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r/digitalnomad · u/Fluffy_Gold_736601.08.2026, 13:37

If you work as a remote contractor abroad for US clients do you need to pay local taxes?

Nicaragua specifically. US citizen married to a local, so residency is no problem.

Kommentare

u/AcrobaticPublic8675601.08.2026, 13:46
Talk to a local accountant, not Reddit. Tax rules in Nicaragua for foreign remote income get messy real quick, especially with residency through marriage. One wrong move and you're explaining to two tax agencies why you didn't pay. My friend did similar setup in Costa Rica and got burned because he listened to some guy in co-working space who said "nobody checks." They do check.
- u/Fluffy_Gold_7366101.08.2026, 13:49
  Yes I want to do things the right way. Also I thought having residency would make things easier. Also with it being US income could I still contribute to retirement accounts 401k and Roth
  - u/ZiKyooc101.08.2026, 16:17
- u/Philip3197101.08.2026, 19:46
  if the work is performed from within a country, this is local income.
u/Future-Raspberry-780301.08.2026, 13:51
I thought there was a rule where if you pay where you are residing abroad, you don’t have to pay the IRS also, but you do have to file and report every year anyway. You should def talk to someone in that country and also the US to be safe.
u/yago1980201.08.2026, 13:56
Generally, in most countries, if you stay a certain number of days, you do have to pay local taxes. Technically, if you work remotely while physically in Nicaragua and are there for more than 180 days, you do need to declare (and maybe pay). Talk to a local accountant; last time I was there was more than 20 years ago, but that was my understanding.
u/Infamous-Arrival1232101.08.2026, 17:58
Not a tax person, so verify locally, but the usual shape: where your clients are doesn't matter, where you're tax resident does. Most countries draw the line around 183 days, after that local tax applies to your worldwide income even if every client is in the US. Many places have cheap regimes for solo contractors (a few percent turnover tax in parts of the Caucasus, for example), so the answer to «do I owe» is often «yes, but less than you fear». One hour with a local accountant beats any thread