Which country is best for remote work?
Factors influencing the choice of country
Choosing the right country for remote work depends on many factors that affect quality of life and the comfort of carrying out professional duties. The most important of these include:
- Living costs: A country with lower living costs can allow a higher standard of living on the same earnings.
- Internet quality: Fast and reliable internet is key to effective remote work.
- Safety: Political stability and a low level of crime affect an employee's sense of security.
- Climate: Weather conditions can affect the comfort of living and working.
- Time zone: A time zone close to the employer's headquarters makes communication and cooperation easier.
Popular countries for remote work
Portugal
- Living costs: Relatively low compared to other Western European countries.
- Internet quality: A high standard of internet services.
- Safety: A very safe country.
- Climate: Mild and pleasant all year round.
- Time zone: GMT, which is convenient for cooperation with companies from Europe and the USA.
Spain
- Living costs: Depending on the region, affordable prices can be found.
- Internet quality: A well-developed internet infrastructure.
- Safety: A high level of safety.
- Climate: Varied, but generally mild, with plenty of sunny days.
- Time zone: CET, ideal for cooperation with Europe.
Greece
- Living costs: Low living costs, especially outside the big cities.
- Internet quality: An improving internet infrastructure.
- Safety: A country with a moderate level of safety.
- Climate: A warm Mediterranean climate.
- Time zone: EET, convenient for cooperation with Eastern and Western Europe.
Thailand
- Living costs: Very low living costs, allowing a high standard of living on moderate earnings.
- Internet quality: A well-developed internet network in larger cities.
- Safety: A high level of safety, especially in popular tourist destinations.
- Climate: A tropical climate with warm temperatures all year round.
- Time zone: ICT, which may require adjustment when working with companies in other time zones.
Estonia
- Living costs: Moderate living costs.
- Internet quality: One of the best internet standards in the world.
- Safety: A very safe country.
- Climate: A cooler climate, particularly in winter.
- Time zone: EET, convenient for cooperation with Eastern and Western Europe.
When working remotely from abroad, it is worth remembering the formal issues related to taxes, ZUS contributions and social insurance. The employer and the employee must take into account the remote work regulations in force in the given country and the rules on tax settlements. In some cases, such as remote work in EU countries, an A1 certificate may be required, confirming that the employee is covered by the social security system of the country where the employer is based.
Regardless of the chosen place of remote work, it is also key to agree the place of work with the employer each time, especially if the work can be performed entirely or partly at a location indicated by the employee. This makes it possible to ensure compliance with remote work regulations and avoid problems related to tax and insurance obligations.
Can you work abroad while living in Poland?
Remote work is becoming increasingly popular, and many people wonder whether it is possible to work for a foreign employer while living in Poland. The answer is: yes, you can work remotely for companies from another country without leaving your own. There are many remote work options for foreign employers, from full-time positions to freelancing and projects under a contract for specific work.
Employment formalities
When working remotely for a foreign employer, there are a few key formalities that need to be fulfilled:
- Employment contract: It must be adapted to the regulations of the country where the employer is based as well as Polish labour law. The employee should make sure that the contract clearly specifies Poland as the place of work.
- Contract for specific work: This form of contract is more flexible and often used by freelancers. The contract should contain a detailed description of the project, remuneration and deadlines.
- Self-employment: You can also run a business and provide services to foreign companies. In this case, it is necessary to comply with self-employment regulations both in Poland and in the employer's country.
Taxes and ZUS contributions
When working remotely for a foreign employer, tax and insurance issues must be taken into account:
- Tax obligation: Income earned abroad is subject to taxation in Poland. The employee should file a tax return, including income from abroad. If there is a double taxation treaty between Poland and the employer's country, double taxation can be avoided.
- Social insurance contributions: The employee must pay social insurance contributions in Poland. In the case of remote work for a company from another EU member state, it may be necessary to obtain an A1 certificate, which confirms coverage by the social insurance system in Poland.
