Filing Requirements by Country
What you need to file and when, based on your home country and residency status
Official Sources
This guide is based on official government publications and tax authority guidance. Always verify current requirements with your home country's tax authority.
Introduction
Tax filing requirements for digital nomads depend on both citizenship and tax residency status. While some countries tax based on citizenship (US), others tax based on residency (UK, Canada, Australia, Ireland). Understanding your obligations is crucial to avoid penalties and ensure compliance.
This guide covers the five main English-speaking countries that nomads typically come from, explaining what you must file, when, and how your residency status affects your obligations.
🇺🇸 United States
Key Point: Citizenship-Based Taxation
US citizens and green card holders must file US tax returns on worldwide income regardless of where they live or work. There are no exceptions based on residency status or time spent abroad.
Core Filing Requirements
Form 1040 - Income Tax Return
- Who: All US citizens/residents
- When: April 15 (June 15 automatic extension for overseas filers)
- Income threshold: $13,850+ (2024 standard deduction)
- Includes: Worldwide income from all sources
Form 2555 - Foreign Earned Income Exclusion
- Who: Those claiming FEIE
- When: With Form 1040
- Purpose: Exclude up to $126,500 (2024) of foreign earned income
- Requirements: Meet physical presence or bona fide residence test
Additional US Forms for Nomads
FBAR (FinCEN Form 114)
Required if you have $10,000+ in foreign bank accounts at any time during the year
- Deadline: April 15 with automatic extension to October 15
- Filing: Online through FinCEN website
- Penalty: Up to $12,921 per account per year
Form 8938 - FATCA
Required for specified foreign financial assets above thresholds
- Threshold: $200K-$600K depending on filing status
- Includes: Bank accounts, investments, insurance policies
- Filing: With Form 1040
Form 3520 - Foreign Trust Reporting
Required for certain foreign trust relationships
- Triggers: Transfers to/from foreign trusts, trust distributions
- Common for: Some foreign pension plans, investment structures
- Penalty: 35% of trust distributions or transfers
State Tax Considerations
Some states continue to tax former residents even after moving abroad:
- High-risk states: California, New York, Virginia, South Carolina
- No-tax states: Florida, Texas, Nevada, Washington
- Strategy: Establish residency in no-tax state before leaving US
🇬🇧 United Kingdom
Key Point: Residency-Based Taxation
UK tax obligations depend on your residency status under the Statutory Residence Test (SRT). Non-residents generally have no UK filing requirements unless they have UK-source income.
Filing Requirements by Status
UK Residents
- Self Assessment: Required for worldwide income above personal allowance
- Deadline: January 31 following tax year end
- Tax year: April 6 to April 5
- Online filing: Required for most taxpayers
Non-Residents
- Generally no filing required for foreign income
- Exception: UK rental income, employment, or business income
- Split-year treatment: Available in year of departure/arrival
- Form SA109: For non-resident income
Special Considerations
Split-Year Treatment
Available when you become UK resident/non-resident during a tax year
- Allows different tax treatment for UK and overseas parts of year
- Must meet specific criteria for qualifying events
- Can significantly reduce UK tax in departure year
Remittance Basis
Available to UK residents who are non-UK domiciled
- Only foreign income brought to UK is taxed
- Annual charge applies (£30K-£60K) for long-term residents
- Must claim annually on Self Assessment
🇨🇦 Canada
Key Point: Residency-Based with Departure Procedures
Canadian tax obligations depend on residency status, but you must formally notify CRA when ceasing to be a Canadian resident. Departure procedures are critical for nomads.
Departure Procedures
Form T1161 - List of Properties by an Emigrant of Canada
Required when leaving Canada if you own property worth $25,000+ CAD
- Must list all worldwide property
- Triggers deemed disposition (departure tax) on some assets
- File with your final T1 return
- Can elect to post security instead of paying tax immediately
Filing Requirements by Status
Canadian Residents
- Form T1: General Income Tax Return
- Deadline: April 30 (June 15 for self-employed)
- Includes: Worldwide income
- Form T1135: Foreign property over $100K CAD
Non-Residents
- Generally no filing required for foreign income
- Exception: Canadian-source income
- Form T1159: For electing under tax treaties
- Part-year returns: In year of departure/arrival
Common Issues for Nomads
- Residential ties: Must sever primary and secondary ties
- Provincial health care: May lose coverage when non-resident
- RRSP contributions: Limited for non-residents
- Departure tax: Can be significant on appreciated assets
🇦🇺 Australia
Key Point: Complex Residency Tests
Australia has four separate residency tests, and you only need to satisfy one to be considered an Australian tax resident. This makes it harder to lose Australian tax residency than other countries.
