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 🙄
Taxes aren’t a one-size-fits-all situation and can vary wildly depending on the countries you’re operating in, the specifics of your occupation, and your personal circumstances. That being said, as a digital nomad often you’re still on the hook for taxes in your home country (in your case, the US). Uncle Sam likes to know what he’s owed, regardless of where you want to pretend you’re from. The Foreign Earned Income Exclusion (FEIE) might be applicable to digital nomads who qualify, but I’m not your tax adviser. Definitely worth consulting a tax professional for this one. Accountability for tax evasion can follow you around the globe, and international tax law is a maze that’s best navigated with professional help.
Only the US and China tax their citizens abroad.
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.
Germany taxes citizens abroad. Not sure where you came up with only China and US tax citizens abroad.
Not if you have tax residence somewhere else.
But the US don’t care and you still have to pay to then too
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.