Clear search
๐ŸŒ Go nomad ๐Ÿ‘‹  Log in
General
Nomad List Frontpage ๐ŸŒ—  Dark mode โค๏ธ  Your favorites ๐Ÿš‘  Nomad insurance ๐Ÿฅ  About
Community
โค๏ธ Dating app ๐Ÿค  Friend finder ๐Ÿ’ฌ  Chat on Telegram ๐Ÿ’ˆ  Host meetup
new
๐Ÿน  Attend meetup ๐ŸŒŽ  Members map
Tools
๐Ÿœ  Explore ๐ŸŽ’  NomadGPT ๐Ÿ“ธ  Vote on photos ๐Ÿ—“  Residence calendar ๐Ÿ’ธ  FIRE calculator ๐ŸŒค  Climate finder ๐Ÿ’ฅ  Fastest growing ๐Ÿ“Š  Nomad stats
new
๐Ÿงช State of remote work new ๐Ÿ“œ  History of nomads
new
๐Ÿ•ธ  Network graph ๐Ÿ”Œ  Fastest internet ๐Ÿ†  Best place now ๐Ÿ”ฎ  Random place ๐Ÿ”ฎ  Random good place
Misc
๐Ÿ“ˆ  Pageviews (625K/mo) ๐Ÿ—ณ  User rating 9.0/10 (n=5,924) ๐Ÿ›ฐ  Remote jobs โœˆ๏ธ  Best airlines ๐Ÿ—บ  Neighborhoods ๐Ÿก  Rebase ๐Ÿ  Coworkations ๐Ÿก  Interior AI ๐Ÿ“ธ  Photo AI ๐Ÿ†˜  Support
๐Ÿ‘‹ We've discontinued the forum. You can still read the posts archive but not post. To ask questions, please use the Nomad List Chat
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
Cancel

You won't be notified by email when a reply is posted, to change your notification settings. Posts must follow the TOS: 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‘
1k
๐Ÿ‘Ž

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

 

by @theglobalcitizen 9yr  | 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‘
2
๐Ÿ‘Ž
@karenchen 8yr

I think setting up a company in Hong Kong is definitely worth looking into as there are so many foreign businesses set up there. Low corporate profit tax rate of 16.5% maximum (in some cases can be as low as zero) and simple tax system. No VAT; no sales tax. Company set up and maintenance costs are low. Business system is flexible and very easy to understand. Many foreign businesses (small or large) find it extremely beneficial (financially and operationally) to use Hong Kong company as a hub to operate their international business.

๐Ÿ‘
2
๐Ÿ‘Ž
๐Ÿ‘
4
๐Ÿ‘Ž

Like everything, it depends on the needs/requirements of the business. For some, it may make sense to incorporate there. For Digital Nomads though, I still donโ€™t see the advantage the place offers. I lived and worked in Hong Kong for a number of years and found it to be quite backward outside of the financial services space.

๐Ÿ‘
4
๐Ÿ‘Ž
๐Ÿ‘
3
๐Ÿ‘Ž
@karenchen 8yr

That is very interesting to hear. Curious to know in what ways do you think HK is not an ideal place to incorporate company.

๐Ÿ‘
3
๐Ÿ‘Ž
๐Ÿ‘
10
๐Ÿ‘Ž

@ksl This article about Digital Nomad taxes explains a bit of the trouble involved with HK and why you might not need it. In general the annual company maintenance and upkeep can be quite challenging. Furthermore, youโ€™ll always be worried about whether the HK tax authorities will agree to your offshore profits claim. Itโ€™s just a lot of back and forth for perhaps very little gain in general. Might be better to reconsider incorporating or incorporate elsewhere.

๐Ÿ‘
10
๐Ÿ‘Ž
๐Ÿ‘
19
๐Ÿ‘Ž
@karenchen 8yr

@flyonthewall

Interesting insights. I think the problem in many instances, lies on the quality of the corporate services provider that one is using. The issues that you raised actually shouldnโ€™t be issues at all as they are fairly simple with the exception of offshore tax claim. However, once the offshore claim is approved, it is good for a good period of time.
It would be interesting to know where you think is a good place to incorporate.

๐Ÿ‘
19
๐Ÿ‘Ž
๐Ÿ‘
7
๐Ÿ‘Ž

@ksl

  • Opening up a bank account, for a local company, is very difficult. Even as a resident (at the time) they said there was no guarantee.
  • No accountants/auditors up to speed with Xero (this has changed now).
  • Annual audit and filing of accounts (enough has been said on this subject already).
  • Offshore profits claim (enough has also been said on this subject already).
  • Labour Surveys.
  • MPF and other headaches when hiring local staff.
  • Tax. Yeah, it seems attractive until you get smacked with principal and provisional taxโ€ฆfor the company and you personallyโ€ฆ all payable within 30 days.

Iโ€™ve countless other examples, but some of the above could have been avoided with better planning, but the point is that I donโ€™t see how HK is a suitable business flag for a Digital Nomad. The offshore route is still doable and itโ€™s nice and simple. I still maintain a virtual office in Hong Kong so my customers believe that that is where Iโ€™m based.

๐Ÿ‘
7
๐Ÿ‘Ž
๐Ÿ‘
8
๐Ÿ‘Ž
@karenchen 8yr

Level of difficulties or easiness depends on individual perspective. We are still seeing many digital nomads operating their business via their HK companies.

๐Ÿ‘
8
๐Ÿ‘Ž
๐Ÿ‘
5
๐Ÿ‘Ž

. . . and hating every minute of it . . .

