Key Takeaways
- Easily Global, led by Bogdan Danchuk, focuses on tax optimization for digital nomads, guiding them through intricacies and legal nuances.
- By carefully incorporating businesses and understanding local tax laws, Danchuk helps clients achieve minimal tax obligations, often aiming for near-zero taxation.
- Selecting European countries like Portugal, Malta, and Bulgaria is suggested for favorable tax residency status for digital nomads.
Madeira, Portugal–Bogdan Danchuk, founder of Easily Global and veteran digital nomad, opened up on taxation for digital nomads in an interview published on November 14.
His company, Easily Global, is a “tax optimization” organization that offers various services for digital nomads and those seeking to become one. The interview dwells into the various methods and nuances of this potentially controversial subject of operation.
He explained in the interview that by “navigating the intricacies of local tax laws which many get wrong” and carefully choosing where a client’s business should be incorporated, he has helped many to achieve the status of paying almost “zero tax.”
“In many cases, it’s important to incorporate your (business) entity before becoming a fiscal resident in the new country of choice,” Danchuk revealed.
According to Danchuk, some of the best countries for nomads to register for the said purpose are often European countries like Portugal, Malta, and Bulgaria.
The broader question
Since organized digital nomadism is a relatively new sector, questions regarding tax laws began to surface a few years ago.
According to Danchuk, with his help, many of his clients now pay negligible amounts in tax. He reasons that it doesn’t make sense to pay if one isn’t availing of the services they are paying for.
According to a report, a general rule worldwide is that you become a tax resident of any country by physically spending 183 days in a calendar year there.
In case you want to change the country of fiscal residency, you would have to notify the concerned tax departments and obtain a new ‘tax number’ from the tax office of your new permanent residence.
According to another report, US citizens (and green-card holders) must file taxes with the income tax department regardless of employment, business operations, and residency locations.
Here is a guide for understanding the tax systems for over 150 jurisdictions from Ernst & Young.
“I think it’s atrocious that the only bodies and entities that have any access to the legal means of alleviating your tax burden are the huge multinationals, the billionaire class, and the 1%. If you want to talk fair game, let’s make it fair for everybody,” said Danchuk when asked about the ethical soundness of his organization.
What We Think
Bogdan Danchuk’s insights into tax optimization for digital nomads shed light on a complex and evolving landscape. While his methods may result in reduced tax liabilities, the ethical implications of offering such services remain debatable.
Danchuk’s focus on ensuring fair access to tax alleviation measures for a broader population brings attention to the unequal distribution of tax benefits favoring corporations and the wealthy.
As digital nomadism grows, understanding the legal and ethical dimensions of tax optimization services becomes crucial for both individuals and the broader conversation on tax fairness.
