There are many reasons why you may decide to relocate employees internationally. For example, maybe you want to expand your business to new markets and need someone who understands your company to handle the transition. You can also relocate an employee to mentor new hires, sharpen their leadership skills, or build an international team.
No matter what skill gaps or business needs you're trying to fulfill, a cross-border relocation can be challenging. We're here to help you through the process, ensuring it's seamless for employees and employers. Here's how to manage international employee relocation efficiently.
Relocating employees overseas brings new challenges. Every country has different immigration policies, laws, and taxation rules that you'll need to comply with. Failure to comply can put your employee's career at risk or can even lead to civil fines.
To ensure that you're prepared to handle the complexities of international employee relocations, you'll need to fully understand the laws and legal requirements of the specific country you're relocating to.
Before you can successfully relocate your team to a new country, you'll need to consider the following best practices and key considerations:
Every country has different rules and regulations you must follow to ensure the move is compliant with immigration laws. You must comply with these laws to avoid fines or visa denial. Sending your employees to a different country without legal documentation can also be a breach of your duty of care responsibilities.
The employee will need a work visa or permit. The Intracompany Transferee Visa is the most common visa for employees who work outside of their company. This is an employee-sponsored permit that allows you to work for up to one year.
Even if the employee is working in a new country, they'll still need to pay taxes in the United States. Depending on where they relocate, they may need to pay double the taxes.
Labor laws will vary by country. Before any international employee relocation, fully understand the laws to ensure your employees are safe and compliant.
An employeecross-border relocation is also challenging for the family involved. The spouse and children will need to completely uproot their lives and integrate into an unfamiliar culture. To make this process as seamless as possible, you'll want to offer them resources throughout the transition.
Temporary housing stipends and spouse job search assistance are two popular resources that can make your employee's border relocation package more appealing.
Private school stipends and childcare resources can make the transition easier for the children and parents.
Prepare the employee and their family for the culture using free online resources, workshops, and tools to learn more about their new community.
A top concern for employee cross-border relocations is the taxation and financial planning aspect. Some key considerations include:
When you move a U.S. employee to a new country, they are still required to pay U.S. tax on their new income. To streamline the process, consider offering resources or learning workshops on how to navigate filing taxes in two different countries.
There are also Foreign Tax Credits and Foreign Earned Income Exclusions available, which can help your employees avoid paying tax twice.
Paychecks may look different if the salary is being converted into a different currency. Helping your employees understand exchange rates will make it easier for them to manage their finances.
Once your employee has the work visa and understands the financial implications of the move, it's time to start planning the cross-border relocation. Navigating customs for overseas or cross-border moves can be hard. To help eliminate any unwanted stress, consider working with a reliable corporate relocation partner.
A corporate relocation partner will help you develop a moving timeline and handle the logistics of the move for you. They'll even help pack and load your employee's items, and ensure they don't bring any items that would get caught up in customs.
It might take your employee some time to find a new place to live in a foreign country. To help them through the transition, offer temporary housing or home-buying assistance. If the move is permanent, you can also provide home-selling assistance to help streamline the move.
Professional movers will help source custom crates for overseas moves. They'll even help pack, load, and transport items across the border so your employees don't have to.
Since 1928, Allied Van Lines has been assisting corporations with international employee relocations globally. We're here to help you through every aspect of the move, including the heavy lifting and budgeting. With our hands-on support, your HR and procurement team will get more time to focus on their day-to-day duties. Contact us today to learn more.
Are you looking for international employee relocation compensation best practices and key considerations? Review our frequently asked questions about corporate inter-relocations below.
Navigating customs, obtaining a work visa, and understanding the specific immigration laws for that country are the biggest key challenges for cross-border relocations.
Offering resources such as spouse job search assistance and daycare stipends can make the experience less stressful for the children and parents.
Allied will help you review the paperwork involved with the international employee relocation, ensuring you have everything necessary for a stress-free move.
A relocation partner will help you manage expenses, develop a moving timeline, and review your relocation package to guarantee compliance with local and federal laws.
Offering relocation packages tailored to an individual's needs can help streamline the relocation process, ensuring everyone has access to the necessary resources.