๐Ÿ‘
5
๐Ÿ‘Ž
๐Ÿ‘
5
๐Ÿ‘Ž

Makes sense.

So youโ€™d run every venture through the same IBC which would then be the sole member of multiple Wyoming LLCs?

๐Ÿ‘
5
๐Ÿ‘Ž
๐Ÿ‘
2
๐Ÿ‘Ž

Yep, as long as each of those businesses work for this structure.

๐Ÿ‘
2
๐Ÿ‘Ž
๐Ÿ‘
28
๐Ÿ‘Ž

Hereโ€™s the structure I use for my US citizen digital nomad clients, from the top down:

  1. Youโ€™re the sole shareholder and sole director of a Belize IBC;
  2. The Belize IBC is the sole member of a Wyoming LLC;
  3. Youโ€™re the sole manager of the Wyoming LLC; and
  4. The Wyoming LLC has a US bank account.

This structure really provides the best of all worlds. You get the US tax benefits of operating a business through a non-US corporation, combined with the operational benefits of using a US bank account. You avoid the hassles of Hong Kong, both for the corporation and banking.

It works great for Amazon FBA, SaaS businesses, really any type of location-independent business.

The US tax aspects are easy: You simply pay US tax on your salary thatโ€™s in excess of about $100,000 a year. The company can invest the excess earnings on a pre-tax basis. Then, 100 years from now when you return, you have to pay US tax on dividends from the company (so, overall the company works like a traditional IRA that you can contribute way more than $5,500 per year to).

Happy to answer any questions about how this structure works.

๐Ÿ‘
28
๐Ÿ‘Ž
๐Ÿ‘
8
๐Ÿ‘Ž
@opt 8yr

This is very clear and helpful. Sounds complicated, thoughโ€“Wyoming/Belize, who am I, where am I?! :wink:

I imagine youโ€™re well aware of this, but one thing I think is glossed over sometimes when people mention the foreign earned income exclusion, is that if youโ€™re running your own business then youโ€™re still on the hook for self-employment tax for that first $100k or so, ~15%, correct? (Up to $118,500 for 2015? https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes)

Thatโ€™s less about your posts, but something I see all the time on message boards: no federal tax on 100k! Not exactly true, if self-employed. (If full-time employed, then the employer should be taking care of that, so it would be true.)

Of course thatโ€™s still a substantial savingsโ€ฆ

๐Ÿ‘
8
๐Ÿ‘Ž
๐Ÿ‘
9
๐Ÿ‘Ž

Thanks @opt. :slight_smile:

Youโ€™re absolutely right that the foreign earned income exclusion doesnโ€™t apply for self-employment tax purposes. (Self-employment tax is 15.3% up to $118k, then 2.9% over that.)

And thatโ€™s not even the half of itโ€“self-employed expats are also subject to the 30% rule and the scaleback rule, both of which can severely limit the foreign earned income exclusion. More detail here: http://ustax.bz/reduce-or-eliminate-your-u-s-tax-with-the-foreign-earned-income-exclusion/

But, when you use the structure I outlined above, you arenโ€™t self-employed for US tax purposes. Youโ€™re simply an employee of a foreign corporation. So, neither the self-employment tax nor the other FEIE-limiting rules apply under this structure.

๐Ÿ‘
9
๐Ÿ‘Ž
๐Ÿ‘
4
๐Ÿ‘Ž
@opt 8yr

I see the 30% rule applies to business where โ€œcapital investment is an important part of producing income,โ€ explained in your article and here: https://www.irs.gov/publications/p54/ch04.html#en_US_2015_publink100047456.

So it seems that if one is in the services business (like many freelancers, I presume), then, from the IRS examples: โ€œIf capital is not an income-producing factor and personal services produce the business income, the 30% rule does not apply. The entire amount of business income is earned income.โ€

I wonder how that applies to software businesses, where personal services arenโ€™t necessarily being provided, but there is no investment in inventory, potentially no investment in employees or real estate and low or no infrastructure costs if solo (and personal time isnโ€™t a capital investment?), etc.

๐Ÿ‘
4
๐Ÿ‘Ž
๐Ÿ‘
7
๐Ÿ‘Ž

Yeah, the 30% rule is definitely clear as mud.

For a SaaS or Swas business with the characteristics as you described, Iโ€™d probably be able to get comfortable that the 30% rule doesnโ€™t apply.

But that rule definitely hits the Amazon FBA and other e-commerce people right in the softies.

๐Ÿ‘
7
๐Ÿ‘Ž
๐Ÿ‘
2
๐Ÿ‘Ž

Great info, @stewartpatton. Iโ€™m pretty intrigued. Could you use this sort of set up as an โ€œumbrellaโ€ of sorts for multiple different businesses/income streams?

๐Ÿ‘
2
๐Ÿ‘Ž
๐Ÿ‘
6
๐Ÿ‘Ž

Thanks @nickdanforth.

Yes, you can use this structure for anything that qualifies (i.e., location-independent business, no US employees or dependent agents).

Youโ€™d want to fire up a new LLC for each business to keep things separated. Then, different investment types may require different holding structures underneath the IBC.

๐Ÿ‘
6
๐Ÿ‘Ž
๐Ÿ‘
4
๐Ÿ‘Ž
@bobz_zg 8yr

I personally have registered Ltd in my home country (Croatia) and an accountant that lives across my street, he handles everything for me and I pay everything in my home country, tax, health insurance, pension fund.
I was thinking to open a company elsewhere maybe, but then instead of doing what I do I need to worry about being legit and not to get in trouble with tax, etc โ€ฆ
This is why I decided to stick to my home country where iโ€™m most familiar with everything, I donโ€™t need to worry about other things and I can focus on doing my work.

