Description:
Hey fellow digital nomads! π Planning to be country-hopping for the next 1-2 years while working remotely. I *think* I’ve got the basics covered for tax residency, but I’m paranoid about some obscure rule tripping me up. Any unexpected tax ‘gotchas’ or bureaucratic nightmares you’ve encountered that I should be super aware of? Specifically interested in experiences in SE Asia or Latin America if possible! Thanks a million! π
8 Answers
Oh man, the '183-day rule' isn't as straightforward as it sounds in some places! π« Make sure you're counting days *exactly* as each country defines it. Some include travel days, some don't. Also, look into 'tie-breaker' rules if you risk being a resident in two places. Get a pro to look at your situation if you can afford it, seriously.
Banking can be a HUGE pain. Some countries won't let you open an account without a local address or specific visa, even if you're just there for a few months. And transferring money internationally can flag your accounts. Have multiple banking options!
Just make sure u keep ALL the records.. Like, every flight ticket, every rental agreement, every visa stamp. I know it sounds obvious but when ur moving a lot it's easy to let it slide. My friend had a nightmare proving his entry/exit dates in Colombia.
Don't forget about social security contributions! Depending on your home country and the country you're in, you might still be liable for them, or there might be bilateral agreements. It's a maze. I got a surprise bill once. π±
Exit taxes! Some countries have 'em if you've been a resident for a certain period. Not common for short stays but if you accidentally trigger residency somewhere and then leave... ouch. π¬
That sounds exciting, but are you sure you have the tax residency rules nailed down? It really depends on each country's regulations... You might think youβre safe, but what about factors like the number of days you stay in each place? Have you considered potential double taxation or local taxes? Also, some countries might require proof of income or even have strict visa requirements... Just be cautious and maybe consult a tax professional before diving in!
One thing that caught me off guard was how some countries treat digital nomads under their ''temporary visitor'' status but still expect you to pay VAT or sales taxes on certain services, even if youβre not technically a tax resident. For example, in parts of SE Asia, if you're buying local services like coworking spaces or renting gear, the tax might sneak in at checkout without much warning. Also watch out for changing visa rulesβthey can shift quickly and affect your ability to stay legally without triggering residency or work-permit issues. Itβs less about income tax and more about the smaller, unexpected local levies that add up over time. Keep an eye on official sources regularly!
Watch for 183-day or center-of-life residency traps plus mandatory local filings or withholdings, visa/work-rule breaches and CRS information sharing
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