How to Move Countries Without Losing Your Job in 2026

Your senior engineer just walked into your office with news that makes your stomach drop. She's moving to Portugal in three months. Her partner got a job there. She loves working for you and wants to stay. Can you make it work?

This scenario plays out constantly in mid-market companies. A self-initiated international relocation is an employee-driven move to another country while attempting to keep the same employer, role, and continuity of employment, which triggers immigration, payroll, tax, social security, and employment-law considerations in the destination country. And most HR leaders are making these decisions without a playbook.

Here's the reality: you can often help employees move abroad and keep their jobs. But "taking a laptop to the beach" is not the same as legally working from another country. The difference between a successful relocation and a compliance nightmare comes down to three things: immigration status, tax implications, and a compliant employment model. Get all three right, with your employer's agreement, and the move works. Miss one, and you're looking at back taxes, penalties, or worse.

Key Takeaways For Moving Countries Without Losing Your Job

Mid-market companies with 200 to 2,000 employees typically lack a dedicated global mobility team and therefore rely on a defined approval workflow involving HR, Finance, and Legal for each cross-border move, according to Teamed's mid-market operating model benchmarks. That means every relocation request becomes a multi-stakeholder decision.

What you need to know before approving or requesting a cross-border move:

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Can You Move To Another Country And Keep Your Current Job

Yes, if specific legal and practical conditions are met together with your employer's agreement.

The question "Can I move abroad and keep my job if I take my laptop with me?" sounds simple. The answer isn't. Three tests determine whether a relocation is feasible.

Immigration and right to work. Does the destination country permit you to work there for a foreign employer? Tourist visas rarely allow remote work. Some digital nomad visas contain conditions that don't fit standard employment relationships. You need a visa or permit that explicitly authorises the work you'll be doing., despite 91% of programs launching since 2020. You need a visa or permit that explicitly authorises the work you'll be doing.

Tax and social security. Tax residency is a legal status in which a country treats an individual as liable to its tax system, commonly determined by day-count tests and personal or economic ties. In the UK, the statutory residence test commonly treats an individual as UK tax resident if they spend 183 days or more in the UK in a tax year. Similar thresholds exist elsewhere. Cross that line in your destination country, and both you and your employer face new obligations.

A compliant employment model. Your employer needs a legal way to pay you there. That means either keeping you on your home contract for a defined short period, transferring you to a local entity, or using an Employer of Record.

A French SaaS employee moving to Portugal faces different immigration, tax, and employment frameworks than staying put. A Dutch employee relocating to Canada faces yet another set of rules. The safest route is collaborating with your employer to choose the right model before you book flights.

Legal And Tax Risks Of Moving Abroad While Working Remotely

Under UK HMRC practice, PAYE and NIC underpayment assessments can typically look back up to 4 years for non-deliberate errors, up to 6 years for careless behaviour, and up to 20 years for deliberate behaviour. That's the financial risk when employees quietly relocate abroad and payroll isn't corrected in time.

Tax residency shifts faster than you think. Most countries tax where you live and work most of the time. Day-count rules and personal ties can trigger residency even if your employer remains elsewhere. A UK financial services employee wanting to work from Spain might assume EU proximity makes things simple. It doesn't. Spain has its own tax residency rules, and 183 days there makes you a Spanish tax resident.

Social security contributions may change. Within the EU, A1 certificates are used to evidence applicable social security legislation for cross-border work, and employers typically need the A1 in place before or during the period of work in another EEA state to defend continued home-country contributions. Without proper documentation, contributions may shift to the host system, changing both employer and employee obligations.

Permanent establishment risk. Permanent establishment is a corporate tax concept where a company can become subject to business taxation in another country if it has a sufficient fixed place of business or dependent agent activity there. If your relocated employee has authority to negotiate or conclude contracts, the risk increases significantly. Most consumer-facing "move abroad" guides don't explain this, but it's a decisive factor for CFOs and General Counsel.

