Question 1

Do I qualify for the Foreign Earned Income Exclusion?

Accepted Answer

You qualify for the Foreign Earned Income Exclusion if:-You spend 330 calendar days in countries other than the United States (Antarctica, cruise ships, US possessions like Puerto Rico, etc. don't count - you must be in a foreign country).-OR, you are a "bona fide resident" of any country besides the US. "Bona fide resident" can mean different things, but generally speaking, you must have a residence permit, a bank account, a house/apartment, and more in the country you're claiming to be a resident of. You also can't be there on a temporary work assignment. It has to look to the IRS like you really live there and you aren't just on an extended trip abroad.

Question 2

Will this complicate my tax situation?

Accepted Answer

Yes, but we'll do your taxes for you.

Question 3

Will I have to fill out a bunch of extra IRS forms with this setup, like Form 5471?

Accepted Answer

Yes. We take care of all of that for you.

Question 4

Do I have to start getting paid in my corporation's name and not my name?

Accepted Answer

Yes. We'll walk you through the process of doing this— it's quite easy.We'll also set up a US subsidiary of your offshore company with a US bank account that you can easily get paid to.If you already have a US-based LLC, then it's even easier — you don't need to change anything. We just need to transfer ownership of that LLC to your corporation.

Question 5

Will I have to pay any taxes in the country where I'm incorporated?

Accepted Answer

Not unless you do any business there. We will incorporate you in a jurisdiction with zero taxes on any income that does not actually enter the country. This will most likely be a tiny country in the Carribean.You will have to file taxes in that country — we take care of this for you.

Question 6

Will I still have to pay income or social security taxes in the country where I'm located?

Accepted Answer

This depends on where you are located, and for how long. If you spend more than 6 months of the year in most EU countries, for example, you will have to pay taxes to that country. Some other countries have no taxes on income you don't bring into the country, or lower or zero taxes on recent immigrants.If you live in a country with a totalization agreement with the United States, it will likely be more beneficial for you to use that instead of using Zero Tax Nomad's setup. Those countries are: Australia, Austria, Belgium, Brazil, Canada, Chile, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Luxembourg, Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, United Kingdom, and Uruguay. If you're confused about whether this setup is right for you, feel free to book in a call with us, explain your situation to us, and ask. We won't sell you something we don't believe is right for you.

Question 7

If I don't pay into Social Security, will my benefits be reduced when I'm older?

Accepted Answer

That's correct. However, by taking the money this structure saves you and investing it in US stock market index funds, you'll likely have made 10-20x more by the time you retire than you would be able to collect from social security.

Question 8

Does the IRS get upset with people who use this setup?

Accepted Answer

Not to our knowledge. In fact, the founder of Zero Tax Nomad uses this corporate setup himself. The IRS reviewed his tax return for tax year 2024, saw that he was using this setup, and saw that he had paid no FICA taxes. The IRS found that he had actually slightly overpaid his taxes and sent him a refund!

Question 9

Who is this tax setup NOT recommended for?

Accepted Answer

This tax setup is not recommended for:-Anyone who is not a US citizen-Anyone who lives in the United States, or otherwise does not qualify for the Foreign Earned Income Exclusion-Anyone who gets paid primarily as an employee-Anyone making $45,000 a year or less (otherwise the costs of this setup will exceed the tax savings)

Legally stop paying Social Security taxes

Who This Works For

How This Works

Frequently asked questions