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Home News Work-life

Here’s How To Approach Complex Tax Laws To Become A Digital Nomad

Digital nomads must research to understand whether they are considered a tax resident in a specific country and, from there, look into the potential benefits they could be eligible for.

Aayat AlibyAayat Ali
January 16, 2023
in Work-life
Reading Time: 2 mins read
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Here's How To Approach Complex Tax Laws To Become A Digital Nomad

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Digital nomadism has come within reach for millions of professionals worldwide as remote work becomes the newfound norm.   

However, becoming one of these traveling professionals means more than packing a laptop and jetting off to the next country with decent WiFi. Many factors can complicate these endeavors, particularly taxation.   

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America’s current tax policy is rare, with taxes being based on citizenship rather than residency. So despite a San Francisco-bred programmer living in Italy for two years, they must still file with the IRS. 

Additionally, digital nomads must research to understand whether they are considered a tax resident in a specific country and, from there, look into the potential benefits they could be eligible for. 

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To start, digital nomads must show that they have been outside of the US for 330 days annually. From there, workers must provide proof that their “tax home” and “abode” are located in another country.    

“Learning the language, having a bank account, having family and friends and doctors in that place, those types of circumstances would be more favorable than moving countries month to month,” said Adam Nubern, owner of an accounting firm that focuses on nomadic tax law. 

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Source: Business Insider
Tags: BusinessDigital NomadsRemote Work
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Aayat Ali

Aayat Ali

Aayat is an editor for the Daily Digest based in Lexington, Kentucky. She has worked with local coworking spaces since August of 2017 and enjoys taking her firsthand knowledge to write about the fascinating, constantly evolving world of flexible workspaces.

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