On my previous post, Demystifying Digital Nomad Taxes, I mentioned that there’s actually a way to avoid taxes legally if you are a digital nomad, by adhering to the 183 days rule.

Now, I know this is a very polemic subject, but I really want to propose an open, mature discussion on the subject. We will talk not just about the process, but its consequences, and legal and ethical implications.

Let’s start by refreshing some basic concepts: residence based taxation and the 183 days rule.

Residence Based Taxation Systems And The 183 Days Rule

As I discussed in my previous post about taxes, there are different types of taxation systems.

Most countries apply a Residence-based Tax Regulation. This means that you, as an individual, pay taxes in the country where you have your residence, not necessarily your home country.

All European countries adhere to this regulation system. Most civilized countries -with the exception of the US- do, in fact.

Then, how do you determine your country of residence?

Easy. It’s the country where you spend most of the year, concretely, at least 183 days a year. This rule is a de-facto standard in all countries that apply residence-based taxes.

How To Avoid Taxes Legally: The 183 Days Rule

What If You Don’t Have a Steady Residence?

As a result, if you travel regularly, never spending more than six months a year in the same country, you have no official residence. Thus, you shouldn’t pay taxes, right?

Yes, if you are a citizen of a residence-based tax country, that’s right.

Take into account that this applies to your personal taxes, not the taxes of your company. If you, like me, are an e-Resident with a company in Estonia, your company will still pay taxes there. And rightly so.

However, there are some important caveats and details that you need to have into account. Additionally, there are some legal and ethical considerations.

Let’s talk about them.

How To Avoid Taxes Legally

If you want to stop paying personal taxes, it’s not as simple as moving to a new country and start traveling the world. You need to do it right.

If you simply embrace a nomadic life, your home country can still consider you a de-facto tax resident there, even if you don’t spend a single day within its frontiers.

Obviously, if you have a business, you need to make sure to have your company in a modern country that offers you location independence and freedom to live anywhere in the world.

These are the steps you should be following if you want to confidently say goodbye to taxes while sleeping well at night. However, I am no accountant or lawyer, so if in doubt, ask for professional advice.

Stop Being a Tax Resident At Your Home Country

First, you need to spend some time in a second country and, optionally, become a tax resident there. In order to do that, you need to inform your home country that you are going to move to another country.

So the first step is going to a country where you can stay for some months.

When you get to your second country, go to the embassy of your home country and inform that you are going to be a long-term resident there (more than 90 days).

Then, you also need to inform the Tax Office of your home country that you no longer are going to be a tax resident there. This varies from country to country. In some countries, you can do it as soon as you get to this second country. Others require you to wait for some months. Also, the method varies between jurisdictions. In my case, as a Spaniard, I had to fill the 030 form and send it to the tax office. Expect to have to explain your reasons and requiring some extra information or even a call or two. They need those delicious taxpayers.

Make Effective Your New Tax Residency

Then, you need to spend at least six months and a day in this other country and make sure to pay some taxes there.

Ideally, you should spend a whole year in a country and make something that will require you to pay taxes.

Earning a salary is the most usual way of doing this. However, there are other ways, like owning stocks, investing in real estate, opening a business or co-founding a company.

You don’t even need to actually pay a big amount of taxes. It’s enough if you just do a tax statement.

Be Careful Not To Choose A Tax Haven

Most residence-based tax countries are wary of tax havens and impose severe restrictions if you move your residency to such places.

Thus, for this initial country, don’t choose a tax haven. Choose a country with a good fiscal reputation, as a European country.

Take into account that these restrictions sometimes last for three or more years. In most European countries, you will still be considered a tax resident in your home country if you don’t spend at least the first three years outside of a tax haven.

How To Avoid Taxes Legally: The 183 Days Rule

Avoid Having “Important Economic Interests” In Any Country

Most legislations discussing tax residency specify as a requisite for being considered a tax resident, apart from the 183 days rule, having “important economic interests” in the country.

What does this mean?

Basically, if the majority of your wealth, businesses or money sources are bound to a country, you are supposed to have a strong link to that country.

Similarly, if your husband, wife or underage children are tax residents in a country, that country can decide that you are a tax resident there too.

Thus, make sure to sever all ties to your home country.

If you have a partner, this is an important decision that you must make together.

Also, if you have dependent children they will probably have to join you too.

Although not mandatory, it’s also recommended not having real estate or other important properties in your home country either. Nothing that could be used against you by your tax office.

Travel The World For Fun And Profit!

Once you have spent a year in your second country, and have made your tax residency effective, you are ready to go. Stop being a tax resident in this country too, and move to any other country.

From that moment on, you won’t need to pay personal taxes as long as you spend less than six months a year on a concrete country. Enjoy!


However, not everything is a bed of roses when you are a permanent wanderer. Let’s talk about some of the caveats you need to consider.

How To Avoid Taxes Legally: The 183 Days Rule


Some days after I handed over the 030 form to my tax office, I received an email from my Spanish bank, ING Direct. The tone of the email was very aggressive, and urged me to update my personal information, tax residence and send them a proof of address, such as a utility bill.

It did cost me a lot of time and effort to be sure that they won’t be closing my account or blocking my funds.

You will have to get used to the fact that banks expect you to live in a country. They are mostly obsolete institutions from times when people rarely if at all left their homes or traveled regularly.

Fortunately, thanks to the digital revolution, there are many alternatives to traditional banking for digital nomads, like the Revolut card.

I actually am in the process of getting rid have managed to get rid of all my traditional banking accounts and I’m operating on digital banking solutions only for my personal finances.

How To Avoid Taxes Legally: The 183 Days Rule

Social Security And Other Benefits

If you live in a civilized country -with the exception of the US-, you are used to some social benefits, like free social security and health insurance.

Unfortunately, most of those social benefits are residence-based. Thus, if you are no longer a tax resident on any country, it can be difficult for you to access free health services or social security.

The European website for the Social Security Cover Abroad fails to address the situation of digital nomads without residence doing freelancing job or owning a company themselves.

Interestingly enough, if you own a company in Estonia as an e-Resident, you could adhere to this situation:

If you are employed but have no substantial activity in your country of residence, you are covered where your employer’s head office or business is located.

I have talked previously about how e-Residents owning a company in Estonia assigned themselves a salary. In the salary calculations, your employee salary was not taxed if you lived outside of Estonia. Conversely, under this scenario, you might wonder if paying taxes for your full salary gives you then Estonian social security benefits in Europa.

I will discuss this in depth in a future post.

Nevertheless, generally speaking, you will lose your social security benefits. If you are European, you may opt-in for the European social security card, but it will cover you for just two years. After that, you will need to sign a private medical insurance contract.

Edit: a fellow member of TechHub from Portugal corrected me. Apparently, in some countries of the European Union (like Portugal), you can still have the European sanitary card if your parents pay taxes or social security in your home country. Still, this is a hack, and not recommended at all if you value your health.

