Where should I pay taxes?

Tax is due where income is earned. Any contract revenue should be taxed in the country where you are performing your work. The key factor is where you are physically present. It does not matter which currency you are paid in, it matters where your agency is or where the end client’s main office is. If you are performing your work in France, for example, France is where tax on that income is due.

You do not have to be tax resident in a country to be liable to pay income tax there. Tax residents pay tax on their worldwide income. Tax non-residents pay tax on any part of their income earned in country.

If you work in one country and remain tax resident in another, you should pay income tax in the country where you are working and declare that income and any tax paid on it, as well as any other worldwide income, in the country where you are tax resident. The country where you are tax resident will take into account any tax paid in another country and double taxation treaties will prevent you from being taxed on the same income twice.

In order to remain compliant in respect of both the country where you are working and your home country (where you may be tax resident), you must pay income tax in the country where the income is earned.

For more information you may wish to read our Tax Residency FAQs, or contact us for more information.