โœ‹
Sorry, your browser does not support the technologies needed to use our web interface.

Please make sure you have the latest version, and that JavaScript is enabled.
Remote Jobs  Nomad Insurance Chat Meetups New Forum Advertise FAQ Dating Members Hire Remotely 
  Homepageโš™๏ธ  Settings๐ŸŒ—  Toggle dark mode โค๏ธ  Your saved places
๐Ÿœ  Explore๐Ÿก  Cities๐Ÿ‡ณ๐Ÿ‡ฑ  Countries๐ŸŒ  Continents๐ŸŽซ  Community๐Ÿธ  Meetups๐Ÿ‘‹  Dating๐Ÿ’ฌ Chat ๐Ÿ—ฏ  Forum๐Ÿ’  FAQ New๐Ÿ”“  Open Startup
๐Ÿ“ธ  Vote on photos๐Ÿ”ฎ  Show random place๐Ÿ’ธ  FIRE calculator๐Ÿ”Œ  Bali sea cable status๐ŸŒด  Canggu shortcut cam๐ŸŒค  Climate finder๐Ÿ“Š  Fastest growing New๐Ÿก  Real estate overseasโ›„๏ธ Escape the winter๐Ÿฆ  COVID-19 data๐Ÿ“ฃ  Advertise
๐Ÿ›ฐ  Remote jobs๐Ÿ‘ฉโ€๐Ÿ’ป  Remote workers Newโœˆ๏ธ  Airlines New๐Ÿ—บ  Neighborhoods๐Ÿ  Coworkations๐Ÿฌ  Coworking spaces๐Ÿ”–  Incorporate๐Ÿš‘  Nomad Insurance
Title
Be specific and imagine youโ€™re asking a question to another person. You can also post non-question posts of general interest

Body
Include all the information someone would need to answer your question or reply to your post
Ask a question
Cancel

You won't be notified by email when a reply is posted, to change your notification settings. Posts must follow the Community Guidelines: No ads, self promotion, commercial posts, surveys etc. For customer support questions, don't post here but use the feedback box in the bottom right of this page instead.

๐Ÿ‘
2k
๐Ÿ‘Ž

Are coffee shop expenses tax deductible?


by @octavient | 3yr  | 7 comments

I often spend upwards of $150 per month in coffee shops, where I do much of my (remote) work (25+ hours per week). Since I donโ€™t pay office rent, I perceive these expenses as replacing my fixed rent costs, and I tend to spend more money at coffee shops when Iโ€™m camping out for a 2- to 4-hour work session, so these expenses strike me as legitimate business expenses. Has anybody gone down this road with the IRS? Is anybody aware of any official guidance or precedence for this?

๐Ÿ‘
2k
๐Ÿ‘Ž
๐Ÿ‘
16
๐Ÿ‘Ž
@etc | 3yr

Regardless of whether you file it as a deduction or not, the likelihood that this deduction would survive an audit is almost nil.

Youโ€™re not supposed to deduct personal expenses. You can claim that you spent more than you normally would have, but for the business expenditure, (Sutter rule), however the burden of proof (must be explicit) is on you. If it becomes your normative state, youโ€™re unlikely to prevail. What youโ€™d have to prove is that you normally spend $2 a day on coffee (show receipts for purchased coffee) but on that particular day, you spent $5 as a result of (x). (x) can be a meeting or some other justifiable expense.

๐Ÿ‘
16
๐Ÿ‘Ž
๐Ÿ‘
45
๐Ÿ‘Ž
@adam_nubern | 3yr

Great question!

The IRS allows business deductions that satisfy two subjective words; ordinary and necessary. Source.

Ordinary expenses are those that are typical in your line of work.
Necessary expenses are those that you must make in order to eventually receive some income.

So, the riddle to answer is if you could you justify your coffee expenses as both ordinary and necessary for your line of work. Thennnn, you may have different โ€œfacts and circumstancesโ€ where a coffee may be deductible one day and not the next.

