So - this is quite a good idea, but worked example: what if I work for a UK/US business, but live in a low cost of living country? Is that just fine, because I'

So - this is quite a good idea, but worked example: what if I work for a UK/US business, but live in a low cost of living country? Is that just fine, because I'm still consuming resources where I'm working? Or is it a bit of a loophole (can't tell)?