- New regulations: New remote work regulations have been in force since 7 April 2023. Under Article 67 of the Polish Labour Code, remote work may be performed entirely or partly at a location indicated by the employee and agreed with the employer each time.
Additional employee obligations
The employee must also remember other obligations related to remote work:
- Tax residency: The centre of vital interests and the centre of life interests must be established in order to determine tax residency.
- Remote work rules: Remote work should comply with the regulations on working time, remuneration and working conditions.
- ZUS in Poland: ZUS contributions must be paid in accordance with Polish regulations. In case of doubt, you can consult a ZUS branch to obtain precise information on contributions and insurance.
Can you work in Poland while living abroad?
Working abroad while living in Poland is becoming increasingly popular in the era of globalisation and the digitalisation of the job market. Polish labour law, and in particular the Labour Code, regulates matters related to remote work, taking into account the new provisions that came into force on 7 April 2023. Remote work from abroad is possible, but requires certain conditions to be met by both the employer and the employee.
The new regulations introduce rules for remote work abroad, which allow remote work to be performed entirely or partly at a location indicated by the employee, agreed with the employer each time. Under the regulations, work may be carried out in another EU member state or outside it, provided that certain conditions regarding social insurance and taxes are met.
Obligations of the employer and the employee
Agreements and regulations
The employer is obliged to prepare a framework agreement that specifies the place of work, total working time and the rules of remote communication. The agreement must take into account the use of means of direct remote communication, such as e-mail, instant messaging or video conferencing.
When performing remote work abroad, the employee must comply with the remote work rules set out in the agreement and in legal regulations. Remote work from another country involves additional obligations, such as:
- Performance of work: The employee must carry out their professional duties in accordance with the schedule agreed with the employer.
- Scope of social insurance: The employee is subject to the social insurance regulations of the country in which they perform the work, unless they obtain an A1 certificate confirming coverage by the Polish social insurance system. The A1 certificate is issued by ZUS and confirms that an employee performing remote work abroad is covered by the Polish social security system.
Taxes and contributions
The employee and the employer must also comply with the tax regulations in force in Poland and in the country where the employer is based. In the case of remote work from abroad, income earned from work may be subject to taxation both in Poland and in the country where the employee is staying. To avoid double taxation, use should be made of the double taxation treaties that Poland has concluded with many countries.
ZUS verifies social insurance contributions and issues the appropriate certificates confirming that the employee is covered by the Polish social insurance system. This is important in order to avoid misunderstandings and problems related to double social insurance contributions in Poland and in the country where the employee is staying.
New provisions and regulations
Since 7 April 2023, new remote work regulations have been in force, aimed at making it easier for employees and employers to carry out remote work from abroad. These regulations set out the rules for remote work in the areas of social insurance, taxes and working time. Employers are obliged to comply strictly with these provisions in order to ensure conformity with Polish labour law and the regulations in force in the country where the employer is based.
In particular, the new regulations on remote work from abroad take into account:
- The employer's instructions: The employee must carry out their professional duties in accordance with the employer's instructions, taking into account the rules of remote work.
- Total working time: The employee should record working time in accordance with the provisions of the agreement and the Labour Code.
Remote work from abroad requires good organisation and knowledge of legal and tax regulations. Both the employee and the employer must be aware of the obligations arising from remote work in another EU member state or outside it, in order to ensure compliance with the applicable regulations and avoid legal and financial problems.
Summary - remote work from abroad
Remote work from abroad offers many opportunities, but there are a few key issues you need to know about. Choosing the right country for remote work depends on living costs, internet quality, safety, climate and time zone.
On 7 April 2023, new remote work regulations came into force. These regulations set out the rules for remote work, in particular with the use of means of direct remote communication. Employers must prepare a framework agreement, and employees must obtain an A1 certificate to confirm coverage by the Polish social insurance system.
Both the employer and the employee must comply with the tax and insurance regulations in force in Poland and in the country where the employer is based. With proper organisation and awareness of the obligations arising from the new regulations, you can work remotely from abroad effectively, avoiding legal and financial problems.
