Residency rules: 4 tax residency options for digital nomads?

Digital nomads might lead a free life, but that doesn’t make them exempt from paying taxes and showing tax records to at least one country. You might have your documents in order, use an income tax calculator and be ready to do the right thing by the taxation department, but what is the right thing when you’re a citizen of the world? To help you, here are four tax residency options for digital nomads:  Sticking to Home One option is paying no local taxes in the countries you visit and instead maintaining tax residency in your home country only. The issue with doing this is that the country you are in could consider that you are breaking the terms of your tourist visa, and they could take legal action against you for that.  Sticking to Home & Local  Another option is paying tax at home, keeping tax residency at home, and paying local taxes where they are required. This option can get expensive because you could ultimately be paying out taxes twice with no restrictions, although it is worth doing if you haven’t got your paperwork in order as it’s better to pay double than face legal action.  Going Local One of the better options is to get tax residency in a country with low-tax demands and pay local taxes there. This strategy involves letting your home country release you as a tax resident so you can become one in your chosen nation. You may have to sell any property you have in your home… Read More