Now, this is actually no big deal. I had private medical insurance back in Spain, and the benefits of not paying personal taxes clearly outweigh the costs.

How To Avoid Taxes Legally: The 183 Days Rule

Your Pension

This is something important to consider. If you don’t pay taxes, you are not contributing to your pension. Hence, you will have to contribute to a pension scheme on your own.

Most millennials I’ve spoken with affirm that they don’t expect to have a pension when they become old. I don’t either.

Thus, if you are Ok with the idea of contributing to a private pension scheme, this is no big deal.

Legal And Ethical Considerations

When talking about how to avoid taxes, there is always some dispute over the legal or ethical aspects. As I think it’s important to consider everything before making such an important choice, I would like to talk about them here.

Is It Legal?

Yes, it is. Ask any lawyer or tax office representative. They, of course, will warn you of the do’s and don’t like I am trying to do here, but the law is clear.

You are a tax resident of the country where you spend more 183 days or more a year.

Nevertheless, as I affirmed previously, the world is not ready yet for digital nomads.

Most of the things you do today requiring the intervention of a big corporation or governmental institution require you to have a residence.

This includes important stuff such as getting married, having a child, applying for a mortgage or loan, some job offers, or even paying a traffic ticket sometimes.

There’s no legal or fiscal jurisdiction as of now that fully recognizes and understands digital nomads. Even seasoned accountants have a hard time when faced with someone without a fixed residence doing business and earning money while traveling.

However, I hope this situation will change. The nomadic lifestyle is being adopted by an increasing number of people every year. Initiatives like the Estonian digital nation are starting to create awareness of the fact that a lot of people are not tied to a country anymore.

I am optimistic about the future.

How To Avoid Taxes Legally: The 183 Days Rule

Is It Ethical?

This is a more subjective question. Personally, I think it’s perfectly ethical.

Let me explain why.

Why do we pay taxes? In most modern societies, its citizens pay taxes to enjoy some benefits in exchange. These benefits usually work on a solidarity basis.

This means that you pay taxes so that your neighbor’s children can have a quality education for free. Conversely, your neighbor pays taxes so that when you are ill, you can have quality medical assistance for free -unless you live in the US, of course-.

However, if you are a digital nomad, and you spend less than six months in any given country, you are not making use of these benefits. You actually pay to private companies to enjoy those benefits.

Your children don’t go to public schools.

If you are not a resident, you need private medical insurance, so you are not abusing social security. Additionally, you will not have access to a pension for that time you haven’t contributed.

Also, you probably don’t have a car, so you are not using the public infrastructures and when you do -at a taxi or bus-, you pay for that service.

I could go on an on, but you get the idea. Without the residence, you are basically a long-term tourist. If you are not enjoying the social benefits of a society, why should you pay taxes for them?

In fact, you actually pay some taxes when buying local products or using local services.

Thus, I honestly believe that when you become a wanderer and assume the costs of doing so, it’s completely ethical to avoid taxes legally.


In this article, I talk about how to avoid taxes legally. This is a very polemic topic that always leads to some controversial arguments, but I wanted to address this from a mature perspective, talking not only about the benefits, but also about the consequences, and ethical and legal considerations.

Do you have any comments? Don’t hesitate to share your thoughts with us below!

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  1. Pau January 26, 2018 at 6:53 am

    Loved it!! Hay tanta info en internet al respecto que a muchos les da palo investigar más. Me gusta que lo dejas todo bien sintetizado para tener una idea clara y general;)

    1. nacho January 26, 2018 at 7:37 am

      Muchas gracias Pau! Si, hay mucha info y en ocasiones incluso contradictoria. Me alegro que te haya gustado. Un abrazo y gracias por tu comentario.

      1. Rufus September 2, 2020 at 1:43 pm

        Dear Nacho, thank you for your article and also thank you to all the commenters for the interesting discussion. It gives hope to all digital nomads. However, I’m not utterly convinced by the argument. After you depart the second country you are no longer resident in that country and also no longer resident in your home country. In the third and subsequent countries, you are essentially a tourist and therefore you are not a resident of any country. That may be a problem as I have always thought that it is necessary to declare yourself the resident of at least one country. I would be interested in your thoughts about this.

        1. nacho September 2, 2020 at 2:55 pm

          Hi Rufus,
          The legislation of countries is usually clear. No country (with the exception of the US that applies citizenship-based taxation) can affirm that you are resident in the country just because you “are not a resident” in any other country. Otherwise, you may be deemed “resident” of multiple countries, just because you are not resident of any other country…

          No, the laws usually specify the rules for considering you a tax resident. The Tax Office may try to scare you, but if you ask for their rules to be considered tax resident, there is no “in the absence of a tax residency, the person is considered tax resident in XXX”. All of them apply similar rules, i.e: you live there 183 days a year or more, you have wife/husband/underage children living there, the core of your activities or interests is in that country, etc.

  2. Miguel February 6, 2018 at 6:28 pm

    Ok voy a escribir esto en ingles, porque me he pasado horas leyendo esto:

    First, thank you! This is really helpful.

    As an estonian e-resident if you run your own business you “should” pay yourself as a board member and pay 20% + 33% on taxes once your start having money in. This is not required by law.

    How do you deal with this? You just pay yourself as employee and that’s it?

    Again, thank you.

    Miguel 🙂

    1. nacho February 6, 2018 at 7:46 pm

      Hola Miguel!

      You are welcome. I explain it all in detail here: VAT and Taxes for e-Residents owning a company in Estonia.. Having a company in Estonia, you should pay yourself a board member salary plus an employee salary, in the case of a microcompany, of course (OÜ). Basically, you do two separate payments, the board member salary (subject to the 20% of gross+33% taxes you mentioned) and the employee salary (that’s not taxed in Estonia, you pay personal taxes for that one in your residence country).

      Make sure to clearly specify “Board member salary” and “Employee salary” in the transfer subject to help accountants identify each one.

      Hope it helped!
      Gracias, Miguel.

      1. Joao October 13, 2020 at 9:12 pm

        Hi, thanks for the article!
        So, me as the only board member and shareholder of my e-residency Estonian based company and its only employee, can I register myself as a freelancer in the country where I am a tax resident and invoice my company monthly? This way I am not paying the employee salary taxes anywhere or board member taxes. I’d only be taxes in the country where I am a legal tax resident.

        Is this a valid option?


        1. nacho October 13, 2020 at 10:00 pm

          Hi Joao, thanks for your words. Yes, that is perfectly valid at the beginning if you can prove that the works you are doing for your company are legit. However, after the company grows and gets a decent annual revenue, the tax office may wonder who is directing the company and why this person is not paid. Common sense applies here.