Misclassification exposure. Switching to contractor status to "simplify" a move can backfire. Misclassification risk is the legal and financial exposure that arises when a person treated as an independent contractor is deemed an employee by authorities based on the actual working relationship. In France, the concept of "lien de subordination" is central in distinguishing employment from independent contracting. Control over working hours, tools, and integration into the business increases the likelihood of reclassification.

How Mid Market Companies Decide If You Can Work From Another Country

From the CFO's perspective, this is not just a lifestyle request. It's a change in your risk and cost profile.

In mid-market budgeting, the CFO-visible cost swing in a cross-border move is most often driven by employer social contributions, statutory benefits, and payroll compliance overhead in the destination country rather than base salary alone, according to Teamed's cost-modelling methodology for EOR versus entity decisions.

Here's what your employer weighs when you ask to relocate:

Duration and countries involved. A three-month stay in a low-risk country differs from permanent relocation to a jurisdiction with aggressive tax enforcement. The longer the stay and the more complex the destination, the more scrutiny required.

Role and seniority. Cross-border working risk differs between back-office roles and commercial roles because sales, contract negotiation, and revenue-generating authority more frequently increase permanent establishment exposure than purely internal roles, according to Teamed's risk-triage framework.

Resource reality. Companies with 200 to 2,000 employees don't have dedicated global mobility teams. They rely on clear rules, external advisors, and vendor input rather than in-house specialists who've seen every scenario.

Commercial calculation. Total cost of employment in the destination country, relocation and compliance costs, versus alternatives like hiring locally or keeping the role in the home country. Sometimes the numbers simply don't work.

Risk tolerance. Regulated sectors like defence and healthcare are more conservative. A fintech company might accept more flexibility than a defence contractor handling classified information.

Desire for repeatability. One-off exceptions create precedent. Smart companies want frameworks that scale, not individual deals that become impossible to manage at 500 employees.

Options To Stay With Your Employer When You Move Abroad

A home-country contract with temporary overseas work differs from an EOR arrangement because the legal employer remains the home entity in the former, while the EOR becomes the local legal employer and runs in-country payroll in the latter.

Stay on home-country contract for short-term remote work. This works well when the employee's presence in the destination country is time-limited, the employee retains a clear home base, and day-count exposure can be kept below the destination country's practical tax-residency and payroll triggering thresholds. Watch out for visa restrictions, social security obligations, and the risk of accidentally becoming tax resident.

Local employment via company entity. This works well when your employer already has a local entity and expects long-term presence. The employee transfers to local employment terms, with local benefits, payroll, and protections. Watch out for timing on payroll setup and potential changes to compensation structure.

Employer of Record. An Employer of Record is a third-party organisation that becomes the legal employer for workers in a specific country and operates local payroll, statutory taxes, and employment compliance while the client company retains day-to-day management of the worker. This works well when there's no local entity, speed matters, and headcount in that country will remain small. Watch out for roles needing local licences or situations where strategic entity ownership is necessary., with 71% of firms reporting reduced operational risk after adopting EOR services. This works well when there's no local entity, speed matters, and headcount in that country will remain small. Watch out for roles needing local licences or situations where strategic entity ownership is necessary.

Contractor arrangement. This works well only when the individual can genuinely operate an independent business with control over how work is performed, the ability to work for multiple clients, and commercial risk borne by the contractor. Watch out for misclassification risk if the reality resembles employment. In the UK, medium and large organisations must determine employment status for IR35 engagements and can be liable for unpaid income tax and National Insurance contributions plus interest and penalties if the assessment is incorrect.

Avoid informal fixes. No "cash pay," no indefinite stay on the old payroll, no friendly shell companies. These create compliance exposure that can take years to unwind.

When An Employer Of Record Makes Sense For Mid Market Companies

For most mid-market firms, EOR is the fastest safe way to move a single employee into a new country., with SMEs accounting for 58% of EOR demand globally.

An owned-entity hire differs from an EOR hire in governance and control because the company directly holds local employer obligations and regulatory registrations under an entity, whereas an EOR centralises employer-of-record obligations through a third party.

Why do mid-market firms prefer EOR for individual relocations? Faster time to hire or move, less internal admin, predictable costs, and one partner across many jurisdictions. The alternative, establishing an entity for one employee, rarely makes financial sense.