๐Ÿ‘
4
๐Ÿ‘Ž
๐Ÿ‘
9
๐Ÿ‘Ž
@ride 8yr

Hey @TheGlobalCitizen @FlagTheory @freedomsurfer @manu @nomadcapitalist

If I understand correctly, you guys are not a lawyers, is that correct? So, you donโ€™t give legal advice/sell legal advice on your respective websites. Itโ€™s OK with me, just to set the records straight.

Still, two questions come to my mind:

  • Whatโ€™s the legality of the advice you give/sell? Do you give any guarantee for any legal (but you are not lawyers, if I understand) recommendation or structure you devised is solid?

  • How do you self-educate yourself to be ahead of the curve?

Iโ€™m asking in good faith, in a positive vibe.

๐Ÿ‘
9
๐Ÿ‘Ž
๐Ÿ‘
6
๐Ÿ‘Ž
@manu 8yr

You canโ€™t be a lawyer in X different countries. So you wonโ€™t find many lawyers in this area. Iโ€™m not giving legal advice and never charged for any advice.

Myself, I just set up 5-flag theory and registered for all required local taxes. I have good relationships with all countryโ€™s tax departments. They exactly know what I earn, send me letters and I use their online platforms or call them when there are problems. Hiding would be way more stressful and expensive than doing it legally.

I started by reading the general blogs for pointers and ideas. Then schedule meetings with local service providers and ask them lots of questions.

๐Ÿ‘
6
๐Ÿ‘Ž
๐Ÿ‘
3
๐Ÿ‘Ž
@zsoltee 8yr

@manu itโ€™s good to see that you already set up 5 flags. Could you please share where did you plant you flags to help us discover potential good combinations? Thank you in advance.

๐Ÿ‘
3
๐Ÿ‘Ž
๐Ÿ‘
4
๐Ÿ‘Ž
@mule5 9yr

I am struggling with this question as well, how to best get setup. I am currently a self employed American/Italian citizen, and I canโ€™t escape the SE tax on the 1040. I havenโ€™t claimed the FEIE credit as I havenโ€™t been out of America for more than 6 months in a given tax year. Iโ€™d like to understand how to get setup correctly. If I am understanding correctly, Iโ€™d need to setup a corporate entity in a zero or low tax territory, then have my clients pay that entity instead of myself directly. That entity would then pay expenses, 401k, salary, etcโ€ฆ When filing the US tax return, Iโ€™d claim the income as I would from any employer? Is that correct?

๐Ÿ‘
4
๐Ÿ‘Ž
๐Ÿ‘
40
๐Ÿ‘Ž

This article has a lot of interesting information for American Citizens:
http://hodgen.com/how-digital-nomads-can-avoid-paying-social-security-tax/

๐Ÿ‘
40
๐Ÿ‘Ž
๐Ÿ‘
13
๐Ÿ‘Ž
@mule5 9yr

Thanks for the link - I have this information starred and in my bookmarks.

๐Ÿ‘
13
๐Ÿ‘Ž
๐Ÿ‘
7
๐Ÿ‘Ž
@jcglobal 9yr

I have a digital consulting business and am I torn between setting it up as a limited company in Hong Kong or Panama as I feel like if clients see Panama they will not trust me as much plus I do spend a lot of time in Asia

๐Ÿ‘
7
๐Ÿ‘Ž
๐Ÿ‘
21
๐Ÿ‘Ž

Hi, you make a very good point. In the end, you are the only one who can make that judgement. I would try to ask some of your clients if they would have a problem with wiring funds to Panama. Maybe they donโ€™t. It also depends on the clients. If they deal with a lot of international entrepreneurs.
But in Asia having a Hong Kong company does secure you a decent image.

Benefits of Panama will be lower costs and less strict bookkeeping requirements (can save a lot of time and costs). Opening bank accounts in Panama, requires a lot of paperwork.

๐Ÿ‘
21
๐Ÿ‘Ž
๐Ÿ‘
7
๐Ÿ‘Ž
@manu 9yr

The Middle East is not the most reliable offshore destination. My friends had issues remitting their earning abroad. The bank just kept asking for more documents. That was in the UAE.

๐Ÿ‘
7
๐Ÿ‘Ž
๐Ÿ‘
7
๐Ÿ‘Ž

RAK or Dubai or else ? :slight_smile:

๐Ÿ‘
7
๐Ÿ‘Ž
๐Ÿ‘
6
๐Ÿ‘Ž

You make sure that you become resident in a jurisdiction with no taxes (like Dubai or Cayman Islands) or with a territorial based tax system (like Panama, Costa Rica, Philippines, Malaysia, Hong Kong, Nicaragua) and you work while you are on the road.

I still canโ€™t see the right solution for a nomad. Which country to choose without investing too much and spending 6 month there ? I check all of those countries plus some other and it seems a lot of hassles and money for any of them.

๐Ÿ‘
6
๐Ÿ‘Ž
๐Ÿ‘
7
๐Ÿ‘Ž

Hi,
That is true. But think about the rewards. As a simple exampe: in Europe you pay up to 50% of income tax. That means 6 months of hassle right there. Every year. For the rest of your life.

Yes, if you plan on making a few thousand Euro while traveling Asia it might not be a reward to do this. But if you are serious about building your life, the costs and hassle are a fraction of what you will earn in the long run.

