- where you are from
- how much you travel
- how much you earn
- whether you have a permanent residence
If you are considering becoming a digital nomad and are looking for some advice we have found some useful guides to make the process easier.
For location independent workers, one of the questions that pops up regularly is how do digital nomads pay tax? The most difficult thing about this question is there is rarely a single straight forward answer.
Digital nomad’s tax situation depends on:
Digital Nomad Tax Guide by Country
Digital nomad taxes refer to the tax obligations of individuals who earn income while working remotely or from multiple locations.
The tax rules for digital nomads can be complex, as they often work in different countries or have multiple sources of income.
The tax laws vary depending on the country where the digital nomad is earning income, as well as the country where they are tax residents.
Below are some guides to approaching tax as an independent worker if you want to base income tax on your home country rather than where you live and work:
Where should a global nomad pay tax?
By Financial Times
This article answers a tax query from a UK citizen planning on selling their UK property and working from the US and Spain.
US tax guide for digital nomads
By TaxesforExpats.com
Learn the pros and cons of the US tax system for American digital nomads in this detailed article. It covers useful information on foreign earned income exclusion and the bona fide residence test which are key for US citizens living and working in foreign countries.
Taxation for Canadians travelling, living or working outside Canada
By Government of Canada
This article comes directly from the source, if you are a Canadian digital nomad, this page should contain everything you need to know about paying tax on your worldwide income.
What you should know if you want to work remotely and travel the world (Australian citizens)
By LifeHacker Australia
This digital nomad overview contains information on all the elements of becoming a digital nomad as an Australian. It includes links to the Australian taxation office on completing a tax return on foreign earned income.
New Zealand Tax Guide for Internationally Mobile Individuals
By KPMG
Although this document provides information for those who may be coming to work and live in New Zealand, it also contains a chapter on being a New Zealand resident for tax purposes and what you need to know about personal income and foreign investments you may have as a digital nomad.
General articles on digital nomad tax and finance
6 ways for digital nomads to save big on tax
By Entrepreneur
Written from a US tax point of view, this article explains some of the savings it is possible to make when you are living and working abroad as a US citizen.
By The Professional Hobo
This article is written by a blogger, and contains some useful tips for managing tax, deductions, expenses and income while you are working. As a self-employed location independent worker, meticulously tracking expenses as you go could save you money in the long run.
There is no doubt paying tax while living the digital nomad lifestyle can be complicated. A guide may be a useful tool to point you in the right direction, but it should not replace a professional tax advisor.
Don’t forget to protect your physical and mental wellbeing while working overseas as a digital nomad with international health insurance of nomads that will help you access medical treatment in your temporary home.
The opinions in this article are for general information purposes only and should not be used as a substitute for professional tax advice.
