Tax residency

Tax residency as a nomad: the 183-day rule explained

7 min read Updated April 2026 Not legal advice — informational only
Summary

183 days in a country = you're a tax resident there. But under 183 days doesn't make you a non-resident. You need to formally exit your previous country AND establish residency somewhere new — both steps, in that order.

Key takeaways

183 days is a threshold

Not a safe harbour — being under it doesn't automatically make you a non-resident.

Active exit required

Most countries require formal deregistration. Simply leaving is not enough.

Territorial tax bases

Georgia, UAE, and Croatia have clean systems for nomads earning abroad.

LLC income follows you

Your LLC is taxed where you personally reside — not where it's registered.

In this guide

    What the 183-day rule actually says

    183 days
    Triggers tax residency in most countries
    0 countries
    Where staying under 183 days automatically makes you a non-resident
    2 steps
    Exit old country + establish new residency. Both required.

    If you spend 183 days or more in a country, that country generally considers you a tax resident — you owe taxes on your worldwide income there. But the rule cuts both ways. Most countries also have secondary tests: whether you have a permanent home available, where your family lives, where your economic interests are centred. Day count is just one factor.

    ⚠️ The biggest mistake nomads make

    Assuming that because they haven't hit 183 days anywhere, they have no tax residency. Most countries will still claim you as a resident if you were born there, have family there, or maintain a home there — regardless of day count.

    The two questions that actually matter

    1
    Where did you last have established tax residency?

    This is where you're still liable until you formally exit.

    2
    Have you formally severed it?

    Deregistering your address, cancelling health coverage, notifying the tax authority.

    For most Europeans, your home country still considers you a resident until you officially deregister. Germany, the Netherlands, Sweden, and most of Scandinavia require you to actively notify the tax authority and deregister your address. Simply leaving is not enough.

    Countries that work well as nomad bases

    Territorial tax systems only tax income earned within their borders — not your worldwide income. For nomads earning from foreign clients through a foreign LLC, this is the key criterion.

    💡 The clean break principle

    Establish residency somewhere before leaving your home country. A clean handover — one country in, one country out — is far easier to defend than months of ambiguity during which two countries might both claim you.

    How your US LLC fits in

    01
    LLC earns income Wyoming or Delaware registered entity
    02
    Income passes through to you Disregarded entity — the LLC is transparent to the IRS
    03
    Taxed where you personally reside Not where the LLC is registered — where you live matters

    As a non-US person with a disregarded entity LLC and no US-connected income, you generally owe nothing to the IRS beyond the Form 5472 information return. Your tax obligation lives wherever your personal residency is — which is exactly why establishing clean residency matters so much.

    What tax authorities actually want to see

    A passport full of stamps is not enough. Authorities want evidence of genuine ties:

    Registered address in a specific country
    Paying local taxes or enrolled in the local tax system
    Local bank account in your name
    Proof you formally exited your previous country
    Utility bills, rental contract, or local ID — ideally all three

    ⚠️ Health insurance as a residency signal

    Several European countries treat continued enrollment in the national health system as evidence of ongoing residency, even after you've moved abroad. Check whether your home country's health coverage terminates automatically when you deregister, or whether you need to explicitly cancel it.

    The bottom line

    Clean tax residency means one country claims you, you've exited the last one properly, and you have documentation to back it up. If you're unsure where you're a tax resident right now — that's the first thing to fix, before worrying about LLC filings or banking.

    Health coverage that follows you across borders

    SafetyWing is built for people without a fixed address. It covers you in 180+ countries, works alongside or instead of national health coverage, and doesn't require proof of residency to sign up.

    Get covered with SafetyWing → Affiliate link — we may earn a commission at no extra cost to you.

    Related guides