๐Ÿ‘
7
๐Ÿ‘Ž
๐Ÿ‘
6
๐Ÿ‘Ž
@vpazionis 9yr

Hey Julius (and other awesomely helpful nomads),

my plan is to begin travelling through South America after the upcoming summer and I would like to work while doing so. Currently I am based in London, so I have my bank account in the UK, and will hopefully have some remote work from here while I am travelling. I read that as long as Iโ€™m not the UK for more than 180 days I will not have to declare my taxes (is this true?), however if I pick up some work from say a Colombian client am I required to declare that payment anywhere?

Thanks for any advice

๐Ÿ‘
6
๐Ÿ‘Ž
๐Ÿ‘
9
๐Ÿ‘Ž

Hej Vasilis,
It is not always as easy as just not being 180 days somewhere. As a UK resident you are forced to pay taxes on worldwide income. If you want to get away from that you will likely have to first proof that you are no longer considered resident for tax purposes. I have once read the exact requirements for the UK, but could not find them quickly and do not want to give half information. But look into that direction.

In case you simpy go away for 180 days without making arrangements and have funds wired to your UK bank account is in most cases not enough to get away from your tax obligation.

๐Ÿ‘
9
๐Ÿ‘Ž
๐Ÿ‘
4
๐Ÿ‘Ž
@vpazionis 9yr

Hey Julius,
letโ€™s say Iโ€™m travelling with no permanent base and I am no longer registered as a citizen of any country where would I register a business so I can make money via freelancing? Is it even mandatory for me to register a business somewhere or can I just make money and pay it in to my bank account?

๐Ÿ‘
4
๐Ÿ‘Ž
๐Ÿ‘
7
๐Ÿ‘Ž

Hej,
Nobody forces you to set up a company. You can get income wired to your bank account no problem.
Note that with opening an account most banks ask for a utility bill in your name, which may be difficult to obtain as a DN.
You are not registered as a citizen. You ARE a citizen. I am assuming you have a passport since you want to travel. What you mean is resident.

๐Ÿ‘
7
๐Ÿ‘Ž
๐Ÿ‘
6
๐Ÿ‘Ž
@replay 9yr

Thanks for this opportunity to ask questions. I am looking into getting a tax residency in Hong Kong, because currently I have no residency (nor a tax residency) but I would like to make my income legal. Iโ€™ve read itโ€™s easy to create a company in HK, but itโ€™s a little harder to get the tax residency there, even if I own a company that doesnโ€™t mean I can get it.

Do you have tips regarding whatโ€™s the easiest path to a tax residency in HK?
Am I going to be required to live in Hong Kong for a defined amount of time? I wouldnโ€™t mind if it wasnโ€™t that expensive:)

Thanks!

๐Ÿ‘
6
๐Ÿ‘Ž
๐Ÿ‘
7
๐Ÿ‘Ž

Hi Replay,

If you do not mind I have a number of questions.
What do you mean with making your income legal? Legal where and to whome? Is it a requirement of an exiting country?

It is not โ€œillegalโ€ to live without residency or tax residency. What is illegal is for example living somewhere and not paying taxes when you are obliged by law. But those are two different things.

If it is wise to get residency in Hong Kong depends also on your business model. Remember that Hong Kong has territiorial income tax. So that means that income generated inside Hong Kong is taxed. This might be the case when you are living there.

And for going from a no-tax situation to a taxed (and high paperwork) situation you should have a good reason.

๐Ÿ‘
7
๐Ÿ‘Ž
๐Ÿ‘
12
๐Ÿ‘Ž
@replay 9yr

Hi @TheGlobalCitizen

Thanks for replying. I donโ€™t think my income is currently illegal, but Iโ€™m also not sure if itโ€™s completely legal, it feels more like some grey state actually because I never pay taxes anywhere.
This isnโ€™t a requirement of a country Iโ€™m exiting, nor is it extremely pressing for a particular reason, but I would really like to make sure that nobody can suddenly pop up and claim taxes on my income of the past few years (like for example the Swiss government because thatโ€™s my nationality).

I think you are right that probably Hong Kong isnโ€™t the right solution for me, basically I was just looking for something that allows me to reply to anybody who claims taxes like โ€œlook, itโ€™s taxed alreadyโ€. So actually I was more looking for an insurance that guarantees that I can keep what I have on the bank account.

I actually wouldnโ€™t mind paying taxes in Switzerland, since they are relatively low anyway. So today morning Iโ€™ve contacted the Swiss government tax authorities and explained my entire situation to them, their reply was kind of funny saying โ€œAs far as we know in your situation you do not need to pay any income tax in Switzerland, and Iโ€™ve never heard of a case of somebody volunteering to do so beforeโ€ lol. So that makes me worry less at least :slight_smile:

๐Ÿ‘
12
๐Ÿ‘Ž
๐Ÿ‘
13
๐Ÿ‘Ž

Great post! Volunteering. That was what I was thinking.

I am giggling in an internet cafe and the staff is looking at me funny. Maybe I am a bit of a weirdo.

Look, the most important aspect of their answer is this: โ€œyou do not need to pay any income tax in Switzerlandโ€. This is all they can answer. There is no international organization that keeps track over every human being.

Any other government could only claim you as a tax resident when the facts tell them that you are.

That, you have in your own hand.

๐Ÿ‘
13
๐Ÿ‘Ž
๐Ÿ‘
5
๐Ÿ‘Ž
@vpazionis 9yr

Haha nice one! :sunglasses:

๐Ÿ‘
5
๐Ÿ‘Ž
๐Ÿ‘
4
๐Ÿ‘Ž
@vpazionis 9yr

Oops. Yes I meant resident! Great thanks again for the advice!

๐Ÿ‘
4
๐Ÿ‘Ž
๐Ÿ‘
4
๐Ÿ‘Ž
@vpazionis 9yr

Thanks Julius I will look in to it!

