Since the COVID-19 pandemic, working from home has become the norm across many sectors. But when “home” moves across borders, the rules quickly become murky. Few companies have clear policies on remote work from abroad, leaving employees and employers at risk. 

Legal grey zones 

It’s important to distinguish between two situations: one where an employee lives in country A and works permanently for an employer in country B (also known as a frontier worker), and another where an employee asks to work temporarily from another country, often called a ‘workation’. “Remote work from abroad is becoming more common, also due to developments in the EU legal framework” says Armand Lahaije, tax advisor at Dutch employers’ association AWVN. “In practice, we don’t actually see a major increase when it comes to workations. What we do see is that when it happens, even occasionally, it creates complex legal and fiscal questions.” 

According to Lahaije, most companies still lack a framework. “Managers make decisions case by case, which leads to inconsistency and legal risk,” he explains. “It’s not just about trust or flexibility. It’s about compliance with tax law, social security and labor regulations.” The employee is obliged to notify the employer when (temporary) working from abroad. The employer must investigate what foreign legal rules need to be complied with when working from abroad. 

The EU framework 

Within the European Union, rules allow employees to remain insured in their home country if they spend at least 25% of their working time in the coming 12 months there. AWVN advises employers to limit so-called ‘workations’ to a maximum of two to three months, including an eventual period of leave. Beyond that, risks multiply. Also, when the employee requests for a workation in the (former) home country, special attention is needed. 

Outside the EU, matters become even more complicated. Residency laws, visa requirements and labor protections vary widely. According to Kroes Advocaten, there is no EU-wide digital nomad visa. Instead, freelancers and employees must navigate a patchwork of national rules, often needing to prove financial independence and avoid local services. 

“Without bilateral agreements, you may end up paying social premiums in two countries,” warns Lahaije. 

Workers want freedom 

  For employees, the appeal of location-independent work remains strong. Nino Davitouliani, an environmental consultant based in Tbilisi, Georgia, says the flexibility is worth it. 

“I love the freedom, but it requires discipline,” she explains. “Sometimes I miss the structure and social contact of an office.” 

Her case is relatively simple; she works from her home country. But for Europeans working temporarily or long-term abroad, the rules are vague and rarely communicated clearly by employers. 

Real risks 

That lack of clarity can have consequences. If an employee is injured while working remotely from abroad, liability and insurance coverage may be unclear. In some cases, local authorities may view the arrangement as undeclared labor, leading to fines or sanctions. 

Employers urged to act 

AWVN is calling on companies to take a more structured approach. That means setting boundaries on how long someone can work abroad, clarifying visa responsibilities and defining what happens in case of illness or injury and making clear who bears additional costs. In practice most employers take the approach that as the initiative lies with the employee and if there is no business need for the employee to be present in that country, the additional costs are for the account of the employee. 

“If you go abroad on your own initiative, the responsibility is mostly yours,” says Lahaije. “But employers must be transparent about what they allow and what they don’t. Furthermore, foreign jurisdictions may involve the employer in the process of applying for the visa.”

The road ahead 

The shift to hybrid work has reshaped expectations around location and productivity. But when national borders enter the equation, flexibility quickly collides with bureaucracy. 

“Remote work abroad won’t disappear,” Lahaije concludes. “But without clear agreements, it’s not sustainable.”