Tax Residence Concerns as a Consequence of Travel Restrictions

November 12th 2020

The arduous travel restrictions in response to the Covid 19 outbreak have no doubt affected every single person in some way or another.  In particular international freelancers and contractors have specific concerns.  Whether due to an existing contract they found themselves cut off from home or indeed the opposite which saw them unable to take new contracts and therefore stuck at home without work, as a group they have been affected particularly acutely by the restrictions.

Despite a lifting on travel restrictions the world has found itself profoundly changed and with it has brought new worries to people’s lives.   If a short stay visa and work permit is required for a limited time contract abroad professionals now have to consider if travel restrictions may now find them trapped  and if so what consequences they might find themselves in if their visa’s expire.  Luckily the majority of countries recognised this problem and extensions were allowed.

Another concern for freelancers who contract abroad is tax residency.  This is normally calculated by the amount of time spent in a particular country.  The travel restrictions have caused a lot of complications, which again several countries have identified and tried to address.

Therefore if you are looking to contract abroad, but are concerned in the current environment it would be advisable to look into the countries restrictions during the pandemic and see how they addressed visa and tax residency issues in order to make an informed decision as to the risks.