๐Ÿ‘
4
๐Ÿ‘Ž
๐Ÿ‘
6
๐Ÿ‘Ž

I also read about the VAT.
Sounds great.
Wish you all the best!

๐Ÿ‘
6
๐Ÿ‘Ž
๐Ÿ‘
15
๐Ÿ‘Ž

Hi Don Lee,

Well done on the location independent lifestyle!

One remark:

"Nobody is asking me for any tax or has an intention to do that, it means Iโ€™m legal to not pay taxes in my situation. "
This is not a logical conclusion. The fact that no-one is asking does not make it โ€œlegalโ€. No-one from the government ever knocked on your door to tell you that you are not allowed to rob your neighbours. Yet, you can safely assume that when you do, you break the law.

In most countries the burden of reporting your income is simply on you.

Like most of the world, Vietnam taxes on worldwide income for residents (which you are). I found the following document that seems accurate:

http://www.expat.hsbc.com/1/PA_ES_Content_Mgmt/content/hsbc_expat/pdf/en/global_tax_navigator/vietnam.pdf

Clearly showing that there is a progressive income tax that goes north of 30%, on โ€œas well as income from independent practiceโ€โ€ฆ

I understand that there are a lot of countries that do not have the mechanics in place to collect taxes in non standard situations. But this is not something that I would advice someone from the high taxed Western world should try in this day and ageโ€ฆ

๐Ÿ‘
15
๐Ÿ‘Ž
๐Ÿ‘
10
๐Ÿ‘Ž

Big banks in Hong Kong open foreigner accounts (even on a tourist visa). You need a passport, a proof of address and around 10000HKD (around 1250$US) for the opening deposit. The easiest banks to work with are HSBC, Standard Chartered and Citibank.

In the ASEAN region thereโ€™s Singapore where itโ€™s relatively easy to open a US dollar account on a tourist visa (same requirements as HK along with a recommendation letter from your current bank showing 2 years of history). The most important thing in Singapore is the reason why you want the account. Find a legitimate reason why you need the account and explain it to the bank (show supporting documents, invoices, proof of your workโ€ฆ).

๐Ÿ‘
10
๐Ÿ‘Ž
๐Ÿ‘
9
๐Ÿ‘Ž

Don_Lee, to be on the safe side you could open a bank account in another country and leave your money there (use a debit card to access it in Vietnam). That way you would leave fewer traces and could benefit from the stability of your banking country (Hong Kong for example).

๐Ÿ‘
9
๐Ÿ‘Ž
๐Ÿ‘
8
๐Ÿ‘Ž
@digital 9yr

Nice to meet you. It seems to be great :slight_smile: So, you can earn money without declaring it ? Here, in France, after all things done and fixed charges paid, the government took me a bit more than 30%โ€ฆ

๐Ÿ‘
8
๐Ÿ‘Ž
๐Ÿ‘
8
๐Ÿ‘Ž
@digital 9yr

Hello Don Lee ! Wow, your government seems to be great ^^ Where are you from ?
And where do you receive your money from your work ? Have you got any company in a given country ?
Thank you for your help, it could be very helpful :wink:
:smiley:

๐Ÿ‘
8
๐Ÿ‘Ž
๐Ÿ‘
10
๐Ÿ‘Ž
@digital 9yr

Hi Julius,
Nice to meet you.
Iโ€™m a French young digital entrepreneur and I earn revenue on the Internet.
Iโ€™m really interested about offshoring in Dubaรฏ and I have also family there (they are Emirati and have the nationality so maybe they can help me with my project ?).
Could you give me some advice on where to start ? And I would also know if I can create a company there without living there, and earn money directly on my bank account ?

Thank you very much for your help Julius,

:smile:

๐Ÿ‘
10
๐Ÿ‘Ž
๐Ÿ‘
10
๐Ÿ‘Ž

Hi digital,
Nice to meet you to.
There are a number of ways to set up in the UAE and become full owner yourself. Internet based businesses are particularly fit to set up in the UAE. You can setup a company without living there or even visiting the UAE. But if you want to have a bank accout you HAVE to visit to meet the banker in person.

You can earn funds directly in your company bank account in an USD of EUR account. You can take the funds out with an ATM card, but these are always in AED, so there will be conversion charges.

Depending on the turnover you can use something like a prepaid debit in Euros to access your funds.

Keep in mind that if you remain living in France and receive income from this company in normal circumstances this income is taxed. Even when you manage the company from France the case could be made that it is a French company for tax purposes because it has its permanent establishment (PE) in France.

You could reduce this problem by having a local family member be the director of this company and having the rest of PE offshore. But knowing Emiratis, it will cost youโ€ฆ :wink:

In any case, everything is possible and I helped quite a number of French people. I especially saw an increase after that rediculous statement about 75% income taxโ€ฆ

If you have more specific questions let me knowโ€ฆ

Good luck!

๐Ÿ‘
10
๐Ÿ‘Ž
๐Ÿ‘
13
๐Ÿ‘Ž
@digital 9yr

Thank you very much for your answer Julius, itโ€™s always helpful :smiley:

According to your experience, how is the average cost of conversion charges from AED to USD or EUR ?

I do not really understand what you meant here, Iโ€™m not bilingual yet ^^, I did research on the internet but what is a โ€œprepaid debit in eurosโ€ and why will it be great to access my funds ?

But, if all my money stay in Dubai and in other countries except France, my government will know nothing about my foreign activities, no ? Or is there any contract between the governments of UAE and France to share informations ?

