Can You Work for a US Company From Another Country?
Yes, you absolutely can work for a US company while living abroad—whether you’re a US citizen, permanent resident, or foreign national. Remote work has become increasingly viable, with companies embracing flexible arrangements that allow employees to work from virtually anywhere. However, success depends on navigating several critical factors: visa requirements, tax obligations, employer policies, and your employment classification.
This comprehensive guide walks you through everything you need to know to work internationally while maintaining your US-based income.
Important Disclaimer: This article provides general information based on current regulations and expert sources. It is not legal, tax, or immigration advice. Always consult qualified professionals before making international work decisions.
Understanding Visa Requirements and Legal Status
Tourist Visas: The Gray Area
Most countries allow tourist visits ranging from 30 to 90 days, but these visas rarely permit work—even remote work for a foreign company. Working on a tourist visa can lead to serious consequences, including visa revocation, fines, and potential immigration fraud charges.
The enforcement varies significantly by country. Some nations turn a blind eye to digital nomads working remotely, while others strictly enforce work restrictions.
Digital Nomad Visas: The Game Changer
As of 2025, over 66 countries offer dedicated digital nomad visas, with new programs launching regularly. These specialized visas address the legal gray area by explicitly permitting remote work for foreign employers.
Top Digital Nomad Destinations in 2025:
Europe:
- Spain – Up to 5 years, comprehensive public services access
- Portugal – 1 year (renewable), vibrant expat community
- Croatia – Up to 1 year, stunning Adriatic coastline
- Estonia – World’s first digital nomad visa, tech-forward nation
- Greece – 1 year renewable, affordable Mediterranean living
- Italy – Historic cities with modern infrastructure
Americas:
- Mexico – Temporary Resident Visa for 6 months to 4 years
- Costa Rica – 1 year renewable, eco-tourism paradise
- Colombia – Budget-friendly with thriving nomad communities
- Panama – 9 months renewable, low cost of living
Asia & Middle East:
- Thailand – Up to 5 years, excellent infrastructure
- Japan – 6 months for high-income professionals
- Dubai (UAE) – 1 year, no income tax
- South Korea – “Workcation” visa for up to 2 years
Common Requirements:
- Proof of remote employment or client contracts
- Minimum monthly income typically between €1,500 and €5,000 (approximately $1,600-$5,300 USD), depending on the destination
- Valid health insurance
- Clean criminal background check
- Proof that income originates from outside the host country
Temporary and Permanent Residency Options
For longer-term arrangements, some countries offer pathways from temporary residency to permanent status. Mexico’s temporary residency, for example, lasts up to four years and requires proof of income from US sources deposited into US accounts, after which you become eligible for permanent residency.
Pro Tip: Start your visa application process early. Processing times range from a few weeks to several months depending on the country and visa type.
Navigating US Tax Obligations
The Worldwide Income Rule
Here’s the critical fact every US citizen must know: As a US citizen, you’re required to file a US tax return regardless of where you live in the world. The United States is one of only two countries (the other being Eritrea) that taxes citizens based on citizenship rather than residency.
Avoiding Double Taxation
The good news? The IRS provides mechanisms to prevent or reduce double taxation:
1. Foreign Earned Income Exclusion (FEIE) Excludes up to $126,500 of foreign-earned income as of 2025
Qualification Requirements:
- Bona Fide Residence Test: Be a resident of a foreign country for an entire tax year, OR
- Physical Presence Test: Spend at least 330 full days outside the US during any 12-month period
2. Foreign Tax Credit (FTC) Claim dollar-for-dollar credits for income taxes paid to foreign governments
3. Foreign Housing Exclusion/Deduction Additional deductions for housing costs exceeding a base amount
State Tax Considerations
You still need to file taxes with your home state according to their laws. Some states like Texas, Florida, and Washington have no income tax, making them attractive options for establishing residency before moving abroad.
Important: Many countries follow the 183-day taxation rule, meaning if you reside in a country for over 183 days per year, you’re considered a tax resident and must pay income taxes there.
Professional Tax Assistance
International tax law is complex and constantly evolving. Work with tax professionals who specialize in expat taxation to:
- Maximize deductions and exclusions
- Ensure compliance in multiple jurisdictions
- Navigate tax treaties between countries
- Properly file all required forms (FBAR, FATCA, etc.)
Resources:
- IRS Interactive Tax Assistant
- Specialized expat tax services like Taxes for Expats or MyExpatTaxes
Why Some US Employers Resist International Remote Work
Despite the remote work revolution, many US companies remain hesitant about employees working from abroad. Understanding their concerns helps you address them effectively.