Another thing to be aware of is the IRS only allows you a 50% business deduction for meals and entertainment expensesโ€ฆso in an audit they might try and limit/reclassify the amount you took to 50% unless you can detail otherwise.

Be aware of the a) directly related and b) associate with tests the IRS expects to apply to meals/entertainment expenses.

I know it sucks, but you really should document/detail your reasoning for these sort of expenses.

Three examples of how things could potentially play out under varying facts and circumstances:

a) If I have no reliable internet at my campsite or at my airbnb and I go to a cafe, then I feel the facts and circumstances say the coffee I purchase is an ordinary and necessary expense for me to incur to use the wifi at someoneโ€™s cafe. 50% deduction, though b/c it is a meal item.
b) I have good internet and choose to go to a cafe to work = a personal decision and no business deduction.
c) Go to a cafe in New Zealand where you have to pay 5NZD for power/wifi to get your work done and buy a coffee. Wifi/power purchase would be 100% deductible while coffee would be 50%.

At the end of the day, the burden of proof for your decision is on you in an audit. If you donโ€™t have details explaining your decision, youโ€™re more than likely not going to get any sort of deduction.

I hope that helps!

๐Ÿ‘
45
๐Ÿ‘Ž
๐Ÿ‘
19
๐Ÿ‘Ž
@etc | 3yr

Unless youโ€™re traveling, itโ€™s unlikely this would fall under โ€œmeals and entertainment,โ€ since thereโ€™s no bonafide meeting.

No matter how you go, itโ€™s a stretch to justify it and youโ€™d be taking a risk if youโ€™re audited. It ultimately depends how much risk youโ€™re willing to take on.

https://www.bizfilings.com/toolkit/research-topics/managing-your-taxes/federal-taxes/properly-substantiated-meal-and-entertainment-expenses-are-deductible

๐Ÿ‘
19
๐Ÿ‘Ž
๐Ÿ‘
4
๐Ÿ‘Ž
@matthieudrula | 3yr

Not sure about that.
If you pay with your business card it would be easier to justify, however, if you do this and have a huge conversion fee it might be worth it.

๐Ÿ‘
4
๐Ÿ‘Ž
๐Ÿ‘
13
๐Ÿ‘Ž
@gizmodesign | 3yr

I do this, but it stems from two reasons:

  • Back a few years ago, my internet service was really spotty (yuck AT&T) and I couldnโ€™t rely on it for any consistent work, so I had to go to cafes (no coworking existed nearby).
  • Second, when Iโ€™m traveling I rarely find decent wifi so I end up at cafes and havenโ€™t had to do a dedicated day at a coworking spot.

My accountant writes off much of my cafe time (since 2008 or 2009), but thatโ€™s him :slight_smile:

๐Ÿ‘
13
๐Ÿ‘Ž
๐Ÿ‘
7
๐Ÿ‘Ž
@lantano | 3yr

is one of the reasons why I pushed for my boss to do a coworking service. I used to do remote working 2 years ago and I end up spending 15- 20 dollars a day for a coffee, if you need to sit down there for the whole day. With Crappy or non existent WIFI service, no power outlets. But still I have to spend almost $20 a day! From this I pitched in the idea of coworking space to my boss. Now we are operating one with bottomless coffee and much much more cost efficient. It does not answer your question, but I feel for you.

๐Ÿ‘
7
๐Ÿ‘Ž
๐Ÿ‘
5
๐Ÿ‘Ž
@rad4ever | 3yr

Possibly, talk to your accountant about this.

๐Ÿ‘
5
๐Ÿ‘Ž
Read and participate in 14,017 discussions on Nomad List

Suggested topics

๐Ÿ‘
37
๐Ÿ‘Ž

Issues with not being a tax resident anywhere?


by @lightworker | 7mo 6 months ago | 2 comments

Anyone with knowledge regarding complications of not being a tax resident anywhere in the world? Iโ€™m aware that primary health care, bank account opening and incorperation can be problematic but are there other practical or legal factors I should be aware of?

