Workation For Freelancers: How To Successfully Combine Work and Travelling
What Is a Workation?
The word is made up of "work" and " vacation". The idea is to move your place of work from your regular office to another location, for example in the mountains or by the sea. There you continue to work on your projects as normal. At the same time, you can enjoy the benefits of the new surroundings after work and at weekends and gather fresh impressions. With a workation, you can actively combine work and holiday.
For Whom Is a Workation the Right Choice?
A workation is great for freelancers and the self-employed who want a change of environment but can't or don't want to leave everything behind for a long time. Not everyone wants to give up their home straight away and live out of a suitcase for months without a permanent retreat. And not everyone has the means to do so.
For all those for whom this applies, a workation is a good option for increasing productivity and creativity. You can get to know foreign countries and cultures, recharge your batteries in a new environment and gather new impressions. In the best case scenario, you will even make new contacts that will benefit you for a long time to come. Of course, this is particularly suitable for anyone who works digitally - for example in online marketing or programming.
In general, there are a few risks that you should be aware of when working abroad. You can find out what you need to be aware of in the article Working Remotely Abroad: Five Risks Self-Employed Digital Nomads Should Be Aware Of.
What Do You Need To Consider Legally?
As a freelancer or self-employed person, you are obliged to pay your taxes in the country in which you have registered your activity. For example, if you work in Germany most of the time and have your " common habitual place of residence" there, you are bound to this country for tax purposes. However, if you spend more than 182 days abroad during a workation, the tax law of your new place of residence applies. This also includes your social security obligations.
By the way: You can claim part of the costs for a workation against tax. To do this, you must provide receipts to prove that your trip was for business purposes. You should keep private and business expenses strictly separate. If in doubt, consult a tax advisor for your tax return.
Business Risks Are Travelling With You
No matter where you work, you need to protect your business against risks. Because dangers threaten your company everywhere. These include:
- Infringements Of Rights
Almost every type of content is protected by copyright. You are therefore not allowed to use it without the permission of the rights holder. Infringements of competition law, for example due to an incorrect legal notice or violations of trademark and personal rights, also repeatedly lead to written warnings with expensive claims for compensation in the digital world. - Professional Mistakes
If you cause damage to clients or other third parties as a result of a professional error or mishap, they can claim compensation from you - regardless of where you are working from. - Cybercrime
It's a big issue, especially when working remotely: whether it's social engineering, malware or ransomware - cybercrime is on the rise. Therefore, take precautions such as regular backups, updates and take care when using public networks.
You can find even more tips on how to protect your business from cyberattacks here: Hacker Attack: How to Protect Your Business from Cybercrime. - Property Damage
This risk is also relevant for digital professions. Imagine you knock over your coffee cup in a coworking space and the liquid lands on someone else's laptop. You have already caused property damage for which you may have to pay. - Data Protection
Even if you work as a freelancer or are self-employed, you must comply with data protection laws in the EU and beyond - otherwise it will be expensive. You can read about what is important in our GDPR Fact Check.
As you can see: You also have professional risks with a workation.
Your Coverage Against Occupational Risks - No Matter Where You Work
Even the most comprehensive precautions reach their limits. So it's good if you don't have to face written warnings and expensive claims for compensation alone.
With Professional Indemnity Insurance through exali, you are comprehensively covered worldwide in the event of a damage event. If you have your place of business or habitual residence in an EU country or Switzerland, you can work on a self-employed or freelance basis anywhere in the world. This insurance coverage also extends to the USA and Canada. The prerequisite for this is that you do not work abroad for more than 182 days and thus relocate your habitual residence.
If third parties hold you liable for a damage, the insurer will examine the claims made against you. If the claims prove to be justified, the insurer will pay the damage amount. Unjustified claims will be defended against on your behalf. Damage to your own business is also a real risk. With the Add-on for First-Party Cyber and Data Risks Insurance (FPC), you can protect your business against the consequences of cyber attacks.
Would you like to know more? Then give us a call! Our customer service is available for you in German and English on + (49) 0 821 80 99 46 0 from Monday to Friday from 09:00 am to 06:00 pm (CET). Or you can use our contact form.
Workation: Organisation Is Everything
Apart from the legal aspect, there are some organisational matters that you should definitely clarify in advance.
Communication
Before you start your workation, you should involve your customers in your plans. Discuss points such as:
- How long will you be away?
- What time zone will you be working in? Are there any postponements?
- What times will you be working?
- What is the best way to reach you?
Communicate the framework conditions and clarify expectations - this will ensure smooth collaboration no matter where you are.
(Self) Organisation
When it comes to planning things, people tend to fall victim to their own optimism. We tend to take on too much work and are dissatisfied at the end of the day if we haven't completed all the tasks. Or we put ourselves under pressure and work to the point of exhaustion.
The risk of falling into this trap is particularly high with a workation. Be aware that you will also have to familiarise yourself with the new environment and perhaps adjust a few of your habits. You may not be able to manage your usual workload, especially at the beginning. Therefore, set yourself a realistic workload that won't overwhelm you and plan generously.
The Destination
Another important step is to determine where you want to spend your workation. The possibilities are almost endless. If you still need inspiration or want to narrow down the selection a little: The holiday home provider home to go has collected a few popular workation destinations.
Visa
Depending on where you are travelling to, you may need a visa. The regulations vary from country to country. You should find out about this as soon as you have decided where you want to spend your workation. It may take some time before you receive your visa.
Health Insurance/Foreign Health Insurance
Shorter stays abroad (usually up to 6 weeks) are usually covered by statutory and possibly private health insurance. For these shorter stays, an inexpensive supplementary foreign health insurance policy (usually for stays of up to 56 days at a time) can be useful. In order to be protected in the event of illness during longer stays abroad, you should take out additional international health insurance for longer trips before your workation.
Social Security
As long as you perform 25 per cent of your work at your usual place of residence, you will continue to be covered by social security there. If you are staying outside the EU, there must be a social security agreement between your country of residence and the destination of your workation - otherwise there is a possibility that you will also be subject to social security contributions there if you stay abroad for a longer period of time.
The Right Accommodation
In addition to factors such as location, size and equipment, which should meet your needs and budget, you need one thing above all: a stable Internet connection. Because you can only continue to do your work if you have suitable Internet access.
In this context, you should also make sure you have a good workstation when travelling. Working from a deckchair on the beach sounds good at first. But if you've ever sat at your laptop for eight hours with a hunched back, you'll soon wish you had a proper chair and desk back. Also keep your eyes and ears peeled for co-working spaces nearby - they offer a professional working environment and the chance to socialise with other freelancers who also work remotely.
Language Skills
If you are travelling abroad, you should at least be able to communicate at a basic level. This will help you to make contacts and organise important things independently. It is best to learn a few basics before you start your workation, then it will be much easier for you to get started.
Providers For Workstations
If you prefer to leave the organisational work to experts, you can contact workstation providers. They will bring you together with other people who also want to combine work and holiday. These companies also usually take care of organising accommodation and things like transfers and leisure activities.
Workation: Work and Discover the World
Our working world has changed. Even those who work as freelancers or are self-employed no longer just complete their tasks in a rented office. Digitalisation offers great opportunities to combine daily business with gathering new impressions. If you organise your workation in a structured way in advance and consider potential risks, you can benefit from it on various levels. You will fuel your creativity, work more productively and meet interesting new people.