In this section, you will learn about the tax implications of workations or temporary remote work from abroad – for both employers and employees. Even short periods of work abroad can have tax implications, as many countries classify any professional activity as taxable presence. Without prior clarification, companies and employees risk unwanted tax liabilities, additional administrative work, or penalties.

For companies, one of the biggest risks is the unintentional establishment of a permanent establishment. This can occur when employees perform activities abroad that are considered an essential part of the business activity. In some countries, regular operational activities or decision-making authority are sufficient for this to happen. For employees, the question arises of tax residency and the treatment of their income (183-day rule).

This session provides a structured overview of the most important tax risk factors, the function of double taxation agreements, typical indications of a potential permanent establishment, and the steps companies can take to effectively limit their tax exposure when working remotely internationally. This includes practical recommendations such as defined criteria for permissible activities abroad, binding time limits, or country-specific thresholds to keep tax risks under control from the outset.