And what about paying myself salary from a self-owned OECD company? I would like to know if I risk potentieal issues with the tax authorities in the jurisdiction of the company, especially regarding withholding tax.

Appreciate your input!

๐Ÿ‘
37
๐Ÿ‘Ž
๐Ÿ‘
3k
๐Ÿ‘Ž

How do digital nomads pay tax?


by @rodriigovieira | 8mo 8 months ago | 19 comments

Hello everyone! Iโ€™m new here and probably this is a very newbie question, but it doesnโ€™t leave my head.

How do you, nomads, pay your taxes? I mean, if youโ€™re constantly traveling, how are you going to pay taxes for a certain country if you are going to stay there a short period of time?
Or do you return to your โ€œoriginal countryโ€ and then pay them?

By the way, this forum has very nice cool formatting features! :smile:

๐Ÿ‘
3k
๐Ÿ‘Ž
๐Ÿ‘
94
๐Ÿ‘Ž

Where to move for tax purposes as a non-US citizen?


by @mender | 12mo 11 months ago | 5 comments

I am a New Zealander looking to travel for a couple of years in different countries. For this purpose I would ideally like to shift my company to a lower tax territory where I will live part time, as I am currently taxed at roughly 33% in New Zealand, however itโ€™s closer to 40% when I add in all the hidden taxes.

With a move I wonโ€™t be living in NZ so Iโ€™ll no longer be obliged to pay any tax after 320 days.

I ideally would wish to be a tax resident of the country I incorporate in. What country is easiest to do this through? A large chunk of my business relies on PayPal which requires your bank account to be from the same country your company is registered. Thus I canโ€™t do anything such as BVI or small islands.

Tbh my best bet looks to be Dubai Free Zones at this point and I can do some travel in europe from there.

๐Ÿ‘
94
๐Ÿ‘Ž
๐Ÿ‘
2
๐Ÿ‘Ž

How to be sure of new tax residence?


by @analogmario | 1yr 1 year ago | 0 comments

Hi, Iโ€™m new here.
I am moving out forever.
So I am going to move to another country my residence.
But, in the new country I donโ€™t plan to spend more than 90 days a year for sure, at least itโ€™s not the plan for the first years.

But I want to be sure that my tax residence is in my new country, even if I spend less than 90 days a year.
I want to be sure I wonโ€™t be reclaimed by my original country or any other country that I might end up spending less than 180 days, but more than the less than 90 I expect to spend in my new country(looks like itโ€™s going to be Portugal).

Hope that was understandable.

Does anyone know where I can get information about this kind related to nomadism?

Thanks

๐Ÿ‘
2
๐Ÿ‘Ž
๐Ÿ‘
27
๐Ÿ‘Ž

Tracking expenses when prepaying for stuff


by @kathrynoh | 2yr 1 year ago | 7 comments

I was wondering what systems/apps etc people use for tracking their living expenses? I try to keep records but find that some months I prepay for a lot of future expenses (eg. Airbnb, flights etc) while other months I spend little because everything has already been made.

I guess what I need to know is my actual spending in a month, regardless of when I actually spent the money but also the cash flow for each month.

๐Ÿ‘
27
๐Ÿ‘Ž
๐Ÿ‘
4
๐Ÿ‘Ž

How does Lima's new municipal taxi app compare to Uber?


in Lima, Peru by @robertomasymas | 2yr 1 year ago | 0 comments

How does limaโ€™s new municipal taxi app TaxiMML compare to uber?

๐Ÿ‘
4
๐Ÿ‘Ž
๐Ÿ‘
14
๐Ÿ‘Ž

Remote worker in Amsterdam: taxes and legal status?


in Amsterdam, Netherlands by @think | 2yr 1 year ago | 1 comment

Hi all,

I am moving to Amsterdam in January and looking for advice regarding legal status.

I work for a small French company. They agreed to let me move to Amsterdam as a remote worker starting January. :v:

However, they have no business entity and no employee in the Netherlands, so we have no idea how to set up the whole thing legally speaking. Should I remain an employee of the French entity, should I charge them as a consultant/contractor?

