βœ… LEGALLY No Taxes as a DIGITAL NOMAD (2022) Perpetual Solo Traveler

 

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Do Digital Nomads pay taxes?

Most Digital Nomads do pay taxes, but Extraordinary Nomads (legally) don't.

All my students in Extraordinary Nomad (my Online Course) know how to legally avoid paying taxes.

 

In this article you'll learn:

  • The Right and the WRONG way of paying 0% taxes (so you don't end up in Jail)
  • What's the FLAG THEORY
  • How the FLAG THEORY allows you to LEGALLY Pay 0% taxes as a Digital Nomad
  • The '183 Rule' that would RUIN this tax-free situation
  • BAD NEWS: The 2 Citizenships that CAN'T pay 0% income taxes (OH NO! Will it be yours?)
  • If you are from an ELIGIBLE COUNTRY, How to do it?

 

If you make 50k a year, what would you do with those extra $15k, $20k a year you don't have to pay in taxes anymore?

 

The Right and the WRONG way of paying 0% taxes.

What's the difference between Tax evasion (illegal) and Tax Avoidance (legal)?

Let's get clear on these important terms:

Tax Evasion: concealing income or information from tax authorities—it's illegal.

Tax Avoidance: legally reducing your taxable income.

As official documents state:

That's something I learned too late... when I already made 6-figures with my first online company

and that same year paid 52% in taxes (yes, more than 50.000€ bye bye)

I learned how to optimize my taxes and the next year I paid less than 3% in taxes.

This year I am moving my tax residence to an even better nation.

If you are paying taxes right now, I know how much it sucks (both having to do the declaration and then see your money disappear).

Stick around because I want to help you with this. We have to help each other as Digital Nomad and Online Entrepreneurs.

Plus, at the end I will share two last EXTRAORDINARY TIPS for you to succeed in paying 0% taxes (BONUS from my experience).

 

So how to NOT fall on the tax evasion bucket (and end up in courts)?

Perpetual Traveling and The FLAG THEORY.

🏳 What's the FLAG THEORY

"A tax optimization strategy that leverages location independence and geoarbitrage to increase personal freedom and reduce taxes.

Simply put:
Going where you are treated best."

I explain that in detail in my book Travel Without Working.

If you want the step-by-step with the contacts that helped me get my tax-free tax residence in 48h (yes, two mornings!), join the Course Extraordinary Nomad (some members bought it just for this chapter and saved thousands of dollars every year since then)

 

How does being a Digital Nomad work with your income taxes?

Depending on your citizenship.

BAD NEWS: The 2 Citizenships that CAN'T pay 0% personal income taxes

There is only one major country in the world that taxes its citizens based on their citizenship, the United States of America. The only other country is Eritrea (Africa).

So, if that's your case, you'll have to find other ways to optimize your taxes (which definitely exist) or renounce to your (American/Eritrean) citizenship (as many have done too).

As a Digital Nomad (not a citizen of those countries) you have to pay taxes on your tax residency country, not according to your passport. Your default tax residence is where you established your last permanent residence.

GOOD NEWS: YOU CAN change your tax residence

Go to a country with territorial income tax—which means, you only pay taxes for money earned in that territory. If you are a Digital Nomad, work online and have clients from around the globe, all that income is TAX-FREE.

That easy? I move to a country, I become a tax resident and 0% taxes for the rest of my life?

The '183 Days Rule' that would RUIN this tax-free situation

According to law, you automatically become a tax resident of any country you spend more than six months (183 days) there.

So HOW TO LEGALLY PAY 0% TAXES?

The best strategy to legally reduce your taxes (as a PERPETUAL TRAVELER) is to move your tax residency to a tax-free country (or territorial tax country) and make your income outside of that country while staying less than 183 days per natural year in any nation.

 

I explain that in detail in my book Travel Without Working.

If you want the step-by-step with the contacts that helped me get my tax-free tax residence in 48h (yes, two mornings!), join the Course Extraordinary Nomad (some members bought it just for this chapter and saved thousands of dollars every year since then)

 

Two last IMPORTANT Tips for YOU to SUCCEED in paying 0% taxes

1. Countries change their tax plans, offers for new comers. That's why I don't want to make you a disservice by naming a country and in 6 months that info being no longer valid and useful to you. Stay updated with the last news. Go and do a quick google search. Or, point 2:

2. Pay a session with a tax optimization expert or law firm. They are up to date, it's their job. They will help you, and tailor the best plan for your individual case.

I would NEVER consider doing a change of tax residency all alone. Never, ever. So many things can go wrong. Not worth it.

Did you like this article?

Check out my Book Travel Without Working!

Buy a copy or download a free sample of the first pages if you are curious.

I WANT TO TRAVEL WITHOUT WORKING!