  3. Anna February 23, 2018 at 4:05 am

    I’ve just found your blog and I love it! I am myself in a process of becoming a digital nomad and the questions of taxation and residency were incredibly confusing to me. You’ve provided a good overview of the system in a very approachable way! Thank you! I feel much calmer now! 🙂
    My situation is also slowly getting interesting: I am a UK resident, but have an EU citizenship, plus I earn by working for a US company so I was looking at various tax options. I love the Estonian e-residency and company registration, I think it’s extremely forward thinking and incredibly well organised. The online system of the UK tax office is very good one but you still have to be a resident with some sort of UK address in order to set up a company or even trade as a sole trader.
    In terms of the ethics though I am afraid I have to disagree. I understand that you don’t use the benefits; health system, education system etc. But you do use the roads, bridges, forests and lakes :), the police, firemen (hopefully never but…), government institution or military even (lets say its existence assures the country’s stability – that is controversial I realise but still 🙂 If you have a company in that country and you pay corporation tax that’s fair enough but if you don’t if you are a true digital nomad, I am not sure. Is the fact that you paying for your food, accommodation, transport and other consumables good enough? We say that by travelling we help economies of the countries that we are in but do we really? Or do we exploit the lower prices and live lives that are unreachable for an average local? Just wondering…

    1. nacho February 23, 2018 at 11:35 am

      Hello there Anna. Thanks for your comment and sharing your thoughts.

      I certainly see your point. However, I still think that you are not using the public services enough to pay taxes for them.

      I have never called the police or the firemen ever in any country I have visited. As I don’t have a car, I don’t use the roads either, except when I pay for a taxi (thus, I am not only paying a service, but also included taxes).

      Same for bridges, etc. I don’t think you or anybody else has to pay for a forest or a lake, those belong to nature, not to countries or any of us.

      In some countries I have had to pay for a tourist fee (like in Italy) or a digital nomad VISA (like in Thailand), so I sincerely think that it’s ethical enough.

      I don’t think it would be fair for me to pay for the schools, hospitals, roads, etc, of everybody else if I am not using them. Still, I see your point and acknowledge it’s a very polemic subject.

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  5. Alex April 1, 2018 at 4:29 pm

    When you change your legal and tax residency to a new place first time and get a new address and then move on again, how can you maintain your address while away without paying lots of useless rent? Sub-leasing, or somehow find a virtual residential address? If you take your address with you every 6 months, wouldn’t it be lots of administration to file new taxes, make changes, and file forms in every country every 6 months to 1 years seems super exhausting?

    1. nacho April 3, 2018 at 3:33 pm

      Hello there Alex, thanks for commenting. The whole point of the process is not maintaining your address. Once you have become a resident at your first foreign country, stayed for more than 6 months, and filled your tax report, you need to fill a form to stop being resident there. Then, you just travel the world without registering anywhere. You just have to make sure that you don’t stay at any given country for more than 6 months. Given that condition, you don’t need to fill taxes changes or forms anymore.

      1. Lili April 17, 2018 at 10:41 pm

        Just curious, why do you need that “first foreign country” ? Why can’t you just de-register in, say, Spain, say “I don’t live here anymore” and start moving around the world straight away? I can’t see how “deregistering” in Spain (you lived there, were tax resident, paid taxes, now you leave) is any different from “deregistering” in that first foreign country (you lived, were tax resident, paid taxes…)

        1. nacho April 18, 2018 at 9:52 am

          It’s not mandatory, but there’s a chance that if you don’t do it, your home country will consider you a “de-facto” tax resident there, in absence of another country claiming your tax residency.

          Better safe than sorry

          1. Oli November 23, 2019 at 12:47 pm

            I get your point.

            But, can’t the 2nd country do the same? If you unregister in the 2nd country, can’t they force you to be a tax resident there if you don’t provide a place of residency and tax claim from a third country?
            Or is it easier to unregister in the 2nd country without this info because you’ve only been there for 1 yr and not your whole life?

          2. nacho November 25, 2019 at 7:39 pm

            No, because the second country is not your home country. You are not a citizen there, so they don’t consider you a de-facto resident. It is generally speaking much easier to de-register from the second country.

  6. mart April 17, 2018 at 11:09 pm

    Do you have an understanding in regards to enforceability of treaties such as 183-days-rule and also who instituted them in the first place? If it a EU-wide directive? Is it global affair? OECD member states?

    In the European context, how does a schengen state know that I spent 182 days there and not 215 if there’s no borders?

    1. David April 22, 2018 at 3:18 pm

      That’s a good question, I’d like to know how they know how many days you spend if you’re traveling to a shengen state.

      1. nacho April 23, 2018 at 9:17 am

        Hello there David,
        Unfortunately, it works the other way around. Your country will try to consider you a tax resident there to make you pay taxes. It’s you who need to prove that you’ve been less than 6 months in other countries or have another fiscal residence.

        Proving that you have a fiscal residence is easy if you have become a resident in another country, and ideally if you have done a tax report for any cause (salary, stocks, real state).

        Proving that you are residing less than 6 months in that -or any other given- country would require evidence like AirBnB receipts or invoices, flight tickets, etc…

        1. Jose Ramon January 6, 2020 at 12:40 pm

          Or a stamped passport if you move outside the Schengen area.

    2. nacho April 23, 2018 at 9:22 am

      Hello there Mart. Actually, it’s a global legislation of most (if not all) residence-based taxation countries. In EU, there exists of course regulations applied for the Schengen area and the non-double taxation treaties.

      However, unfortunately it’s you who ultimately have to prove that you haven’t spend 183 or more days in a given country. If you do your steps right, and inform your country that you are no longer a tax resident there, it’s easy as long as you can prove later that you’ve spent that time in other places (i.e: flight tickets, AirBnB receipts)… in case you have any problem. Usually you shouldn’t have to, but keep that evidence for at least one or two financial years.

      1. mart May 8, 2018 at 12:26 pm

        Always great advice! Thanks

  7. mart May 8, 2018 at 2:02 pm

    Also, as spot-on as is your advice regarding going off the tax grid by first becoming a tax non resident in your home country (based on, say, tax returns from your new tax residency) and then also becoming a tax non resident in that new country (it’s always good to be explicit), I would also empathize how much lenient are tax authorities to someone who doesn’t view the country as their home (a Latvian citizen working in Great Britain who informs HM Revenue & Customs she moved) as opposed to that same person going through the similar process in her home country of Latvia in this example. All of a sudden, you find yourself filling all sorts of “residency determination” forms, emailing back and forth with your home Tax Office, mailing physical tax returns, or, god forbid, visiting the establishment in person. Get those tax non resident certificates or some kind of letter from the tax authority in your home country confirming your residency status, I guess is what I’m getting at, until they start making it more difficult to become tax non-resident in your home country.

