working visa, which is significantly harder to get than a tourist visa.

Admittedly, it’s hard for authorities to track, and many of us will have replied to an urgent work email while away on holiday, which is technically working.

Workations straddle a strange line between holiday, remote work, and sabbatical. 

We are now regularly seeing a direct impact on expatriate and other cross-border working arrangements as a result of the challenging circumstances arising from the COVID-19 pandemic.
 
The restrictions on travel have clearly led to some situations where employees, perhaps on overseas secondments or hired to/from abroad, have been unable to return home.  At the same time, with the widespread shift to more remote and home working, more people are considering whether it is still necessary for them to continue to live close to their employer’s office or whether they can in fact choose a different place of residence and continue to work from home from now on.
 
There has been a significant increase in enquiries from companies whose UK & US employees are requesting not only to continue to work remotely but also to work from our overseas locations. It is very important to understand that employers should not simply treat this as a personal choice with no impact for them.
 
There are many different aspects to think about when considering if such a request can be approved. These include:

• Where the employee will be resident for tax and social security purposes
• What the employer obligations are in terms of payroll/withholding compliance per country
• Whether there are other compliance requirements/registrations per country
• The impact on employee benefits and pension provision
• If there a risk of creating a taxable corporate presence in the other jurisdiction
• What are the wider HR implications in terms of fairness and opportunities for the employee population?
 
The areas to consider from the list above will be specific to the organisation and the individuals involved, but WorkMango is able to provide support in helping navigate the issues around these types of scenarios. 

The good news is that both Antigua and Barbados have introduced long-term residency options through the Digital Nomad Residency Visa for Antigua and the Barbados Welcome Stamp.

Successful applicants and their dependents (if any) will be expected to pay Income Taxes in the countries in which they are normally resident.  No personal income tax is payable to Antigua or Barbados.  However, applicants are not allowed to work for any entity of any kind in Antigua or Barbados, nor to derive any income from any entity in Antigua or Barbados.