Workation”, a blend of work + vacation means doing your normal job from somewhere away from home or the office, whether that’s a beach, cottage, or city abroad. Since the pandemic, this way of working has spiked. A UK survey found that 46% of office workers have already taken a workation in the past year, and 35% plan to do so in the next 12 months. It’s not just about escaping your usual view.

Rising living costs at home, combined with flexible remote work policies, mean people are looking to work in more inspiring, affordable places. Workations bring freedom and some complications like travel costs, reliable Wi-Fi and taxes. For many, though, they’re becoming a nearly essential balance between life, productivity and wellbeing.

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How workations are shaping the modern workplace

The future of work is no longer tied to fixed offices or rigid routines — and workations are proof. Forward-thinking companies like SAP and Spotify are leading the charge, giving employees the freedom to combine work with travel. This shift reflects a deeper truth: flexibility is now an exception not a perk. Countries such as Portugal, Spain, and Estonia are seizing the opportunity, rolling out digital nomad visas, co-working hubs, and policies designed to attract global talent.

A study in June 2024 by Hubble found 42% of employees would like the option to work from abroad if given the chance, showing serious demand for flexibility and mobility. Given rising costs at home, stresses of city living, and the burnout many feel after long stretches indoors or commuting, workations appeal as more than just escapism, for many, they’re becoming essential.

Workations represent the direction work is heading. As employees demand more freedom and flexibility, brands that embrace this shift will stand out as progressive, people-centred, and attractive to top talent. By supporting workations, companies give staff a change of scenery and by extension, invest in their creativity, wellbeing, and build loyalty. Forward-thinking organisations that act now will shape the future of work, while those that resist risk will be left behind.

Read also: Building credit while living abroad: What nomads need to know

Workations make employees happier and more productive

• Improved well-being: A workation helps employees break free from routine, recharge mentally, and enjoy new environments while working. This balance reduces stress, boosts happiness, and supports long-term wellbeing.
• Increased productivity: Fresh surroundings and flexibility often spark motivation and creativity. Employees working in inspiring locations tend to approach tasks with renewed focus, leading to higher output and better performance.
• Stronger work-life balance: Workation allow employees to blend professional responsibilities with personal experiences. By enjoying leisure alongside work, individuals achieve harmony that’s often missing in traditional office setups.
• Enhanced creativity: Exposure to different cultures, landscapes, and people stimulates fresh ideas. This expanded perspective helps employees solve problems more innovatively and contribute unique insights to their teams and projects.

What workations mean for the employees' wallet

Commuting costs

Skipping the daily commute is like discovering hidden money in your routine. No fuel, fewer bus or train fares, and reduced vehicle maintenance mean substantial savings over time. For remote workers or nomads, these funds can go towards travel experiences, co-working memberships, or simply padding savings. Beyond money, eliminating long commutes also saves hours, reducing stress and giving employees extra energy to focus on work or explore their temporary surroundings.

Food & lifestyle expenses

Working away from the office slashes everyday spending on expensive lunches, takeaway coffees, and professional attire. Cooking at home, grabbing affordable local meals, or embracing casual workwear reduces costs while supporting a healthier lifestyle. These savings may seem small day-to-day, but over weeks or months, they accumulate into a meaningful buffer. For global workers, this means more flexibility to enjoy their destination, invest in personal projects, or simply boost savings.

Tax implications

Taxes abroad can feel like navigating a maze: residency rules, reporting requirements, and local obligations all vary by country. A misstep could result in unexpected deductions or fines, turning what seems like a simple workation into a financial headache. Understanding tax treaties, social security implications, and allowable deductions is essential. Though it requires upfront planning, careful tax management ensures workers enjoy their new environment without surprises.

Set-up expenses

Launching a workation comes with its own initial costs: flights, accommodation, co-working memberships, and reliable Wi-Fi setups. Think of it as investing in a temporary office that allows both work and adventure. While the upfront expenses can feel high, they often pay off in increased flexibility, well-being, and productivity. With proper budgeting, these costs become a strategic investment rather than a burden, allowing workers to enjoy inspiring locations without financial stress.

Conclusions

Workations are shaping the future of work, offering flexibility, inspiration, and better balance. To manage money while working anywhere, Grey makes international payments faster, without hidden charges.

Sign up or download Grey today and enjoy stress-free workations wherever you go.

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