Do you work remotely from another country? Here’s what you need to know, otherwise you’ll have to pay taxes abroad Business

Only up to 6 months And what after that?

“Living abroad, working in Lithuania. I learned from one company that with a Lithuanian employment contract, when working remotely in another European country, you can live there for up to 6 months a year. But I can’t find any information about what will happen if I stay longer,” the man asked on Facebook.

The State Labor Inspectorate (VDI) indicates that the following rule applies in many countries around the world: a person who lives in that country for at least 183 days a year becomes a resident for tax purposes.

“If an employee of a Lithuanian company goes to another country and works there remotely for more than six months, the conditions for such an employee to become a tax resident of that country are formed.

If an employee of a Lithuanian company becomes a non-Lithuanian tax resident, this may have negative consequences not only for the employee himself, but also for the company (employer). In order to avoid such consequences, we believe that the company should limit the period that the employee can spend in another foreign country”, VDI emphasizes.

Can this really have negative consequences, in which cases even a person who has spent most of his time abroad could still pay taxes in Lithuania and when he may have to pay taxes in two countries, 15min asked lawyer, board member of the Lithuanian Young Lawyers Association (LJAA) Julijas Kalpokienė.