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How do digital nomads pay tax?


by @rodriigovieira | 5yr  | 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:

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@lora | 5yr

A bit late to the convo, but I want to look at this from another point of view - ok, letโ€™s say you can be a non resident anywhere and consequently not pay taxes anywhere. BUT. You still receive your earnings somewhere. That account has been opened in a particular country. Are you saying that you can have an account in a random country, not be their resident and still receive your income?

I am from Croatia and am struggling with how to fit in travelings as business expenses, plus all of this what you are talking about. I am always learning about new options. But, for now, I donโ€™t see a way how can I legally receive earnings on my bank account and not be liable to any taxes. In Croatia, there is a special account for business earnings and your private account is separate (you get your salary on this account). This way, tax people can see how much you have earned and know how much taxes you need to pay. If I receive earnings on my personal account, I can do that, but that is not legal. Any thoughts?

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Yes. Absolutely. Thatโ€™s one of the pillars of flag theory. Although, I wouldnโ€™t suggest any โ€œrandomโ€ country, but rather a stable banking jurisdiction.

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@zoxel | 5yr

yeah, just live somewhere on non-worker visa and make sure you are not resident for tax purposes in your country and youโ€™re good - not paying anywhere :smile:

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@wanderingdev | 5yr

Honestly, no. I donโ€™t. I havenโ€™t really worried about it though I guess it should be on my radar. The UK absolutely does NOT allow you to work while on a tourist visa. If asked, never tell them youโ€™re working. It would be difficult to prove that you performed work while in a specific country, IMO.

As for proving the 330, Iโ€™ve note seen much mentioned about that. I did find this from here:

"If I am audited, how do I prove my travel dates to the IRS?

The IRS is not specific about what documentation is required, leaving that largely to the auditorโ€™s better judgement. It is wise to keep a travel log in addition to plane ticket stubs and any other documents that might support your claims. Sales and credit card receipts can also be helpful. If your travel is related to business, your employer may be contacted for additional documentation."

so thatโ€™s something to keep in mind.

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@mule5 | 5yr

I am also interested in this topic as a self-employed freelancer.

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Hej Rodrigo,

Here this is also discussed.

Brazilians are taxed based on their worldwide income based on residency. So it is the same as Europeans. The trick is to no longer be considered tax resident in Brazil.

Giving the fact how difficult Brazil is becoming for doing business and insane regulations it is a good idea to start looking abroad to set-up your business.

Cheers.

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@kikikarpus | 5yr

Yes - Same boat Mandy! You have to be gone out of the US for 330 days I think before you are exempt from what I read.

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@wanderingdev | 5yr

yes, 330 days out of 365, but they donโ€™t have to be in a single calendar year.

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@sfomadeze | 5yr

FYI for fellow Americans: Living outside the US (even 365 days a year) doesnโ€™t absolve you of tax responsibilities if you havenโ€™t established a tax home somewhere else. Americans are always expected to pay taxes somewhere. https://www.irs.gov/Individuals/International-Taxpayers/Foreign-Earned-Income-Exclusion-Can-I-Claim-the-Exclusion-or-Deduction

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@wanderingdev | 5yr

That is not strictly correct. A better statement would be that we are assumed to pay taxes somewhere.

โ€œIf you do not have a regular or main place of business because of the nature of your work, your tax home may be the place where you regularly live. If you have neither a regular or main place of business nor a place where you regularly live, you are considered an itinerant and your tax home is wherever you work.โ€

Most nomads will fall under the highlighted part. So, for the USA, legally, our tax homes are wherever we are working, which for most of us changes multiple times a year. However, since most of us are not in one place long enough for that country to consider us a tax resident under their laws they donโ€™t require us to actually file taxes.

We meet the US requirement of having a tax residency outside the USA. That is what matters. What happens after that is between us and whatever country/ies we have been working in.

What it comes down to is that the tax system isnโ€™t set up for nomads so this is a legal loophole. One that could possibly be closed in the future if they required proof of a tax liability elsewhere, but which is open at the moment.

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@sfomadeze | 5yr

Food for thought. Thanks. I have a family member who is a tax guy. After the holidays die down, Iโ€™ll have to pick his brain about this. :slight_smile:

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@wanderingdev | 5yr

Make sure he is a tax guy who specializes in expat taxes and the feie otherwise his knowledge will likely be lacking. I tried to talk to a regular CPA about it first and they had no idea so I spoke with someone who specializes in expat taxes and that is what I was told.

