Working remotely while abroad has obvious appeal. But the tax consequences vary depending on where you go. Here’s what to know. Let’s say you’re

So, You Want to Become a Digital Nomad

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2021-05-28 15:30:05

Working remotely while abroad has obvious appeal. But the tax consequences vary depending on where you go. Here’s what to know.

Let’s say you’re thinking about becoming a digital nomad this summer, making the most of your company’s work-from-home policy as borders reopen before the bosses require you back in the office. While weighing the appeal of setting yourself up in Rome or at the foothills of Iceland’s glaciers, keep in mind that different destinations have different tax consequences.

Yes, but plan carefully. If your trip is just for a few weeks, you will probably be OK, accountants say. A general rule of thumb is that you should leave before six months if you want to avoid having to file a tax return in a second country, but there are exceptions.

If your trip is longer than a few months, consider a destination that offers digital nomad visas that will exempt you from local taxes, as long as your employer is based outside of that country.