Common Employer Concerns
1. Legal and Tax Complexity Companies worry about triggering legal or tax obligations in the employee’s country of residence, including potential permanent establishment risk. Having even one employee abroad could create compliance requirements in that jurisdiction.
2. Permanent Establishment Risk Certain behaviors may trigger permanent establishment clauses where the host country deems the business as operating permanently within its borders, potentially creating significant tax implications.
3. Benefits and Compliance Issues International employment creates complexity around:
- Health insurance coverage
- Workers’ compensation
- Employment law compliance
- Payroll processing in multiple currencies
4. Lack of Understanding Sometimes the resistance stems simply from unfamiliarity with how international remote work operates legally and practically.
Solutions When Your Employer Says No
Option 1: Become an Independent Contractor
Transitioning from employee to contractor can solve many employer concerns. You can set up your own business, often as a sole proprietor or LLC, then invoice your company for services.
Advantages:
- Employer avoids international compliance obligations
- Greater flexibility in your work arrangements
- Ability to take on additional clients
- Potential tax benefits through business deductions
Disadvantages:
- No employer-provided benefits (health insurance, retirement contributions)
- Responsible for your own taxes, including self-employment tax
- Loss of employee protections and benefits
- Need to manage your own business operations
Tax Implications: Contractors must file self-assessment tax returns reporting foreign-earned income to local tax authorities. You’ll also remain responsible for US taxes and may need to pay quarterly estimated taxes.
Option 2: Find Remote-Friendly Employment
Many companies are entirely comfortable with remote employees living overseas, particularly those built with distributed teams in mind. If your current employer won’t budge, consider seeking opportunities with companies that embrace location independence.
Where to Find International Remote Jobs:
- Remote.co
- We Work Remotely
- FlexJobs
- Remote OK
- Remotive
- AngelList (for startups)
- LinkedIn (filter for “remote” + “international”)
Pro Tip: When job searching, clearly ask about international work policies during the interview process. Some listings say “remote” but actually mean “remote within the US.”
Option 3: Use an Employer of Record (EOR)
An EOR acts as the legal employer in the country where you’re living, handling local compliance, payroll, and benefits while you work for the US company. Services like Remote.com, Deel, and Oyster HR specialize in this model.
How It Works:
- The US company contracts with the EOR
- The EOR hires you as their employee in your country
- You perform work for the US company
- The EOR handles all local compliance and pays you in local currency
Benefits:
- Maintains employee status with benefits
- Ensures legal compliance
- Simplifies international employment
- No setup costs for the employee
Employment Classification: Employee vs. Contractor
Understanding Worker Classification
Your worker classification sets out your working relationship with the US company and varies by country. Proper classification is crucial—misclassification can result in significant fines and legal consequences for both parties.
Employee Classification
Characteristics:
- Company controls work schedule and methods
- Receives regular salary with benefits
- Employer withholds taxes and makes social security contributions
- Protected by employment laws
Tax Forms:
- W-8BEN form for the IRS (proves non-eligibility for US taxes)
- W-2 equivalent in some countries
Independent Contractor Classification
Characteristics:
- Controls own work methods and schedule
- Invoices for services rendered
- Responsible for own taxes and social security contributions
- Greater flexibility but fewer protections
Tax Forms:
- W-8BEN-E form for companies
- 1099 for US tax purposes (if applicable)
Avoiding Misclassification
Up to 30% of US companies have misclassified at least one worker. Protect yourself by:
- Clearly defining your working relationship in contracts
- Understanding local labor laws in your country of residence
- Documenting your work arrangements
- Consulting with employment lawyers when uncertain
Practical Considerations for Working Abroad
Managing Time Zone Differences
One of the biggest challenges of working abroad is managing time zones, especially with US-based teams.
Strategies for Success:
- Choose locations with 2-5 hour overlap with your team
- Be flexible with early morning or late evening meetings
- Use asynchronous communication tools (Loom, Slack, email)
- Set clear availability expectations with your team
- Document decisions and discussions for those in different time zones
Best Time Zone Overlaps for US Workers:
- EST team: Europe, South America, West Africa
- CST team: Central/South America, Caribbean
- MST/PST team: Asia-Pacific, Southeast Asia
Maintaining Strong Communication
Keep communication strong through video calls, async tools like Slack or Loom, and regular updates to maintain teamwork.
