Tax Planning advice (Primarily contracting for US company)


#1

Hello nomads,

Due to a recent US work visa rejection (H1B), I’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 I’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 don’t stay in India for 182 days I’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. I’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.


#2

I am Australian and non-resident for tax purposes because I am out of AU for more than 183 days per year. Had same similar issue. I did look into Panamanian residency but in the end didn’t need it. I had a Stewart Patton, US tax attorney, create a structure where I can sell into the US and not pay US tax. Here’s an article that may help: https://ustax.bz/non-us-entrepreneurs/


#3

Thank you, so much. I’ll reach out to Stewart.


#4

Are these tax structures expensive to create and maintain? What’s your experience been like?


#5

I think it was around $2k to set up and $1k to maintain annually. Don’t remember the exact price. It’s a lot cheaper than paying tax in Australia. He’ll be able to advise on your US tax liability–which I am pretty sure will be zero–but won’t be able to advise on Indian tax.