    1. nacho May 8, 2018 at 3:25 pm

      Thank you very much Mart! I completely agree with you. It’s better to make sure, and double check that you are not going to be considered a de-facto tax resident by your home country. Thanks for emphasizing that.

  8. Em May 17, 2018 at 10:00 pm

    What a great read – clear, to the point, while still covering all bases from different angles. Thanks so much for this!

    Since you’re from Spain, this doesn’t apply to you – but I’ve read a post covering a way around having to stay 6m-1y in your first new country – while working/paying taxes – so the tax office would accept your ‘resignation’. Apparently, if you get your NIE in Spain – which isn’t automatically connected with the Spanish tax office – the tax office in your home country will still accept this as proof of you living/working/paying taxes somewhere else. This basically means they cut you loose straight away, so you don’t even have to stay/work /pay taxes in Spain, should you want to move on immediately. Have you heard of this as well?

    I still have one rather important question – what happens with your passport/ID/driver’s license when you deregister in your home country? Since you’ve cut all ties, I assume you loose them too, no? And if so – how do you fix this so you’d still be able to travel/drive/work/start a company?

    1. nacho May 17, 2018 at 10:48 pm

      Hello there Em. Thanks for your comment. I was not aware of that NIE resignation you talk about, but I will definitely conduct some research on the topic, so thanks for letting me know.

      Regarding your question, your passport/ID is a right that derives from your citizenship, not from your country of residence. As such, it doesn’t matter where you live, where you pay taxes or how much time you spend outside of your country. As a citizen of your country, you have the right to have a valid passport and identity provided by your country.

      1. Em May 18, 2018 at 6:41 pm

        Hi Nacho, here’s the link to the post regarding the NIE (to help you with your research) 🙂 https://estherjacobs.info/en/blog/how-to-register-as-a-resident-mallorca/

        The Dutch author of this post also ‘got fired’ by her country for traveling too much and therefor her government refused to renew her passport. The only way she was able to get a new passport after all – was through “a special ‘window’ for homeless people in the Netherlands”. (link to her full story – should you be interested… https://estherjacobs.info/en/blog/digital-nomad/)

        Unfortunately, in Belgium – where I’m from – this ‘homeless-window’ doesn’t exist, unless you stay in the country while being registered at our Public Center for Social Welfare. So how could I have gotten my passport renewed, if my govt apparently does have the right to withhold my passport?

        I’ve read a forum post (in Dutch, so won’t share the link unless you want me to) about a Belgian man who no longer had an official address in Belgium and was living in Norway the past 8m. However, he didn’t register there and when his electronic ID-card needed to be renewed, the govt refused to give him a new one (bc he had no address in Belgium and wasn’t registered anywhere else). The only way out of this, was for him to temporarily move in with his parents – go to the whole procedure of re-registering in Belgium to get a new eID – then deregister again to get a special form he had to use to register in Norway.

        In both cases, govts refused to renew IDs/passports of their citizens who ‘travel too much’. So if I would deregister and cut all ties with my home country (even taxes) and after that first country needed for them to ‘let me go’ (as you mention in this post) never register somewhere else again – simply bc I won’t be in any country longer than 6m – how can I then still be sure my eID/passport would get renewed when needed and where would I do that?

        1. Oli November 23, 2019 at 12:53 pm

          In Belgium, they cannot do that if Belgian is your only nationality.
          There is a rule in Belgium that states you cannot be “stateless”. So even if you don’t set foot in Belgium for 10 yrs and need your passport renewed, they will do it.
          If you have double nationality, it’s different..

          1. nacho November 25, 2019 at 7:40 pm

            Dear Oli,

            You are confusing citizenship with residency here. Even if you, as a Belgiam, cannot be “stateless”, you don’t need to have a tax residency at all. The passport is granted by your citizenship. Your taxes are defined by your residency. Those are separate things. Please, have a look at this article: https://micropreneur.life/demistifying-digital-nomad-taxes/

  9. Coach Art June 24, 2018 at 12:19 pm

    Thank you for the layman explanations of this complex topic!

    I can understand how you hop from the country of origin (original tax residence) to the next country of tax residence, once you stay long enough and pay taxes there (i.e., move your center of vital interests to the new country). But how can you repeat the procedure in the second country to jump into “homeless” tax residence?

    Each time you want to switch tax residence, you have to declare which is the next country of tax residence or else the current country (whichever it is) can claim that you remain a tax resident there due to “vital interests” beyond the 183 days criterion.

    1. nacho June 25, 2018 at 10:21 am

      Hello, thanks for your comment. In theory, once you hop to your second country, become a resident and make effective your tax residency, you need to tell the local authorities of that country that you are no longer a tax resident there (like you did in your home country).

      The difference here is that this second country is not your home country. In absence of a clear tax residence, your home country may consider you a “de-facto resident” there. That does not happen in a secondary residence, because it’s not your home country.

      So in that case, from that moment on you can travel the world and, as long as you stay less than 6 months in any given country, you are no tax resident anywhere.

      Hope that helps.

      1. Coach Art June 26, 2018 at 12:00 am

        Thanks Coach! Well, it’s in fact not a matter of “motivation”. Once you declare you are no longer a resident there (by the corresponding form), they have no option. As they are not your home country, they can not rely on your “citizenship” to claim that you are a de-facto resident there :).

  10. Abelius August 12, 2018 at 7:25 pm

    Thank you Nacho.

    This has been very useful to finally make up my mind about how I’ll approach my future digital nomad life. It’ll be an expat life instead and I’ll pay taxes to our country (I’m also a Spaniard) in full.

    The thing is, even if I’ll reside most of the year in SEA, I still have children that will depend on those social services that you’ve mentioned, so it’s fair that I contribute to their sustainability. I really didn’t factor that when I started to search for a way to pay less, so thank you for pointing that out for me.

    1. nacho August 12, 2018 at 9:57 pm

      Hello there Abelius!

      Thank you, glad to know that I helped. This is not an easy decision, and I think it’s important to know all the pros and cons and make the best decision for you, your business and -especially- your family and beloved ones. Of course if you are participating in a society and getting something back from it (or your children), it’s only fair that you contribute something back :).

      All the best of lucks!

  11. Tim October 19, 2018 at 1:02 pm

    Hey Nacho,

    Gracias por tu excelente artículo. I wonder if you might be so kind as to opine on the following?
    I was living and working in Spain 7 years but for three years I’ve split my time between the UK and Spain. I went freelance three years ago after working full-time in Spain and decided to set up in the UK, but I’m still in the Spanish “system” as I never deregistered. I pay a lot in taxes to the UK government. You think it is possible to avoid this, or minimise? Apart from spending significant time in Spain, I also travel a lot, so I don’t think I would spend 183 days in any one place. I also channel euro and dollar payments from clients to a fintech company in Dublin to save on FX fees before sending on to my company account in the UK in GBP. If I simply sent to an account in Spain, I don’t see why the UK authorities would ever be aware, although I have never done this. Do you have any insights on this specific point? I guess the fear is if I were ever audited, the UK taxman might request access to accounts with this FX company, although I don’t know if they can do this and there is no information online that confirms. As you mentioned with digital nomads, the world is still not ready for this kind of thing – using offshore fintech companies in this instance rather than having payments go straight to my UK bank account (and giving a lot of money to the traditional banking system in horrible FX fees too, the bast*rds). Gracias de antemano

    1. nacho October 22, 2018 at 10:46 am

      Dear Tim, thanks for your comment. I think your situation has some subtleties worth having a conversation. If interested, please contact me via the consulting page on top 🙂

  12. FE October 23, 2018 at 11:19 pm

    Thanks for the great read!

