Question 1

Do digital nomads have to pay taxes?

Accepted Answer

Yes, almost certainly. The idea that you can travel perpetually and pay zero tax is a myth for most people. You typically owe tax either in your country of citizenship (like the US), your country of tax residency, or the country where you physically perform work. Ignoring this can lead to severe penalties.

Question 2

What is the 183-day rule?

Accepted Answer

The 183-day rule is a common standard used by many countries to determine tax residency. Generally, if you spend more than 183 days (about 6 months) in a country within a tax year, you are considered a tax resident and may be taxed on your worldwide income.

Question 3

I'm a US citizen living abroad. Do I still have to file taxes?

Accepted Answer

Yes. The US taxes based on citizenship, not residency. You must file a US tax return every year regardless of where you live. However, you can often reduce your US tax bill to zero using the Foreign Earned Income Exclusion (FEIE) or Foreign Tax Credit (FTC).

Question 4

Does a 'Digital Nomad Visa' make me a tax resident?

Accepted Answer

Not necessarily, but often yes. Some nomad visas explicitly state that you become a tax resident after 183 days (e.g., Spain, Portugal). Others (like some Caribbean visas) exempt you from local income tax. Always read the specific tax terms of your visa.

Question 5

Can I just use a VPN and not tell anyone where I am?

Accepted Answer

This is tax fraud and is highly risky. Tax authorities share data through the Common Reporting Standard (CRS). Your bank will report your account details to the country where they think you are a resident. Immigration records also prove your location.

Question 6

What is a 'Tax Home'?

Accepted Answer

For US tax purposes, your 'tax home' is the general area of your main place of business or employment. You must have a tax home in a foreign country to qualify for the FEIE. If you have no regular place of business, your tax home is where you regularly live.

Question 7

How do I stop being a tax resident of my home country?

Accepted Answer

It depends on the country. Usually, you must prove you have left permanently and established residency elsewhere. This often involves selling your home, closing bank accounts, and spending minimal time there. Some countries (like the US) make it impossible unless you renounce citizenship.

Question 8

Are your tools really free?

Accepted Answer

Yes, our Tax Residency Checker, Day Tracker, and FEIE Calculator are 100% free to use. We may introduce premium features in the future, but the core tools will remain free.

Frequently Asked Questions

Still have questions?

Frequently Asked Questions

Still have questions?