Can I work for up to 183 days abroad without paying tax?
Working Abroad
- Discussing the 183-day rule
- What currency will I be paid in overseas?
- Do I need a work permit overseas?
- Do I need special insurance while working abroad?
- What is the difference in cost of living between countries?
- Where should I pay my social security?
- Where should I pay my taxes?
- Can I work for up to 183 days abroad without paying tax?
- Do I need to pay tax and social security when I am working abroad?
No: this is one of the most common and pervasive misunderstandings among contractors working abroad. The quick and easy answer is that if, as a contractor, you are working abroad, you should pay tax locally from day one.
The 183-day rule governs the change between being tax non resident and tax resident. If you work less than 183 days in many countries you may be considered tax non-resident if certain other criteria are also met, and therefore should normally only be paying tax in that country on the revenue that you generate locally.
The 183-day rule is only applicable to full-time employees on business trips abroad: it is the limit up to which they are allowed to continue paying tax in their usual country of work. Working as an employee of your own limited company abroad will not make you eligible for this ruling, as many European countries don't recognise this stucture.
For more information, you may want read our articles What is the 183-day rule? and Why can't I continue paying tax through my limited company?