The Four Residency Tests
1. Ordinary Residence Test
Based on your ordinary pattern of life
- Most subjective test
- Considers intention to reside
- Historical pattern of residence
2. Domicile Test
If Australia is your domicile unless you have permanent residence elsewhere
- Domicile is usually country of birth
- Hard to change domicile
- Must have permanent home abroad
3. 183-Day Test
Resident if you spend 183+ days in Australia
- Applies to any 12-month period
- Includes arrival/departure days
- Easiest test to track
4. Commonwealth Superannuation Test
For government employees with superannuation schemes
- Limited application
- Mainly for public servants abroad
- Automatic resident if applies
Filing Requirements
Australian Tax Residents
- Individual Tax Return: Due October 31
- Tax year: July 1 to June 30
- Worldwide income: Must declare all income
- Foreign income tax offset: Available for foreign taxes paid
Non-Residents
- Australian income only: Must file if earning Australian income
- No tax-free threshold: Tax from first dollar
- Higher tax rates: No low income tax offset
- Limited deductions: Fewer deductions available
Strategies for Nomads
- Establish permanent home abroad: Critical for domicile test
- Sever Australian ties: Bank accounts, memberships, properties
- Document intention: Keep evidence of permanent departure
- Avoid 183-day trigger: Stay under 183 days per year
🇮🇪 Ireland
Key Point: Days-Based with Domicile Advantages
Irish tax residency is primarily based on days spent in Ireland, with special advantages for non-Irish domiciled individuals who can use the remittance basis of taxation.
Residency Tests
Single Year Test
- 183+ days: Automatically resident
- Includes: Arrival and departure days
- Tax year: January 1 to December 31
Two-Year Test
- 280+ days: Over two consecutive tax years
- Minimum: 30+ days in each year
- Retroactive: Can make you resident in earlier year
Filing Requirements
Irish Tax Residents
- Form 11: Annual return by October 31
- Worldwide income: Generally taxable
- Double taxation relief: Available for foreign taxes
- PAYE: For employment income
Remittance Basis (Non-Domiciled)
- Foreign income: Only taxed if remitted to Ireland
- Available to: Non-Irish domiciled residents
- Claim: Must elect on tax return
- Limitations: Subject to certain conditions
Domicile Considerations
- Domicile of origin: Usually country where your father was domiciled when you were born
- Domicile of choice: Can be acquired by moving with intention to remain permanently
- Irish domiciled: Subject to worldwide taxation
- Non-Irish domiciled: Can elect remittance basis
Filing Strategy for Digital Nomads
Before You Leave
- Understand your home country's requirements
- Complete departure procedures (Canada T1161, etc.)
- Set up systems for tracking obligations
- Consider professional tax help
While Traveling
- Track days in each country
- Monitor income thresholds
- Keep records organized
- File returns on time even if no tax due
Annual Reviews
- Review residency status changes
- Calculate filing requirements early
- Plan travel to optimize obligations
- Update systems and procedures
Professional Help
- Use expat tax specialists
- Get advice for complex situations
- Annual compliance reviews
- Multi-year tax planning
Common Filing Mistakes
1. Assuming No Filing Required
US citizens must always file regardless of residency. Other countries may require filing even as non-residents if you have local income or meet other criteria.
2. Missing Departure Procedures
Countries like Canada require formal notification when ceasing residency. Failure to follow procedures can result in continued tax obligations.
3. Ignoring Information Returns
Forms like FBAR, Form 8938, and foreign property disclosures have separate penalties even if no tax is owed on the underlying income.
4. Inconsistent Positions
Taking inconsistent residency positions with different countries can trigger audits and disputes. Ensure your positions are coherent and supportable.
Conclusion
Filing requirements for digital nomads vary significantly based on citizenship and residency status. While US citizens face the most complex obligations due to citizenship-based taxation, citizens of other countries can often eliminate home country filing requirements by properly managing their residency status.
The key to successful compliance is understanding your specific obligations, setting up proper systems for tracking requirements, and seeking professional help when needed. Remember that tax laws change frequently, and individual circumstances can significantly affect your obligations.