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THIS WEEK ABROAD
For expats living in high-tax host countries, nothing hurts like watching a large percentage of your earnings go bye bye. But there are other options, like digital nomad visas that offer tax exemptions for remote income.
Read more in this week’s newsletter.👇
Residency Radar
TAX-FREE NOMAD VISAS FOR 2026
We hate to break it to you, but if your host country is making you pay tax on your remote income, you’re getting ripped off.
Dozens of countries have introduced remote work visas over the last several years, but only a few of those permits include significant tax benefits.
Here, we have identified seven countries with legal tax exemptions for remote workers in 2026.
• The Tax Problem for Digital Nomads
US citizens face a unique challenge: they must report and pay tax to the IRS regardless of where they live in the world. Additionally, digital nomads typically become tax residents of their host country after 183 days.
Even using the foreign tax credit to offset US taxes against foreign taxes, you still end up paying the higher of the two tax rates. If your host country imposes a higher tax burden that the US, Uncle Sam isn’t going to give you any additional breaks. That's why residency permits with favorable tax exemptions are so critical.
• Zero Income Tax Countries
The Bahamas offers the most straightforward option. The country has no income tax at all—zero for anyone. The digital nomad visa costs $1,000 for the main applicant, plus $500 for each dependent. There's no specific income requirement, just proof of employment from a company outside the Bahamas. The visa lasts one year and is renewable for up to three years total.
Dubai also has zero personal income tax. Their UAE Virtual Working Program costs approximately $287 in application fees, around $500 total with Emirates ID. Income requirements are $5,000 per month for Dubai (or $3,500 per month for Abu Dhabi). The visa is valid for one year, renewable for one additional year.
Costa Rica's Digital Nomad Visa exempts holders from income tax on foreign-sourced income. The visa costs $190 to $340 and requires $3,000 per month in income. The permit lasts one year, renewable for an additional year.
Panama uses a territorial tax system, meaning they only tax income earned within Panama. The Short-Stay Visa for Remote Workers costs $250 to $300, requires proof of stable remote employment (estimate $2,000 per month), and lasts nine months, renewable for an additional nine months.
Ecuador is the budget-friendly option. Like Panama, it uses a territorial taxation to exempt foreign-sourced income. The Rentista Visa for Remote Work costs approximately $500 in total fees with an income requirement of just $1,350 per month, one of the lowest on this list. The visa is valid for two years.
Malta is the only EU country offering offering major tax benefits. The Nomad Residence Permit costs €300 (approximately $360) and requires €2,700 per month income (approximately $2,900). Malta passed official tax rules in 2023 specifically for digital nomads: the first twelve months offer complete exemption from income tax on remote work, and after twelve months, a flat 10% tax rate applies.
Cape Verde, an Atlantic island nation off West Africa, rounds out the list with its Remote Working Program. The visa costs just €20, requires only a €1,500 bank balance, and lasts six months, renewable for an additional six months. The program includes an explicit exemption from income tax on foreign earnings.
• Choose Your Visa Wisely
With dozens of countries now offering digital nomad visas, choosing one with favorable tax treatment can significantly impact your bottom line. These seven destinations offer legal pathways to reduce or eliminate your tax burden while enjoying life abroad.
VIDEO OF THE WEEK
183 DAY RULE EXPLAINED
Speaking of becoming a tax resident, the 183 day rule also applies to individual states.
If you’ve ever looked into moving your residency to Florida, you’ve likely encountered endless talk about this rule. It’s a confusing number thrown around by high-tax states eager to keep you on their tax rolls, but here’s the catch: Florida itself doesn’t care how many days you spend in the state.
In fact, Florida has no minimum day requirement to become a legal resident. From day one, you can establish Florida as your domicile—your permanent home base—even if your actual time spent there is minimal.
The key isn’t counting your Florida days. It’s making sure you don’t accidentally spend 183 days or more in any other state that might still consider you a resident for tax purposes.
This newsletter is brought to you by SavvyNomad
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