Of course, I am looking for a solution that is both simple and with minimum taxes :stuck_out_tongue_closed_eyes:

Thank you for your help!!
Steph

PS: If you can recommend a good accountant that is competent on the topic, I an happy to pay for the service too!

๐Ÿ‘
14
๐Ÿ‘Ž
๐Ÿ‘
58
๐Ÿ‘Ž

Tax Planning advice (Primarily contracting for US company)


by @kartman92 | 2yr 2 years ago | 7 comments

Hello nomads,

Due to a recent US work visa rejection (H1B), Iโ€™m considering turning to freelancing and being a digital nomad. My former employer (US based start-up) wants me to continue rendering my services as a contractor/freelancer (so I have a confirmed major client and Iโ€™ll probably take on other minor clients on the side). From the get go I want to get my taxes right and I was hoping you seasoned nomads can assist me. Some of the key aspects of my case are:

  1. I hold an Indian passport and as long as I donโ€™t stay in India for 182 days Iโ€™m considered non-resident (No taxes on foreign income as long as services are not rendered in India, otherwise 30% tax).

  2. I may have to visit the US occasionally, so having a tax-residency in a country with a US tax-treaty may be beneficial (I maybe incorrect here).

  3. Iโ€™m willing not to be a perpetual traveller and put down roots in a low tax country that offers easy tax residency with low-taxes.

  4. Will incorporating in a tax-friendly help my case? Or will just perpetual travel be enough to completely avoid taxes?

P.s. If any of you offer sound tax advice for a fee and are aware of international taxation laws (especially US tax laws), do let me know.

๐Ÿ‘
58
๐Ÿ‘Ž
๐Ÿ‘
696
๐Ÿ‘Ž

Where to pay taxes if self employed non-resident of the UK, travelling Europe?


by @jadi4nd | 3yr 2 years ago | 5 comments

Hi, I know there are a few posts around this topic but none of them quite answer my questions.

I am British and currently a resident in the UK.
Next year I am going to become a non-resident and spend over a year traveling mostly around Europe, moving every few weeks never staying anywhere longer than a month. (My first venture into becoming a digital nomad!)

I am remote, self employed, software developer working mostly for one client based in the UK.

Where am I liable to pay taxes?
From what I have read I will not be liable to pay taxes in UK, can anyone confirm this?
If not the UK then where if I am moving every few weeks?
If possible I want to avoid starting a company as this seems unnecessarily complicated for my work setup.

Thank you in advance for any help :slight_smile:

๐Ÿ‘
696
๐Ÿ‘Ž
๐Ÿ‘
691
๐Ÿ‘Ž

How do taxes work for perpetual travelers?


by @whirledover | 3yr 3 years ago | 5 comments

Hereโ€™s a question (actually a bunch of related questions) thatโ€™s been a bit of a thorn in my side lately. Iโ€™ve already combed this forum as well as several others but would love some more insight from more knowledgable people.

So, here goesโ€ฆ

Background: Iโ€™m a perpetual traveler and havenโ€™t stayed in a single country longer than 6 months for around 5 years now. Iโ€™m a non-US person so no IRS worries but my country of citizenship (Korea) has a residential tax system and since I havenโ€™t claimed residency anywhere else, it seems possible for my government to claim me as a tax citizen.

Which brings me to my first question: At what point does forming a solid business structure to cover your taxable a** become worth the hassle? $100K/year? At $200K/year? I sort of feel like most governments wouldnโ€™t bother with this because itโ€™s relatively โ€œsmall fishโ€ - thoughts?

And that brings me to another question: If Iโ€™m not needlessly spending time worrying and I should finally pull the trigger and set something up that makes me more โ€œlegitโ€ - even if it requires paperwork - whatโ€™s my best option? Hereโ€™s what Iโ€™ve come up with:

Set up an offshore company - Iโ€™m leaning toward RAK Offshore since it seems to have no paperwork requirements and has no taxes - and use that to hold and re-invest the income I receive while paying myself a nominal amount every month, like $3,000, which I then file Korean (income) taxes for. This makes sense in my head since thatโ€™s roughly the amount I spend every month anyway but would this qualify as tax evasion?