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@leerosen | 5yr

Also, keep in mind that the Foreign Earned Income Exclusion only applies to the first $100,800 in income (for 2015) and does not apply to Self Employment Tax. Youโ€™ll still owe Self Employment tax for all income plus income tax for all income in excess of the limit.

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@mule5 | 4yr

Can one setup a pass through entity, such as an llc, that has the worker (foreign non/never resident in any tax jurisdiction to qualify for the feie) as an employee who draws a salary so the entity has no profits. Or will the entity still need to withhold taxes from that salary?
Is that how people use the FEIE if self employed, by creating a tax entity to receive the income first?

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@wanderingdev | 5yr

depends on where youโ€™re traveling, how long youโ€™re there and where youโ€™re from originally. Iโ€™m a US citizen. the US is one of the only countries in the world that requires its citizens to pay taxes no matter where theyโ€™re living. However, if you meet certain requirements you can get an exemption. I am generally traveling on a tourist visa and not in one country long enough to be considered a resident, therefore I donโ€™t pay taxes anywhere.

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@lightmotif | 5yr

Mandy, curious if you happen to know anything about telecommuting on a tourist stay for various countries in Europe? On Wikipedia, it says most countries donโ€™t require a work permit for telecommuting during the 90 days youโ€™re granted as a tourist, but some do (of course they donโ€™t list which ones). And what about the UK and Ireland? From what Iโ€™ve read, they donโ€™t allow it but Iโ€™m not entirely sure.

The main reason I care is that Iโ€™m a US citizen, planning to claim the foreign earned income exclusion and Iโ€™m sure Iโ€™ll need documentation if I ever get audited. In case the IRS is hip to foreign work permit laws, want to make sure I understand all that and have proof. Any advice appreciated.

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@rodriigovieira | 5yr

Well, thatโ€™s very interesting! So if you travel only with tourist visa, you donโ€™t need to pay taxes?
Also, if you eventually became a citizen of another country, do you still need to pay your US taxes?

I live at Brazil, so itโ€™d be nice if someone from Brazil clarify this for me! :smiley:

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@wanderingdev | 5yr

depends on the country youโ€™re traveling in. yes, as long as I am a US citizen, I am required to pay US taxes.

When asking questions like this which are completely country specific, telling us what country youโ€™re from will help a lot, especially if you put it in the title so people know. :slight_smile:

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@phktag | 5mo

Hey Mandy-

thank you for sharing your knowledge here. i know this is an old topic but i just wanted to see if the rules you played by in 2015 still is in effect.

i am a US citizen, about to leave the US to India on a tourist visa. I will likely stay in many other countries throughout the next 2 years or so, all if not most on tourist visa. I am currently employed by an american company as a full time employee, but this will change to independent contracting status as I leave the country.

I am trying to see 2 things here:

  1. will i qualify for FEIE (foreign earned income exclusion) next year
  2. do i need to pay self employment tax regardless of whether i qualify for FEIE

ideally, i qualify for FEIE, and i donโ€™t need to pay self employment tax somehow-- then my tax will be close to 0. but even just having FEIE, 15% self employment tax is not terribleโ€ฆ

itโ€™s been several years since this discussion came up, and ive seen in different places about IRS auditors targeting digital nomads and Trump potentially removing the 330 / 365 rule, so i am a bit anxious. last thing i want is to think i owe no tax and have to scramble for a fat tax bill.

sorry for reviving this thread, and thanks for your help!

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Read and participate in 13,920 discussions on Nomad List

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Any nomads working on startups?

 

by @mattlock | 3mo 2 months ago | 33 comments

Hoping to see all the cool stuff people are working on while they live an extraordinary life.

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Any Ph.D students dissertating while a digital nomad?


by @larsheather | 3mo 3 months ago | 5 comments

Anyone know of any groups or resources for Ph.D. students working on dissertation while living as a digital nomad? I know there are several virtual writing groups around, but wondered if there were any specifically for digital nomads, particularly those who are dissertating.

Thanks!

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Does international health insurance for digital nomads exist?

 

by @al_steffen | 4mo 3 months ago | 59 comments

Hey Nomads!

Iโ€™m looking for an international health insurance (no travel insurance) for my nomadic life. It should cover the basic services and at least be accepted in the EU (itโ€™s ok if itโ€™s not accepted in the US as Iโ€™m aware they rarely are). Nice to have: enter into a contract online. Anyone got a good experience or a recommendation?

Thanks in advance!

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Does international health insurance for digital nomads exist?

 

by @al_steffen | 4mo 3 months ago | 59 comments

Hey Nomads!

