Working B2B from abroad: invoices, taxes and what to ask before you sign

In short: on a B2B contract you're running a small business. You register where you live, invoice the company monthly, and handle your own tax, social security and insurance. It's very doable, but get local advice before your first invoice. This article is general information, not tax or legal advice.

What “B2B” means

Instead of being employed, you provide a service to the company as an independent professional. You sign a service agreement, not an employment contract, and send an invoice every month. The company pays the invoice. It doesn’t run payroll for you, so taxes and contributions are your job.

Many of the remote roles we fill work this way, because it’s simple and flexible for both sides. Some employers prefer an Employer of Record, which gives you a local employment contract instead. The job description will say which.

Step 1: register where you live

In most countries you need to register as self-employed (a sole trader or freelancer) or set up a small company before you invoice. Examples of what that looks like:

• Portugal: registering activity as a self-employed worker with the tax authority.
• Spain: registering as an autónomo.
• Cyprus, Malta, Greece: registering as self-employed with the tax and social insurance authorities.

Outside the EU, for example in Thailand or Indonesia, the rules on working remotely for foreign clients are tied to your visa. Check that your visa allows it. Several countries now offer special visas for remote workers.

Step 2: understand tax residency

Generally you pay income tax in the country where you’re tax resident, which is usually where you live. Many countries use a 183-day threshold as one of the tests, but it isn’t the only one: where your home, family and economic interests are also count. Double tax treaties decide which country gets to tax you when two could.

Two practical tips:

• If you’ve left your home country, make sure you’ve deregistered there properly, so you’re not taxed twice.
• Keep a simple record of where you spend your days.

Step 3: invoicing and VAT

Your invoice usually needs your registration details, the client’s details, a sequential invoice number, the date, a description of the service, the amount, and VAT information.

Within the EU, services between businesses are usually invoiced under the reverse-charge rules: you invoice without VAT, add a reverse-charge note, and the client accounts for the VAT. You may also need to file an EU sales listing. Outside the EU, different rules apply. Your accountant will set this up with you once, and after that it’s routine.

Getting paid: agree the currency and payment terms in the contract. Multi-currency accounts can save you a lot on exchange fees if you live outside the eurozone.

Step 4: social security

Within the EU and EEA, you’re generally covered by one country’s social security system at a time. For self-employed people that’s usually the country where you live and work. If you’re in the middle of a move, or work in more than one country, the rules get more specific, so ask the social security office where you live.

Outside the EU, check what’s available locally and whether you want private cover for pension and disability.

Step 5: insurance

Don’t skip this:

• Health insurance that covers you where you live, and when you travel.
• Professional liability insurance if your work could cause a client financial loss, for example in consulting or marketing.
• Equipment insurance for your laptop and phone.

What to ask before you sign

1. Hours: which hours do they need you online, in which time zone?
2. Fee: monthly or hourly? Paid when, and in which currency?
3. Notice period: how much notice does each side give?
4. Equipment and tools: who provides the laptop, phone and software licences?
5. Holidays: as a contractor you don’t get paid holidays by law. Price that into your fee and agree how time off works.
6. Exclusivity: can you work for other clients?
7. Ownership and confidentiality: what do you hand over, and what stays private?

Real contractors are independent: they set their own way of working, carry some business risk, and can often work for more than one client. If a contract looks exactly like a job, the employer may prefer an Employer of Record, which is also fine.

How RemoteAbroad fits in

We match native German, Dutch, Swedish, Danish and Norwegian speakers who live abroad with companies back home. It’s free for candidates, always. We’ll tell you upfront whether a role is B2B or EOR, and what hours it needs.

Next steps

• Join the talent pool.
• Read how to keep your career in your own language while living anywhere.
• Check the time zones of popular destinations.

This article is general information, not tax, legal or immigration advice. Rules differ by country and change over time. Talk to a qualified adviser where you live.