How to be a Digital Nomad in the United States

Newsletter | Digital nomads work virtually and often from various locations, even worldwide. So one day, you might work from your home office, but the next, you might be at a Starbucks, the park, or even the beach in the Bahamas. Sounds exciting!

According to data from Statista, between 2019 and 2022, the percentage of digital nomads in the United States increased by 131.5%, from 7.3 million in 2019 to 16.9 in 2022.

It is common for most American remote workers to go abroad and, in doing so, must consider everything from the cost of living to taxes. The same would be for those who decide to stay or visit us.

If you decide to be a digital nomad here or abroad, consult your job and a tax professional to know the legal aspects you should consider.

Being a digital nomad is legal. Although we do not yet have dedicated digital nomad visas in the United States, as in other countries, the government offers visas for foreigners and residence permits for those who qualify. Some are more suitable for digital nomads than others.

What are the legal implications of being a digital nomad?

Labor Laws:

Employers must be mindful of labor laws. Employees can acquire labor rights at the local level, such as termination and consultation rights. Regulatory requirements may limit what employees can legally do; For example, can lawyers practice without registering on the spot?  There are also data protection implications: is it compatible for employees to access and store data where they live and work?

Taxation:

In the U.S., digital nomads are required to file federal tax returns.  The U.S. has a citizen-based tax system, meaning your taxes are tied to your citizenship, not your residency. You can also have state income taxes and self-employment taxes if you’re a digital nomad and an entrepreneur. Taxes can be tricky for employers if you’re a digital nomad with a 9-to-5 job. The tax conversation is why many companies do not contemplate digital nomadism. In addition, filing taxes in multiple states can make your job more reluctant if you lose more money. The tax treatment of employees’ wages/benefits may also require attention related to the local tax regime. Employers may also wish to consider the implications for their company’s pay structures: role-based compensation may be less appropriate than location-based compensation.

Cost of living

The United States is the tenth country with a high cost of living, so when choosing any destination city, you should ask yourself about your monthly expenses and if you can cover them with your salary.

If you are a foreigner, you should consider the US an expensive country, so creating a realistic budget will help give you an idea of the panorama you will find.

International remote work and global mobility

The demand for the international remote and hybrid workforce is providing opportunities for multinational and emerging companies. This is a sign that global mobility and international work in all its forms are still highly sought after and the possibility that many employees have taken to reassess how, where, and for whom they work.  The trend of international remote work through the lens of global mobility is democratizing global opportunities and the marketplace for knowledge workers in a way that was only once within reach of digital nomads.

International remote work in practice

Meeting employee needs for remote or hybrid work in an international assignment is likely to be complex due to inconsistencies around remote work assumptions, even within the same organization. Technology also plays a critical role in protecting individuals on international assignments and compliance. Companies with business travel tracking technology will have an advantage in formalizing international remote work options.”

With information from:

www.relocatemagazine.com
www.sojournies.com
www.Flexjiobs.com
www.digitialnomads.world
www.statista.com