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Country of residence for Digital Nomads

pdukatz
Ace Contributor
Philipp C D Member Since: Oct 28, 2015
1 of 62

Upwork has changed their fees for Europeans, adding VAT now. 

When I signed up, I was a resident of Germany. In the meantime, I transitioned into being a Digital Nomad. I unregistered in Germany and I am now a so called perpetual traveler, switching location every three months.

Two things:

1. How am I even supposed to switch my location here if I can't really prove it with an updated ID or something like that?

2. I don't see why I should pay VAT if I am not even an EU-resident anymore. 


I strongly urge Upwork to give advice as they always seemed to promote the Digital Nomad development and now they seem to make it so much harder. Please advise immediately.

Philipp

laherz
Community Leader
Michael Z Member Since: Jul 19, 2015
2 of 62

Honestly, right now it's all a big mess. I would suggest you contact support and wait it out a little. Unfortunately, you'll have to wait. I hope that in the next couple of days/weeks, things become a bit more clear. Because as it stands right now, the thread at: 

https://community.upwork.com/t5/Announcements/VAT-for-EU-freelancers-amp-agencies/td-p/130320/page/5

 

is full of confusion. I understand that for someone who does not have a "permanent" resident it must be a lot harder with changes like this. 

kochubei_valeria
Community Manager
Valeria K Community Manager Member Since: Mar 6, 2014
3 of 62

Hi Philipp,

 

Please make sure you have an appropriate visa type or permit to work in a country you are situated in and pay taxes accordingly. You may need to consult with a legal advisor about it.

~ Valeria
Upwork
pdukatz
Ace Contributor
Philipp C D Member Since: Oct 28, 2015
4 of 62

You haven't understood the concept of being a digital nomad. We are constantly traveling, not staying put in any country for longer than 3-6 months. Hence there won't be a valid work visa. 

I thought that you would consider this as you have been promoting this lifestyle excessively.

Please check back with your legal department and give me a qualified response on how to best act with regards to this matter. 

Thank you


PS: Another possibility: What if I register a business in a non-EU country. Could I put its adress here?

petra_r
Community Guru
Petra R Member Since: Aug 3, 2011
5 of 62

@Philipp C D wrote:

You haven't understood the concept of being a digital nomad. We are constantly traveling, not staying put in any country for longer than 3-6 months. Hence there won't be a valid work visa.


 Then, in a lot of countries, you are not legally allowed to work (the US for example) even digitally / online.

sdunkel
Ace Contributor
Stephen D Member Since: Aug 25, 2015
6 of 62

@Philipp C D wrote:

You haven't understood the concept of being a digital nomad. We are constantly traveling, not staying put in any country for longer than 3-6 months. Hence there won't be a valid work visa.


 Then, in a lot of countries, you are not legally allowed to work (the US for example) even digitally / online.

 

 

This is not true. You cannot accept work as an employee but you can work as a freelancer or self-employed. Maybe not in certain countries but definitely in the US.

marciamalory
Community Guru
Marcia M Member Since: Apr 3, 2013
7 of 62

That


@Stephen D wrote:

 

 

This is not true. You cannot accept work as an employee but you can work as a freelancer or self-employed. Maybe not in certain countries but definitely in the US.


 That is not true.

 

Activities Permitted under the Visa Waiver Program if coming to the US as a tourist:

 

  • tourism
  • vacation (holiday)
  • visit with friends or relatives
  • medical treatment
  • participation in social events hosted by fraternal, social, or service organizations
  • participation by amateurs in musical, sports, or similar events or contests, if not being paid for participating
  • enrollment in a short recreational course of study, not for credit toward a degree (for example, a two-day cooking class while on vacation)

Source: http://travel.state.gov/content/visas/en/visit/visa-waiver-program.html

 

Activies Permitted under a B2 (Tourism) Visa - if you can't use the Visa Waiver Program

 

  • tourism
  • vacation (holiday)
  • visit with friends or relatives
  • medical treatment
  • participation in social events hosted by fraternal, social, or service organizations
  • participation by amateurs in musical, sports, or similar events or contests, if not being paid for participating
  • enrollment in a short recreational course of study, not for credit toward a degree (for example, a two-day cooking class while on vacation)

Source: http://travel.state.gov/content/visas/en/visit/visitor.html

 

 

jmeyn
Community Guru
Joachim M Member Since: Mar 23, 2015
8 of 62

@Philipp C D wrote:



PS: Another possibility: What if I register a business in a non-EU country. Could I put its adress here?


 I suggest Belize, no taxes on income generated outside of Belize.

pdukatz
Ace Contributor
Philipp C D Member Since: Oct 28, 2015
9 of 62

Hi Joachim,

there are plenty of options similar to Belize. The question then again would be wether or not the freelancer would have to change his/her location everytime he/she travels. 

Registering businesses in offshore destinations like Hong Kong, Panama or Belize has become somewhat popular recently. 

jmeyn
Community Guru
Joachim M Member Since: Mar 23, 2015
10 of 62

@Philipp C D wrote:

Hi Joachim,

there are plenty of options similar to Belize. The question then again would be wether or not the freelancer would have to change his/her location everytime he/she travels. 

Registering businesses in offshore destinations like Hong Kong, Panama or Belize has become somewhat popular recently. 


Belize has the advantage of the people really speaking English 🙂 Why would you want to change the location every time you travel? Leave the location of the tax haven and you only have to prove to the authorities of the tax haven that you haven't been in the country. 

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