Working abroad after Brexit a guide on visas and taxes (2023)

FAQs

How long can I work abroad without tax implications UK? ›

You can live abroad and still be a UK resident for tax, for example if you visit the UK for more than 183 days in a tax year. Pay tax on your income and profits from selling assets (such as shares) in the normal way. You usually have to pay tax on your income from outside the UK as well.

British citizens' EU citizenship and free movement rights ended when the Brexit transition period expired on 31 December 2020. Those rights had enabled them to visit, live, work or study in an EU Member State without needing a visa.

If you moved to the EU before 1 January 2021

If you were legally living in an EU country before 1 January 2021, your right to work will be protected as long as you carry on living there. This is because you are covered by the Withdrawal Agreement.

You must tell HM Revenue and Customs ( HMRC ) if you're either: leaving the UK to live abroad permanently. going to work abroad full-time for at least one full tax year.

Generally, to meet the physical presence test, you must be physically present in a foreign country or countries for at least 330 full days during a 12-month period including some part of the year at issue. You can count days you spent abroad for any reason, so long as your tax home is in a foreign country.

If you stay outside the UK for longer than this you lose your 'right to return' - this means you lose your settled status or your indefinite leave to remain. If you get British citizenship, you can leave the UK for as long as you want without losing your right to return.

You may need a visa, work permit or other documentation if you're planning to stay for longer than 90 days in a 180-day period, or if you'll be doing any of the following: transferring from the UK branch of a company to a branch in a different country ('intra-corporate transfer'), even for a short period of time.

Can I still move to Spain now that the Brexit transition period has ended? Yes, you can still apply for residency in Spain like other non-EU nationals. There may be preferential rules introduced for UK nationals.

In most cases, what this means is that provided that you spend no more than 183 days in the other country and you work for a UK-resident employer who bears the cost of your employment, you would usually continue to be taxed only in the UK and not in the other country.

Which country does not require work visa? ›

Norway provides a visa for digital nomads who want to live and work in Svalbard. Svalbard is an independent territory from Norway, and it's one of the easiest countries to move to because you don't actually need a visa.

Laws about remote work from abroad

Most countries will require you to have a valid visa and work permit to stay there for more than 90 or 180 days. In some countries, if your visa is expiring, you can leave the country and return the very same day to extend your stay.

Japanese citizens now hold the most passport power, as they are able to enter 193 nations visa free, or with visa-on-arrival. South Korea and Singapore hold joint second place, with both countries' passports enabling their citizens to access 192 nations without restrictions.

You do not need a visa for short trips to EU countries, Switzerland, Norway, Iceland or Liechtenstein if both of the following apply: you're staying for 90 days or less in a 180-day period. you're visiting as a tourist or for certain other reasons.

The Foreign Earned Income Exclusion (FEIE, using IRS Form 2555) allows you to exclude a certain amount of your FOREIGN EARNED income from US tax. For tax year 2021 (filing in 2022) the exclusion amount is $108,700.

You don't need to pay UK tax on foreign income or capital gains if: You've made less than £2,000 in the relevant tax year. You don't bring that money into the UK.

Understanding the 183-Day Rule

Generally, this means that if you spent 183 days or more in the country during a given year, you are considered a tax resident for that year. Each nation subject to the 183-day rule has its own criteria for considering someone a tax resident.

Whether you need to pay depends on if you're classed as 'resident' in the UK for tax. If you're not UK resident, you will not have to pay UK tax on your foreign income. If you're UK resident, you'll normally pay tax on your foreign income. But you may not have to if your permanent home ('domicile') is abroad.

Yes, if you are a U.S. citizen or a resident alien living outside the United States, your worldwide income is subject to U.S. income tax, regardless of where you live. However, you may qualify for certain foreign earned income exclusions and/or foreign income tax credits.

Do I have to pay income tax if I work abroad? ›

You are an NRI if you do not meet any of the above conditions. An individual qualifying as resident and ordinarily resident (ROR) is taxable on their worldwide income in India and is required to report all foreign assets in the India income tax return (ITR).

