Latin america: A look at the taxes for nomads digital
Latin america is a region with a large number of nomads digital due to its proximity to cultural, natural beauty, and cost of living relatively low. Below, we review the tax systems of some of the most popular countries for nomads digital in Latin America:
Mexico
Mexico has become a very popular destination for travellers, digital, especially in cities such as Mexico City, Playa del Carmen and Guadalajara. The mexican fiscal system is progressive, meaning that tax rates increase as your income grow. However, Mexico has a program of temporary visa that allows the nomads digital reside in the country for up to 4 years, which is great if you plan to stay more time.
Pros:
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- Double taxation agreements with key countries, making it impossible to pay double taxation.
- Temporary resident Visa accessible.
- Cost of living relatively low.
Cons:
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- The tax system is progressive can be elevated for those with higher incomes.
- It is required to declare by the world income.
Colombia
Colombia offers a visa digital nomad and has a tax regime relatively accessible for remote workers. Taxation in Colombia is applied on income generated within the country, which means that if your income comes from outside, you can be exempt from paying taxes in Colombia. This makes it a favorable option if your clients are international.
Pros:
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- Exemption of tax on income generated outside of Colombia.
- Cost of living is very accessible.
- Double taxation agreements with several countries, which minimizes the risk of paying taxes in two places.
Cons:
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- The tax system is a bureaucratic and can be tricky to manage if you do not have tax advice.
Asia: What are the options prosecutors offer asian countries?
Asia has also attracted an increasing number of nomads digital thanks to its technological infrastructure, cost of living and competitive and the possibility to find different styles of life according to the city or country you have chosen. We're going to explore some of the options tax for nomads digital in Asia:
Thailand
Thailand is one of the most popular destinations for nomads digital, especially in cities such as Bangkok and Chiang Mai. Thailand has a tax system that is progressive, and the nomads digital must pay taxes on income generated within the country. However, the tax rate is quite low in comparison with other countries, which makes it an attractive option for many.
Pros:
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- Low cost of living.
- Ease of obtaining visas, long-term, including a visa remote worker.
- Attractive for nomads digital due to its infrastructure coworking and community.
Cons:
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- Many times the language can be a barrier.
United Arab Emirates (Dubai)
While Dubai is located in continental Asia, it is a major destination in the region for the nomads digital due to their tax benefits. In Dubai, the nomads digital can benefit from a regime of zero tax on personal income, which makes it one of the options to tax more attractive in the world.
Pros:
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- There is No tax on personal income.
- Excellent infrastructure and quality of life.
Cons:
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- High cost of living.
- Requires a work visa or visa digital nomad to live and work legally.
- Taxes by a corporation , each year they grow.
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What is the best option tax for the nomads digital?
Taxation in Asia, and especially in Dubai and Thailand, it is much more beneficial for the nomads digital in comparison with many options of Latin America. Dubai offers a regime of zero tax on personal income, which makes it one of the most attractive options for those looking to optimize your taxation.
On the other hand, Thailand, although it doesn't have a tax of 0% , there are many options within the law to aliens who do not work in the country to get it. It also has great facilities for visas specifically for remote workers. Also, some income such as the criptomonedas are exempt from the payment in the country.
However, if your passion is to live in LATAMthere are great opportunities that you can take you in a legal way.
If you want to explore these options tax to fund and optimize your tax situation while living as a digital nomad, do not hesitate to get in contact with us.
In IURIT we have the experience and knowledge to help you to choose the best tax strategy for your needs.
¡Click here and let us guide you towards a fiscal management efficient and hassle-free!
