I am a salaried employee in a UK company and currently have income tax automatically deducted from my monthly pay in the normal PAYE way.

I am considering, covid-19 permitting, of going "digital nomad" and living for a couple of months at a time in various EU countries.

According to gov.uk "If you’re not UK resident, you will not have to pay UK tax on your foreign income." and according to this my non-residency is determined by a few factors, but I will definitively non-resident if I have spent more than 183 days away. Similarly, I will only be classed as resident in Spain (for example) if I am there for more than 183 days.

So if I keep moving every couple of months, would I be exempt from paying income tax anywhere, after 183 days, (or maybe sooner?)

  • 1
    What makes you think your income will count as "foreign income"? Jun 21 at 17:44
  • 7
    What makes you think you will be allowed to live and work in random places around the EU, post-Brexit? Also, what makes you think that your current employer will continue to pay you if you are not UK-resident? In many companies the accounting and payroll is not set up to pay people who are abroad with all the tax implications that would have.
    – Vicky
    Jun 21 at 19:03
  • 1
    While I believe this may be possible in some circumstances there are lots of complexities. Your income may count as UK income. Residency rules are more complex than just "not in the country for six months". Other country residency rules may be worked out a different way. They may count you as resident unless you are resident elsewhere. All of which is to say I don't have enough knowledge to start to give you a good answer on this. Jun 21 at 20:57
  • 1
    see also Expatriates
    – AakashM
    Jun 24 at 10:16

Yes. It says right in your linked source: "The basic tax rule is that non-residents are only chargeable to tax on income arising from a source in the UK." So when you're not a resident in the UK you're still taxed on income from a company based in the UK.

Also mentioned in that source are double tax treaties, which are treaties the UK has with many countries (including Spain). Basically you're going to pay tax, just not, hopefully, extra taxes: "Double tax treaties can be complex and often will require professional assistance, but they are created to try to ensure that an individual is able to claim tax relief rather than have to pay tax on the same income in two different jurisdictions."

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