But EOR isn't always the answer. When you expect stable, growing headcount and long-term business in a country, compare strategic control, cost, and compliance tradeoffs. Teamed can help you run that analysis and advise on when to graduate from EOR to entity.

Moving From Europe To Work In Another Country Without Losing Your Job

Within Europe, A1 certificates are commonly issued for temporary cross-border work and can help maintain home-country social security coverage for limited periods, which materially changes employer and employee contribution obligations compared with full local registration, according to Teamed's EU social security coordination guidance.

Within Europe. EU and EEA citizens benefit from freedom of movement for immigration purposes. But that doesn't mean tax, social security, and employment law stay the same. A German engineer moving to Spain still needs to address Spanish tax residency, potentially transfer social security, and comply with Spanish labour law. The immigration is simple. Everything else requires planning.

UK to EU. Since Brexit, UK nationals relocating to the EU typically require a visa or residence and work authorisation depending on the destination country and activity. A UK employee moving to Portugal can't rely on freedom of movement. They need a visa that permits work for a foreign employer, and their employer needs a compliant way to pay them there.

From Europe to the rest of the world. Moves to the US, Gulf, or Asia require careful model selection. Immigration and work permits become central. The employment model, whether entity, EOR, or local partner, must align with visa conditions. A Swedish healthtech employee moving to the US faces visa sponsorship requirements that don't exist for intra-EU moves.

Teamed advises when an EU entity suffices inside Europe, when EOR makes more sense, and how to keep cross-border compliance aligned across your entire workforce.

Practical Steps To Move To A Different Country And Keep Your Job

For mid-market employers, the most common operational failure mode in cross-border moves is allowing an employee to start work in the destination country before confirming right-to-work and payroll setup, and Teamed operational playbooks treat "no work performed in-country before approval" as a baseline control.

Personal preparation. Decide destination, timing, and duration. Consider flexibility on title, pay, hours, or duties. Prepare how your role will deliver value across time zones and locations.

Immigration and right to work. Check visa and work permit routes. Validate that remote work for a foreign employer is permitted under the visa you're pursuing. Loop in HR or external advisors early, not after you've signed a lease.

Structured conversation with your employer. Ask about existing policies. Present your plan with specifics: where, when, for how long, and how your role will continue to function. Explore models together.

Agree the employment model and terms in writing. Define legal employer, payroll location, tax and social security treatment, benefits, and any relocation support. Don't rely on verbal agreements.

Operational setup. Update payroll, register with authorities as required, arrange health insurance and pensions. Align on data and security expectations for new locations. In Ireland, PAYE withholding applies to employment income connected to duties performed in Ireland, which creates payroll compliance issues when an employee physically performs their role from Ireland while remaining on a foreign payroll without a structured arrangement.

How To Talk To Your Employer About Relocating Abroad

Most generic guidance doesn't give a mid-market-operational workflow that names the internal decision owners. In European mid-market companies, the request usually starts with a line manager who brings in HR and Finance. Be ready for multi-stakeholder discussions.

Do:

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Don't:

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Sample phrases that work: "I would like to explore if there is a compliant way for me to relocate to Portugal while staying in my role. Can we look at the options together?" Or: "I've reviewed our policy and mapped visa and tax considerations. I'm flexible on hours and responsibilities to make this work."

Policies Mid Market Companies Need For Employees Moving Countries

A single untracked overseas relocation can create multi-year remediation work across payroll corrections, tax filings, and employment contract amendments, and this remediation typically spans multiple reporting periods rather than being resolved in a single month-end close.

Core policy elements:

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Collaboration model. HR owns policy design, employee communications, and vendor coordination. Finance handles cost modelling, budgeting, and payroll and tax oversight. Legal covers right-to-work, employment law, permanent establishment risk, and contract templates.

Decision support. AI tools can flag high-risk countries and scenarios quickly. But enforcement trends and business context require human judgement. Use AI as decision support, not a substitute for advisors who understand your specific situation.