    If I may ask, what was your “bridge” country, where you moved your tax residency from Spain in the first place? Was it Estonia, since you mention opening an Estonian company with the e-residency program.

    I’d like to follow a similar path to the one you took, opening an Estonian company, but I’m not sure if I should then move to Estonia or I can pick another country (I was thinking Cyprus). I’m currently trying to ask lawyers, but if you have some experience to share that’d be great 🙂 PS: my home country is Italy.

    1. nacho October 24, 2018 at 12:19 pm

      Hi there FE, thanks for your comment. My bridge country was Latvia, and it’s a very nice country to use as a bridge, for several reasons: it’s beautiful, it’s affordable, it’s different (if you are from the west of Europe, that’s it) and I go back there to spend some months every now and then. It’s a great place in my opinion, but most of the east of Europe is a good place to start.

      1. FE October 26, 2018 at 1:57 pm

        Hi Nacho, thanks for the info!

        My main concern is the risk of my Estonian company being considered tax-resident by the tax authorities of my bridge country, since I’d be the sole owner of the company. I think in least in theory that would be the case in several European countries, although perhaps you’ll go unnoticed. Any take on Latvia regarding this issue?

        It’s not so much about taxes, since all European countries have treaties to avoid double taxation, but more about the bureaucracy annoyance of such a situation.

        As I mentioned, I’m considering to use Cyprus as bridge country, since with their non-domiciled program you are required to only stay 2 months a year to get tax residency (provided that you don’t spend more than 183 days in any other single country). I’ve contacted an accountant firm from there, specialized in international laws, and I highlighted that I would be running my company mostly while travelling outside Cyprus: they told me that in that case the Estonian company itself would not be considered tax-resident in Cyprus (although I of course would, as individual). So I’m most probably going that course.

        Just wanted to post this info in case someone else has similar concerns.

        1. St December 21, 2018 at 2:28 pm


          I feel I’m in the same situation as you and I’m from your country of citizenship as well
          I’d like to connect, you can write me a private message on reddit: https://www.reddit.com/user/TrickySecond/

  13. breakbeat October 30, 2018 at 8:05 pm

    In some countries you can opt-in voluntarily into their healthcare and pension system. If I keep paying into the system will I be considered a tax resident even if I become a tax resident in a bridge country and ultimately becoming a permanent traveler?
    What if you keep your personal bank account in that same country of origin?

  14. Arianne Wolodarsky November 8, 2018 at 4:13 am

    Hola Nacho,

    Dejaré el comentario en inglés, por el beneficio de otros lectores.

    Thank you so so so much for writing on this issue about being a digital nomad. I’m unknowingly avoiding to pay taxes, because like you, I agree that ethically it’s ok to avoid it if you really don’t depend on the country’s infrastructure, and/or don’t stay beyond 6 months.
    I’m a UK citizen with a Spanish NIE, and currently working as an online English teacher, working with a Chinese company. I’m currently set up with both TransferWise and Revolut accounts, and I too have an ING Direct bank account, because 2 years ago I did work for a company, for about a month, then left voluntarily. I actually do want to have a homebase in Europe, Spain in this matter, but I’ve been wondering about taxes. Right now, nothing goes straight into my bank account, and I had the idea of maybe getting a part time job with a company, so I don’t have to be an “autónomo”, as it seems to be such a pain in the a** with all this bureaucracy (which is why I’m avoiding declaring as an “autónomo”). I’m not earning massive amounts, but it’s comfortable for me. My original plan is/was to keep a part time job to “cover up” my extra income as a digital nomad. I travel a lot too, and rarely stay more than 6 months in one place. It doesn’t help most of my family is from South America, so I am constantly going there.
    In some near future, between my mum, sister and I, we would like to invest in property, and in that case, of course, we’d be happy to contribute to taxes. But that’s not the situation, yet.

    I wonder, would it be worth it for me to apply for the Estonian e-residency, at all, simply as digital freelancer, as technically, under the Chinese company agreement, I am a “contractor”.

    I just want to thank you again so much for putting in the time and effort, to so eloquently write and make this problematic and controversial subject easy to understand and relate to. I have hopes that the world will soon cater for us permanent wanderers, and not see us as potential fraudsters or “criminals”. We are just normal people with uncommon circumstances, and that should be more acceptable. It was refreshing to read and find out about Estonia’s initiative, and I’m glad I came across your blog.

    Gracias de antemano si me puedes contestar/aconsejar. Thanks!

    1. nacho November 8, 2018 at 11:18 am

      Hola Arianne! Gracias por tu mensaje. Comparto tu opinión acerca del problema de ser autónomo, papeleo, etc. Creo que una empresa en Estonia sería una opción perfecta para ti. Si quieres envíame un mensaje en el formulario de contacto y puedo darte más datos acerca de la mejor alternativa.

  15. Ste December 21, 2018 at 2:17 pm

    Nacho, thanks a lot for your commitment to sharing such useful and precious information with us

    Why do you feel the first year is so important? In my opinion, the country of citizenship (or the “bridge” country) may consider the person tax resident in itself during any of the following years, if no new residency is specified by the person. Am I overlooking some detail?

    Looking forward to hearing your insights

  16. Lukas December 26, 2018 at 8:10 pm

    “Most residence-based tax countries are wary of tax heavens and impose severe restrictions if you move your residency to such places.” What kind of restriction do you mean? Can you provide examples? Thank you. Your posts rocks.

    1. nacho December 31, 2018 at 7:22 pm

      Hi Lukas,
      Yes, for example, in Spain, if you translate your residence directly to a tax heaven, Spain will still consider you a tax resident in Spain for the first years, and you may incur in penalties or being investigated by the Spanish authorities. The same or something very similar happens in all European countries. Check with an accountant of your country, and do things right. Don’t go to a tax heaven at least until you’ve been a non resident of your country for at least 4-5 years.

  17. Zak January 16, 2019 at 4:25 am

    Great article, very inspiring!

    I was wondering, can’t the second country (ex: Estonia) consider you a “de-facto” tax resident there as would your home country ? Especially if you have your company there for Estonia.