You lose your indefinite leave to remain if you've been outside the UK for 2 or more continuous years. You may be able to re-enter the UK and get indefinite leave to remain by applying for a Returning Resident visa.

One of the most common UK immigration myths is that there is a maximum permitted stay of 180 days in a year (or six months in 12 months) for UK visit visa holders. This myth has been propagated not just by migrants but also by advisers and even UK Border Force staff. In reality, there is no such rule.

Voting and citizenship

Your UK citizenship will not be affected if you move or retire abroad. If you want to live in an EU country, check the country's living in guide for information about your rights. You may need a visa.

You can stay 90 days in any 180-day period within the Schengen area. calculated individually for each of these states. For instance, after a 90-day stay in the Schengen area, the person can immediately travel to Croatia and stay for another 90 days there. The 180-day reference period is not fixed.

Staying for 90 days— means that as soon as you enter any country within the Schengen area, your 90-days clock starts. This counts every country in the zone. For example, let's say you spend 30 days in Germany, then 30 days in France, and 30 days in Austria; you've spent 90 days in the Schengen zone.

Each Schengen Area country has its own set and standards for penalties for overstays; however, individuals who exceed the 90-day period will typically be issued with a monetary fine and an order to depart the country and entirety of the Schengen Area within a certain period of time (sometimes immediately).

That is because the main requirement that must be for the retirement visa met is to demonstrate the possession of at least 27.115,20€ per year; which can be done through a bank statement or via any other proof that shows you receive that yearly amount through the before mentioned income sources.

So, based on the above, if you are applying for residency in Spain in 2022 we recommend proving: A regular monthly income of at least €600 OR a lump sum/savings of at least €7000 in a Spanish bank account.

If you want to visit Spain for tourism purposes, you can stay there for only 90 days within a 180-day period. This requirement is valid for those who need a Schengen Spain visa to enter the country and those from countries that have visa liberalisation agreements with the Schengen Area.

Can I work remotely in another country UK? ›

Can I Work Remotely From Another Country? It is legal to work from many countries throughout the world even if you aren't a resident of that country. However, you'll need to comply with your chosen country's visa and tax requirements in order to stay there legally.

If you're working abroad temporarily

You'll usually pay National Insurance in the UK if you're sent by your employer to work abroad temporarily. You or your employer will need a certificate proving you do not have to pay social security contributions abroad.

If a UK company employs you, but you live abroad (for example, as a secondment), your employer can set you up as a non-resident employee for tax purposes: You will only have to pay income tax on the fraction of the year you spent working in the UK. The remainder of your income is taxed in your home country.

China Work Visa Requirements

In many regards, China is one of the easiest places to obtain a work visa – so long as your employer is sponsoring you.

The Netherlands

They are also famed for being flexible with their work visas. Known as the 'Orientation visa', it allows permits for a non-EU citizen and has no restrictions. You can stay in the Netherlands and work for a year once you complete your graduation. You do not need to submit proof of sufficient funds.

1. Germany. Germany has remained consistently at the top of many lists for the past three years, and rightly so. It sits at number 2 with one of the lowest unemployment rates in the whole of Europe, at 3.6%.

Not only is it perfectly legal to work in one country and live in another, called frontier workers or cross-border workers, it is common enough that there are full legal frameworks in many places to handle all the taxation and benefits complications.

There's no universal visa rule for every country in the world. Some countries might allow you to work on a tourist visa if the scope of your work is limited to your country of residence, for example, while others might take a harsher approach, even if you're not interacting with the local workforce.

Working abroad is not only a great experience, but it can also launch your international career and open doors for new opportunities around the world. Your language skills will skyrocket, and your cross-cultural competencies will go through the roof while bringing all of those other soft skills along.

What country can I move to without a visa from UK? ›

The UK passport is one of the most powerful passports in the world with visa-free travel to 139 countries, travel to 7 countries where travel authorization is obtained online, and travel to 38 counties where you will be granted a visa upon arrival.

