5 ms·

Your best bet is probably to form a business entity and work corp-to-corp as a contractor (client pays your contracting entity, which pays you either as an owne

Your best bet is probably to form a business entity and work corp-to-corp as a contractor (client pays your contracting entity, which pays you either as an owner or employee) with a smaller company that is more flexible about things like this. Big companies are capable of dealing with the complexities of having an employee in another country, but are usually not flexible about that sort of hiring. Small companies are flexible, but are not set up to deal with that kind of cross-border employment relationship.

keiferski 3y ago
Yes, this is the answer. Basically you just need a company that is willing to pay you as a contractor or as a separate company. In my experience, smaller startups are more flexible with this kind of thing.
nyargh 3y ago
Yes, this is the only way to do it but the tax situation is complex. Most (all?) EU countries have tax treaties with the US to avoid double taxation but you will be a tax resident in that EU country and they will want their due. You will also likely fall under local labor laws and have to pay social taxes, but this will depend a lot on the digital nomad laws. If digital nomad laws don't apply, you will need a work permit which is no small feat.
moneywoes 3y ago
would it a be US company?
- nyargh 3y ago
  Depends on the laws and how you are being paid. If the local country thinks you're an employee (earning wages) then it would probably have to be a local company. If you're just being paid dividends from your US, then it could remain a US company but you may not qualify as a digital nomad. Either way you would have tax liabilities in the local country to sort out and paying corporate tax, then capital gains taxes is usually a worse tax scenario than wages - but YMMV depending on how much you earn. There are lots of companies that handle this case, remote.com being one - where they are the local employer of record and handle all the social taxes and reporting.
pyr0hu 3y ago
There are also middlemen who deals with these kindof employement. I'm from the EU and when I asked around remote US companies how do they employ people from all around the planet a few of them said they use Deel for example. Basically, you are an employee of Deel and the company sends the money to Deel, which then pays you as salary.
- nyargh 3y ago
  Yep, using a middleman is the easiest way to go. No need to incorporate in the country, understand local taxes and labor laws and you just get a check. They usually even handle invoicing and collection, if you're a contractor. Fees tend to be reasonable for the services offered imo.
- sithadmin 3y ago
  >middlemen who deals with these kind of employment The term of art you're looking for is an 'employer of record' service.
  - pyr0hu 3y ago
    Thanks, TIL!
wheels 3y ago
Those are both options, but there is a third. There are international payroll companies that handle local taxes and compliance. They're not cheap (a couple hundred per employee per month, plus usually a base fee of $1-2k/month), but for a company that's potentially doing such for multiple people, not just the post author, and more than few employees, it might be in reach. It's just a relatively hard sell if they haven't had the need for such in the past. I'd think getting a job at a local company would perhaps be more sensible, and was the route that I went before I got permanent residence in Germany (at which point I started my own company). I'm not certain on such, but I doubt the digital nomad offer a path to permanent residence, which if one wants to be long-term in the EU, eventually is a very nice thing to have sorted.

keiferski 3y ago

Yes, this is the answer. Basically you just need a company that is willing to pay you as a contractor or as a separate company. In my experience, smaller startups are more flexible with this kind of thing.

nyargh 3y ago

Yes, this is the only way to do it but the tax situation is complex. Most (all?) EU countries have tax treaties with the US to avoid double taxation but you will be a tax resident in that EU country and they will want their due. You will also likely fall under local labor laws and have to pay social taxes, but this will depend a lot on the digital nomad laws. If digital nomad laws don't apply, you will need a work permit which is no small feat.

moneywoes 3y ago

would it a be US company?

nyargh 3y ago
Depends on the laws and how you are being paid. If the local country thinks you're an employee (earning wages) then it would probably have to be a local company. If you're just being paid dividends from your US, then it could remain a US company but you may not qualify as a digital nomad. Either way you would have tax liabilities in the local country to sort out and paying corporate tax, then capital gains taxes is usually a worse tax scenario than wages - but YMMV depending on how much you earn. There are lots of companies that handle this case, remote.com being one - where they are the local employer of record and handle all the social taxes and reporting.

pyr0hu 3y ago

There are also middlemen who deals with these kindof employement. I'm from the EU and when I asked around remote US companies how do they employ people from all around the planet a few of them said they use Deel for example. Basically, you are an employee of Deel and the company sends the money to Deel, which then pays you as salary.

nyargh 3y ago
Yep, using a middleman is the easiest way to go. No need to incorporate in the country, understand local taxes and labor laws and you just get a check. They usually even handle invoicing and collection, if you're a contractor. Fees tend to be reasonable for the services offered imo.
sithadmin 3y ago
>middlemen who deals with these kind of employment The term of art you're looking for is an 'employer of record' service.
- pyr0hu 3y ago
  Thanks, TIL!

wheels 3y ago

Those are both options, but there is a third. There are international payroll companies that handle local taxes and compliance. They're not cheap (a couple hundred per employee per month, plus usually a base fee of $1-2k/month), but for a company that's potentially doing such for multiple people, not just the post author, and more than few employees, it might be in reach. It's just a relatively hard sell if they haven't had the need for such in the past. I'd think getting a job at a local company would perhaps be more sensible, and was the route that I went before I got permanent residence in Germany (at which point I started my own company). I'm not certain on such, but I doubt the digital nomad offer a path to permanent residence, which if one wants to be long-term in the EU, eventually is a very nice thing to have sorted.