Digital nomadism is an alternative to telework, which is itself an alternative to the famous “metro, work, sleep”. Like the classic freelancer, the two modes of work have a certain similarity in the fact thatthey require the use of a laptop and an internet connection. They still have their own specificities.
Teleworking is a way of doing work remotely, from home and, generally, in a sedentary manner, i.e. without moving from home. Often, the worker remains dependent on his employer and governed by the company’s internal regulations. He must thus observe fixed working hours, refer to them and report to his employer in the event of absence, leave, or untimely changes in the mode or pace of work, among other things. To ensure that they carry out their tasks, on time and in accordance with the rules, the teleworker will have to adopt a sedentary life, mainly at home with the possible social and domestic constraints that this imposes.
Tax and social consequences
If you choose this mode of expatriation, you will be juggling two social and tax systems, those of your employer’s head office and those of your place of residence.
If your employer is French, the first thing to do is to check the tax treaty that binds France and your country of residence. Most often, the tax is due in the country of residence, because the authorities consider that you produce the wealth for your employer from this country. For cross-border commuters who go to their place of work in France every day, this is the country that is used for taxation. But the pandemic has complicated the situation, at least for the tax services. Many cross-border workers had to work from their place of residence. In order not to modify the places of taxation, agreements have been signed with the countries bordering France. These will expire on June 30.
Benefit from French coverage
On the side of the groups of cross-border workers on social networks, we are calling for these agreements to be made permanent. If this happens, you could imagine living abroad all year round while working for a French company. So you would benefit from French taxation (usually quite favorable to married employees) but also from social security coverage, social security but above all from retirement! For on-site care, you can fall back on an additional formula such as that offered by the Caisse des Français de l’Etranger (CFE) for French people insured outside France.
However, the decision does not seem to have been taken yet and the elections are slowing down the process. In the event of victory of the NUPES, Jean-Luc Mélenchon wants to impose this system on all income from France. But it will be necessary to find an agreement with the other countries.