But, have you ever wondered which passport is the most rare, exclusive and sought-after document in the world? It probably isn't the kind of thing that keeps you up at night, but it's interesting to note that such a thing exists. The document we're referring to is the Sovereign Military Order of Malta (SMOM) Passport.

Black is the rarest colour when it comes to passports. Some African countries, including Botswana, Zambia, Burundi, Gabon, Angola, Chad, Congo, Malawi all issue a black passport. Citizens of New Zealand also have a black passport – because it's the country's national colour.

You'll need a work permit to work in most EU countries if you're a UK citizen. In most cases, you'll need a job offer from your chosen country so that you can get a visa to move there. Check with the UK-based embassy of the country you want to work in to see what you need to do.

If you stay outside the UK for longer than this you lose your 'right to return' - this means you lose your settled status or your indefinite leave to remain. If you get British citizenship, you can leave the UK for as long as you want without losing your right to return.

Since the 1^st of January 2021, moving to an EU country like Spain, Portugal, or France, has meant that British expats must secure permanent residency status. This means you'll be considered a third-country national and are subject to the same terms of entry as everyone else outside of the EU.

The number of days the employee is present in the host country over a 12-month period (however briefly and irrespective of the reason) must not exceed 183 days.

The number of days the employee is present in the host country over a 12-month period (however briefly and irrespective of the reason) must not exceed 183 days.

How much foreign income is tax free in UK? ›

You don't need to pay UK tax on foreign income or capital gains if: You've made less than £2,000 in the relevant tax year. You don't bring that money into the UK.

You're automatically non-resident if either: you spent fewer than 16 days in the UK (or 46 days if you have not been classed as UK resident for the 3 previous tax years)

Whether you need to pay depends on if you're classed as 'resident' in the UK for tax. If you're not UK resident, you will not have to pay UK tax on your foreign income. If you're UK resident, you'll normally pay tax on your foreign income. But you may not have to if your permanent home ('domicile') is abroad.

You usually have to pay tax on your UK income even if you're not a UK resident. Income includes things like: pension.

Can I work for a UK company and live abroad? As the world returns to normal, many people see the opportunity to work remotely in warmer EU climates. However, in reality, most UK employers will not accept employees based outside the UK unless you are a contractor or set up as an independent Ltd company.

If you work overseas, you are likely to be taxable in the overseas country where you work.

If you're working abroad temporarily

You'll usually pay National Insurance in the UK if you're sent by your employer to work abroad temporarily. You or your employer will need a certificate proving you do not have to pay social security contributions abroad.

You simply withhold state income taxes, if applicable in your area, and pay any required payroll taxes. If employees work remotely in your same state, these rules also apply, usually with only a few changes to local taxes.

The failure to report may results in penalties as high as 50% maximum value of the foreign account. The penalties can occur over several years. Still, the IRS voluntary disclosure program, streamlined programs, and other amnesty options can serve to minimize or avoid these penalties.

There are several sources of potential foreign income and gains that can be acquired outside of the UK but subject to UK tax: Earnings from employment abroad. Profits from running a business overseas. Income from renting out property in another country.

Do I need to declare foreign bank accounts UK? ›

Again, you don't necessarily have to declare foreign bank accounts to HMRC if no interest is gained on the accounts, but you must report all overseas income. HMRC is now proactively challenging taxpayers who it suspects may have under-reported or evaded tax altogether on offshore income.

Understanding the 183-Day Rule

Generally, this means that if you spent 183 days or more in the country during a given year, you are considered a tax resident for that year. Each nation subject to the 183-day rule has its own criteria for considering someone a tax resident.

The sufficient ties test looks at a combination of the number of days you spend in the UK in the tax year and the number of ties you have with the UK. You look up a table (contained in the legislation and the guidance) to determine whether the combination makes you resident in the UK for that tax year.

If you're British yet live permanently overseas, earn income from renting out property in the UK, work for yourself in the UK or have other untaxed income from a UK source, you'll need to fill out and send a Self Assessment tax return each year, so that you're UK tax liability can be calculated by HMRC.