Where To Go As A Remote Worker: A Complete Guide

Here's a quick guide for UK professionals to find the best places to live and work abroad, cut costs, and build wealth:

• Save Money: Live in countries like Croatia (£725/month) or Portugal (£792/month) instead of the UK (£1,461/month).
• Tax Benefits: Portugal offers 0% tax on foreign income; Croatia provides tax-free status for UK workers.
• Top Destinations: Consider Portugal, Croatia, Estonia, or Spain for affordable living, reliable internet, and quality of life.
• Visa Options: Portugal, Croatia, and Estonia have 12-month visas with varying income requirements (£26,000–£38,900 annually).
• Key Considerations: Check internet speed, healthcare, safety, and time zone compatibility before moving.

Quick Comparison

Pro Tip: Try out a location for a month before committing. Research visa rules, tax obligations, and local living conditions to ensure a smooth transition.

Spain Digital Nomad Visa (Full Guide on Requirements & ...

How to Choose Your Remote Work Location

Picking the right place to live as a remote worker can help you save money and grow your wealth.

Living Expenses

The cost of living varies widely. For example, in Bangladesh, you’ll need about £560 per month, while in Paraguay, it’s closer to £930 per month. Housing typically accounts for 50–80% of your monthly expenses.

Internet Speed and Reliability

A reliable internet connection is crucial. The global median speed is around 15 Mbps, with averages closer to 30 Mbps. Ideally, look for download speeds between 50–100 Mbps, latency under 50ms, and jitter below 10ms. Before committing to a location, test the local internet using tools like Speedtest by Ookla or Fast.com. Also, make sure to check the visa requirements for your destination.

Visa Rules

Here are some popular options for remote workers:

• Portugal: 12-month visa, application fee around £67, with an annual income requirement of about £32,800.
• Croatia: 12-month permit, application fee approximately £146, requiring an annual income of roughly £26,000.
• Estonia: 12-month visa, application fee about £79, with an annual income requirement of around £38,900.

Some of these destinations also offer 0% income tax under specific conditions, making them attractive for remote workers.

Tax Rules

If you spend more than 183 days in a country, you might become a tax resident there. Check if the UK has a double taxation agreement with your chosen country. For instance, Dubai offers a 0% income tax policy, which could be appealing. Once you’ve sorted the legal and tax details, it’s time to think about daily life in your new location.

Daily Life Standards

Here are some practical factors to think about:

• Healthcare: Check if your UK insurance covers you abroad.
• Climate: Research the weather to see if it suits your lifestyle.
• Safety: Look up travel advisories for your chosen destination.
• Time Zones: Make sure the location allows enough overlap with your work hours.

FAQs

• What is the minimum internet speed needed for remote work?
  A stable connection with speeds between 50–100 Mbps is usually ideal for tasks like video calls and file sharing.
• How can I test a location's internet before moving?
  Use online tools like Speedtest or Fast.com during a visit, and ask local remote workers about connection reliability.
• Which locations offer the best value for remote workers?
  Portugal and Croatia are excellent choices, offering affordable living, strong infrastructure, remote work-friendly policies, and tax benefits.

Best Places for Remote Work

World's Top Remote Work Cities

For UK remote workers, some cities around the globe strike a great balance between affordability, infrastructure, and lifestyle. Here are a few noteworthy options:

Kuala Lumpur, Malaysia, is a standout. Renting a one-bedroom flat in the city centre costs between £320 and £560, and meals are priced at about £4 each. The city also ranks highly for healthcare, coming third globally in system reliability in 2023, just behind Switzerland and Singapore.

Bogotá, Colombia, is another excellent option, offering affordable living with one-bedroom flats in the city centre averaging around £320 per month. It earned a spot as the seventh-best city in the Financial Times' 2021/22 Global Cities of the Future Index for human capacity and lifestyle. Monthly utilities and internet are also reasonably priced.

FAQs

Here are answers to some common questions about these cities:

• What should I consider beyond living costs?
  Look at factors like healthcare quality, internet reliability, and time zone compatibility with UK working hours. Malaysia's strong global healthcare ranking makes it an appealing choice for British remote workers.
• How reliable is the internet in these locations?
  Both Cairo and Kuala Lumpur have dependable internet connections. Additionally, there are plenty of co-working spaces available for added convenience.

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UK Remote Worker Requirements

Once you've chosen your ideal location, it's crucial to address key UK-specific legal and financial requirements to stay compliant.

UK Tax Status Rules

If you're working remotely abroad, it's important to understand how HMRC determines your tax obligations. Your tax residency is assessed using the Statutory Residence Test. As a UK tax resident, you'll pay UK tax on your worldwide income. Non-residents, however, are only taxed on income earned within the UK.

