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Working remotely for non-Uruguyan company

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BritToUruguay
9/4/2014 14:42 EST

Hi all,

I'm relocating to Uruguay next year and am looking at how to remain employed by my current UK employer.

The worry I have at present is that me working remotely (even if it is from home) will mean that my company has set up a 'permanent estsblishment' in Uruguay and will therefore be subject to Uruguayan corperation tax.

Not my problem, I know, but I'm trying to sell the move to my employer as simply as possible and I don't think they'll be keen on registering and paying tax in another country.

My income should be exempt from Uruguayan tax as it is foreign sourced and I will not be dealing at all with the Urugayan economy.

Anybody with any experience or advice would be gratefully received.

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carlitos
9/4/2014 18:14 EST

I don't think you would have problems. The Uruguayan government wont know about your work status, your money will continue to drop into your acc in the UK and you can use several ways to get access to it and spend the money here, and nobody will ask about the origin of that money provided is not a lot. My wife worked in the UK and we she got back here she continue to receive for 3 years checks from the queen - I guess taxes paid over the amount she was supposed to pay, and we exchanged the checks here and the UY government never asked any question. So as long you can convince your boss to allow you to continue working and continue paying your salary in your current Ac you are ok.

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crazyfarmer
9/4/2014 18:47 EST

Hello. I'm a USian working from home for companies in the US while living in Uruguay. You definitely don't have to setup a corporation or anything like that here in Uruguay. Just move into your place here, setup your internet access, and work from home.

The only issues will be the technical issues you'd expect. If you're planning to live in the city or a place like Atlantida, you should be able to get fiber optic internet comparable to what you can get in the US or UK, but check first. If you live in a rural area, internet access might be a little more problematic, but probably doable. I live in this goofy blind spot where I'm too far from the antel towers to get reliable internet. It works, but it drops too many packets to really be what I would call "working". I still use it though. I also have a movistar USB modem that works much faster and more reliably than the antel thing. But it's got a 12gig monthly cap. And it's a bit oversold so it might slow down on friday and saturday nights. The best solution is probably to get 2 or 3 movistar modems.

Your employer will need to give you a VPN account that you can log into over the internet. Most likely, they already have this for people who work from home on occasion in the UK. For my current employer, this is a userid-password thing. But for past employers I've had, this was a hardware dongle. So make sure you bring that with you if you need it. I use a Windows instance running in vmware so the VPN doesn't take over my enter internet connection. Bring a line conditioner also for your computer. Mine has battery backup so I can keep running for about 15 minutes if the power goes out.

You'll continue to get paid "up there". And you can extract money from your account at ATMs here. Or you can wire money down here into your account here if you have one. But they might ask for extra paperwork the first time you do it to prove where you're getting the money from. Americans are guilty until proven innocent in this regard, but they might be nicer to Brits.

If you're going to apply for residency, you'll need to show proof of income. And frequently, a salaried job won't cut it. For me, I was an independent contractor with my own corporation in the US. So I could show income from that. It's a symanics thing that might bite you here. So you might want to consider that and rearrange things up there before you come down.

brian

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