Family is family man :slight_smile:

Thank you so much for your help, I will see with my family there, and I send you a PM for further details about my aim :smiley:
D.

๐Ÿ‘
13
๐Ÿ‘Ž
๐Ÿ‘
17
๐Ÿ‘Ž

ATM: The exact conversions I cannot tell, it always depends on bank, the amount and the current rate. AED - USD conversions are cheap, because the AED is pegged to the USD. Gonverting to the EUR will be a bit more costly. I would say 1-3% in total, but this should be verified.
Note that the cards are in AED, but you can have a bank account in EUR and USD.

Prepaid card: there are cards out there that you can charge by wiring an amount in Euros to them. And then just taking it out of the wall. But there is a cost to these cards which is likely higher than taking the conversion when you are even talking about modest amounts.

Exchange of information: I spoke to the head of the AML department of the UAE central bank. Information IS being exchanged already under certain conditions. And it is likely there will be much more transparancy in the future. I wrote about that here: https://theglobalcitizen.co/oecd-anti-money-laundering/

It is easy to set up company with an account and the French government not knowing. But you will create what is called black money and this may come back to bite you in the future. 5-10 years ago you could walk into a Swiss and Luxembourg bank with a bag of money and no questions would be asked, and no-one could find out. Now these countries signed up for automatic exchange of information and all those clients are being kicked out and do not know what to do with their money. Some get into serious trouble.

In the end, you will earn much more in life when you focus on running your business, instead of running for the tax-man.

Those are just my two silver coinsโ€ฆ

๐Ÿ‘
17
๐Ÿ‘Ž
๐Ÿ‘
9
๐Ÿ‘Ž

Move completly to UAE (company formation in RAK is more cheaper than dubai) or move your residence location to a low tax country (cyprus, bulgaria). I know germany, austria, french, uk are very strong with taxes and offshore constructsโ€ฆ Itยดs legal to open a offshore company in uae, but with french residence, you will need paying taxes in french.

๐Ÿ‘
9
๐Ÿ‘Ž
๐Ÿ‘
12
๐Ÿ‘Ž

Howโ€™s the quality of life in Dubai? Iโ€™ve been thinking of setting up a freezone company there for a while and getting the residency permit but I have no idea if Iโ€™d like living there.

๐Ÿ‘
12
๐Ÿ‘Ž
๐Ÿ‘
18
๐Ÿ‘Ž

Hi Freedomsufer,
First of all I like your website and what you are doing (for what thatโ€™s worth).

Live in Dubai is not bad at all.

But it is a bit of a country of extremes and not for everyone.

Benefits:

  • The country is made for business owners: low regulations and no taxes. No taxes on income or for your business. Often no audits. No tax reporting. Nothing.
  • It is not just glamour. 90% expats make that it is the place is filled with young people trying to make something of their lifeโ€™s.
    It will be one of the most international places and you can find nice people you hang out with. There is a disproportional amount of materialism and shallowness though.
  • There is a lot of money switching hands and the economy is booming again. Opportunities everyhwere.
  • Labour is cheap and you can basically outsource everything.
  • Crime is non existent, and as long as you bother no-one, there is no one telling you what to do.
  • It is one of the easiest places to obtain residency. And this is not just for Westerners. People from everywhere can come here and start a business.

Downsided:

  • The summer is terrible. There are 4 months that you have to stay inside because it is to hot.
  • In some cases starting out requires some investments not all digital nomads will be willing/able to make.
    Also, rents are really rising, and if you want your own place to rent, you have to pay one year in advance (in the form of post dated checks, but if a check bounces you have a month to fix it or go to jail)
  • There is sharia law. They are liberal compared to other places, but it creates uncertainty because judgements are completely arbitrary. Government control is strong and big brother is watching. You have to especially be careful not to offend something or someone (like posting on facebook, being loud and drunk, and kissing in public). Now, in the three years I have been there I have never knew someone who has gotten into trouble (the only time when I spoke to a police officer is when he was bored and wanted someone to talk to). But once you cross the line you will be found, thrown in jail for a few months and send back where you came from.
    And do NOT get into a dispute with a local.

Let me know when you have more questions.

P.s. resident permit stays valid for three years as long as you visit the country once every 6 months.

๐Ÿ‘
18
๐Ÿ‘Ž
๐Ÿ‘
11
๐Ÿ‘Ž

Thanks for the reply Julius, itโ€™s much appreciated.

Iโ€™ll go to Dubai later this year (after the summer, probably in October) and try it for a month or two to see if I like it there. If youโ€™re in the area at that time it would be fun to meet for tea (have to get used to saying that instead of beer hehe).

๐Ÿ‘
11
๐Ÿ‘Ž
๐Ÿ‘
8
๐Ÿ‘Ž

Tea and dates ;). I will keep it in mind. But likely will be hanging around Asia.

Most countries get a tourist visa for a month. You can go to Oman to do a visa run, and get a new month.

๐Ÿ‘
8
๐Ÿ‘Ž
๐Ÿ‘
5
๐Ÿ‘Ž
@busdriver 8yr

For Dubai: They might not charge taxes, but they do have fees (like for a trade license) that you have to pay. Iโ€™d call that a tax :wink:
For my off shore company needs I would still come to US$10,000 set up costs. (PLS compare with HK for example)
Of course no auditing is a plus, but how much is that really worth? $1000? $3000?

๐Ÿ‘
5
๐Ÿ‘Ž
๐Ÿ‘
15
๐Ÿ‘Ž
@elena 9yr

Iโ€™m from Panama and for some reason I donโ€™t want to set up my business there (maybe Iโ€™m overacting?). What is the average cost for opening/registering a business in another country? (lawyer fees, permit fees, etc.)