Common Mistakes People Make When Moving Overseas With The Same Employer

Not telling your employer. Quietly working months from abroad, say London to Barcelona or Warsaw to Bali, can breach immigration rules and internal policy. When discovered, the remediation is painful for everyone.

Misusing visas. Assuming digital nomad or tourist visas allow full-time foreign-employer work when many do not. Digital nomad visas often target freelancers or contain conditions that don't fit standard employment.

Relying on contractor status. Reclassifying to invoice the company while working like an employee invites misclassification penalties and back pay. A contractor engagement differs from employment via EOR in compliance burden because contractor models shift tax filings and social contributions to the individual in many jurisdictions, while EOR employment requires employer-side withholding and statutory contributions managed through payroll.

Underestimating intra-EU moves. No visa doesn't mean no change. Tax, social security, and employment law still shift. In Spain, an employee's habitual place of work influences applicable labour law protections and employer obligations, which means a long-term move to Spain often requires a local employment solution rather than indefinite reliance on a foreign contract.

Choosing EOR or partners on price only. Weak legal footing or poor service creates bigger problems later, especially in regulated sectors. In Germany, employee leasing rules can be triggered by certain third-party labour arrangements, and legal teams often review whether an EOR or similar model could be characterised as labour leasing depending on structure and local interpretation.

How Teamed Guides Mid Market Companies Through Cross Border Moves

Teamed is a global employment advisor for mid-market HR, Finance, and Legal. We help leaders decide the right model and then execute with rigour.

Employment model selection. Home contract versus EOR versus local entity, country by country, based on your specific situation rather than a generic playbook.

Policy design. Practical frameworks that scale across 180+ countries, so you're not reinventing the wheel for every relocation request.

Vendor consolidation. Unify multiple EORs and contractors into a coherent strategy. Most companies realise they need unified employment guidance around 200 to 300 employees. We become that strategic partner from day one, or help you consolidate fragmented vendor relationships into a coherent strategy.

Execution. Turn strategy into compliant payroll, contracts, and benefits. No "theoretical" reports left on a shelf.

Regulated-sector focus. Financial services, healthcare, defence, and technology where risk tolerance is lower and compliance failures end careers.

We'd rather lose a deal than recommend a strategy that creates compliance risk. If you're navigating employee relocations without a clear framework, talk to the experts at Teamed to reduce the burden on HR and Finance teams making these decisions alone.

FAQs About Moving Countries Without Losing Your Job

Can I work from another country for a few months without changing my contract?

Possibly, under company policy and with approvals. But you must confirm immigration permissions, tax residency thresholds and day counts, and social security impacts before starting. Teamed recommends treating any stay longer than 30 consecutive days as a trigger for formal review.

What happens to my pension and social security if I move countries but keep my employer?

Contributions may shift to the host system or be covered by coordination agreements like A1 certificates within the EU. Clarify state benefits and any company schemes with HR or an advisor before relocating, not after.

Is it safer to resign and work as a contractor from another country instead of staying employed?

Not automatically. If the reality looks like employment, many countries will deem it employment. Get guidance on misclassification risks before choosing this route. The penalties for getting it wrong can exceed the perceived simplicity.

When does it become worth opening a local entity instead of using an Employer of Record?

When you expect stable, growing headcount and long-term business in a country. Compare strategic control, cost, and compliance tradeoffs. Advisors like Teamed can run the analysis and help you plan the graduation path.

Does it matter if I move within Europe instead of outside Europe?

Yes. Intra-EU moves can be simpler on immigration for EU citizens, but still change tax, social security, and employment law. Treat any cross-border move as a formal change requiring proper planning.

What is mid market?

Typically 200 to 2,000 employees or roughly £10m to £1bn revenue. Complex cross-border needs but without dedicated global mobility teams. Large enough to need sophisticated guidance, small enough to need responsive advisors.

Can AI tools replace human advice on cross border employment moves?

No. AI can flag risks and gather rules quickly, but enforcement trends and business context require human judgement. Use AI as decision support, not a substitute for advisors who understand your industry and your specific situation.or

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