Remote Work Taxes
The complete resource for understanding taxes as a remote worker, digital nomad, or international contractor
Remote workers face unique tax challenges including tax residency rules, double taxation risks, and choosing between contractor and employee status. Your tax obligations depend on where you physically work (not just where your employer is), your citizenship, and your employment classification. This guide covers everything from basic tax concepts to country-specific rules, helping you navigate W-2 vs 1099 decisions, understand the 183-day residency rule, and discover tax-advantaged destinations for remote work.
Tax Basics for Remote Workers
Foundational guides to understand remote work taxation
Remote Work Tax Basics 2026: What Every Remote Worker Should Know
Essential tax concepts for remote workers including nexus, residency, deductions, and how your work arrangement affects your tax obligations.
Read guideUS Remote Work Tax Guide 2026: State, Federal & Deductions
Complete guide to US tax implications for remote workers, covering state nexus, multi-state filing, home office deductions, and common mistakes to avoid.
Read guideUS Remote Tax Guide
Complete guide to US tax implications for remote workers, covering state nexus, multi-state filing, home office deductions, and common mistakes.
Read guideEmployment Type & Taxes
Understand how W-2, 1099, EOR, and contractor status affect your taxes
Your employment classification dramatically impacts your tax obligations. W-2 employees have taxes withheld automatically and the employer pays half of FICA taxes (7.65%). 1099 contractors pay full self-employment tax (15.3%) but can claim more deductions. EOR employees are employed through a third party that handles tax compliance in your country.
W-2 vs 1099 for Remote Workers
Comparing W-2 employment and 1099 contractor status. Tax implications, benefits, job security, and how to choose.
Read guide →EOR vs Contractor vs Employee
Key differences between working through an Employer of Record, as an independent contractor, or as a direct employee.
Read guide →International Contractor Agreements
Essential clauses and considerations for international contractor agreements including tax handling and compliance.
Read guide →US Company vs Local Employer
Pros and cons of working for a US-based company versus a local employer, including tax implications.
Read guide →Country Tax Considerations
International taxation, tax treaties, and digital nomad tax benefits
Portugal
NHR Tax RegimeNon-Habitual Resident program offers 20% flat tax for qualifying professions for 10 years.
View country guide →
UAE / Dubai
0% Income TaxNo personal income tax for residents. Attractive for high earners working remotely.
View country guide →
Georgia
Territorial TaxTerritorial tax system means foreign-sourced income isn't taxed. Only 1% tax for small businesses.
View country guide →
Estonia
E-ResidencyE-Residency allows digital entrepreneurs to run EU-based businesses with 0% tax on retained profits.
View country guide →
Croatia
DN VisaDigital nomad visa offers tax exemption on foreign income for up to 1 year.
View country guide →
Costa Rica
Territorial TaxTerritorial tax system - only Costa Rica-sourced income is taxable. Popular for US remote workers.
View country guide →Digital Nomad Visa Guide
Complete guide to digital nomad visas including tax implications and residency requirements.
Read guide →Working Remotely from Another Country
Legal, tax, and practical considerations for working remotely from a different country.
Read guide →Getting Paid Internationally
Payment methods, currency considerations, and tax implications for international payments.
Read guide →Tax Tools & Calculators
Free tools to help you plan and calculate your tax situation
Tax Residency Calculator
Track your days in each country to understand tax residency implications. Know the 183-day rule and avoid surprise tax obligations.
Contractor Rate Calculator
Calculate the hourly rate you need as a contractor to match your employee salary. Includes self-employment tax, healthcare, and retirement.
Geo-Arbitrage Calculator
Calculate how much you can save by earning in USD/EUR while living in a lower-cost country. See your purchasing power multiplier.
Salary Calculator
Calculate your expected remote work salary based on role, experience, and location factors.
Tax & Employment Glossary
Key terms and definitions related to remote work taxes
Contractor Agreement: What to Include and Watch For
A legal contract between a client and an independent contractor that defines the scope of work, payment terms, intellect...
Contractor vs Employee: Key Differences Explained
The fundamental distinction between working as an independent contractor (self-employed, responsible for own taxes and b...
Employer of Record (EOR): What It Is and How It Works
A third-party organization that serves as the legal employer for workers in countries where a company doesn't have a leg...
Freelancer: Definition, Pros, Cons, and How It Works
A self-employed individual who offers services to clients on a project or contract basis, without long-term commitment t...
Global Payroll: Managing International Employee Payments
The process of paying employees across multiple countries while ensuring compliance with each country's tax laws, labor ...
