Any digital nomad who is in need of financial advice needs to listen to this episode. Eli David has been a digital nomad and CEO for many years, so it’s safe to say he has plenty of experience when it comes to managing finances in this community.

Disclaimer: This is not legal advice, only tips based on previous experiences by our host. Before making big decisions, we recommend contacting a lawyer and/or expert on the subject.

Listen to the full episode here: Choose Your Residency! A Quick Nomadic Guide

Quick Tangent: Passports

As you travel around and establish yourself in different countries, you could become eligible for a passport. The first thing Eli emphasized in this podcast is how much easier your life will become will traveling the world if you have an additional passport. While there are some countries that will sell you passports, Eli pointed out jokingly, most of them can only be acquired if you have blood ties to a place, so maybe look back on your family history and see if you can get another passport, if only to have in case of an emergency.

Residencies And Taxes

Regardless of your citizenship, as a digital nomad, you will most likely at some point establish your residency in a foreign country, and there are many things you need to know when picking the place to settle. You will spend a lot of time in the country you choose to reside in, you’ll need to get healthcare, and most importantly, it’s where you’ll get taxed.

So, it’s not a choice you should take lightly.

First of all, you’ll need to do your research regarding which countries will accept you as a resident and what are the prerequisites. That will depend on your citizenship and, if you have a spouse, theirs as well. Your spouse can get you residency permits and even citizenship depending on the years you’ve been married.

Jobs are also a good way to get a residency through employment. You can also get residency through investments, but we’re talking about a huge amount of money.

Once you establish what kind of residency you’re eligible for, you should check how long you need to stay in the country to retain it and mentally prepare yourself to be in one place for months at a time. It might seem tedious, but it’s also worth it.

Corporate, capital gain and personal taxes will differ in the country. Some of them are extremely tax-friendly, and others are going to make it more difficult. It’s important to check this before choosing to apply for a residency. Maybe you like one place so much and can picture yourself staying there long-term, but if your goal is to set up your business there, you don’t want to find out while you’re going through the process that they are going to make it almost impossible for you to make any money.

Don’t Get Double Taxed!

If you don’t cut ties with your country of origin but set up residency in another one, it’s possible you’re going to get double-taxed. Each country has a different policy when it comes to how they tax residents, so keep that in mind when doing your research.

In addition to learning the policies of the new place, you should also brush up on the rules of your origin country and how your new residency will impact your legal ties to the place you’re originally from.

A Few Interesting Options

Again, all of this should be taken with a grain of salt. The following will be a list of countries that Eli has, in his experience, found to be very tax and residency-friendly, but your ability to get a resident permit and do business in those places will depend on your citizenship.

• Singapore

• United Arab Emirates

• Cyprus

All these countries, Eli explains, have no capital gain and very low corporate taxes, so it’s something to think about.

Paraguay is also a very interesting country, as you can become a resident in one day.

Keep all this advice in mind when making your residency plans, but always be mindful of your unique circumstances. Best of luck and you got this!