Best Practices:
- Over-communicate initially to build trust
- Use video for important conversations
- Set up weekly check-ins with managers
- Participate actively in team meetings
- Share regular progress updates
- Be responsive during overlap hours
Reliable Internet Connection
Ensure a good and secure internet connection while working online. Research internet reliability before choosing your location.
Tips:
- Check internet speeds and reliability reviews
- Have backup internet options (mobile hotspot, coworking space)
- Test video conferencing quality before committing to housing
- Consider investing in a portable WiFi device
Setting Up Your US Address
You can get a digital mailbox service like iPostal1, which comes with an actual street address. These services:
- Provide a physical US address for official documents
- Scan and email your mail
- Forward packages internationally
- Offer check depositing services
- Maintain state residency for tax purposes
Financial Considerations
Banking and Currency
US Bank Account: Maintain a US bank account for:
- Receiving salary payments
- Paying US bills and taxes
- Maintaining credit history
- US-based subscriptions and services
Consider:
- Charles Schwab checking (no foreign transaction fees, ATM fee reimbursements)
- Wise (formerly TransferWise) for currency conversion
- International credit cards with no foreign transaction fees
Health Insurance
Your US insurance benefits will likely not cover where you’re moving to.
Options:
- Travel insurance: SafetyWing, World Nomads (for shorter stays)
- International health insurance: Cigna Global, Allianz Worldwide Care
- Local health insurance: Available in many countries
- US insurance + travel: Maintain US coverage for visits home
Cost of Living Arbitrage
One advantage of working for a US company abroad is earning US wages while enjoying lower costs of living.
High Value Destinations:
- Southeast Asia: Thailand, Vietnam, Indonesia
- Central/South America: Mexico, Colombia, Ecuador
- Eastern Europe: Bulgaria, Romania, Czech Republic
- North Africa: Morocco, Tunisia
Step-by-Step Process to Work Abroad
Phase 1: Research and Planning (2-6 months before)
- Determine your goals
- Duration of stay (short-term vs. long-term)
- Preferred locations
- Budget requirements
- Research visa options
- Digital nomad visas
- Temporary residency programs
- Tourist visa limitations
- Understand tax implications
- US tax requirements
- Host country tax obligations
- Consult with tax professionals
- Review employer policies
- Remote work policy
- International work restrictions
- Legal/HR approval process
Phase 2: Legal and Administrative (1-3 months before)
- Obtain necessary visas
- Gather required documents
- Submit applications
- Plan for processing time
- Set up financial systems
- Virtual mailbox service
- International banking arrangements
- Currency transfer solutions
- Arrange insurance
- Health insurance coverage
- Travel insurance
- Property insurance if needed
- Prepare documentation
- Passport validity (6+ months)
- Employment contracts
- Proof of income
- Background checks
Phase 3: Employer Communication
- Prepare your proposal
- Know exactly what you’ll say, consider counter-arguments, and do your research
- Demonstrate how you’ll maintain productivity
- Address potential concerns proactively
- Present your plan
- Work hours and availability
- Communication protocols
- Deliverable timelines
- Technology solutions
- Negotiate terms
- Compensation adjustments
- Potential changes to pay and benefits, especially health insurance
- Trial period possibility
- Regular check-in schedule
Phase 4: Transition and Setup (Upon Arrival)
- Register with authorities
- Register with local migration authorities as required
- Obtain residence cards/permits
- Register local address
- Establish local infrastructure
- Secure reliable housing
- Set up internet service
- Open local bank account if needed
- Arrange local transportation
- Maintain US connections
- Keep US bank accounts active
- Maintain credit card activity
- Stay connected with US-based networks
Common Mistakes to Avoid
1. Working Without Proper Authorization
Never assume tourist visas allow remote work. Working without authorization can result in visa revocation, fines, or bans from the country.
2. Ignoring Tax Obligations
Many people mistakenly think taxes stop applying once they leave the US—this is NOT true. File all required returns and pay applicable taxes.
3. Hiding Your Location From Your Employer
Remaining undetected while working abroad is possible, but challenges arise in emergencies, sickness, or social media exposure. Transparency builds trust and avoids complications.
4. Overstaying Visas
There can be big fines and penalties for overstaying visas that can be avoided with simple planning. Track expiration dates and renewal requirements carefully.
5. Engaging in Economic Activities
Remote workers are typically prohibited from engaging in “economic activities” such as hiring local subcontractors or conducting business with local companies.
6. Insufficient Internet Research
Test internet speeds and reliability before committing to long-term housing or locations.