Home Office Stipend: WFH Setup Costs, Tax Deductions & What Companies Pay (2026)
A dedicated workspace within one's residence used for remote work, which may qualify for employer stipends averaging $50...
Independent Contractor: Legal Definition and Status
A worker who provides services to a client under a contract for services, operating as a separate business entity, maint...
PEO (Professional Employer Organization): Meaning, How It Works & Costs
A Professional Employer Organization (PEO) is a company that provides comprehensive HR services through a co-employment ...
W2 vs 1099: US Tax Classification Explained
The US tax classification distinction between W-2 employees (taxes withheld by employer, receive benefits) and 1099 cont...
Digital Nomad
A person who works remotely while traveling and living in different locations, often internationally...
Geo-Arbitrage
The practice of earning income in a strong currency while living in a lower cost-of-living location...
Cost of Living Adjustment (COLA)
Salary adjustments based on the cost of living in the employee's location...
Key Tax Concepts for Remote Workers
Essential knowledge every remote worker should understand
The 183-Day Rule
Most countries use 183 days (roughly 6 months) as the threshold for establishing tax residency. Spending 183+ days in a country typically makes you a tax resident liable for taxes on your income. Some countries have stricter rules or additional criteria like having a permanent home.
Foreign Earned Income Exclusion (FEIE)
US citizens working abroad can exclude up to $120,000 (2024) of foreign earned income from US taxation. You must pass either the Physical Presence Test (330 days outside US) or Bona Fide Residence Test. This doesn't eliminate the requirement to file a US tax return.
Self-Employment Tax
US 1099 contractors pay 15.3% self-employment tax (12.4% Social Security + 2.9% Medicare) on top of regular income tax. This covers both the employer and employee portions of payroll taxes. You can deduct half of this tax on your return.
Tax Treaties
The US has tax treaties with over 60 countries to prevent double taxation. Treaties may reduce withholding rates, establish tie-breaker rules for dual residency, and provide credits for taxes paid. You must actively claim treaty benefits on your tax return.
Territorial vs Worldwide Taxation
Most countries use territorial taxation (only tax local income) or worldwide taxation (tax all income regardless of source). The US unusually taxes citizens on worldwide income regardless of residence. This affects digital nomads and expats significantly.
Home Office Deduction
Self-employed workers (not W-2 employees) can deduct home office expenses. Use the simplified method ($5/sq ft, max $1,500) or regular method (actual expenses by percentage). The space must be used regularly and exclusively for business.
Frequently Asked Questions
Do I have to pay taxes as a digital nomad?
Yes. Digital nomads are still subject to tax obligations, typically in their country of citizenship (if US citizen) and/or country of tax residence. The US taxes citizens on worldwide income regardless of where they live. Most other countries tax based on residency, usually determined by spending 183+ days in a location. You may also owe taxes in countries where you work, depending on local laws and tax treaties.
What is tax residency for remote workers?
Tax residency determines which country has the primary right to tax your income. It's typically established by physical presence (the 183-day rule is common), having a permanent home, or having your 'center of vital interests' in a location. For remote workers, this means where you physically work matters more than where your employer is located. You can potentially be a tax resident of multiple countries simultaneously.
Can I avoid double taxation working remotely?
Many countries have tax treaties to prevent double taxation. US citizens working abroad can use the Foreign Earned Income Exclusion (up to $120,000 in 2024) or Foreign Tax Credit. Non-US workers benefit from tax treaties between their home country and work country. However, you must still file returns and may need to claim treaty benefits actively. Consult an international tax professional for your specific situation.
Should I be a contractor or employee for taxes?
It depends on your situation. Employees have taxes withheld automatically and the employer pays half of payroll taxes (7.65% in the US), but have limited deductions. Contractors pay full self-employment tax (15.3%) but can deduct home office, equipment, health insurance, and business expenses. Contractors typically need to earn 25-40% more to match employee take-home pay. The choice also affects job security, benefits, and legal protections.
Get the Complete Remote Tax Guide
Comprehensive tax strategies, country comparisons, and expert tips delivered to your inbox. Stay compliant while minimizing your tax burden.
Disclaimer: This page provides general information about tax concepts for remote workers and should not be construed as tax, legal, or financial advice. Tax laws are complex, change frequently, and vary by jurisdiction. Every individual's situation is unique. Always consult with a qualified tax professional (CPA, enrolled agent, or tax attorney) before making decisions that could affect your tax status. RoamJobs assumes no liability for actions taken based on information on this page.