What are the most important income tax matters for a digital nomad moving to Mexico?
As a digital nomad considering moving to Mexico, there are several key income tax matters to consider:
- Tax residency: Will you be considered a Mexican tax resident based on your home and center of vital interests in Mexico?
- Taxation of worldwide income: As a Mexican tax resident, you will be taxed on your worldwide income. This includes any income you earn as a digital nomad.
- Filing tax returns: You must file a tax return in Mexico by April 30th, following the tax year.
- Compliance with U.S. tax laws: As a U.S. citizen, you may also have additional tax compliance and reporting obligations in the U.S.
- Avoid double taxation: It is important to ensure compliance with Mexican and U.S. tax laws to avoid potential double taxation.
It is important to consult with a tax professional who can advise you on your specific tax obligations as a digital nomad moving to Mexico to ensure compliance and avoid potential double taxation.