๐Ÿ‘
15
๐Ÿ‘Ž
๐Ÿ‘
16
๐Ÿ‘Ž

Hi Elena,

Actually, being from Panama, it makes a lot of sense to setup an offshore company. Because Panama has territorial taxation. So you could have significant tax savings if your income comes from abroad. You will have to remember โ€œsubstanceโ€ though. As I explained here:

Having said that, a question like this is impossible to answer. Because there are to much options.
You also have to look at what you want in terms of banking and some banks require minimal deposits as well.
Another major difference is if you are doing business locally, or not.

๐Ÿ‘
16
๐Ÿ‘Ž
๐Ÿ‘
10
๐Ÿ‘Ž

As popular as Panama is, I really wouldnโ€™t recommend it as an option for you offshore bank account.

I actually wrote an article about this back in 2014.

If you havenโ€™t already, I would go with Hong Kong.

๐Ÿ‘
10
๐Ÿ‘Ž
Read and participate in 14,117 discussions on Nomad List

Suggested topics

๐Ÿ‘
0
๐Ÿ‘Ž

List of Visa/Residency Information in Table/Spreadsheet format?


by @innovatelife 3yr 3 years ago  | 2 comments

As part of signing up for this website I was hoping I would come across a list of Visa and/or Residency requirements by country ideally in a table format to assist with decision making. Does anybody recommend any other websites that might present the information in this format (or Google Spreadsheet)?

๐Ÿ‘
0
๐Ÿ‘Ž
๐Ÿ‘
5
๐Ÿ‘Ž

Ukraine Residency


in Ukraine by @reticle 3yr 3 years ago  | 1 comment

I have a slightly above average US income which I can work remotely from paired with a $1000 a month income stream and more than enough to purchase a middle end Flat in Ukraine. Does anyone with knowledge of this process have any advice to acquire a reliable way to stay in the country?

๐Ÿ‘
5
๐Ÿ‘Ž
๐Ÿ‘
4
๐Ÿ‘Ž

Are there any digital nomads in the Islands e.g Bermuda, Barbuda, St. Kitts and Nevis?


in Antigua , Guatemala by @momo11 3yr 3 years ago  | 3 comments

Does anyone ever travel to any Islands like Bermuda, Barbados, Barbuda and St. Kitts & Nevis?

๐Ÿ‘
4
๐Ÿ‘Ž
๐Ÿ‘
0
๐Ÿ‘Ž

How to get into the digital nomad lifestyle?


in Switzerland by @filiptk 4yr 4 years ago  | 1 comment

Hi, I've got a question to anyone who had experience with the digital nomad lifestyle. I'm 24, I'm in my last year of university doing computer science, got 3 years of experience mostly doing web development.

I never liked the idea of staying in one place, getting a job and growing roots - hence the will to take the opportunity and travel the world. My main question is โ€“ how do I go about it? Are there any useful resources I could look into?

How do I go about insurance and such once I decide to move. I currently live in Switzerland and do freelance work for one company. It's not a lot, since my studies don't allow me to pick up a full time job, but it allows me to cover simple expenses.

I'd be happy to get some insight into how things work and also happy to network with anyone interested.

๐Ÿ‘
0
๐Ÿ‘Ž
๐Ÿ‘
1
๐Ÿ‘Ž

What is the best online insurance for digital nomads ?


by @berberos 4yr 4 years ago  | 4 comments

Hi guys ! hope you are doing well.

I would love to get your feedback regarding the best insurance for digital nomads. i'm traveling around Asia since 1 year and for next 4 or 5 years. Would love to buy an insurance to cover especially :

- health

- laptop, phone ...

- Flights

๐Ÿ‘
1
๐Ÿ‘Ž
๐Ÿ‘
0
๐Ÿ‘Ž

What are the best blogs by individuals who have started businesses in Southeast Asia?


in Thailand by @haiducii 4yr 4 years ago  | 0 comments

Hey everyone,

Looking for blogs by individuals who document their progress/business in South East Asia - ideally Vietnam, Cambodia or Laos - but also Thailand/Myanmar too.

Thank you,

Haiducci

๐Ÿ‘
0
๐Ÿ‘Ž
๐Ÿ‘
31
๐Ÿ‘Ž

Any Ph.D students dissertating while a digital nomad?


by @larsheather 4yr 4 years 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!

๐Ÿ‘
31
๐Ÿ‘Ž
๐Ÿ‘
3k
๐Ÿ‘Ž

Does international health insurance for digital nomads exist?

 

by @al_steffen 4yr 4 years 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!

๐Ÿ‘
3k
๐Ÿ‘Ž
๐Ÿ‘
3k
๐Ÿ‘Ž

How do you invest internationally as a nomad?


by @mateuszwieloch 4yr 4 years ago  | 17 comments

I have finally saved enough money to start investing. What company gives good, diversified access to stock, ETFs and mutual funds? Does it make sense to use company like Vanguard or Fidelity for that? Iโ€™m a EU/Poland citizen, how would I transfer my money back and forth without incurring significant fees?

๐Ÿ‘
3k
๐Ÿ‘Ž
๐Ÿ‘
7
๐Ÿ‘Ž

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


by @programmingmark 4yr 4 years 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

๐Ÿ‘
7
๐Ÿ‘Ž
๐Ÿ‘
3k
๐Ÿ‘Ž

How do digital nomads pay tax?


by @rodriigovieira 4yr 4 years 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‘
951
๐Ÿ‘Ž

Best place for Digital Nomad in Latin America?


by @rose_davis 4yr 4 years 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

๐Ÿ‘
951
๐Ÿ‘Ž
๐Ÿ‘
887
๐Ÿ‘Ž

How do we solve housing for digital nomads?

