VISAS, CROSS-BORDER REMOTE WORKERS AND FOREIGN NATIONALS
WHAT: If any company desires to allow remote working, boundaries need to be set. If a company allows their employees to be nomadic, then they may want to be aware of visas allowing employees to work remotely for extended periods of time from other countries, or the risk of an employee’s permanent relocation, and be prepared to deal with tax discussion that could arise from this – a well written mobility policy is crucial.
If companies are looking to hire globally, they should be aware of differing payroll, HR and tax requirements in those countries, amongst others. Establishing a corporate entity in another country can be a time-consuming and expensive task. Rather than incorporate internationally, companies can rely on an Employer of Record to employ their workforce. An EOR partners with companies as an international legal employer, handling payroll, taxes, benefits, and HR functions – examples of these are in the first signal cluster.
If an internationally-based company or hires remote nomads temporarily based in Sweden, specific considerations need to be made for those who may not yet have access to a personnummer. Swedish employment laws will often not apply in the case of a temporary stay in Sweden. However, if the temporary resident is a Swedish citizen, dependent on their official resident status within the country, they may be liable to pay income tax, no matter how short the stay.
SO WHAT: Employers hiring remotely need to have a solid mobility or hiring policy, and understanding of the local legislature regarding international hires or long-term travels. Services are available to support these endeavours, and employers should also be aware of these. As soon as full-time remote work is established, employers need to be aware that employees may want to reside abroad under longer periods of time – the difference between extended workcations or digital nomadism need to be defined, as well as their implications on tax, insurance and so on.