    1. nacho January 17, 2019 at 6:19 am

      No, because you are not a citizen of the country. I won’t recommend Estonia as this “bridge country” anyway 🙂

  18. FE January 22, 2019 at 11:24 am

    Hello Nacho!

    How do you deal with CRS regulation that now require banks to ask you where you are tax resident? (they will need to send that information to the country you are tax resident of).

  19. A February 4, 2019 at 8:38 pm

    Great article!

    Is there a company that exists that would do all of this for you for a fee? E.g. Organize everything based on the idea that you’ll always change country every 180 days? If there isn’t, someone is missing a trick!

    What’s putting me off is the red tape/hassle although the 40% tax also is! It’s simply not good value to be paying such a high percentage for what you get back! It is just greedy from Governments!

    1. nacho February 9, 2019 at 4:01 am

      Hi there A, thanks for your comment. Actually, there isn’t that I know of, but I have helped many people do that. It’s easier once you know all the steps, so let me know if interested 🙂

  20. Money Mongoose February 19, 2019 at 5:37 pm

    If you are really confident that this is legal and it works, I suggest you test this by writing to the tax authorities of all the countries concerned and let them know exactly what you did and ask if they agree with your analysis that you are not resident in their country!

    1. nacho February 20, 2019 at 2:10 am

      Dear Money,
      Yes, of course, they agree. That’s why it says “legally” in the headline. This 183 regulation is based on the tax residence laws of all residence-based taxation countries. Let me know your country and I will point you to the right legal document to support this.
      Thanks for your comment!

  21. Tom February 21, 2019 at 7:00 pm

    Awesome! Thanks for the explanation. To clairfy then, if I leave the UK (where I now live) for 183 days per year and travel, do I still have to pay tax there? I’m not resident, but I won’t have tax residency elsewhere either – do you need to have tax residency somewhere, or can I just say I’m not a resident and not pay tax? Thanks again!

    1. nacho February 22, 2019 at 1:18 am

      Hi Tom. No, you don’t need to have a tax residence anywhere, that’s the trick. As a UK citizen (unlike a US citizen, for example), you are subject residence-based taxation. If you are not resident in any given country, you don’t have to pay -personal- taxes. Just make sure to follow the steps described in the article. Probably the most important one is the Embassy visit (declaring you are living mid-to-long term in a country other than yours at the UK Embassy of that country).

  22. Miko February 24, 2019 at 1:41 am

    Hi Nacho. Thanks for the article, certainly helped me learn a bit about this subject.
    I have a doubt, though, with this adventurous approach: wouldn’t you have trouble in the future making a sizable purchase with your savings, as it requires reintroducing money into the banking/legal system?

    Let’s say you spend the next 5 years as a nomad frequently traveling, avoiding taxes. After that, whether you establish yourself in a country as a resident or not, if you want to buy let’s say a house, you will be forced to open a bank account, for which you will have to declare your money/assets, won’t you? When doing so, aren’t you asked to prove the source of your money? Since you’ve been a nomad, you won’t have tax declarations and notarized bank statements accounting for your savings to satisfy the proof of funds.

    1. nacho March 3, 2019 at 6:24 am

      Hi Miko, thanks for your comment. I don’t think you will have any problem. There’s nothing preventing you from continuing using fintech solutions like N26 or Revolut to keep your money when you settle down. And if you have a company, the source of your income is clear: it’s your company.

  23. nuria June 26, 2019 at 1:24 pm

    Hello! Hola! I’m also from Spain and this seems the perfect article illustrating all my doubts. I have been registered in the Spanish embassy as a resident in Beijing, China, since 2006. Paid taxes here in 2009 and 2010, and after that I’ve been living most of the year in China under a spouse visa (my husband is from HK), so not paying any personal taxes either. I had never filled the 030 form though, didn’t know about it. I hope I’m not still a fiscal resident in Spain without knowing it only because I didn’t fill that form? ???? Now, my question is: since last year, banks in China started asking for fiscal residence status and they wouldn’t accept that i don’t pay taxes in either my home country or China (as I can’t legally do so without a working visa and I’m registered as having no income) so I had to give them my Spanish social security number. I don’t think their system is very efficient in any case, so not too worried about that in particular, but is my situation legal at all? Looks to me like a loophole, I’m not resident in Spain for over 13 years, and I have no economic activity or property whatsoever there, and at the same time I am not legally able to carry on any remunerated activity in china due to my legal status, so no taxpaying here either. I do co-own a foreign own company in China though (which is legal, as long as I don’t work for it) which pays its taxes as stipulated, but those aren’t personal taxes. Another question is, if I transfer money to an account under my name in the UE, can Spain tax me for it? For example if transferring from a HK bank account. No one wants to keep relatively big amounts of money in China, so where would it be safer then? thank you in advance !!

    1. nacho July 8, 2019 at 7:11 pm

      Hi Nuria! To be honest, your case would require a consultancy session to offer you the best advice possible in your very specific situation. Don’t hesitate to contact me through the “consulting” page.

  24. Ibrahim July 17, 2019 at 5:45 pm

    Hi nacho, thank you for sharing all this information with us it helps a lot.

    I have one question about paying taxes while staying in the new country. If you’re company is not registered in this new place but in another like Estonia, does that count? or do you have to register a company locally?

    1. nacho July 24, 2019 at 1:35 pm

      Hi Ibrahim,

      I’m afraid I don’t understand the question. Your company does not need to be registered locally. Can you elaborate please?

  25. ivan July 30, 2019 at 2:42 pm

    Hello, great article. I have a question: insurances require a physical address. I am using World Nomads and I need declare that I live in UK (which is not true) and using the address of a friend. How did you solve this problem?
    Plus one more thing: about banking I would suggest Transferwise Borderless Account. I have been using it since they introduced it and it’s great.

    1. nacho August 1, 2019 at 9:51 am

      Hello Ivan,
      In my case, I am using Safety Wing. They don’t require you to have a “home country” as such. They ask for an address, that’s true, but it’s for postal notifications. Please have a look here: https://micropreneur.life/health-insurance-for-digital-nomads/

      Yes, I definitely agree with your recommendation. It’s not the best option (I would say that’s Revolut probably), but not bad at all 🙂

  26. Am August 22, 2019 at 3:44 am

    Hola! Pregunta: como sabe el “bridge country” que efectivamente estuviste 183 días? Sobre todo si el país es de EU/Schengen. Va un ejemplo: puedo aplicar a la residencia en Portugal (diciendo que estuve 283 días) pero habiendo saludo por otro país (o usando un 2do pasaporte)? De esta forma evito el requisito de los 183 días en el 1er país. Qué opinas?

    1. nacho August 24, 2019 at 2:14 pm

      Hola Am. Yo siempre recomendaría hacer las cosas bien. Si puedes hacerlo bien, y conseguir la independencia geográfica, ¿por qué forzarlo o usar un “hack”?

