More and more professionals are working internationally without going through a formal relocation. Two common examples are extended business travel and cross-border remote work. You may have heard these phrases before, but what do they actually mean? And what are the compliance implications?
While both offer flexibility and can support talent retention and global collaboration, they can also trigger obligations related to immigration, social security, and posted worker rules. Here is a closer look at what each term means, and why companies should take a proactive approach.
What Is Extended Business Travel?
Extended business travel refers to professionals spending a longer-than-usual period – often several weeks or months – in another country for work, without transferring employment or changing tax residency. These stays typically support project work, training, or client collaboration.
Example: A Norwegian consultant is sent to Germany for three months to help a local client implement a new system. They continue to be employed and paid by the Norwegian company but carry out day-to-day work in Germany.
Why it matters: While these arrangements can be efficient, authorities in the host country may view them as more than just “business travel.” If the stay exceeds a certain length or involves hands-on work, the employee may need a work permit. Additionally, the company might be required to file a posted worker notification, register for social security coverage, or comply with local labor rules.
What Is Cross-Border Remote Work?
Cross-border remote work is when an employee works remotely from a country other than where their employer is located. This can be temporary – for example, working from another country for a few months – or permanent, such as relocating for personal reasons while keeping the same job.
Example: An American developer working for a U.S. startup wants to live and work remotely from Portugal full-time.
Why it matters: Even if the arrangement seems simple, cross-border remote work can trigger complex immigration, corporate tax, and employment law issues. For instance, the employee may need a residence or work permit depending on their nationality and the host country’s rules. Their presence could create a permanent establishment risk for the employer. And depending on duration and local regulations, social security contributions may need to shift to the host country.
The Upside: Flexibility and Agility
There are clear benefits to allowing extended business travel and cross-border remote work. These models support employee well-being, help retain top talent, and allow companies to react quickly to business needs. For globally minded organizations, these options create new ways to collaborate across borders.
The Risks: Unseen but Costly
However, the flexibility comes with hidden compliance risks. If overlooked, companies can face fines, tax complications, or employee dissatisfaction. Common pitfalls include exceeding allowable stay limits, failing to register posted worker notifications, or incorrectly handling social security obligations.
Some countries are tightening their oversight and increasing enforcement around these types of assignments, making it more important than ever to have the right processes in place.
How We Can Help
We support companies navigating these scenarios with services that include immigration assessments, posted worker filings, social security coordination, and strategic advice. Our goal is to help you unlock the benefits of international flexibility – while staying compliant and confident.
How Movenet Can Assist
At Movenet, we provide comprehensive relocation and global mobility services designed to support both employees and employers throughout the transition process. From navigating complex immigration procedures and managing household goods shipments, to local orientation, family integration, and language and cultural training, we ensure a seamless relocation experience.
Whether you have questions on extended business travel or cross-border remote work, or anything else related to global mobility, our expert team is here to provide tailored guidance every step of the way.
