Sunday, June 04, 2023

Digital Nomad options for saving tax

Taxes are the biggest expense for most of us. Some folks with a remote job live as 'Digital Nomads'. Some countries even give digital nomad visas.

US citizens: Stay outside of the US for at least 330 days within a 12-month consecutive period. You do not have to pay US federal taxes on the first $120,000 (for 2023) of your foreign-earned income (foreign-earned income exclusion).

Countries with no taxes

Anguilla

Antigua and Barbuda

Aruba

Bahamas (No income tax for residents either)

Barbados

Bermuda (No income tax for residents either)

Cabo Verde

Cayman Islands (No income tax for residents either)

Costa Rica

Croatia

Curaçao

Dominica

Iceland (stay up to 183 days and pay no local tax)

Indonesia (Bali)

Montserrat

Romania

Seychelles

UAE (Dubai) (No income tax for residents either)

Estonia (stay up to 183 days and pay no local income tax)

Malta (tax exemption for worldwide income but income earned from Malta sources is subject to local income tax; no tax on capital gains)

Panama (only income from Panamanian sources is subject to local income tax)

Portugal (no tax on overseas income; 20% tax rate on income earned in Portugal as opposed to progressive residential tax rate)

English speaking countries

Anguilla, Antigua and Barbuda, Bahamas, Barbados, Bermuda, Dominica

Countries with free public schools

Anguilla | English
Antigua and Barbuda | English
Aruba | Dutch
Bahamas | English
Barbados | English
Bermuda | English
Costa Rica | Spanish
Dominica | English
Iceland | Icelandic
Indonesia (Bali) | Indonesian
Montserrat | English
Romania | Romanian
Seychelles | English
UAE (Dubai) | English
Estonia | Estonian
Malta | Maltese
Panama | Spanish
Portugal | Portuguese
Cabo Verde | Portuguese
Croatia | Croatian
Seychelles | English


Countries with reduced taxes

Cyprus (50% of income excluded from local income taxes)

Georgia (if you are an entrepreneur, only 1% of business gross revenue is taxed)

Italy (70% of income excluded from local income taxes, 90% of income excluded from local income taxes if you reside in one of the sparsely populated central or southern regions)

Spain (15% income tax rate as opposed to progressive residential tax rate)

Greece (50% of income excluded from local income tax and social security payments)


US States with no state tax

Alaska
Florida
Nevada
South Dakota
Texas
Washington
Wyoming

Tax-free states in USA (excluding dividends and interest income)

New Hampshire
Tennessee


Reference

https://www.desklessnomad.com/tax-free-digital-nomad-visas/

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