Digital Nomads

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How does a Digital Nomad handle taxes? (alien.top)

submitted 9 months ago by HomeStar182@alien.top to c/digitalnomad@expats.zone

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Hey Digital Nomads!

If you are constantly traveling, let’s say a different country every month, how do you handle your taxes? Let’s say your last location of permanent domicile was Colorado hypothetically. Let’s say that was years ago, how do you handle taxes? Do you pay taxes as if you are still living in Colorado while constantly moving countries? Thanks in advance!

PS, asking for a friend 🙄

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[–] thekwoka@alien.top 1 points 9 months ago (2 children)

That being said, as a digital nomad often you're still on the hook for taxes in your home country

Only the US and China tax their citizens abroad.

[–] Baldpacker@alien.top 1 points 9 months ago

Eritrea also taxes based on citizenship but many countries also default to being your tax residence unless you can prove that you have established fiscal residence elsewhere (e.g. Canada).

The perpetual traveler "tax hack" doesn't work for many nationalities.

[–] SinkNaive@alien.top 1 points 9 months ago (2 children)

Germany taxes citizens abroad. Not sure where you came up with only China and US tax citizens abroad.

[–] hamandeggsmond@alien.top 1 points 9 months ago

Not if you have tax residence somewhere else.

But the US don’t care and you still have to pay to then too

[–] thekwoka@alien.top 1 points 9 months ago

https://ec.europa.eu/taxation_customs/tedb/legacy/taxDetail.html;jsessionid=VJoUnQgkJj0OMd7PrwGxzugbbvSevBjKRqS2HTWuTHyD2SJtazYE!1519060953?id=122/1357119705&taxType=PIT

Not on foreign earned income, according to the EU and every English source I can find. Non-residents aren't taxed on income made outside of Germany.

With residents not meaning "Citizen" but someone who has there home in Germany.