Bootstrapping overseas as an American
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Bootstrapping overseas as an American
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Re: Bootstrapping overseas as an American
#2I'm an overseas developer myself, currently sitting on a point break in Morocco enjoying perfect wifi, powering it all with solar panels.
I'm pretty sure that the 100,000 IRS deduction is only for income earned from a foreign source. So, if you are like me and have your income coming from Apple app store sales, then you still need to pay your taxes, without a deduction.
Basically, the big problem with working out of the US is that nearly all countries pay way less for software development. Thems the breaks.
Re: Bootstrapping overseas as an American
#3I'm an overseas developer myself, currently sitting on a point break in Morocco enjoying perfect wifi, powering it all with solar panels. I'm pretty sure that the 100,000 IRS deduction is only for income earned from a foreign source. So, if you are like me and have your income coming from Apple app store sales, then you still need to pay your taxes, without a deduction. Basically, the big problem with working out of…
Taghazout perhaps? If so, it's good to hear that you can get good wifi there now. I spent a few weeks there back in 2008 and the only internet access was a tiny sweaty one room place with dialup speeds and no AC.
Considering how comfortable and cheap those houses along the front were, I've always wanted to head back there and set up shop for an entire season. Sounds like that might actually be possible now.
Good news.
Re: Bootstrapping overseas as an American
#4I'm an overseas developer myself, currently sitting on a point break in Morocco enjoying perfect wifi, powering it all with solar panels. I'm pretty sure that the 100,000 IRS deduction is only for income earned from a foreign source. So, if you are like me and have your income coming from Apple app store sales, then you still need to pay your taxes, without a deduction. Basically, the big problem with working out of…
Here's the relevant section explaining that yes, income from a US company is just groovy for use with the Foreign Earned Income deduction:
http://www.irs.gov/Individuals/International-Taxpayers/Forei...
Source of Earned Income
The source of your earned income is the place where you perform the services for which you received the income. Foreign earned income is income you receive for performing personal services in a foreign country. Where or how you are paid has no effect on the source of the income. For example, income you receive for work done in France is income from a foreign source even if the income is paid directly to your bank account in the United States and your employer is located in New York City.
Re: Bootstrapping overseas as an American
#5I'm an overseas developer myself, currently sitting on a point break in Morocco enjoying perfect wifi, powering it all with solar panels. I'm pretty sure that the 100,000 IRS deduction is only for income earned from a foreign source. So, if you are like me and have your income coming from Apple app store sales, then you still need to pay your taxes, without a deduction. Basically, the big problem with working out of…
Taghazout perhaps? If so, it's good to hear that you can get good wifi there now. I spent a few weeks there back in 2008 and the only internet access was a tiny sweaty one room place with dialup speeds and no AC. Considering how comfortable and cheap those houses along the front were, I've always wanted to head back there and set up shop for an entire season. Sounds like that might actually be possible now. Good news…
Yes Taghazout. But you can get great 3g in Mirleft, Agalou, and almost any spot along any road in Morocco now. Same with the rest of the world too. Almost anywhere we go we get great 3g.
3g is about $1 / GB here now. Sub 100ms ping times often so we can Skype (or goog voice) easily.
Re: Bootstrapping overseas as an American
#6I'm an overseas developer myself, currently sitting on a point break in Morocco enjoying perfect wifi, powering it all with solar panels. I'm pretty sure that the 100,000 IRS deduction is only for income earned from a foreign source. So, if you are like me and have your income coming from Apple app store sales, then you still need to pay your taxes, without a deduction. Basically, the big problem with working out of…
Here's the relevant section explaining that yes, income from a US company is just groovy for use with the Foreign Earned Income deduction: http://www.irs.gov/Individuals/International-Taxpayers/Forei... Source of Earned Income The source of your earned income is the place where you perform the services for which you received the income. Foreign earned income is income you receive for performing personal services in a…
Interesting! I stand corrected.
Next thing I don't understand with that document is what is "earned" income. Are app store sales "earned?" I'd say so... constantly having to update the software -- I'm earning it.
