How to become a digital nomad and pay no income tax

Since the COVID pandemic, over 25 countries now offer “digital nomad “ visas which permit foreigners to live there, and work or study remotely, while being exempt from paying income tax in those countries.

Canadian residents are taxed in Canada on their worldwide income. Often it is difficult to prove to the Canada Revenue Agency that you are a non-resident and therefore exempt from paying income tax in Canada. Having a residency certificate from another country makes it easier to establish that you were not a resident of Canada during that period.

Requirements for a digital nomad certificate vary from country to country but they usually all require : proof of remote employment (whether as an employee or owner of a business), or school enrolment; proof of income or finances to show that your are financially self-sufficient and won’t be taking jobs away from the locals; medical insurance; and payment of a non-refundable application fee, which can be anywhere from $200 to $2000, depending on the country.

Most digital nomad residency permits are good for one or two years, depending on the country, and can be renewed. When I lived in Bermuda, for example, the Government came out with the “Work from Bermuda Certificate” which granted a one-year residence permit. The application fee was $263 and took 5 days to process once you submitted all of your documentation.

<a href="https://forms.gov.bm/work-from-bermuda/apply">Click here for the "Work From Bermuda" application form</a>

So if you have employment or a business that you can work at remotely, or enrolled in a course of studies that you can do remotely, you may want to consider becoming a digital nomad and moving to a sunnier climate.