Here are some key steps to consider:

• Submit Form P85: If you've left the UK, send this form along with your P45 to HMRC to check if you're eligible for a tax refund.
• Track Your UK Days: The UK tax year runs from 6 April to 5 April. Keeping a detailed record of your time spent in the UK can help determine your residency status.
• Double-Taxation Agreements: Look into agreements between the UK and your destination country. These agreements may offer relief from being taxed twice on the same income.

Health Coverage Abroad

Moving abroad means NHS treatment is no longer automatic. You'll need to arrange alternative healthcare options.

• For EU/EEA Countries: If you're eligible under the S1 scheme, you can access UK-funded healthcare in EU countries, as well as Iceland, Liechtenstein, Norway, or Switzerland.
• For Other Countries: You’ll need to register with local authorities to access state healthcare.

Sorting out healthcare ensures you're covered while living and working abroad.

Money Management Abroad

Managing your finances across borders can feel tricky, but a solid plan will help.

• Banking:
  • Keep a UK bank account for receiving income.
  • Open local accounts if needed.
  • Use currency exchange services to reduce transfer fees.
• Track Expenses:
  Record all work-related costs, such as office equipment, internet, phone bills, subscriptions, and travel expenses.

Consulting a tax professional can help you identify any deductions you're entitled to as a remote worker.

FAQs

• How many days can I stay abroad to remain a non-resident?
  Your tax residency depends on various factors. Check HMRC's guidelines for details specific to your situation.
• Do I need to pay National Insurance while working abroad?
  Voluntary contributions can protect your State Pension eligibility, but they don't cover healthcare abroad.
• What happens to my UK bank accounts if I become non-resident?
  Inform your bank about your non-resident status, as this may affect the services available to you.

Money and Lifestyle Planning

Saving and Investing Plan

Remote work can make saving easier by cutting down on expenses. To make the most of this, it's important to have a clear financial plan in place.

For example, investing £5,000 annually starting at age 25 with a 7% return could grow to nearly £1 million by 65. If you start 10 years later, you'd need to double your yearly contributions to reach the same goal.

Here’s how to get started:

• Build an Emergency Fund
  Keep three months' worth of living expenses in an easily accessible account. This helps you avoid dipping into investments when unexpected costs arise.
• Invest in Low-Cost Index Funds or ETFs
  These funds follow major market indices. Historically, the S&P 500 has delivered a 7% annual return after inflation.
• Automate Your Savings
  Set up automatic monthly transfers to your investment accounts. This removes the temptation to make emotional decisions and keeps you on track.

Cutting living costs through remote work frees up money for investments, making it easier to grow your wealth over time.

Choosing the Right Location

Living in certain European countries can reduce your expenses while maintaining a high quality of life. Here's a comparison:

For instance, moving to Croatia instead of staying in the UK could save you £736 every month. That extra money could be directed toward investments, helping you build wealth faster.

However, cost savings alone aren't enough. It's also important to focus on career growth and becoming part of the local community.

Network and Learning

A strong network and ongoing learning are crucial for thriving in remote work:

• Digital Communities: Use platforms like LinkedIn and industry-specific online groups to stay connected with UK contacts while building international relationships.
• Skill Development: Take courses or earn certifications to increase your earning potential.
• Local Connections: Join local professional groups to gain insights and uncover new opportunities in your chosen location.

FAQs

• How much should I aim to save monthly?
  Living in lower-cost countries can help you save a much larger portion of your income.
• What's the best way to handle currency fluctuations?
  Multi-currency accounts can help you avoid high conversion fees on international transactions.
• How do I maintain UK client relationships?
  Schedule video calls during UK business hours to stay in touch. Consider quarterly visits to meet clients face-to-face and strengthen connections.

Conclusion

Remote work gives you the freedom to live and work in places that align with your lifestyle and budget. Choose destinations that cater to both your practical needs and personal aspirations.

Countries like Portugal and Croatia offer lower living expenses and an appealing quality of life compared to the UK. For those seeking affordability alongside reliable digital infrastructure and a lively cultural scene, places like Thailand are worth considering. Portugal, with its European charm and cost advantages, continues to be a favourite among UK remote workers.

Before making the move, ensure you've covered the essentials:

• Researched visa requirements in detail
• Assessed your tax obligations
• Saved a 3–6 month emergency fund
• Set up dependable internet backup options
• Connected with local expat groups for support

Thorough preparation is key to thriving as a remote worker abroad. These locations can help you cut costs while maintaining a high standard of living.

FAQs

Q: What's the minimum income needed for popular remote work destinations?
A: In Spain, you'll need around £1,990 per month (200% of the national minimum wage). For Croatia, the requirement is approximately £2,380 monthly or savings totalling £30,940.

Q: How can I test if a location is right for me?
A: Spend at least one month in the location, visiting during different seasons to get a well-rounded experience.

Q: What should I prioritise when choosing a location?
A: Focus on a balance between cost of living, reliable digital infrastructure, and overall quality of life. Check earlier cost comparisons for more details.