The International Tax Playbook for Remote Entrepreneurs
A practical guide to residency, business structuring, and global compliance
Welcome to Digital Citizen 👋
After building businesses across multiple countries, one thing became clear:
Success isn’t tied to one system, one location, or one way of thinking.
In today’s world, you can design life on your terms - globally, intelligently, and with intention.
Digital Citizen is your guide to living smarter, working freely, and navigating a borderless world with clarity.
Subscribe to join a growing community of independent minds building a future without permission.
Where the Old Tax Model Breaks Down
Most tax systems are designed for people who live, work, and earn in one place. You have a job, a home, a local bank, and a predictable routine, so the government knows where to tax you, and how.
But that model breaks down the moment you go global.
As a remote entrepreneur, you might live in Thailand, work with clients in the U.S., invoice through a European company, and have a bank account in Singapore.
How does that work with a traditional tax system?
Good luck finding answers by asking your local tax lawyer (believe me, I tried).
So what’s the result?
Confusion, inefficiency, and unnecessary tax bills, unless you start thinking differently.
Think Like a Sovereign Individual
To navigate global taxes effectively, you need to stop thinking in national boxes, and start thinking in layers.
As a modern entrepreneur you might not fit into one system anymore. You might live in Thailand, run a business registered in Estonia, bank with Wise in the UK, and hold a passport from Germany. And that’s not a problem, if it’s structured with intention.
Here’s my mental model:
Citizenship: the passport(s) you hold
Residency: where you live or spend your time
Tax residency: where you are legally liable to pay tax
Business registration: where your company is incorporated
Banking: where your money is stored and flows
Each of these layers can be located in a different country. The key is to separate them intentionally and ensure they work together without conflict. Some of them can be in the same country, you don’t need to make the setup complicated intentionally. The important part is, to have a system, that works across borders.
Isn’t this just Flag Theory?
Yep, this layered approach is not mine to claim, and inspired by Flag Theory: The idea of planting different “flags” (like citizenship, residency, business, and banking) in different countries to maximise freedom and efficiency.
It’s about aligning your legal and financial structure with the way you actually live and work, transparently, intentionally, and with compliance in mind.
Understanding Residency vs. Tax Residency
A common mistake among location-independent entrepreneurs is assuming that where you live is automatically where you're taxed. But that’s not always the case.
Residency simply means where you’re physically present or allowed to stay.
Tax residency means the country that legally considers you liable for taxes on your global income.
I recently did a detailed post about Tax Residency vs. Residency, read it to learn more about the difference.
Most countries determine tax residency based on one or more of the following:
The 183-day rule: Spend more than half the year in a country, and you’re likely a tax resident.
Center of vital interests: Where your main home, family, and financial ties are.
Permanent home availability: Even if you don’t spend 183 days somewhere, having a permanent home can trigger tax residency (in some cases, even having a key to a residency, which doesn’t even have to be in your name, can already trigger residency!)
Understanding these rules helps you avoid “accidental tax residency”, which is a situation where a country claims you owe taxes simply because you stayed too long or left behind financial ties.
If you’re living internationally, you need to proactively choose and document your tax residency, otherwise, multiple countries may try to claim you.
Territorial Tax Systems: A Favourable Option for Remote Earners
One of the simplest, legal ways to reduce your tax burden is by basing yourself in a territorial tax country, a system where only locally sourced income is taxed.
In these countries, income you earn from foreign clients or companies (i.e. not from within the country you live in) is not subject to local income tax.