 

by @levelsio 4yr 4 years 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?

๐Ÿ‘
887
๐Ÿ‘Ž
๐Ÿ‘
776
๐Ÿ‘Ž

How is Sicily for digital nomads?


by @gaelm 5yr 5 years 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!

๐Ÿ‘
776
๐Ÿ‘Ž
๐Ÿ‘
58
๐Ÿ‘Ž

How is Bari, Italy for digital nomads?


in Bari , Italy by @mitch_dina 5yr 5 years 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.

๐Ÿ‘
58
๐Ÿ‘Ž
๐Ÿ‘
740
๐Ÿ‘Ž

How is Mauritius for digital nomads?


in Mauritius by @wakkos 5yr 5 years 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!

๐Ÿ‘
740
๐Ÿ‘Ž
๐Ÿ‘
27
๐Ÿ‘Ž

Are there any digital nomad fitness retreats?


by @ryanjames 5yr 5 years 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!

๐Ÿ‘
27
๐Ÿ‘Ž
๐Ÿ‘
312
๐Ÿ‘Ž

Best place to set up a company selling digital services?


by @pras_k 5yr 5 years ago  | 10 comments

Whatโ€™s the best place?
For residency Iโ€™m looking at Portugal and they have the NHR (non habitual resident) program which would exempt dividends from foreign income.
So all Iโ€™m really looking for is the best place to actually start the company.
Biggest factors are of course low taxes and ease of setting up the company plus a business bank account that enables me to receive payments through Stripe.

What I found so far:
Hong Kong
Corporate tax rate of 16.5% (8.25% for the first HK$2 million)
โŠ•/โŠ– offshore income from outside HK is exempt from taxation but itโ€™s not clear whether this can be done in the first year and prorated or if itโ€™s only through filing the offshore exemption claim. This might take two years and requires not income from HK at all. More info on that would be great
โŠ– seems very difficult to get a business bank account
โŠ– necessary services and fees are roughly around โ‚ฌ2000 / year
โŠ– accounting requirements seem to be very strict
โŠ• Doesnโ€™t require local partner
โŠ• Agencies available that seem to handle most of the work

Singapore
Corporate tax rate of 17% (0% on the first S$100k, 8.5% up to S$300k)
โŠ– requires a local director. What are the implications of this?

Malta
Corporate tax rate of 35%
There is the โ€œfull imputation systemโ€ but I donโ€™t really understand it.
"In most cases, the tax refund to the shareholder is 6/7 of the tax paid by the company on profits distributed as dividends. The tax refund rate may be different in the following cases: " This would result in an effective corporate tax of around 5%.
โŠ– European customers would have to pay VAT and Iโ€™d have to deal with that

Cyprus
Corporate tax rate of 12.5% and there seem to be ways to lower this
โŠ– European customers would have to pay VAT and Iโ€™d have to deal with that
โŠ– requires staying in Cyprus for 2 months / year

I find it surprising how much research this requires and how much โ€œit dependsโ€ information is out there when Iโ€™d assume that there are probably thousands of digital nomads who probably have very similar requirements.

๐Ÿ‘
312
๐Ÿ‘Ž
๐Ÿ‘
8
๐Ÿ‘Ž

Do you "out" yourself as a digital nomad?


by @larsheather 5yr 5 years ago  | 2 comments

When you meet new people or reconnect with old friends, do you โ€œoutโ€ yourself as a digital nomad? The simple question โ€œwhere do you live?โ€ makes us uncertain now. We wonder if some places may be less welcoming to digital nomads, or if โ€œdigital nomadโ€ has a negative connotation in some places. If you are forthcoming from the start, does your status as a digital nomad make it hard to form friendships?

We would love to hear how other people navigate thisโ€ฆ how to balance being authentic in relationships vs. withholding the context (and allowing people to assume youโ€™re on vacation, for example).

Thanks!

๐Ÿ‘
8
๐Ÿ‘Ž
๐Ÿ‘
382
๐Ÿ‘Ž

Property Ownership - should digital nomads buy properties?


by @sparrow_23 5yr 5 years ago  | 16 comments

I have been a digital nomad for the last couple of years. I have always worked in tech and now run a couple of profitable online businesses that give me a reliable income and allow me to fund a nomadic lifestyle.

I recently exited one of my businesses and I am considering to invest the income from the sale in properties, mainly for 2 reasons:

a) I donโ€™t want to keep wasting my money in renting apartments across the cities I stay

b) I believe in properties as investment and I want to diversify my investment portfolio (mainly stocks)

After years of constant wander from one place to another, now I am the type of digital nomad who sticks to few locations: I mainly rotate across 4 places each year (San Francisco, Medellin, Berlin, Bali). Buying a house in each of those location would be difficult and too expensive. Therefore, I was wondering if there was any sort of service that combines an investment opportunity with the ability to access different properties around the world (even if just for a limited time per year) ?

Imagine living in 4 cities per year and having a house in each place that you can exclusively use for 3 months and at the same time having your investment growing (this depending on the market, of course). Wouldnโ€™t that be great? I believe it could be done via a property fund selling you a share and giving you access to some of their properties for a limited timeframe each year.

Has anyone heard of anything like that?

Thanks!

๐Ÿ‘
382
๐Ÿ‘Ž
โ€น โ€บ
×
USD โ”€ $
ยฐC
Nomad cost
โœจ To see all results
Go nomad
by @levelsio
985ms