7. Neglecting Health Insurance
Don’t rely solely on US health insurance that won’t cover international medical expenses.
Frequently Asked Questions
Can I use a VPN to hide my location?
While possible, VPNs aren’t foolproof—you may still receive location-specific content, and employer-issued laptops may have restrictions on VPN usage. Transparency with your employer is the better approach.
Do I need to tell my employer?
While not legally required in all cases, transparency is recommended for several reasons:
- Builds trust and avoids policy violations
- Ensures proper tax withholding
- Allows employer to address legal compliance
- Prevents complications if discovered
What if I don’t have a US address?
Digital mailbox services like iPostal1 provide an actual street address along with mail scanning and forwarding.
Am I too old to become a digital nomad?
Not at all—many people start in their 50s and beyond, finding it the perfect time for location independence.
Can I bring my family?
In most cases, visa holders can include family members, though requirements and fees increase accordingly.
How do I prove my remote work?
Typical proof includes:
- Employment contract or offer letter
- Recent pay stubs or bank statements
- Letter from employer confirming remote work arrangement
- Tax returns showing income
- Client contracts (for freelancers)
What about retirement savings?
- As employee: Continue contributing to 401(k) if eligible
- As contractor: Set up Solo 401(k) or SEP IRA
- Consider contributions while benefiting from FEIE
Country-Specific Considerations
Working in Europe
Schengen Zone:
- 90 days within any 180-day period on tourist visa
- Digital nomad visas available in many countries
- Health insurance mandatory
- GDPR compliance for data handling
Working in Latin America
Popular Destinations:
- Generally more relaxed visa policies
- Lower cost of living
- Strong expat communities
- Time zone overlap with US
Working in Asia
Key Points:
- Wide variation in visa policies
- Excellent infrastructure in major cities
- Significant time zone differences with US
- Cultural adaptation important
Working in the Middle East
Highlights:
- Dubai leading in digital nomad programs
- High-quality infrastructure
- Tax-free income in some locations
- Cultural considerations important
Long-Term Considerations
Path to Permanent Residency
A Digital Nomad Visa can lead to permanent residency or citizenship in some countries, including:
- Portugal (5-year pathway)
- Spain (5-year pathway)
- Mexico (permanent residency after temporary)
Building International Credit
- Maintain US credit by keeping accounts active
- Build local credit if staying long-term
- Use international credit cards responsibly
Career Development
Working abroad can enhance your career through:
- Expanded global network
- Cross-cultural competency
- Demonstrated adaptability
- Unique experiences and perspectives
Social Integration
- Join expat and local communities
- Learn local language basics
- Respect cultural norms
- Attend networking events and coworking spaces
Resources and Tools
Visa Information
- Country-specific embassy websites
- VisaGuide.World Digital Nomad Index
- Nomad List
Tax Resources
- IRS International Taxpayers
- Taxes for Expats
- MyExpatTaxes
Remote Job Boards
- We Work Remotely
- Remote.co
- FlexJobs
- Remote OK
Communities
- Digital Nomad subreddit
- Nomad List community
- Location-specific Facebook groups
- Meetup.com international groups
Financial Tools
- Wise (currency exchange)
- Charles Schwab (banking)
- SafetyWing (insurance)
- iPostal1 (virtual mailbox)
Conclusion: Making Your International Remote Work Dream Reality
Working for a US company while living abroad is not only possible but increasingly common and supported by formal visa programs worldwide. With proper preparation—understanding visa requirements, tax obligations, and employer policies—you can build a life where you explore the world and keep earning from a US job.
Key Takeaways:
- Research thoroughly: Understand visa requirements, tax obligations, and local regulations before making the move
- Communicate openly: Work with your employer to address concerns and establish clear remote work arrangements
- Plan financially: Account for taxes, currency exchange, insurance, and cost of living differences
- Stay compliant: Follow all visa, tax, and employment regulations in both the US and your host country
- Build support systems: Connect with expat communities, hire appropriate professionals, and maintain strong communication with your team
- Start small: Consider a trial period or digital nomad visa before committing to permanent relocation
It’s not always simple, but the freedom is worth it. The ability to experience new cultures, explore the world, and maintain your career represents a level of freedom previous generations could only dream about.
Whether you’re seeking adventure, lower living costs, new experiences, or simply the flexibility to design your ideal lifestyle, working internationally for a US company opens extraordinary possibilities. Take it step by step, consult professionals when needed, and embrace the adventure of location-independent work.