Last question: for all of you who are perpetual travelers and arenโ€™t filing tax returns with your country of citizenship/last tax residency - what are you doing in terms of investing the money youโ€™ve saved? From what Iโ€™ve read, banks will report accounts that hold over a certain amount to the country of the account holder and online brokerage accounts seem to be the same.
Oh, and is the money accrued (without being reported tax-wise) considered black money?!

Okay, Iโ€™m done for now. Apologies for writing a book - Iโ€™m not so learned on this topic. Would appreciate any insights. Thanks in advance! :slight_smile:

๐Ÿ‘
691
๐Ÿ‘Ž
๐Ÿ‘
619
๐Ÿ‘Ž

Advices about tax, location for incorporation, etc


by @anadesigner | 3yr 3 years ago | 2 comments

Hi nomads,

I and my husband are graphic designers and we work from home mainly doing services for UK. We have personal bank account in UK as we lived there for a while and we use it to receive payments and then use transferwise, but we are worried because we have no company there to declare these payments.

We are at the moment in Malta but moving to Portugal soon and we really would like to make the things right to avoid problems but also we need avoid pay lots of taxโ€ฆ I am researching a lot but not sure what to do. Would be very good to have a bit of advice to what way to go, where is the best country to open an offshore business for exemple?
We earn together about 25k euro year (brut).
Any advice or tip would be very welcome.

Thanks!

๐Ÿ‘
619
๐Ÿ‘Ž
๐Ÿ‘
1k
๐Ÿ‘Ž

Help: Canada Taxman (CRA) Coming After Digital Nomad Who Has Not Lived in Canada since 2011. Advice or Recommendations?


in Canada by @bestscifireads | 4yr 3 years ago | 7 comments

Hey guys.

Iโ€™m in the unfortunate situation (and true Digital Nomadโ€™s worst nightmare) where the Canadian tax man (i.e. the CRA) has decided to come calling. And calling hard.

Any recommendations for Canadian Tax Accounts / Tax Lawyers specializing digital nomads / expats / non residents?

Hereโ€™s the deal:

Iโ€™m a digital nomad living in Thailand who has NOT lived in canada since the middle of 2011, and in that time, only been back to canada three times for a brief visit (with a total period between all those years of less than 90 days out of the 5 years).

I make an online income (affiliates, adsense, and such) of which all if it does not derive from Canada. And as stated, I donโ€™t live there anymore and havenโ€™t in many years. I donโ€™t own houses, cars, or anything (I do have a personal bank account though and a DL โ€“ you need those to function mostly). Iโ€™ve only used Canada as my bank account, from which I would send money abroad to live while outside of Canada, which was the entire period of time.

Anyways, the taxman back in Canada doesnโ€™t know this (that Iโ€™m a non resident) and of course has now come to collect. I had income tax demands sent to an address (parentsโ€™) stating I owe a very high five figure balance in income tax and owe it right away.

The whole digital nomad thing has just come to life the past years and when I left Canada in 2011/2010, no one new much about making money online, how to pay taxes when you donโ€™t live in your home country, etc. I was doing this earlier than most (from this forum, I gather itโ€™s common now).

I assume Iโ€™ll probably need a Canadian tax accountant and mayhaps a tax lawyer versed inโ€ฆwellโ€ฆdigital nomads. Iโ€™m going to call the CRA (Canadian Revenue Agency) and try to explain that I donโ€™t live there and havenโ€™t (and I can prove it), but yea. It may take more than that.

At this point, Iโ€™ve been looking how to properly structure my affairs (creating an Estonian Corp, creating an Thailand corporation) to properly handle how I should structure things in the future, but in the meantimeโ€ฆ

Advice or a recommendation for a specific tax specialist (iโ€™m from BC, Canada if that helps) would be awesome.

