Over the past years, the impact of remote working for employers with internationally mobile employees, and how it affects employers’ efforts to attract and retain talent, and creates permanent establishment risks, have become important topics for employers with global workforces.
As remote work reshapes the global workforce, the rise of the digital nomad has added a new layer of complexity to corporate mobility and compliance. Professionals increasingly travel with laptops in hand, blending business travel with remote work, often without realising the immigration risks involved. This article considers the immigration matters that both employers and individuals need to be aware of, and picks out some key updates from across the globe.
UK Immigration Hot Topics
Some countries have introduced new “digital nomad” visas to cope with this trend, but the UK has not followed suit. Instead, the UK government updated its visitor visa guidance to explain what remote work it permits. The guidance says the visitor's “primary purpose” must be an approved visitor activity, which then allows some limited remote working. However, it leaves much to interpretation as to what constitutes a primary purpose and what would be an acceptable amount of time spent on that purpose against the planned remote work. If a UK employer wants to bring an overseas employee to the UK, the employer needs to check carefully that the work does not breach visitor rules.
Notably, if someone on a sponsored UK work visa works almost entirely remotely, the government questions whether they need a UK visa at all. This is confusing, given the broad scope of the visitor guidance, and yet employers can face penalties for taking a safer approach by obtaining a work visa.
A White Paper released on 12 May 2025, “Restoring Control Over the Immigration System,” focuses on digital borders and eVisas to restore control over immigration systems. It does not suggest a genuine route for remote workers, hinting that the government is keener on detecting misuse than helping those who want to work in the UK remotely. The White Paper is also silent about expanding existing working holiday routes for EU nationals, which could have been an easy way to let young professionals experience life in the UK while working here remotely, although recent EU trade deal talks offer some hope in this regard. The immigration landscape in the UK continues to be one of compliance, with the UK government using new technology, cross-governmental data sharing, and restrictions for current work routes; therefore, changes to the UK international remote working policy are not expected anytime soon.
Overall, the UK is behind other countries that are welcoming remote international workers, and it seems unlikely that government policy on this will change in the near future.
India – Possible Introduction of a Digital Nomad Visa
India is experiencing a regulatory shift towards a structured immigration framework for remote workers. Currently, there are no specific provisions in the Indian immigration regulation that provide any specific relaxation/category of visa for foreigners who want to work in India remotely for employers based outside India. To work in India, a foreign national is required to apply for an employment visa, and the presence of the employer entity in India is a prerequisite for this visa type.
However, India is in the process of overhauling its immigration landscape through the proposed Immigration and Foreigners Bill, 2025, which aims to replace outdated laws such as the Foreigners Act of 1946. The new bill introduces modernised measures to address evolving work trends, including international remote working.
One notable development is the anticipated introduction of a digital nomad visa, which, if enacted, would provide foreign nationals the opportunity to legally reside in India while working remotely for overseas employers. This is a direct response to the increasing demand for flexible work arrangements and cross-border mobility.
Additionally, the bill proposes the creation of a centralised Integrated Immigration Management System (IIMS) and mandatory digital registration for foreign nationals staying in India beyond 180 days. These measures are designed to enhance compliance, streamline processes, and support the needs of globally mobile talent.
Although not yet in force, these initiatives reflect India’s proactive stance in addressing the regulatory and logistical challenges posed by international remote work.
Luxembourg – Responsibility Lies With the Employee
Under Luxembourg’s laws, it is the employee's responsibility to contact the competent authority in their country of residence to obtain a ruling.
The social security thresholds with Belgium, Germany, and France are 34 days. Remuneration is taxable on a pro-rata basis according to the working time spent in each state.
Germany – Possible Restrictions on Immigration
In Germany, a new government is being formed, which may mean more restrictions on immigration.
Currently, remote work is not enshrined in Germany's Residence Act, which in most cases does not offer the flexibility required by employees.
However, there are some positive options for skilled workers. Although the step-by-step introduction of the Skilled Immigration Act did not bring the expected turnaround in German immigration policy, there were some interesting new developments.
Austria – Case-by-Case Analysis Needed
The Austrian immigration regime does not provide a special scheme (such as a digital nomad visa) for third-country citizens who work remotely for a foreign employer. Which residence and work permit might be applicable must be determined on a case-by-case basis. In addition, whether the remote working employee is subject to a personal exemption or special provision based on their personal circumstances (such as marriage to an EU/EWR-citizen) also should be reviewed.
Netherlands
If a non-EU national is working remotely from the Netherlands for an employer that is not based in the Netherlands, it is important to check whether a Dutch work permit is required. The answer depends on the individual's circumstances and the type of work being performed. In addition, everyone (EU and non-EU nationals) must register in the local municipality if their stay in the Netherlands exceeds a four-month period.
