Breaking Boundaries: How you can work and invoice clients from abroad as a freelancer

In recent years, many of us have been looking to make significant changes to our lifestyles and work patterns. This explains why a growing number of professionals are choosing to embrace a more digital nomad way of life, either by working remotely from another country or simply travelling more frequently for work.

According to Pumble, there currently are over 40 million digital nomads worldwide.

This trend is particularly prevalent among IT freelancers and tech pros for whom demand remains high. Many professionals from the freelance IT world are choosing to move outside the UK, where the tech industry is particularly robust.

 However, moving to a new country is rarely easy, especially for self-employed workers who face some specific challenges. 

The issue of visas and compliance with local regulations is a common stumbling block. In many cases, IT freelancers may need to obtain a work visa to continue working remotely from another country.

 This can be a time-consuming and often costly process, which may require the assistance of an immigration lawyer. In addition to visas, IT contractors and freelancers also need to consider compliance with local tax regulations. This can be particularly complex for freelancers who wish to continue working with clients based in the UK while also invoicing new clients based in their new country or elsewhere in the world. 

Ensuring compliance not only helps in avoiding potential legal issues but also in maintaining professional credibility and trustworthiness.

In this article, we will consider the challenges and opportunities that come with moving abroad as an IT freelancer. Plus, look at how many of those challenges can be solved with the help of a management company.

The benefits of working abroad as a freelance IT pro

Working abroad as an IT freelancer can offer many benefits, both personal and professional.

Let’s explore a few of them: 

Living and working in a new culture:

• Pushes you out of your comfort zone and boosts confidence.
• Allows you to immerse yourself in a different way of life
• Provides the opportunity to learn more about the world.

Potential for personal and professional growth:

• Exposure to new challenges and opportunities can help develop skills and experience.
• This can lead to career advancement and increased earning potential.

Improved quality of life:

• Countries with a lower cost of living and favourable tax rates can provide a higher standard of living.
• Local culture and amenities, such as beaches, cities, and outdoor activities, can enhance your downtime.

Access to a new market and new clients:

• Increase your earning potential with new opportunities for projects and clients.
• Potential for networking with other professionals and forming new collaborations and partnerships.

Overall, the benefits of working abroad as an IT contractor or self-employed pro are plentiful and can lead to a more fulfilling and rewarding career.

From personal growth and a better quality of life to increased earning potential and the chance to network with other professionals, working from another country can provide many exciting opportunities for IT freelancers.

The challenges of working abroad as a freelance

Becoming self-employed and working abroad can be an exciting prospect, it can also come with several   challenges. One of the biggest pitfalls    are the tricky administrative requirements that vary depending on the country. 

For example, if you spend only half the year in Spain or Portugal, you may face tax issues if you work for a UK-based company without legalising your presence in Spain. This highlights the importance of becoming a resident of your host country at some point to avoid these issues.

Another challenge is understanding whether or not you should open a company in your host country, and if so, what type of company and under which status. This can be a complex decision, and it may require the help of a local lawyer or accountant to navigate the various options and requirements. 

Obtaining visas and work permits can also be difficult. Depending on the country, there may be specific requirements for setting up a sole trader business or limited company, and it can be difficult to understand and comply with these requirements if you are not familiar with the local laws and regulations.

IT freelancers working abroad must also adapt to a new business culture and market. This can be difficult, as business practices and expectations may be different in other countries. It’s important to do your research and understand the local business environment to succeed as a  self-employed IT consultant in a foreign country.

 On top of the specific challenges for self-employed workers, there are also the regular challenges for anyone moving to a new country:

• Language barrier: If you are moving to a country where you don’t speak the language fluently, communication can be a challenge.
  
• Finding a place to live: It can be difficult to find a place to live in a new country, especially if you are unfamiliar with the local housing market and don’t have a network of contacts.
• Dealing with homesickness: It’s natural to feel homesick when moving to a new place, and this can be especially difficult if you are far away from family and friends.
• Managing finances: It can be a challenge to manage finances in a new country, especially if you’re not familiar with the local currency and banking system.
• Navigating bureaucracy: It can be tricky and frustrating to navigate the bureaucracy of a new country, especially if you’re not familiar with the local laws and regulations and don’t speak the language.
• Culture shock: Culture shock is the feeling of disorientation and discomfort that can occur when living in a new culture. It can be caused by a variety of factors, including differences in language, customs, and social norms.

