What are the tax implications for digital nomads?

What are the tax implications for digital nomads?

Digital nomads may face unique tax situations depending on their residency and the countries they work in. Are you currently based in a specific country?

I'm currently in Portugal but I work for a company based in the US.

In that case, you might be subject to both US taxes and Portuguese taxes. The US taxes its citizens on worldwide income, but you may qualify for the Foreign Earned Income Exclusion. Have you looked into that?

No, I haven't. How does the Foreign Earned Income Exclusion work?

The Foreign Earned Income Exclusion allows you to exclude a certain amount of your foreign earnings from US taxation, provided you meet specific criteria. You need to file Form 2555 to claim it. Would you like more details on the eligibility requirements?

Yes, please! What are the eligibility requirements?

To qualify, you must have foreign earned income, meet the tax home test, and pass either the bona fide residence test or the physical presence test. Would you like to know more about these tests?