Digital nomad with EU clients: where taxes arise
You work remotely as a digital nomad and provide services to clients located in the European Union. You move frequently between countries, often without long-term residence, and assume that taxation depends mainly on where you are formally registered or where your company is incorporated. In practice, tax exposure for digital nomads is rarely neutral. EU tax authorities look beyond labels such as “nomad” or “remote worker” and assess where income is generated, where work is performed, and where sufficient factual presence exists. As a result, tax obligations may arise even without formal relocation, local registration, or exceeding classic residency thresholds in a single country.
Input Data
- Status: digital nomad / remote service provider
- Clients: individuals or companies located in EU countries
- Presence: rotating stays across multiple jurisdictions
- Work activity: services performed online, location-independent
- Income structure: freelance fees, contracts, platform-based income
- Registration: company, sole trader, or no local registration
- Assumption: taxation follows formal residence or company seat
Jurisdiction Conflict
Client countries — source-based exposure
- Services economically connected to EU clients
- Potential withholding or reporting obligations
- Recharacterisation of income source
Countries of physical presence — residence risk
- Repeated or habitual presence
- Use of local accommodation or infrastructure
- Daily life indicators forming a factual base
No clear home country
- Absence of a clearly documented primary residence
- Fragmented ties across jurisdictions
- Increased scrutiny and uncertainty
Different countries may assess the same income through different legal lenses: source of income, place of performance, or tax residency.
AI Analysis
Scenario A — Source taxation in client country
- EU country treats income as locally sourced
- Withholding tax or reporting obligations arise
- Risk: unexpected compliance requirements
Scenario B — Residency asserted by country of presence
- One country considers presence sufficient for residency
- Worldwide income becomes taxable
- Risk: retroactive tax claims
Scenario C — Permanent establishment risk
- Activities deemed to constitute a fixed or dependent presence
- Business income attributed locally
- Risk: corporate or business-level taxation
Key risk indicators
- Long or repeated stays in the same EU country
- High concentration of clients in one jurisdiction
- Use of local coworking spaces or infrastructure
- Contracts governed by local law
- Lack of documentation supporting tax position
Output of Richys AI Analysis
- Mapping of tax exposure by country
- Identification of source vs residency risks
- Assessment of permanent establishment triggers
- Review of income classification assumptions
- Documentation gaps increasing audit risk
Expert Boundary
Involvement of a verified EU expert is required for:
- country-specific sourcing rules
- assessment of residency thresholds
- permanent establishment analysis
- alignment of contracts and factual activity
Case Conclusion
Being a digital nomad does not place you outside the tax system. EU taxation is driven by facts: where work is done, where clients are located, and where life actually happens.
The main risk is not movement, but ambiguity. Without a clearly defensible structure, different countries may legitimately assert taxing rights over the same income.
A structured case analysis helps clarify where taxes may arise, which assumptions are unsafe, and what documentation or restructuring is needed before exposure turns into enforcement.
Start case analysisThis case is for illustration purposes only. Real outcomes depend on residence, income structure, documents and timing. For your specific situation, use structured case analysis with AI and verified EU experts.
Mathieu Fiscalis
AI assistant – Taxes & Cross-Border Tax