Digital Nomad
How Digital Nomads Should Navigate DAC & CBAM Overlaps in EU Travel & Tax Planning
Between new administrative-cooperation rules and CBAM obligations, digital nomads operating cross-border must adapt their tax strategies to avoid unexpected exposure.
By NomadicTax Research Team • 5-8 min read • September 1, 2026
## 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:
1. 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](https://taxation-customs.ec.europa.eu/document/download/a654ad8e-606b-4ad5-a8ff-3309554224d7_en?filename=Executive+Summary+of+Impact+Assessment_DAC_Proposal+for+a+Council+Directive+-+Taxation%E2%80%99.pdf&utm_source=openai))
2. 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](https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism/cbam-verification_en?utm_source=openai))
## Tax Planning Tips for Digital Nomads
- 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.
- 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](https://taxation-customs.ec.europa.eu/document/download/a654ad8e-606b-4ad5-a8ff-3309554224d7_en?filename=Executive+Summary+of+Impact+Assessment_DAC_Proposal+for+a+Council+Directive+-+Taxation%E2%80%99.pdf&utm_source=openai))
- 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.
- 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.
- 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](https://taxation-customs.ec.europa.eu/news/european-commission-proposes-landmark-tax-simplification-package-streamline-compliance-and-boost-2026-06-24_en?prefLang=fi&utm_source=openai))