Ben

๐Ÿ‘
1k
๐Ÿ‘Ž
๐Ÿ‘
1k
๐Ÿ‘Ž

Tax: what are the best options for a nomadic Dutch freelancer?


by @maarten | 4yr 3 years ago | 11 comments

Originally, I am from the Netherlands. Since january 2016, I have been working remotely all around the world. But even though I havenโ€™t been in the Netherlands this year, I am still paying taxes there. Iโ€™m still registered as a citizen.

I have to unregister in the Netherlands as a citizen. But if I donโ€™t register somewhere else, or have a freelance status or company somewhere else, I would still have to pay 50%+ taxes. This is, of course, not fun at all.

So I decided to move my business elsewhere. Either get freelancer status in another country, or create a business there to send invoices from. Which brings me to my question:

What is the best country tax-wise for a Dutch freelancer?

As of now, I found two solutions:

  • Have an agency set up a company in Bulgaria. It will kost 3000 euro a year, once 3300 euros and extra money if I want residency. And then of course 10% income tax on my earnings.
  • Have an agency set up a company in Dubai. It will cost around 2000 euro annually and 5000 euro once. No income tax.

Wether residency in an other country is required for the Dutch tax authority to not tax your world income, seems to be a grey area. However, if I unregister in Holland and send invoices from a company in a whole other country, it should be fine.

I have little or no experience. People with know-how: would you be so kind to comment on these options?

Are there alternatives I should consider?

I donโ€™t really like to hire an agency. Iโ€™d rather just fly to a country, fill out paperwork, incorporate there and from then on invoice from that company. If itโ€™s too bureaucratic, I wouldnโ€™t mind hiring a local lawyer or accountant to do it for me.

Do you know a country where there is no or a low income tax and this process is relatively easy and suitable for Dutch freelancers?

๐Ÿ‘
1k
๐Ÿ‘Ž
๐Ÿ‘
1k
๐Ÿ‘Ž

Australians - are you an Australian resident for tax purposes?


in Australia by @kathrynoh | 4yr 3 years ago | 8 comments

If no, how do you get around the being in one place for two years or more requirement?

๐Ÿ‘
1k
๐Ÿ‘Ž
๐Ÿ‘
383
๐Ÿ‘Ž

Permanent virtual Legal Domicile for mail forwarding and tax declaration


by @youarehere | 4yr 4 years ago | 1 comment

I am looking for a best virtual Domicle to declare as permanent legal USA address and Legal Domicle where I can receive Virtual mail and have it mailed to my current geography. Please inform if you have recommendations or experience. Thanks!

๐Ÿ‘
383
๐Ÿ‘Ž
๐Ÿ‘
45
๐Ÿ‘Ž

Do you have banking & tax advice for UK citizens?


by @figoshow | 4yr 4 years ago | 2 comments

Hello, Iโ€™m sure this has been asked before but I
couldnโ€™t find anything, I am from the UK I am trying to find the best way to do banking and finance whilst being a DN. primarily where i should FILE taxes, Iโ€™ve found a lot of threads about paying tax but not about filing. for example i am considering getting a German bank account. I wonโ€™t be living in Germany at all. do i need to file taxes there since I have a bank account there.

Admin edit: subject did not fall within forum guidelines

๐Ÿ‘
45
๐Ÿ‘Ž
๐Ÿ‘
1k
๐Ÿ‘Ž

How to best set up your taxes, residency and and business as a digital nomad?

 

by @theglobalcitizen | 4yr 4 years ago | 60 comments

The purpose of this post is to discuss the benefits, downsides, and challenges of setting up an international business.

Comment with what you want to know, or with what knowledge you can offer others based on your experience.

  • Do you want to set up an offshore company but donโ€™t know
    where to start?
  • Do you have questions with setting up legal entities or bank accounts?
  • Do you have questions with regards to paying taxes and residency.

Before becoming a DN I worked in Dubai as a corporate service provider. I helped 100s of international entrepreneurs to set up their companies, engage in tax planning and obtaining residency. Most of them in Dubai, but also in other jurisdictions like Panama, Hong Kong & Seychelles.

