The Best Tax Services for Digital Nomads
No matter where you’re from (or where you’re going), you’re probably going to have to deal with the confusion of multiple tax jurisdictions, tax treaties, and foreign income exclusions.
As digital nomads, we’ve spent years coming to terms with the unfortunate complexities of digital nomad taxes. But, at some point, we learned the hard way that the best way to approach this is to ask for professional help.
There are actually specialized services which are designed to take on the burden of cross-border taxes for location-independent workers and in this article, we’re sharing why you might want to seek professional help, and the most reputable tax services for digital nomads, including their offerings and what they are specialized in.
How Tax Services Can Help You Stay Compliant
There is no one-size-fits-all tax process for digital nomads. Simply put, there are just too many variables that go into each individual person’s situation. Here are just a few of the elements that can affect your taxes:
- Tax residency vs domicile vs citizenship
- Tax treaties and double taxation
- Employment vs self-employment
- LLC, corporation, or personal taxes
- Handling assets like property, investments, and crypto
While it is definitely possible to figure everything out on your own, using specialized digital nomad tax help is going to make the process way simpler and faster. Beyond just this, you're limiting the number of things that could go wrong when filing taxes on your own, and making mistakes on your taxes can lead to huge problems down the line, like fines and penalties (and you definitely don't want that).
What to Look For in a Tax Service for Digital Nomads
As we keep stressing, your tax situation is going to be unique to you…and so is the right tax services company. To make sure you choose the best option for you, we’re always going to recommend thorough research before making a decision.
But we also know that everything about nomad taxes can feel overwhelming, so here are the things we think you should definitely look for when hiring professional tax services:
- Expertise in international tax laws
- Must understand remote income and multiple currencies
- Should help with choosing or managing tax residency
- Remote company setup services
- Digital nomad tax planning for future benefit
- Knowledge of digital nomad visas and tax incentives
- User-friendly platform with remote access
- Transparent pricing
Now enough with the premises and let's get into the actual professional tax services you might want to look into.
The 5 Best Tax Services for Digital Nomads
There are a lot of tax services on the market, but these are the ones with our digital-nomad stamp of approval:
1. Heavnn - Overall Best for Global Nomads
We love Heavnn. It’s specifically created to provide global tax solutions for nomads, and goes beyond just tax filing for remote workers abroad. Through a digital interview and one-on-one call, Heavnn designs unique global tax optimization plans to help you pay less in taxes legally.
They’ll get to know your situation and make tax residence suggestions based on your citizenship, current location, and future travel plans. You can use Heavnn for personal or company taxes, and they’ll even take on the remote setup of your business in a foreign country, so that you don’t need to be at the physical office.
2. Greenback Expat Services - Best for US Nomads
Greenback Expat Services leads the pack when it comes to dealing with complicated US taxes for Americans living abroad. They understand the exact needs of digital nomads, navigating those complicated rules, laws, and loopholes so you don’t have to.
Their prices are slightly higher than other tax services, starting at $530 for a federal tax return, however, Greenback is a reliable provider for more complicated scenarios like foreign business, bank accounts, or property owners.
3. SavvyNomad - Best for US Domicile Advantage
SavvyNomad’s services are specialized in helping US nomads changing their State domicile to Florida in order to take advantage of zero state income, capitol gains, or estate taxes. What's great about it is that they walk you through the process and take care of the paperwork, so you can focus on the tax advantages.
You can also use SavvyNomad to file your taxes as an American abroad. They’ll deal with both Federal and State taxes, with FEIE and FTC assistance to keep you compliant wherever necessary.
4. Global Tax Consulting - Best for UK Nomads
GTC is not only HMRC approved, it also has global expertise to provide UK nomads living abroad with international tax services. They’re all about bespoke tax plans that benefit from a UK citizen’s non-resident status, with specialized knowledge on cross-border double taxation and residency rules.
GTC is also great for digital nomads moving to the UK, nomad business owners, and UK retirees abroad – you’ll even find free guides to moving to specific countries available through their website.
5. Taxes for Expats - Best for Comprehensive Expat Services
Just as the name suggests, Taxes for Expats handles…taxes for expats. And they do a lot more than just US tax returns. You can use them for anything from US expatriation to Green Card holders’ tax preparation, and even specialist services for Amazon resellers.
You can get started with a free consultation call, and with 50,000 customers living in 193+ countries, you know Taxes for Expats has pretty much seen it all. Their website also has a ton of helpful tax guides and information to help you get your head around what your nomad taxes might look like.
DIY Tax Tools vs Hiring a Professional
Of course, using professional tax services isn’t the only way to do your taxes. There are also plenty of DIY tax software that can help you out such as FreshBooks. These provide tools for things like expense management, reports, and invoicing which help you to become your own accountant.
These are great for self-employed people still living in their home country, or even digital nomads with more of a straightforward tax situation, however, they are definitely limited when it comes to nuance. Most of these tools are not designed for tax filing for remote workers abroad across multiple countries, currencies, and income streams, meaning you still have to do the majority of the ‘working out’ yourself. Aka, you’re vulnerable to mistakes.
Working with a professional who is already familiar with expat tax laws might cost a bit more upfront, but can actually save you money in the long run. Not only can they help you avoid fines for mistakes, but nomad accounts also know how to take advantage of things like tax deductions, treaties, and credits.
DIY Tax Tools vs Nomad Tax Services
| DIY Tax Tools | Nomad Tax Services | |
|---|---|---|
| Price | From $21/month | From $450/tax return |
| Payment Style | Monthly | One-Off |
| Expense Tracking | ✅ | ✅ |
| Reports | ✅ | ✅ |
| E-Filing | ❌ | ✅ |
| Personalizes Plans | ❌ | ✅ |
| Paperwork Handling | ❌ | ✅ |
TLDR: DIY tax tools are…
- ✅ Good for: Simple returns, FEIE claims, expense management
- ❌ Not ideal for: Multiple income streams, foreign assets, complex tax situations
Digital Nomad Taxes – FAQs
Do digital nomads have to pay taxes?
In almost all cases, the answer is yes. Most digital nomads will be required to pay taxes in either their country of residence, citizenship, or income source. All American nomads with US citizenship are required to file taxes in the US, regardless of where they are currently living.
What is the best tax residency for nomads?
This will depend on your personal situation, however, there are some countries considered better for digital nomads in terms of tax residency such as Cyprus, Spain, and the UAE. The Nomad tax services we listed in this article can advise on the best tax residency for your specific situation.
What happens if I don’t file taxes while abroad?
If you maintain tax residency in a country, you are legally required to file taxes even when abroad, and deliberately failing to do so is an illegal act known as tax evasion. This is a crime that could be punishable by penalties, fines, and even imprisonment.
Can I avoid taxes by becoming a digital nomad?
Most digital nomads are required to pay taxes, however, through legal methods of tax optimization, they may be able to reduce the amount of taxes paid. Nomad tax services are experts in this field and can best advise you on how to take advantage of your nomad status when it comes to taxes.
What documents do I need to file taxes from abroad?
Knowing what documents you’ll need to file from abroad can be extremely confusing and will depend on what jurisdiction you are filing in. Tax services can provide you with a comprehensive list of these, but for US nomads, for instance, you’ll likely need FEIE, FTC, your normal tax forms (1040, W2, etc), and possibly FBAR and FATCA forms.
Ready to Optimize Your Taxes and Get Back to Traveling?
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