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As digital nomad visas open new possibilities for remote workers, understanding the tax, social security, and payroll considerations is essential for HR and mobility professionals. This guide highlights countries offering digital nomad visas, explains income tax implications, and explores how employers can avoid permanent establishment risks.

Are your digital nomads tax compliant? Explore the full guide to navigate global tax challenges and ensure compliance.

Italy has significantly expanded its EU Blue Card eligibility criteria, opening doors for a broader range of highly skilled professionals. New regulations now recognize non-degree holders with substantial experience, offer special provisions for IT specialists, and increase intra-EU mobility. These changes aim to address skills shortages and boost Italy’s appeal in the global talent market. HR and mobility professionals, discover how these updates could reshape your talent acquisition and relocation strategies in Italy.

Explore how Italy’s new EU Blue Card rules can transform your talent acquisition strategy.

Italy’s new digital nomad visa is set to revolutionize remote work opportunities for highly skilled non-EU professionals. This innovative program allows eligible freelancers and remote workers to live and work in Italy for up to a year, with the possibility of renewal. With its focus on attracting international talent, boosting local economies, and fostering knowledge transfer, the visa presents exciting prospects for both individuals and businesses. However, navigating the eligibility criteria, tax implications, and social security considerations requires careful planning.

Ready to explore Italy’s new digital nomad visa? Click here to unlock new possibilities for your global talent strategy!

Spain’s digital nomad visa is revolutionizing remote work by offering non-EU citizens the chance to live and work in Spain while enjoying the country’s rich culture and attractive tax regime. This new visa, enacted under Spain’s “Startups Law,” allows eligible employees and freelancers to perform remote work for international companies, with potential tax benefits under the Beckham Law.

Interested in relocating or advising your mobile workforce in Spain? Discover how Spain’s Digital Nomad Visa can benefit your mobility program today!

While countries worldwide have raced to attract digital nomads with tailored visa programs, the UK has taken a different path. Instead of introducing a dedicated digital nomad visa, the UK allows remote work under its visitor visa framework. This flexible approach aligns with the UK’s immigration priorities while benefiting local economies.

Learn more about why the UK’s approach may be a model for the future of remote work. Discover the full article here.

In May 2024, MWC Participating Firms gathered in Milan for a meeting focused on enhancing our services to better serve HR and mobility professionals like you. Here’s a quick recap of what we discussed:

  1. Client-centric approach: We’re refining our pricing and bundled fee strategies to align with your needs. Our goal is to provide more comprehensive, transparent, and value-driven services.
  2. Technology advancements: We’re working on integrating various platforms to streamline immigration and tax processes, making your job easier and more efficient.
  3. Global collaboration: Participating firms are continuously expanding their collaborative efforts to ensure support for your global mobility needs across more locations.
  4. Enhanced communication: We’re implementing new strategies to keep you informed and engaged, including regular newsletters, LinkedIn updates, and client events.
  5. Service excellence: We’ve set new standards for responsiveness and communication to ensure you receive timely and thorough support for all your inquiries.

MWC Participating Firms are committed to evolving our services to meet the changing needs of HR and mobility professionals. Stay tuned for exciting developments that will make managing your global workforce even smoother!

Country: Brazil

Firm: Dian & Pantaroto

About: Dian & Pantaroto specializes in global mobility, serving major multinational companies with global mobility processes as well as helping expatriate executives with their tax obligations. Our support includes assignment planning, offer letter reviews, global mobility policy reviews, and payroll structure planning and advisory, as well as expatriates tax compliance.

What mobility tax matter should organizations address prior to initiating a new assignment to or from Brazil?

Before initiating a new expatriation to or from Brazil, organizations should address key mobility tax matters such as determining the expatriate’s tax residency status, understanding Brazilian income tax obligations, assessing social security contributions, reviewing applicable tax treaties to avoid double taxation, evaluating the risk of creating a permanent establishment, and ensuring compliance with local tax laws and regulations. This proactive approach helps manage tax implications and ensures a smooth transition for expatriates.

Country: China

Firm: Dezan Shira & Associates

About: Dezan Shira & Associates is a Pan-Asia, multi-disciplinary professional services firm established in 1992, providing market-entry, tax, legal, accounting, HR, payroll, technology, and cross-jurisdictional advisory. Operational with 23 direct offices throughout China, Hong Kong, ASEAN, India, Dubai, and Mongolia; and liaison offices in Washington D.C., Munich, and Milan. Our mission is to guide foreign companies through Asia’s complex regulatory environment and assist them with all aspects of establishing, maintaining, and growing their business operations in the region.

