Digital Nomad Visa Tax Basics

This page has been reviewed and verified by Michael Gibbons, Regulated Immigration Advisor. You can confirm documentation and taxation procedures through our Digital Nomad Visa Guidance.

When living abroad under a Digital Nomad Visa, understanding tax obligations is essential. Although these visas often simplify residency, tax rules can vary significantly between countries. This guide explains how taxation works for digital nomads, including residency rules, double taxation agreements, and reporting obligations.

A Digital Nomad Visa allows you to live and work remotely in another country while earning income from foreign clients or employers. However, holding this visa doesn’t automatically exempt you from paying taxes. Depending on how long you stay and where your income originates, you may still owe tax in one or more countries.

Tax Residency and the 183-Day Rule

Most countries determine tax residency based on the number of days you spend within their borders — typically 183 days or more in a single calendar year. Once you exceed this threshold, you may become a tax resident and be required to declare worldwide income in that country.

To avoid unexpected liabilities, digital nomads should track their time abroad and understand each country’s residency criteria. Some destinations offer non-resident tax status or special expat programs that reduce or eliminate local tax obligations for remote workers.

Countries Offering Tax-Friendly Nomad Visas

Certain nations have designed Digital Nomad Visas with clear tax benefits, including:

• Portugal — Offers non-habitual resident tax status with reduced rates for 10 years.
• Greece — Provides a 50% income tax exemption for eligible remote workers.
• United Arab Emirates — No personal income tax for digital nomads and remote professionals.
• Croatia — Exempts foreign remote income from local taxation for one year.
• Georgia — Simplified “Remotely from Georgia” program with minimal tax reporting for short stays.

Double Taxation Agreements (DTAs)

Many countries have double taxation treaties that prevent you from being taxed twice on the same income — once in your home country and again in the host country. If you qualify for tax relief under a DTA, you can typically claim foreign tax credits or exemptions by providing proof of residence and income source documentation.

Before applying for a Digital Nomad Visa, it’s wise to review whether your home country has an existing DTA with your chosen destination.

Common Tax Mistakes Made by Digital Nomads

• Assuming that remote work income is always tax-free.
• Failing to register as a tax resident or declare income in time.
• Ignoring local business registration rules for freelancers.
• Not keeping digital copies of invoices, contracts, or payment records.
• Failing to file home-country tax returns while abroad.

Tips to Stay Compliant

• Track your travel dates and keep proof of residency changes.
• Hire a tax advisor familiar with international and expat taxation.
• File annual tax returns even if you earn below taxable thresholds.
• Retain proof of remote income (bank statements, invoices, employer letters).
• Consider setting up a business entity if freelancing across multiple jurisdictions.

Example: Portugal Digital Nomad Tax Scenario

Under Portugal’s Digital Nomad Visa, applicants who earn income abroad but live locally may qualify for reduced tax rates (often between 10–20%) under the Non-Habitual Resident program. To remain compliant, applicants must:

• Register as a tax resident after 183 days of stay.
• Open a local tax identification number (NIF).
• Declare global income annually, even if exemptions apply.

Related Guidance

• Digital Nomad Visa Benefits
• Countries Offering Digital Nomad Visas
• Insurance Requirements for Digital Nomads
• Proof of Income for Digital Nomad Visas

People Also Asked

Do I have to pay tax in both countries while on a Digital Nomad Visa?
No, most countries have tax treaties that prevent double taxation. You typically pay tax where you are considered a resident.

What if I’m self-employed?
Freelancers and contractors must report income in their home country unless they register a business locally or exceed residency thresholds.

How can I avoid double taxation?
Use tax residency certificates and file under a Double Taxation Agreement (DTA) if available between your home and host country.

Do I need an accountant?
Yes. A qualified international tax advisor can help you navigate complex reporting rules and avoid penalties.

About This Page

Author: Visa Applications Editorial Team
Reviewed by: Michael Gibbons, Regulated Immigration Advisor.
Last Updated: December 2025.