  27. nacho August 24, 2019 at 2:13 pm

    As far as I know, they would not be considered as such.

  28. thierry November 15, 2019 at 6:43 pm

    Thanks, Nacho for this article, it is really helpful, I have a question for you. As you I m a nomad my last European residency was Spain, I never spend more than 5 months there but do I need to send an official request to the government to stop being a resident there? Or I simply don t spend time there? because officially for the government I am a resident there so they could one day come and ask me why I did not pay taxes?

    Thanks in advance

    1. nacho November 25, 2019 at 7:37 pm

      Hi Thierry. That varies a lot from country to country. To err in the safe side of things, let your government know, as indicated in the article. Best regards!

  29. Maria November 22, 2019 at 5:52 pm

    Hola, Nacho!

    Muy buen artículo. Pregunto algunas cosas a ver…
    I am Spanish citizen as well. Been living abroad for a long time now (studied in Italy, and worked ilegally ehem), lived for 6 years in the UK (completely legal, I still keep a UK bank account etc). During the last 3 years I’ve been travelling around Latin America and “settled” in Argentina where I did a postgrad degree (student Visa) and accepted a job (with the promise of a work visa that never became a reality… so I stayed 1 year and a half working on a tourist visa/partly a student visa, and leaving the country very often).

    I am now heading to Brazil where I will settle for 3-6 months (this is completely flexible). Aiming at setting up an online business targetting mainly US customers. So while some friends have mentioned “you don’t need to register your business”, I am a bit concerned. What would be my best option in your opinion? I am not sure Estonian residency would make sense as I operate mainly in Latin America/US. The time I’ve been in Argentina working “doesn’t count” as I wasn’t doing it with my own business, so the question begins from now on, me heading to Brazil, potentially to other countries afterwords etc, with the option of staying 5 months max to avoid the 6 month rule. I am also intrigued by your first foreign residence country advice but I’ve read your advice on this and you seem to recommended… on this note I am looking into countries in Latin America to set up a temporary residency for my “first year”. To be honest, I don’t even know if this is necessary! I am pretty much confused.

    Regarding Spain, it’s been around 10 years I hadn’t worked there… do you think I still need to notify them I want to “quit” my fiscal residence there first of all?

    Muchas gracias!

    1. nacho November 25, 2019 at 7:38 pm

      Hi Maria,

      It would be better to discuss your specific situation in a consultancy session.
      Contact me if you are up to it.

  30. Alex November 26, 2019 at 12:48 am

    Hi Nacho!
    This is an extremely well detailed and informed article. Thank you 🙂

    At the moment I’m not living anywhere and I have one of those online bank accounts (Transferwise / Revolut). I get paid from the US, but live around “Europe” – never 183 days a year.

    Does it make sense at all to make a Company in Estonia like this?
    The US Company I work for does not require any Invoices / Tax Numbers.
    I’m not registered anywhere.

    Will there be a point where Transferwise or Revolut ask me for a Tax return? Have you heard of something like this?

    1. nacho November 30, 2019 at 7:54 pm

      Hi Alex. To better understand your situation, it would be necessary to have a consultancy session. If you are up to it, visit the link in the top menu and send me a message!

  31. Kerri April 22, 2020 at 4:20 am

    Just wondering where you live when you travel? Doesn’t AirBnB get expensive all the time? I had thought of doing this and then went and made some poor decisions that locked me into a Country (two actually). Anyway, one more thing to add. Some Countries, like Canada where I am from, has what is called a “Departure/Exit Tax”. The Government will deem you have sold – even if you have not – any property or shares in a company when you Exit. I am pretty sure the UK doesn’t have this but worth a check depending on the Country one is trying to leave (original home country that is). I have learned its best not to have much. If I were young again I would definitely go this route. Sounds like a great life.

    Great article. Thank you for your ideas.

    1. nacho May 4, 2020 at 9:48 am

      Hi Kerri, when you travel long-term, and if you know how to negotiate and look for good deals. AirBnB can be very affordable. You need to emphasize what you are offering to the AirBnB host to justify a generous price discount, such as:

      • staying long term, which means less check-in check-outs
      • stable source of income as you are staying more than 1 month
      • (optionally) income off-season
      • etc
  32. Cüneyt September 2, 2020 at 1:57 pm

    Hi Nacho,

    I’m a Turkish citizen who is studying in Estonia. I have an Estonian temporary resident permit. If I establish a sole trader company in Estonia with it, can I work for a German establishment carrying its business in Germany for a long-time? If so, do we need to sign an agreement emphasizing the period of time for work?

    1. nacho September 2, 2020 at 2:56 pm

      Hi Cüneyt, you may probably want to ask an Estonian lawyer.

  33. Osiris September 6, 2020 at 9:09 pm

    Hi Nacho, great article, thanks for all the info! I have a question if you don’t mind: if me and a friend set up an Estonian company, but I am tax resident of the Netherlands and she is tax resident of Hungary, how can we be certain that our company won’t be considered either a Hungarian or a dutch tax resident company? I see some vague information about this online, about how the center of interest has to be in one country in order to be corporate tax resident but A) what does the center of interest really mean in this case? B) is there something concrete I could read about this somewhere, like some kind of legislation perhaps? So far I couldn’t find anything and that is our main concern in regards to setting up an Estonian company. I really appreciate your answer!

    1. nacho September 10, 2020 at 2:53 pm

      Dear Osiris,
      There is no hard written rule about this, but one of the reasons why your company can be considered tax resident of a third country is (apart from the presence of offices or premises and employees in that country) if the majority of decisions are taken in that country. That means that in a two-member situation where both members are in different countries, you can’t really affirm that most of the decisions of the company are being taken in a certain country (at most, 50% of them).
      You can have a look at this article that links the tax avoidance directive to read in depth about it, but currently it is a gap that has not been properly addressed: https://yourcompanyinestonia.com/are-you-european-now-you-can-manage-your-estonian-company-from-your-home-country/.
      The edge cases are clear (one member living 100% in the home country vs tax-resident-less nomads), but in my opinion you have the perfect situation, none of these countries can claim the majority of decisions of the company have been taken there. I would, however, suggest you to talk to a lawyer in both your countries to be sure, of course.

  34. dimitrios angelidis October 17, 2020 at 6:53 pm

    Hola Nacho,

    i live in spain but i work remotely from home last 5 years, for a british company who pay me directly to my Revolut account

    Will it decrease, legally, my taxes if i open a company in Esthonia and declare here in spain my ”salary” i appoint myself?


    1. nacho October 19, 2020 at 7:48 am

      Hi Dimitrios. I have to stay you are doing the wrong questions here. If your main goal is avoiding taxes, Estonia is not the right place for you.