Iโ€™m looking for an international health insurance (no travel insurance) for my nomadic life. It should cover the basic services and at least be accepted in the EU (itโ€™s ok if itโ€™s not accepted in the US as Iโ€™m aware they rarely are). Nice to have: enter into a contract online. Anyone got a good experience or a recommendation?

Thanks in advance!

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I dream of being a digital nomad? How do I do it?


by @programmingmark | 5mo 4 months ago | 2 comments

Hello digital nomad!

I dream of being an independent digital nomad. But it feels very elusive & unattainable with my success rate. In full disclosure, whilst I have dreamed about making money online since high school; I have not earned a single cent making money online. $0, nada, zilch!! On the contrary, I have spent a lot of time & money on books, podcasts. Even though I have spent a lot of time reading/listening to others, I do not have anything to show for it!

I have made attempts in the past to start an online business, but these fizzle out quite quickly when I do not see traction especially when the goal I have set myself is too high.

Instead of reaching for the ultimate nomadic lifestyle goal, I want to start much smaller. Really small! I am simply looking to make $50 profit per month from a new online business. Thatโ€™s it.

I need some advice from you please!

  • Is $50 profit too low? How long did it take you to earn $50 profit per month?

  • What is a good way of achieving this goal?

Thanks
Mark
aka the $0 online business entrepreneur

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Anyone know an accountant for Canadian nomads/expats?


by @noam_lightstone | 6mo 6 months ago | 16 comments

Hey guys, this was my first year as a Canadian nomad.

As far as I know of, Canadians donโ€™t pay taxes if they do not live in the country for 6 months.

But Iโ€™d like to talk to an accountant or someone who does Canadian taxes specifically for expats and nomads to get clear on the rules and for help on my return coming up.

Does anyone know someone who specializes in Canada who can help? Iโ€™ve seen plenty of US recommendations but none for us canucks.

Thanks guys!

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Best place for Digital Nomad in Latin America?


by @rose_davis | 7mo 7 months ago | 7 comments

Hi!

I am planning to move to Latin America for 3-4 months (Oct-January). Iโ€™ve narrowed down 6 different places that I want to visit before committing to settling down, but Iโ€™d love to get some community input.

Here are the cities Iโ€™m considering:

  • Quito, Ecuador
  • Cuenca, Ecuador
  • Medellin, Columbia
  • Cartagena, Columbia
  • Antigua, Guatemala
  • San Marcos La Laguna, Guatemala

The most important things Iโ€™m looking for:

  • Fast/easily accessible internet
  • Easy to meet other nomads/make friends in general
  • Safe for women
  • Some sort of spiritual community (Iโ€™m also a yoga teacher)
  • Easily walkable city

Anyone have any experience with these places and can give some insight? Iโ€™m also completely open to other recommendations.

Thanks!
Rose

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Where are the nomads in Mexico City?


in Mexico City, Mexico by @shellyfish | 8mo 7 months ago | 9 comments

I just landed as a n00b digital nomad in Mexico City, and I am wonderingโ€ฆ Where are all the international digital nomads hiding around here? I have been to several coworking spaces (Selina etc.) only to find A LOT of local Mexican workers and businesses. Donโ€™t get me wrong, that is all fine, but I was hoping to meet some international nomads! Any advice?

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How do we solve housing for digital nomads?

 

by @levelsio | 8mo 7 months ago | 61 comments

Thereโ€™s been a lot of discussion on this recently.

Nomads usually stay in hostels, hotels and short-term apartments. But itโ€™s all not very optimal.

Iโ€™ve heard people suggest getting funding and building a network of houses you can stay at for a subscription price (e.g. Bruno Haid is working on that).

I donโ€™t want do physical stuff, so Iโ€™m thinking of building a platform around making housing better for nomads.

What are the housing problems nomads face? And how can we solve them with products/services?

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How do we solve housing for digital nomads?

 

by @levelsio | 8mo 7 months ago | 61 comments

Thereโ€™s been a lot of discussion on this recently.

Nomads usually stay in hostels, hotels and short-term apartments. But itโ€™s all not very optimal.

Iโ€™ve heard people suggest getting funding and building a network of houses you can stay at for a subscription price (e.g. Bruno Haid is working on that).

I donโ€™t want do physical stuff, so Iโ€™m thinking of building a platform around making housing better for nomads.

What are the housing problems nomads face? And how can we solve them with products/services?

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App/tool/service for nomads to bring things from another country?


by @brmolin | 9mo 8 months ago | 4 comments

I vaguely remember hearing about such a service before, but Iโ€™m drawing a blank on the name. Basically I left my tablet on a connecting flight in Europe, right before my main flight to Thailand. They have my tablet and are willing to ship it out for me, but people have warned me thereโ€™s a big risk of it getting โ€œlost in the mailโ€ if I ship something expensive like that to Thailand.

