Digital nomads: what are the tax challenges?

Crossborder tax is a complex issue for employers as more staff work overseas to take advantage of flexible and hybrid working patterns, warns Dominik Skalet, international tax manager, Remote

The population of digital nomads – professionals who travel around the world while working digitally – has accelerated in recent years, driven by the increased adoption of remote and distributed work models by businesses since the pandemic. In fact, according to a State of Independence in America report, 7.3 million Americans describe themselves as digital nomads.

Even beyond those who identify with the digital nomad label, other types of workers are leveraging the greater flexibility offered by the remote model to work their day job while overseas. These work vacations – or ‘workations‘ - enable employees to take longer holidays or visit new destinations without taking extra leave.

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