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Digital nomads almost always have a home base in some domain which has tax laws. Since we're on a US site, I'll assume many people here are American. And as A
by z9znz 4y ago
Digital nomads almost always have a home base in some domain which has tax laws. Since we're on a US site, I'll assume many people here are American. And as Americans, we are required to file US taxes regardless of where we live in the world. And depending on local taxes we may pay, we may also have some tax burden in the US even if we're not living in the US at the time.
This "tax dodging" thing you talk about is either misinformed or just not applicable. The US is one of two countries in the world which tax its citizens on income earned while living abroad. For citizens of other countries, such as the Netherlands (where I live now), they can live abroad and pay no taxes to the Netherlands... legally.
The catch is that a lot of countries do not allow you to work while visiting them, or if you do they require you to pay taxes as a resident. If you work "illegally" while staying in their countries, then yes you are dodging taxes.
That's the letter of the law. But in the spirit of the law, if you are working for a foreign company and spending some of your income in a remote place, you are not cheating the local country out of tax revenue, but you are providing additional economic input.
- xyzzy_plugh 4y agoSure, but then you're simply a tourist. What purpose does the distinction serve?