Share your biggest struggles or tips!

๐Ÿ‘
1k
๐Ÿ‘Ž
๐Ÿ‘
251
๐Ÿ‘Ž

How to optimize corporate taxation as a digital nomad company?

 

by @digital | 4yr 4 years ago | 24 comments

Hi guys :smiley:

I manage a French limited company. My business partner and I are digital nomads. The company pays all companyโ€™s expenditures and we pay ourselves for our plane tickets, accommodations, and so on. We would save a lot of money if the company could pay for some of our expenditures but we need to justify that these expenditures are for-business only. Have you ever have this experience?

More broadly, how can we optimize our corporate taxation as digital nomad companies?

One of my thoughts is to consider ourselves as expatriates. Therefore, the company should pay some of our expenses such as travel, accommodation, or school for children. It will be great for the company because it will decrease its profits (i.e. its taxation). But, how to justify setting up a expat contract?

If you have any advice for us and other digital nomad companies, please share :smile:

D.

๐Ÿ‘
251
๐Ÿ‘Ž
๐Ÿ‘
2k
๐Ÿ‘Ž

Digital nomads tax, how does it work?

 

by @homakov | 4yr 4 years ago | 63 comments

Is there a lawyer here? Iโ€™m a Russian citizen and the last 2 years Iโ€™m living abroad. Which makes me non tax resident. And while i spend < 3 months in every country I do not owe taxes from my consulting income to any country.

Is there a flaw in this system? Yes I know Perpetual travel doesnโ€™t work for USA citizens, but everybody else here is in similar situation. Do you pay taxes and why?

๐Ÿ‘
2k
๐Ÿ‘Ž
๐Ÿ‘
8k
๐Ÿ‘Ž

If you don't have a residence, where do you pay taxes as a European citizen?

 

by @mpp | 4yr 4 years ago | 68 comments

While his type of question has been asked before, please bear with me as the existing threads donโ€™t match/answer my questions.

tl;dr

German citizen working as a consultant for a US startup and moving perpetually every < 3months.

  • (Where) Do I pay taxes when I technically donโ€™t have a residence?
  • Is it allowed by European/German law to not have a residence?
  • Are there countries where you can get a residence w/o staying 6 month/year or large investments, that do not tax non-remitted foreign-sourced income?
  • Can you recommend a good European/German tax advisor who could give a professional opinion?
  • Do I need to start a company to invoice an US company for consultancy work?

less short version:

Inspired by this community & @levelsio, Iโ€™m in the process of becoming a digital nomad myself. The one issue that is currently blocking me is sorting out what the best way to handle taxes is. Iโ€™ve been offered a job by a US startup, they want to hire me as a remote consultant (contractor). Iโ€™m not limited to a location and free to move where/as often as I want.

As the German tax authorities are known for not joking around, I want to make sure I handle the tax issue correctly. My research so far leads me to believe that as long as I donโ€™t own any property in Germany or do any business there, I should be fine with not paying taxes there. Switching countries at least once every three months also should be sufficient to not create any tax obligations in the respecitive countries.

While in theory this sounds like you donโ€™t have to have a residence anywhere and are not obliged to pay taxes, I have a hard time believing that this is not covered by International/European/German law. Did anyone (ideally European/German citizen) consult a tax advisor / lawyer on this and can give an educated answer to this? Iโ€™d also be thankful for recommendations for good tax advisors specialized on this topic.

Last but not least, as I havenโ€™t freelanced before: Do I need to start a company to be able to invoice the US company for my consultancy work or could I just do this as an individual?

Sorry for this rather long post, thanks to everyone whoโ€™ll take the time to answer <3

๐Ÿ‘
8k
๐Ÿ‘Ž
โ€นโ€บ
×
USD โ”€ $
ยฐF
โœจ To see all results
Join Nomad List
Log In
FeedbackIf you find a bug, or have feedback, please write it here. See the FAQ for answers to most questions.Thanks for the message! We will get back to you soon.
Send feedback