Re: Bootstrapping overseas as an American
#7I'm an overseas developer myself, currently sitting on a point break in Morocco enjoying perfect wifi, powering it all with solar panels. I'm pretty sure that the 100,000 IRS deduction is only for income earned from a foreign source. So, if you are like me and have your income coming from Apple app store sales, then you still need to pay your taxes, without a deduction. Basically, the big problem with working out of…
Here's the relevant section explaining that yes, income from a US company is just groovy for use with the Foreign Earned Income deduction: http://www.irs.gov/Individuals/International-Taxpayers/Forei... Source of Earned Income The source of your earned income is the place where you perform the services for which you received the income. Foreign earned income is income you receive for performing personal services in a…
On that IRS page it says:
"For this purpose, foreign earned income is income you receive for services you perform in a foreign country during a period your tax home is in a foreign country and during which you meet either the bona fide residence test or the physical presence test."
It sounds like one must also be tax resident in the foreign country for this to work?
Re: Bootstrapping overseas as an American
#8Am I allowed to work there?
No, not really.
But they’re not checking. Places like Southeast Asia are chock full of expats living there, doing silly things like “visa runs” to the next country and back every couple months to remain a tourist for years on end.
Even in Europe, where you wouldn’t be able to get a self-employment working visa (if such a thing existed) with less than six months effort and a good lawyer, you’ll find that they’re really a lot more interested in keeping the various people coming in from the South from doing so than they are in messing with you. Given the level of effort required to find somebody at the Santander ferry port to even stamp your passport, it’s unlikely that anybody is conducting a multi-month surveillance of your AirBnB “office” up in the hills above the Cote de Azur.
Uh, what? No. Don't do this. Just because you might be able to get away with it in certain Southeast Asian countries doesn't mean you can get away with it in Europe. Sure, you might be "fine" for a couple months after your Schengen visa expires, but good luck if you ever need to, say, fly back to the US for a few days, or even hop over to the UK. When you try to get back in, you will almost definitely face consequences.[1]
(EDIT: It's worth noting that you don't even have to attempt to re-enter to risk getting caught. Even a routine traffic stop can get you in trouble. In addition, they check your passport at most airports before boarding a flight that leaves the Schengen zone.)
Yes, self-employment visas do exist (though admittedly only in some EU countries), and no, they do not require "six months effort and a good lawyer". In Germany for instance, a freelance visa is a pretty straightforward process, and the vast majority of people who apply for it do so without hiring a lawyer or even spending much money.
If you're going to work in a foreign country, at least try to do so legitimately. You might find that it's not as difficult as you think, and you won't have to live with the vague fear of serious legal action hanging over your head.
OP, please don't recommend this to people.
Re: Bootstrapping overseas as an American
#9Earlier quoted context omitted.
Here's the relevant section explaining that yes, income from a US company is just groovy for use with the Foreign Earned Income deduction: http://www.irs.gov/Individuals/International-Taxpayers/Forei... Source of Earned Income The source of your earned income is the place where you perform the services for which you received the income. Foreign earned income is income you receive for performing personal services in a…
On that IRS page it says: "For this purpose, foreign earned income is income you receive for services you perform in a foreign country during a period your tax home is in a foreign country and during which you meet either the bona fide residence test or the physical presence test." It sounds like one must also be tax resident in the foreign country for this to work?
That's right. The other piece of the puzzle is that you have to either show that you're a resident of a foreign country, or that you're physically outside of the USA for 330 days of the year. (as mentioned in the linked article)
Re: Bootstrapping overseas as an American
#10Earlier quoted context omitted.
Here's the relevant section explaining that yes, income from a US company is just groovy for use with the Foreign Earned Income deduction: http://www.irs.gov/Individuals/International-Taxpayers/Forei... Source of Earned Income The source of your earned income is the place where you perform the services for which you received the income. Foreign earned income is income you receive for performing personal services in a…
On that IRS page it says: "For this purpose, foreign earned income is income you receive for services you perform in a foreign country during a period your tax home is in a foreign country and during which you meet either the bona fide residence test or the physical presence test." It sounds like one must also be tax resident in the foreign country for this to work?
Yah, you have to be paying taxes to someone else to take the FEI deduction. Unless you are in a low tax country like Switzerland, Hong Kong, or Singapore, it's just a shortcut in doing your taxes, you don't actually save money since you can always deduct your foreign income taxes if you don't take it.