How Digital Nomads Can Choose Their Tax Residency

Tax Residency in a Borderless World

The modern world offers freedom of movement: today you're on calls from Barcelona, tomorrow you're in meetings in New York, and next month you’re at a retreat in Bali.

But when it comes to opening a bank or brokerage account, buying stocks, bonds, or physical assets — one question always comes up: where are you a tax resident?

Answering this wrong can be costly. Even if you're constantly on the move, any country might decide you belong to them — with all the tax consequences.

Don’t Let Tax Authorities Decide for You

What should digital nomads and global entrepreneurs do?

Don't leave tax residency up to a government inspector. Build it into your personal strategy for freedom.

Governments typically consider you a tax resident if:
— ты живёшь на территории более 183 дней в году,
— у тебя там центр жизненных интересов (семья, машина, бизнес, недвижимость).

These are general rules, but each country has its own quirks. That’s why it’s essential to know where you legally become a tax resident.

Three Steps to Strategic Tax Residency

Choose your strategic tax base — a country that offers clear, favorable rules for residency.

Minimize double taxation through bilateral tax treaties (DTAs).

Consider your lifestyle. If you’re constantly on the move, make sure your "home jurisdiction" doesn’t require you to spend 9 months a year within its borders.

Why Paraguay Is a Hidden Gem for Nomads

A tip for the sharp-eyed: some countries get global citizens.

Paraguay grants tax residency to those who obtain permanent residence — and all it takes is one visit to apply.

There’s no legal requirement to live there full time, and the tax laws give you generous flexibility to plan.

The Benefits of Paraguay's Tax Residency

For frequent travelers, Paraguay offers an ideal setup:

- 0% tax on capital gains, dividends, and foreign salary
- No need to live in or even visit the country regularly
- Not part of the Common Reporting Standard (CRS) automatic tax info exchange
- Recognized, official tax residency status

A few years ago, most entrepreneurs would laugh at the idea of Paraguay in a tax context. Today, it’s no longer exotic — it’s a legitimate path to strategic freedom.