What mobility tax matter should organizations address prior to initiating a new assignment to or from China?

Companies assigning colleagues to China must prioritize several critical areas. First are the work and residence permit timelines and requirements, including technical and academic certifications. Next come visa requirements for spouses and children. Equally important is establishing a reasonable compensation structure that maintains tax efficiency and competitive retention. This includes understanding mandatory social insurance, the individual income tax system, and the “six-year rule” governing tax exemption on foreign-sourced income. Companies must also be familiar with available tax fringe benefits in China. Finally, all tax elements must be considered within the context of Chinese labor law.

Country: Italy

Firm: Expatriates Key Solutions srl

About: Expatriates Key Solutions (EKS) specializes in delivering solutions tailored to the management of international assignments. Our comprehensive suite of services is designed to assist companies in navigating the complexities of expatriate tax compliance, social security, and payroll administration, as well as both Italian and foreign immigration processes. Our expertise ensures a seamless and flawless management of the entire expatriation or secondment journey, effectively facilitating the relocation of foreign or non-EU employees into Italy from overseas.

What mobility tax matter should organizations address prior to initiating a new assignment to or from Italy?

Before initiating any international assignment involving Italy, organizations should carefully consider the dual tax residency risk. Italy has stringent tax residency rules, and individuals may become subject to Italian tax on their worldwide income if they are considered Italian residents under domestic law.

To mitigate this, it is crucial to assess the assignment duration, maintain clear documentation of the employee’s work and home location, and review applicable double tax treaties.

Additionally, pre-assignment tax planning is essential to align the assignment with the proper application of tax equalization policies, ensuring compliance with Italian tax and social security obligations while managing any risk of double taxation.

Organizations should also explore opportunities presented by Italy’s inpatriates tax regime, which provides significant tax relief to inbound assignees. Under this regime, qualifying individuals can benefit from a tax exemption of 50% of their employment income for a period of five years. This favorable regime not only helps reduce the overall tax burden for employees but can also make Italy a more attractive destination for talent relocation, offering both the company and the assignee financial advantages during the assignment.

Country: Mexico

Firm: JA Del Rio

About: JA del Rio is a CPA Firm with over 35 years of experience and offices in Guadalajara, CDMX, Monterrey, León, Tijuana, Medellín, Bogotá, and Costa Rica. Our comprehensive range of services includes mobility tax services, expatriate payroll management, payroll processing, day-to-day tax and financial compliance, transfer pricing studies, foreign trade services, audit services (covering financial, tax, social security, and Infonavit audits), transactional advisory, valuation services, and various other consulting services.

We are proud to hold several ISO certifications, including the 9001:2015 Quality Management System, 37001 Anti-Bribery Management, and 27001 Information Security. In addition, we have been recognized as a “Great Place to Work” and received the Best of Accounting Client Satisfaction 2024 award for our impressive 75.5% Net Promoter Score (NPS).

What mobility tax matter should organizations address prior to initiating a new assignment to or from Mexico?

Organizations must carefully consider the tax residency implications when dealing with international assignments to and from Mexico. For employees being sent from Mexico to another country, it is crucial to ensure they are recognized as tax residents in the Host country and that it is not a low-tax jurisdiction, as this could jeopardize their tax residency status in Mexico.

When sending employees to Mexico, a thorough analysis must be conducted for each assignee to determine their immigration, tax, and social security obligations in Mexico. It is essential to be well-informed and compliant with all relevant regulations to avoid any potential issues or penalties.

We’re continuing to expand our reach, having added many new countries to our service roster this year. This growth enhances our ability to provide comprehensive support for your international business needs across even more jurisdictions. Check out the list of our newest locations and discover how our expanded global presence can empower your cross-border strategies!

Albania Finland Montenegro
Aruba Georgia North Macedonia
Bonaire, Sint Eustatius, and Saba Guam Northern Mariana Islands
Bosnia and Herzegovina Kazakhstan Palau
Bulgaria Kenya Portugal
China Kosovo Serbia
Curaçao Lithuania Sint Maarten
Cyprus Micronesia Suriname
Egypt Moldova UAE
Estonia Mongolia Ukraine