  35. Aiman Ragab October 20, 2020 at 6:58 pm

    Hello Nacho,

    first of all, congratulations on this great blog, you gave me exactly what I needed…
    I am an IT Consultant specialised in Software Quality Assurance. Living in Germany and having the German citizenship, but originally from Egypt. I was considering the life of a digital nomad and you gave me the start. Today I just applied for my e-residency and I am planing the rest of the process, but still I would like to have a consulting session with you. The thing is you keep mentioning it in the comments, but I don’t find the link for it, I hope I am not that blind, and you just removed it, but still I would love to have a session like this with you to talk on some specifics. could you please inform me how we can get in touch ?

    thanks a lot
    Best Regards,
    Aiman Ragab

    1. nacho October 31, 2020 at 7:13 pm

      Hi Aiman,

      Thanks for your kind words! Yes, I removed it, indeed. I am not doing consulting sessions anymore. At least for the moment, I want to have some more time for myself.
      Thanks again!

  36. Rob October 21, 2020 at 12:27 am

    Hi, interesting..
    I have a limited company in UK. I bill my services from the company to UK customers and I pay corporation tax in UK at company year end.
    At fiscal year end I pay myself dividends and i pay personal tax on them as i am UK resident living there all the year.
    So, let’s say i worked with my company for some years and i have not distributed the entire profit as dividends every year and therefore i have cumulated in the company around 100K as retained earnings.

    Next year I decide to travel around the world and i spend less than 6 months in each country and i do some small freelancing services. At year end i decide to distribute to myself the dividends cumulated in my UK company. Usually i have to pay personal UK tax on those 100K but, because I am not fiscal resident anywhere having spent less than 6 months in UK and less in any other country, i can get those 100K tax free?

    1. nacho October 31, 2020 at 7:14 pm

      Dear Rob,
      If you are not a tax resident in any country, you have no obligation of doing your personal annual tax report, so the sort answer is yes. The long answer is: yes, but do things correctly. The digital nomad lifestyle is not a means to avoiding taxes per se, it should be a lifestyle you truly seek. Not everything is a bed of roses.
      Best regards!

  37. Alberto February 24, 2021 at 1:23 pm

    Good job!! Well explained

    One question here! What if you are out of the country more than 183 days (due to work) but your wife and kids are still considered tax resident of the country you left behind (Spain) because they actually continued to live there. Would it be enough to divorce and give full rights of the kids to her ? Or there is nothing you can do as long as your wife and kids stay in the country you are trying to “get rid of”.?

    Best Regards

    1. nacho February 24, 2021 at 2:16 pm

      Hi Alberto. That’s indeed a complex question, without an easy answer. Probably your best bet is consulting a Spanish (in this case) lawyer. If it was only your wife, and you divorced her, reason says you would no longer be tied to Spain due to your marriage. However, if there are underage children, it becomes a very complex topic. My suggestion: consult a lawyer in Spain.

  38. Aratone February 26, 2021 at 2:42 am

    Hi Nacho,
    Firstly I wanted to say thanks so much for the amazing article. It has really helped a lot. I also see you answer a lot of people in your free time, which is very kind of you and hopefully many good things happen to you! 🙂

    I had one question myself, by “home country” you mean country of citizenship, correct? I have been resident in U.K. for many years now but I am not a citizen here. I’m from a country with residence-based tax. Would the U.K. be considered my “bridge” country?

    So can I simply leave UK without being considered a “de-facto” tax resident here, and become a tax resident of nowhere to avoid tax? Here I read that because of “common reporting standards” this is not possible and I must have tax residence somewhere else:

    Thank you 🙂

    1. nacho March 1, 2021 at 8:10 pm

      Hi Aratone, thanks to your for your comment! Yes, generally speaking, your home country is your country of citizenship. It is unlikely that another country, such as the UK, will consider you a de-facto resident, but as you’ve been living there for a long time, caution is advisable. Be sure to do the right steps, like making your intention of not being a tax resident in the UK anymore quite explicit, as specified in the article.

      Best of lucks!

  39. Felipe March 27, 2021 at 5:55 pm

    Hey Nacho, genial el artículo !
    Según entiendo, al tener una compañía en Estonia y pagarme a mí mismo un salario como empleado, pago los taxes corporativos en Estonia y pago los taxes al ingreso según corresponda en la jurisdicción donde esté residiendo en el momento de recibir estos ingresos.
    Según entiendo, lo de no estar más de 183 días es para no volverse ‘tax resident’ en ningún país, ya que de hacerlo, los países suelen exigirle a sus tax residents que paguen impuestos por todos sus ingresos. Esta totalidad de ingresos incluiría los dividendos de empresas en el extranjero, alcanzando así los de la empresa que creé en Estonia.
    Entonces mi pregunta, ¿cómo resolvés el tema de los impuestos al ingreso? Si, por ejemplo, estás 5 meses en un país, ¿hacés una declaración de impuestos por el ingreso que tuviste en ese país en esos 5 meses?

    1. nacho March 28, 2021 at 10:24 am

      Hola Felipe, muchas gracias. No entiendo muy bien la pregunta. Si estás cinco meses al año máximo en un país antes de viajar a otro(s) no llegas a ser considerado residente fiscal en el país (como mucho un turista de larga duración), por lo que no tienes que hacer una declaración de impuestos por esos cinco meses.

  40. Matt April 4, 2021 at 8:22 am

    Hi Nacho,
    This has been the best blog ever. Just wanted to be sure I was on the right track…I am a Canadian Citizen and lived in the US on green card for 20 years and just left last year during covid and gave up the GC forever. Now, I’m in Thailand ( no capital gain tax on foreign sourced income )and getting my tax residency for this year and certificate to prove just in case the de-facto issue comes up as you stated from the US or CAN( which they shouldn’t being a non – resident for 20yrs already).
    So according to your blog, starting 2022 if I travel continuously as a transient tourist living under 180 days at each location globally, effectively, I have avoided taxes legally until I return to Canada one day where I become a PR once again. At that point they would evaluate my assets and during the whole time I was gone from US until back into CAN, the capital gains growth of my securities would have been tax free?
    If what you said after the Thailand tax residency was established and I can travel the world freely and not need to keep getting a new tax residence or repeating another tax year in Thailand, then you have been a great help my friend. I will refer your site to all my friends that need nomadic help as you may know this topic the best or if you have any Canadian clients that need any guidance I can assist you with my contacts that helped me as well.

    1. nacho April 4, 2021 at 2:01 pm

      Hi Matt, as a Canadian citizen, residence-based taxation applies to you. That means if you stop being a tax resident anywhere and are careful to remain that way, you should have no trouble. However, I don’t know the possible implications of having had the green card for so long, so perhaps you may want to consult a tax advisor in the US.

      Best o lucks and congrats on your newly acquired freedom! 🙂

  41. Icaro July 5, 2021 at 12:09 pm

    hey nachos, thanks a lot for sharing all of this 🙂


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