Digital nomad tax

Discussion in 'TAX Issues or Questions' started by GrumpyMess, Dec 3, 2018.

  1. fshore

    fshore Building Trust Entrepreneur

    Very few banks will insist that you are tax resident somewhere. They will want an address and a tax number, but will not ask for a tax residency certificate.
    If your previous country does not require you to be tax resident elsewhere then its little point in getting a new tax residency.
  2. KJK

    KJK Building Trust Entrepreneur

    Because that is what GrumpyMess already pointed out several times. You can give up residency but you still have some ties to your home country - whether strong ones (family, job, children) or weak ones (even citizenship can be considered when defining you "center of vital interests").

    So if you give up your original residency, you should be able to get a tax residency somewhere else - which in most cases means staying 183+ days per year there.
    Being a "digital nomad" or whatever you call it is sure sexy but I'm not sure it works well. What you described wouldn't be accepted in Finland - if you are Finnish, you end your residency and then travel the world for 3 years, if you come back, you will be considered resident of Finland again - not just for the current year but also for the past 3 years. Even when you had no address in Finland and you didn't live there, you still were a tax resident there.
  3. negon

    negon hannibal the cannibal Mentor Group Business Angel

    Are you sure about that? So I'm glad I don't live in Finland this is odd and sounds a little bit strange.
  4. xzars

    xzars Active Member

    According to law, 183-day rule for residency applies but for practical implementation purpose, every EU member state relies first and foremost on residency (residency termination) applications. It's hard to accurately track someone's location without a court order all throughout the year.

    If you leave Finland for any longer period, you will most likely have an obligation to file a form to determine your tax residency during those 3 years of absence. If you do not file this or forget to do so, you are still a resident in Finland by default. In the form, they normally ask questions about whether you will retain your main home in Finalnd, whether you have any underage children stay in Finland during your absence etc. Basically they want to still keep you a tax resident by having you confirm some residency indica via a signed document. Nobody wants to see a milking cow leave for other pastures.
  5. Mencjusz

    Mencjusz New Member

    It seems nobody has mentioned the double tax agreements. If country A (host) has no agreement with country B (home) then you might need to pay the income tax difference between A and B. For example, country A has income tax 19%, while your home country B has income tax 25%. Officially, you should pay the tax difference (6%) no matter your residency status.

    As mentioned by others, whatever you apply, you will need to provide a utility bill and/or bank statement from your resident country. Further, some brokers might not accept your current country of living, others might not accept frequent changes in residency.

    I have been a nomad for past 7 years, it's not that easy with the official crap.
  6. GrumpyMess

    GrumpyMess Active Member

    What countries did you chose for your residency during this time?
  7. Mencjusz

    Mencjusz New Member

    Trinidad, Poland, Taiwan, Iraq.