A real-life example of the challenges a freelancer can face abroad

There’s no better way to understand the challenges freelancers face when moving abroad than by walking in their shoes for a while. To shed light on these experiences, we’ve gathered a testimonial from one of our clients. who moved to Spain in early 2022. His journey wasn’t without its hurdles and not everything went according to plan. Robert, a 32-year-old  self-employed IT consultant based in the UK, had been working as an IT freelancer for 5 years and had a very successful business with UK -based clients.

During the COVID-19 lockdowns, Robert started considering a move abroad as he lived in London  but was working  entirely remotely. He  decided to relocate to Spain at the beginning of 2022 without thoroughly preparing for the move.  When he arrived in Spain, he realised  he would not be able to continue working with his clients and operating his UK freelance IT business  without facing issues with Spanish taxes and regulations  – this is due to  the UK i leaving the EU.

He also found it difficult to rent a flat without a local working contract and without being officially registered as a taxpayer in Spain, and he learned that as a freelancer in Spain, he would not be eligible for the Beckham Law which allows foreign workers in Spain with a full-time Spanish work contract to pay only a 24% tax for 5 years.  Thankfully, Robert discovered Hightekers during an event in Barcelona. He soon understood that joining our network  would solve all these issues  and provide him with a visa and work permit, as well as a full-time local work contract. 

By joining Hightekers,  Robert can now take advantage of the special tax regime for the next 5 years and rent a flat without worry. This made his self-employed life simpler, and he now has more time to enjoy Spain.

How to solve the issues that arise as a freelancer abroad

As we’ve seen, there are many challenges to being a freelance IT pro working abroad. But the good news is that for every challenge there’s a solution.

Let’s go over a few: 

Option 1. Spend only part of the year in a foreign country

Be aware this can be impractical in countries like Spain or Portugal. It can lead to tax problems if you exceed 181 days in the country while getting revenue from UK clients and working as a UK independent IT consultant.

Option 2. Apply for a digital nomad visa

A digital nomad visa allows you to work remotely and live in a foreign country for an extended period. Freelancer visas are also available for individuals who are looking to work in a foreign country temporarily.

The specific requirements and application process for these visas can vary depending on the country. Some countries that have been known to offer digital nomad or freelancer visas include Spain, Portugal, Barbados, Bermuda, Costa Rica, and Estonia.

Option 3. Working visa and residency

For a more long-term solution, a working visa and a residence permit may be a better option. This type of visa allows individuals to work in a foreign country for an extended period.

 It is important to research the specific visa and residence permit requirements of the country where you plan to reside. You may also need to provide evidence of your professional qualifications and experience and meet other requirements to be eligible for a work or residence permit.

One thing that can help with all the challenges linked to moving abroad as a freelancer is to work with an umbrella company that has offices across Europe.

Working with a Management Company

A management company like Hightekers can provide you with a local work contract, which can help with your registration and business setup, as well as tax compliance and access to flat taxes for foreigners. 

A management company can also help with contracts, invoicing, and other legal and financial matters, and can provide access to insurance and other benefits. 

Working with Hightekers can help with any language barriers too as we handle admin tasks in the local language on your behalf. This makes it easier to communicate with clients and business partners.

You will also be able to continue to work with UK and other international clients, invoicing in different currencies such as the British pound and Euro. This can be a convenient and cost-effective solution, as you are paid by the management company in the local currency and avoid the hassle of dealing with complex exchange rates and foreign transaction fees. 

Overall, working with a management company like Hightekers can be a faster and more efficient way to get started as an IT freelancer in a foreign country. It allows you the freedom to focus on growing your business and building relationships with clients without being bogged down by the administrative and legal challenges of working abroad.

Key takeaways for freelancers looking to work abroad

Working abroad as an IT freelancer can be a rewarding and exciting experience, but it also comes with several challenges, such as tricky administrative requirements, language barriers, and difficulties with visas and work permits.

However, these challenges can be overcome by obtaining the right visa and working with a management company like Hightekers.

Here at Hightekers we help you navigate the bumps in the road and set you on the path to success as an IT contractor or freelancer abroad. We offer local work contracts in over 10 countries, allowing UK IT contractors to invoice UK companies from anywhere whilst remaining compliant with local requirements.

In addition to handling registration, business setup, tax compliance, and other admin tasks, Hightekers will also give you access to a network of IT and engineering consultants who can provide valuable support and advice. 

When you work with Hightekers, you can focus on growing your freelance IT business and building relationships with clients, without worrying about all the other challenges of working abroad.

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