Digital Nomad Tax Deductions You Should Know in 2025

If you’re a digital nomad working remotely from anywhere in the world, understanding your tax deductions is essential. While business owners are generally entitled to claim various tax deductions, digital nomads often face unique challenges that come with working from multiple locations. Fortunately, there are several tax deductions available to you that can help reduce your tax burden as you move around the globe.

In this guide, we’ll break down the most common tax deductions for digital nomads and how you can use them to your advantage.

Remote Workspaces and Offices

As a digital nomad, you may not have a traditional office. But that doesn’t mean you can’t claim deductions on your workspace. The expenses related to your workspace—whether it’s a temporary office, a coworking space, or a coffee shop—can often be written off as business expenses, provided they’re necessary for your work.

Coworking Space Memberships

One of the most popular deductions for digital nomads is coworking space memberships. These spaces allow you to pay only for the time you need, and you can deduct the cost of renting these spaces as a business expense. Additionally, if you rent meeting rooms, pay for printing, or attend business-related networking events within the coworking space, these costs may also be deductible.

However, transportation and parking fees to get to these coworking spaces generally aren’t deductible unless they meet specific criteria, such as being directly related to your business.

Airbnb Rentals for Work

If you work remotely, you may wonder if you can deduct the cost of staying in an Airbnb. The answer depends on your tax home. For most digital nomads, Airbnb rentals wouldn’t qualify as a deductible business expense because their tax home is constantly changing. However, if you have a tax home in one location and need to travel temporarily for work, you may be able to claim Airbnb expenses as a travel deduction.

For U.S. digital nomads, spending at least 330 days out of a 12-month period outside the country could qualify you for the Foreign Earned Income Exclusion, potentially making Airbnb stays or home office expenses deductible.

Tech Equipment and Devices

As a digital nomad, your business is often built around technology. There are two main categories of tech-related deductions: capital expenses and operating expenses.

Capital Expenses

These include the purchase of essential equipment such as laptops, phones, and tablets that allow you to run your business abroad. Since these are significant investments, they are deductible over time, or in some cases, all at once, depending on the tax laws in your country.

Operating Expenses

Operating expenses are ongoing costs necessary for your business, such as phone data plans, internet fees, and software subscriptions. These are considered regular business expenses and can be deducted in full for the portion of the service used for work.

Laptops and Internet Costs

Laptops are often the primary tool for digital nomads. If you use your laptop for business, the cost of purchasing it can be deducted, but only the percentage used for business purposes. For instance, if you use your laptop 80% of the time for work and 20% for personal activities, you can deduct 80% of the cost. Similarly, internet costs, whether for a mobile hotspot or local Wi-Fi, are business essentials and can be deducted as well.

Phones and SIM Cards

Like laptops, phones are a necessary tool for most digital nomads. If you can justify that your phone is essential for conducting your business, you may be able to deduct the costs associated with your phone, including the purchase price, monthly service fees, and international roaming charges. Be sure to track the percentage of use that is business-related, as only that portion is deductible.

If you frequently travel internationally, using local SIM cards rather than roaming can save you money, and the cost of these SIM cards can also be claimed as a business expense.

Keeping Records

To claim any of the above deductions, you must keep detailed and accurate records of all your business expenses. Since self-employed individuals are more likely to be audited, it’s important to track every deduction you’re entitled to, including the currency in which the expense was made. Keeping separate business and personal finances is crucial—using a business credit card or a dedicated business bank account for all transactions can make it easier to track your expenses.

Conclusion

Digital nomads enjoy the flexibility of working from anywhere, but this lifestyle also comes with specific tax considerations. From coworking spaces and Airbnb rentals to technology expenses like laptops and phones, there are numerous deductions available to help you reduce your taxable income. Be sure to keep thorough records and consult with a tax professional to make the most of these deductions, ensuring you comply with tax regulations and maximize your savings.

By understanding your tax deductions and staying organized, you can focus on what matters most—your business and the freedom to work from anywhere.