The Changing Landscape for Digital Nomads in the EU
As cross-border lifestyles grow, two recent policy streams affecting non-resident workers and remote businesses stand out:
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The DAC simplification package (Administrative Cooperation Directive recast) proposed 24 June 2026, reducing certain reporting obligations tied to cross-border income, holdings, etc.—especially under DAC6 and DAC7. (taxation-customs.ec.europa.eu)
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The Carbon Border Adjustment Mechanism (CBAM), which now demands verifiers and registry involvement from non-EU suppliers; while remote work itself isn’t a CBAM area, nomads who supply digital or physical goods into EU markets may be affected. (taxation-customs.ec.europa.eu)
Tax Planning Tips for Digital Nomads
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Evaluate where income comes from: platform income or royalties (covered by DAC7) may continue to generate reporting obligations, even if less burdensome under DAC recast.
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Use correct TINs: incorrect or missing TINs trigger delays and possibly withholding or penalties under DAC1 and mutual-agreement mechanisms. Under the simplification package, TIN verification improvements are proposed. (taxation-customs.ec.europa.eu)
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For nomads supplying goods: verify whether your non-EU production and supply setup might fall under CBAM's verification regime. If so, align with verification accreditation steps, registration in CBAM Registry, documentation etc.
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Stay aware of new exemptions and thresholds: with reforms, certain cross-border transfers or income forms will drop below review thresholds; others may be exempt if under Pillar Two. Monitoring legislative texts in your country of residence is key.
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Leverage double tax treaties: ensure you're treated properly under treaties for withholding taxes on royalties, interests, dividends. These have been explicitly addressed in the Omnibus proposal, especially extending Parent-Subsidiary exemptions. (taxation-customs.ec.europa.eu)