Chapter 10en: Taxes 🤢
If you’re living overseas with a proper visa (like a digital nomad visa or a work visa), you’ll need to pay taxes in that country. But (depending on your nationality) you’ll also need to still file taxes in your home country!
If you’re on a tourist visa (and hopping between countries every few months), you shouldn’t need to pay federal taxes to the countries you’re visiting, unless you intentionally establish a tax residency somewhere (which requires intentional legal steps, not something you accidentally stumble into).
Taxes usually “kick in” if you’re earning money in a country’s local currency (which requires a work visa), staying for over 6 months or have some type of investment there (like owning a home or renting property).
But taxes ARE NOT my niche. And, just like visa information, I AM NOT a tax professional.
So do your own research. And if you have questions, talk with your accountant or a tax professional.
But for starters, don’t neglect your taxes. Just because you’re spending most of your time overseas doesn’t mean you can skip filing. You still owe taxes somewhere. This is why I use my parent’s home address (it’s easier for filing and other important stuff/mail).
As a US citizen, I know that I must always file my taxes, regardless of where I’m living or spending most of my time.
As you get better at this lifestyle, you may find more permanent, advanced solutions to manage your tax situation. Wanderer’s Wealth is a great resource for navigating taxes in a high-level, wealth-building way.
ACTION ITEM:
Research your home country’s tax rules. Learn the requirements and what you need to do for filing taxes based on your nomadic travel plans, nationality and homebase.
Write a clear plan for what you need to do come tax time.