Iโ€™m wondering if thereโ€™s a service or community, where I can find a nomad whoโ€™s in Europe/heading to Thailand soon, so I can have it shipped to them in Europe and pay them to ferry it down here for me? I met someone in Budapest a ways back who had built something for this type of use-case, but I canโ€™t remember the name of it. Any help would be appreciated!

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Are there any nomads from India?

 

in India by @ankitdas123 | 9mo 9 months ago | 56 comments

I have seen a lot of posts from different people across the world, but not even a single post from someone in India, who has been a nomad, either living within the country or traveling to another one.

Would definitely love to hear stories from such people. We are a couple traveling as social nomads who are trying to bridge the gap between the rural and urban societies in India. We have started out very humble and do not have much resources, so looking out for help from the community.

Ankit & Rishika
Around Love and Life

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How is Sicily for digital nomads?


by @gaelm | 9mo 9 months ago | 15 comments

Hi all, I was looking for a cool spot in Southern Europe for winter and Iโ€™m considering Sicilyโ€ฆ Have you ever been there? If yes, how was your experience? If not, why?
thanks!

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How is Sicily for digital nomads?


by @gaelm | 9mo 9 months ago | 15 comments

Hi all, I was looking for a cool spot in Southern Europe for winter and Iโ€™m considering Sicilyโ€ฆ Have you ever been there? If yes, how was your experience? If not, why?
thanks!

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How is Bari, Italy for digital nomads?


in Bari, Italy by @mitch_dina | 9mo 9 months ago | 7 comments

Greetings!
Does anyone have experience in Bari, Italy please? We are thinking of going from Dubrovnik, Croatia to Bari by boat in mid-March. Has anyone taken a boat across? Is it nice or can it be choppy? (We are trying to avoid planes, to reduce our carbon footprint, so adding more surface travel.) Also, any info you might be able to offer about Bari and the surrounds? Next step will likely be trains up Italy as the Spring progresses.

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How is Bari, Italy for digital nomads?


in Bari, Italy by @mitch_dina | 9mo 9 months ago | 7 comments

Greetings!
Does anyone have experience in Bari, Italy please? We are thinking of going from Dubrovnik, Croatia to Bari by boat in mid-March. Has anyone taken a boat across? Is it nice or can it be choppy? (We are trying to avoid planes, to reduce our carbon footprint, so adding more surface travel.) Also, any info you might be able to offer about Bari and the surrounds? Next step will likely be trains up Italy as the Spring progresses.

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How is Mauritius for digital nomads?


in Mauritius by @wakkos | 10mo 10 months ago | 14 comments

Hello all,

Iโ€™m planning on spending a couple of month in Mauritius Island and even when Iโ€™ve been there for a week, never rented or worked there.

Does anyone here has tips or experience to share about Mauritius?

Cheers!

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How is Mauritius for digital nomads?


in Mauritius by @wakkos | 10mo 10 months ago | 14 comments

Hello all,

Iโ€™m planning on spending a couple of month in Mauritius Island and even when Iโ€™ve been there for a week, never rented or worked there.

Does anyone here has tips or experience to share about Mauritius?

Cheers!

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Are there any digital nomad fitness retreats?


by @ryanjames | 10mo 10 months ago | 1 comment

Hey all:

Does anyone here have any experience attending a full time fitness bootcamp or a fitness resort while working? I know there is one in Cambodia for digital nomads (Fitness Retreat Resort Kep Gym), unfortunately the time difference vs my work schedule would make my life suck if I tried to go there. Iโ€™m looking for a place between US and Europe timezones that lets you live with them, kicks your butt with fitness, but would also have good WiFi/accommodate working eight hours a day. Iโ€™m also open to other tangential ideas for something close-ish to get that same experience.

Thanks for any help!

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Best way to connect with "local" nomads using Nomadlist?


by @migueltic | 11mo 10 months ago | 4 comments

Hi, Iโ€™ve seen that Nomad List offers different options that could work for connecting with other nomads that are in the same place as me (forum, Slack, user maps, matches and maybe even more options I havenโ€™t seen), but Iโ€™m not sure what is the best/recommended way to use all these options.

Should I use all of them? Start with a message in the forum and/or Slack?

Sending private messages to a lot of people feels a little bit โ€œaggressiveโ€. And matches are not based on current location if I understood it correctly.

By the way, I just arrived at Budapest :slight_smile:

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