Workers who are resident in the Netherlands but may spend time outside the Netherlands will need to check the maximum permitted duration of stay outside the country (to be able to keep their residential status in the Netherlands while staying outside the Netherlands). This may vary depending on an employee’s nationality and their residential status in the Netherlands. In some cases, deregistration from the Dutch immigration authorities is necessary, and deregistration from the local municipality may also be required.
U.S. and Canada
For business visitors entering the U.S. or Canada, even short periods of remote work can blur the lines between permitted activities and unauthorised employment. Immigration law remains jurisdiction-specific, and business visitor status is not a free pass for working remotely.
Business Visitor Status: Clear Purpose, Narrow Scope
The U.S. B-1 visa and Visa Waiver Program, and Canada’s Business Visitor category, are designed for defined, short-term business activities such as attending meetings, negotiating deals, marketing activities, and conferences. These categories do not permit foreign nationals to engage in employment.
In Canada, incidental remote work and digital nomad activity are expressly permitted, provided the individual is working for a foreign employer and is not entering the Canadian labour market. However, there is no dedicated immigration category for digital nomads. Individuals in this situation are treated as business visitors and must meet the same requirements, including a temporary stay and the absence of direct engagement with Canadian clients or employers.
In contrast, the U.S. has no official guidance or regulatory framework addressing remote work or digital nomads. This legal grey area makes compliance more complex and increases the risk of misinterpretation at the border. U.S. immigration officers have significant discretion, and travellers may be denied entry if their purpose appears inconsistent with business visitor status.
What May Be Acceptable
Incidental remote work, such as checking email or attending virtual meetings, is generally tolerated in both countries when it is clearly secondary to the purpose of the visit. The employer must remain based outside the host country and the traveller must not receive compensation from within the country or perform services for local clients.
Digital nomads who attempt to live in and work temporarily from the U.S. or Canada under business visitor status may face heightened scrutiny and increased risk of refusal.
Practical Steps for Employers
To manage these risks effectively, employers should take a proactive approach. Business visits must align with the permissible activities under visitor status. Travellers should be equipped with clear documentation outlining the purpose of their visit and confirming that they remain employed and paid abroad. Education is also key. Employees should understand how to describe their visit accurately and avoid triggering unnecessary concern at the border. For longer or recurring remote work arrangements, companies should explore formal work authorisation pathways.
Australia
Only Australian citizens, permanent residents, and certain New Zealand citizens have unrestricted rights to employment in Australia. All other individuals in Australia need a visa that enables them to be in and work in Australia lawfully.
Not all visa holders in Australia have the right to work. Some visas, such as visitor visas, provide no work rights. Others, such as working holiday visas or student visas, grant work rights subject to limitations.
Australia does not currently offer a digital nomad visa. However, there are several visa options that individuals could apply for. Employers will need to decide if these visas are acceptable as part of their international remote working policies.
Consequences of Getting it Wrong
There are potentially serious personal implications for employees if they do not have the right visa when working abroad. In the most severe cases, an individual may be refused entry into that country, even in a personal capacity.
Key Takeaways
The digital nomad trend is accelerating, but immigration frameworks have not kept pace. Some countries offer more transparency in accommodating remote workers within their legislation, but obligations remain. In other countries, the absence of clear rules makes immigration compliance even more critical.
Remote work may be location-flexible, but legal obligations are not. Understanding and respecting the limits of each country’s rules is essential for protecting both the traveller and the organisation. In today’s mobile world, compliance must be intentional and informed.
What’s to Come
One thing to look out for is the introduction of more digital nomad visa programs by countries looking to attract talent. Consequently, employers should give some thought to determining if their international remote working policies need to be updated to take these developments into account.
Call to Action
Making sure employers are on top of their compliance obligations and minimising potential risks of international remote working (IRW) are key. A well-designed IRW policy is key to attracting and retaining talent. Well thought out systems to keep track of employees are essential to meet global compliance obligations. This is an evolving area, so once an employer has established its best practices, it is advisable to keep reviewing how those are working out. New global developments that impact you should also be monitored and adapted to.
For more information on the tax issues arising from an internationally mobile workforce, please consult your regular BDO contact or the author of this article.
Karen McGrory
BDO in United Kingdom
Contributors: Danielle Mapp, Preeti Sharma (BDO India), Karine Pontet (BDO Luxembourg), Christiane Anger and Stephanie Herbich (BDO Germany), Denise Berzsenyi (BDO Austria), Marjolein Boer and Kateryna Stienstra (BDO Netherlands) and Saba Naqvi (BDO Canada).