The difference between Remote and location-independent
The Realities Behind the Dream
Most people who come to me for advice dream of running a successful remote business - living under palm trees, travelling the world, and working only a few hours a day. The dream often looks like a five-hour work week, a laptop on the beach, and endless freedom.But let’s talk about what that really looks like in practice.When you choose remote work, you’re combining three big lifestyle shifts at once:
Building and running your own business (if you’re self-employed)
Working where others go on holiday — and facing constant temptation
Living away from home — which means managing visas, adapting to new cultures, and often being far from your family
Many people I’ve met couldn’t handle it long-term. Social media sells a version of remote work that looks effortless and glamorous — but the truth is, it takes structure, discipline, and a lot of self-management before it feels like freedom.But before we dive in let’s clarify the words “remote” and “location-independent” as they mean two different things.
Remote = where you work from
Remote work/business means you're not tied to a physical office. You could be working remotely from the same city your business is registered in, your home country, or a fixed location abroad. It's about how you work (screen, internet, no commute) and not how your company works.
Location-independent = where your business can legally and financially operate from
This is my territory. It means the business structure, taxation, banking, and compliance travel with you — or are set up in a way that doesn't collapse the moment you cross a border. You're not just working remotely, you're operating internationally without starting over.
In my experience: Remote is the goal people think they want, location-independent is what actually makes it sustainable long-term.
1. Building and Running a location-independent Business from anywhere
Starting your own business is the easy part. Running it successfully, especially while living abroad, is where the real work begins. I’m not saying this to scare you, but to give you a realistic understanding of what’s ahead.
Every business is unique, just like its owner. But here’s the reality: You’ll need to wear multiple hats, handle your own admin, understand your tax obligations, and stay organised even when you’re thousands of kilometres from home.
Pro tip: If you want to build a location-independent business model, focus on systems that don’t depend on your physical presence: Digital products, services, or consulting work are great starting points.
Once your company is up and running, it’s time to sort out the “remote” part.
2. Working Where Others Vacation
This is where many new remote emploees and location-independent entrepreneurs struggle - balancing discipline with temptation.
I’ve met many people who came with the best intentions, but after a few weeks of heat, waves, and endless beach days, forgot about their business goals. “It’s impossible to work at 42°C!” is a common excuse I’ve heard.
And while yes, it’s hot, and yes, the sea is calling, at the end of the day, work still needs to be done.
Working remotely doesn’t mean working less - it means working differently. Often harder, especially when you’re dealing with language barriers, visa challenges, and unfamiliar systems.
There are no paid sick days, and no safety nets. You are your own structure. If you’re not comfortable creating your own routine, or if you find it difficult to focus while others around you are relaxing, remote work can quickly become overwhelming. But if you can find your rhythm, it’s one of the most rewarding lifestyles there is.
3. The Pros and Cons of Living and Working Abroad
The Pros:
Learning new languages
Building a global network of connections
Experiencing new cultures, traditions, and food
Access to nature and a slower lifestyle
Sunshine, sea air, and new perspectives
The Cons:
Being far from family and close friends
No grandparents nearby to help with the kids
Constant visa worries and bureaucracy
Regular travel for visa renewals and family visits
Infrastructure challenges in remote regions
Thankfully, tools like Starlink have made the Wi-Fi situation far easier than it used to be. But logistics can still be tricky, especially if you run an e-commerce business and need to manage shipping.
If you struggle with the structure and dicipline entrpreneurs must have, then working and living remotely while employed could be a great solution for you. In this case you wouldn’t need to worry about your monthly income, since you’re on a monthly paycheck. Another great upsite is that having sufficient and regular income makes the whole bureaucracy part way easier. Or maybe your boss or company is even willing to set you up and provide you with the necessary paper work. Important is to talk it through with your company, since they are liable for you and even if you are location-independent the company that employs you is most likely not set up this way.
Sounds like a lot? It is.
But there's a structure for all of it and I know it by heart.
Book a strategy session or see how it works.
Common Questions About Remote and location-independent Businesses
Is there a perfect country for working and living?
No. After 15+ years of living abroad, I can honestly say - there’s no perfect place. Some countries are paradise but have impossible visa or tax systems. Others are business-friendly but lack natural beauty.
Decide what matters most to you and accept a few compromises.
Should I start my own location-independent company or work remotely as an employee?
It depends entirely on you.
If you value stability, a regular income, and fewer responsibilities, being employed by a company that allows remote work might be ideal (don’t forget to square it with your boss upfront). It also makes securing visas much easier.
If you love freedom and want to build something of your own, go for location-independnt entrepreneur but be prepared for the responsibility that comes with it.
How do I start a remote online business?
This depends on your preferred setup: Taxes, business model, and where you want to register.
Some countries, like Estonia, have made remote company formation incredibly easy and accessible, even for foreigners. Read “Best practices for structuring an online company in Estonia” for further information.
Real-Life Example: Founding a Business online in Estonia
Here’s a simple outline of how to found a business in Estonia as an EU citizen (all done online from outside Estonia):
Decide what type of company you want to start (e.g. OÜ – a limited company).
Set aside around 1.500€–1.700€ and at least 60 days for the process.
This usually includes e-residency, VAT registration, accounting setup, consultation, and a local business address.
You’ll need to apply online and then collect your registration card at your nearest Estonian embassy - make sure to book an appointment.
Once your registration card is activated, you can sign official documents online.
Your company registration takes 24–48 hours for approval.
Open your business bank account after your company is officially registered (allow 7–14 days for your physical card to aarive).
Pro tips:
Double-check that your chosen business name is available and not trademarked. Estonian authorities are strict about this. Knowing this before would have saved me an additional week of formation and lawer fees!
I hired an agency to file the paperwork for me. According to them “in less than 30 days” I’ll be the owner of a brand new online company…right. It took 60 days because unfortunately I applied over the summer months and this means either holidaying or very ummotivated staff. Always (and I mean ALWAYS) schedule for enough buffer days, so no matter what happens, you’re still hitting that deadline.
And that’s it. You now have a legal company that you can manage from anywhere in the world. Just don’t forget that you personally have to be tax registered somewhere. That’s a very expensive mistake many professionals miss.
Is location-independent Work Really Worth It?
Running a location-independent business is not a holiday, it’s a conscious lifestyle choice. It takes discipline, courage, and a willingness to let go of comfort. But if you’re ready for that, it can give you a kind of freedom that’s worth every challenge.
You’ll learn resilience, creativity, and independence - and if you structure your business well, you can create a life that feels truly your own.
