Moving abroad to be with partner, but want to keep current US job
Posted by Mountain-Whereas9297@reddit | expats | View on Reddit | 16 comments
I'm considering moving abroad to be with a partner/furure spouse (citizen of Finland), however I would really like to keep my current US based remote job. I've read a few articles but wanted to get some updated feedback on this kind of transition. I am not looking for glamourized or romanticized information, just actual facts so I can sort through all the details legally. I don't want to run into any issues.
1.) I'm pretty confident my company will allow me to work my same job but I'm not sure what tax and paperwork come along with this shift for them and I don't want to make it difficult. I know that I would adapt to whatever time and schedule they prefer, that is not an issue as we currently have people working in multiple time zones already. I've read that sometimes the position can transfer to freelance or contractor - Can anyone inform me of what this means exactly? I believe that means I'll be responsible for making sure taxes, healthcare, etc are paid in the new country I'll be working in (Finland). I assume taxes will also still be paid to the US since the company is based there?
2.) We are not married yet, but that will be happening after the actual move. I read that I can apply for residency at least and visit the ministry in person to verify myself. I assume I will need a working visa as well as residency but I'm unsure?
3.) We would be living together and sharing expenses as any other couple would be doing.
4.) My partner and I would eventually like to open a new small business in their home country as well that we would be partners on.
5.) I currently own a home so I would need to either sell it or rent it and hire some kind of local property manager. Has anyone had experience with this? Is this something even worth doing? I was thinking of keeping the asset when we come back and visit friends and family but I'm not opposed to selling it either.
Dablicku@reddit
HeyEllie1968@reddit
If you will be legally able to work in Finland, look into an Employer of Record that operates out of Finland.You would officially work for them, and they would contract you out to your US employer. US employer pays Finnish payroll burden plus a fee to the EOR. Perfectly legal. Not sure if an option in Finland, but it's worth looking into.
1ksassa@reddit
What advantage does an EOR have for OP vs working as a self employed contractor and paying social contributions etc themselves?
Why not cut out the middleman and avoid the fees?
traumalt@reddit
Because being a contractor with a single client is considered employment fraud in a lot of places, so EOR specifically bypasses that requirement.
T0_R3@reddit
Just gonna remind you of
if you're not aware. The requirements for residency permit.
You will also be tax liable in your country of residence, which will be Finland. Your employer will need a legal entity there, comply with all the local laws and regulations.
Being a freelancer with a single client can be treated as an employment relationship by the authorities and therefore illegal/tax fraud etc.
Browse migri.fi and pay attention to the requiremens and obligations to the visa you're going for.
1ksassa@reddit
Dumb question, but how does one ever make the leap to self employment in that case? Everybody starts with just one client, and it is common to have one main client, no?
T0_R3@reddit
I assume there is a grace periode or other systems in place. Having a foreign client as your only is a bigger red flag than a domestic
1ksassa@reddit
I see. Not sure why the number of clients should make a difference. I would personally give other factors more weight. Does the contractor use their own equipment, do they decide their own hours and how they do their work etc.
I know that the IRS in the US has clear and easy to follow guidelines about this, and they don't mention a minimum number of clients etc.
Then again I do not make the rules in Finland or anywhere else. Good point you are mentioning. Definitely a question for a Finnish accountant.
T0_R3@reddit
Employers use freelancing to avoid responsibilities as an employer. Taxes, social security, vacation etc. As freelancer that all falls on you.
So by having a single client, that client have none of the obligations and risks and all the rights.
1ksassa@reddit
What if you are absolutely ok with this as a freelancer?
In OPs case I would assume that all US tax withholdings and social security contributions, PTO etc would go into the calculation for the hourly rate as a contractor. The former employer would not pay any less for your services, and the now contractor would not receive any less and just make payments to the Finnish govt themselves.
I don't see how in this case there would be a "need" to protect the worker from an employer avoiding responsibilities. This is clearly not the case.
1ksassa@reddit
You would become a contractor and your employer would turn into your client. They would pay you for your hours worked or by project, like with any other contractor. Sinple setup, really.
You would be responsible to pay self employment taxes and social security contributions etc in Finland. Consult with a Finnish accountant to set this up correctly.
gadgetvirtuoso@reddit
Best case they allow you to stay employed as you are now and you then pay your taxes in Finland from your US salary and take the Foreign tax credit for those taxes, which gets you a big credit for your taxes paid.
More likely they convert you to a contractor so they don’t have to deal with any of the legal or tax implications for them.
Worse case they fire you because they can’t or don’t want to take on the issues several have mentioned.
I would as converted to a contractor in Oct for this reason. There are pluses and minuses to this. I still owe US taxes but now I have to pay them quarterly. You need to find yourself a tax professional that has this experience. This is my guy and he has a lot of experience and has lived as an expat himself.
RexManning1@reddit
OP cannot stay employed as they are right now working in Finland. Your best case has a lot of regulatory compliance issues.
RexManning1@reddit
It’s nice to want things. Your company is also unlikely to allow you to do that because it becomes very complicated and risky for your employer.
texas_asic@reddit
You'll need a visa that allows you to move to the country and allows you to legally work in that country.
Your employer probably doesn't want to establish a presence in a country that it's not already in, thereby subjecting itself to taxes, regulations, and extra compliance associated with that country. This might mean that you need to stop being an employee, or that you need an employer-of-record involved, where you work for the employment agency and your current employer hires the agency for your time. If you become an independent contractor, you'll need to figure out how to comply with all laws in your new country, but also comply with relevant US reporting (to the IRS).
As a US citizen, you're going to owe US taxes. In addition, you're going to owe taxes to Finland as the work is being done there. Generally, you probably owe the highest of the two, as you can often get credits for taxes paid to the other, especially if there's a tax treaty between the countries. Also, working overseas, the US has a hefty exclusion on foreign earned income (look up the IRS's FEIE), which might just wipe out all your foreign wage income.
For the house, I'd recommend you sell it, but that's a secondary issue. First, figure out the visa stuff.
Grouchy_Tennis9195@reddit
Questions 1-3 are entirely for your company and their tax accountants/attorneys, not Reddit