Lawyer Monthly - October 2022

extended period of time, such as one year or longer, making it more appealing for those that wish to settle for longer. Many countries recognise the economic benefits digital nomads can bring. Following the COVID-19 pandemic, countries across the world experienced a hit to their tourism sectors. This was particularly felt by those countries whose income centres around tourism and the revenue it brings, such as Barbados and Thailand. The benefits are twofold; digital nomads can extend their stay, as they are able to generate incomes whilst travelling, which in turn increases their expenditure in the host country. This allows for a potential influx of high-earning individuals to provide local economies with an injection of wealth. Equally, individuals in host countries may arrive with a wealth of knowledge and skills in areas which may not be as abundant to their host country. This could act as a catalyst for the sharing of knowledge and resources between people and cultures alike, benefitting everyone. Employers may also experience benefits from such a scheme. Employing staff on a virtual basis can result in reduced overheads and is also appealing to attract new staff looking for a more flexible balance between work and life – and travel. Offering the ability to work remotely is attractive for potential employees who have grown accustomed to the concept of remote working throughout the pandemic. What are the requirements and key considerations for employers? Usually, an employee will need to be employed by a company outside of their host country. They are usually not permitted to take up employment in the country they are staying in, but there may be tax and social security implications. An individual may have a right to work remotely in Italy, for example, but their employer must check how the employee’s pay should be taxed to ensure that the employee does not fall foul of local tax and social security requirements. SPECIAL FEATURE 41 Many countries recognise the economic benefits digital nomads can bring.

RkJQdWJsaXNoZXIy Mjk3Mzkz