South Dakota is a tax haven for digital nomad
If you want to leave the US and spend most of the year traveling, then South Dakota is about to become your new favorite state. South Dakota has a 1-day residency, meaning that you just have to spend 24 hours in the state in order to get your driver's license. You can spend that 24 hours in a van, a hotel, it doesn't really matter because the physical address that you can maintain in South Dakota is permitted to be a mailbox.
South Dakota also doesn't have a state tax. So, as long as you don't establish tax residency in one of the countries you're living in, you will only ever have to pay US federal tax rates. And if you make any money from an overseas source, you can use the foreign earned income tax exemption to deduct that from your US tax return.
If you do decide you want to have a home base in South Dakota, they have no property tax. Cost of insurance is comparably really low in the United States. And they have no inheritance tax. It's also really affordable to register any vehicles, which is why this is both a sanctuary for digital nomads and also domestic RVers.
I gathered all of this information after realizing that everyone at Hoskin Capital has some sort of digital nomad angle. One of our CFPs has triple citizenship and our operations manager is in a new country every 2 to 3 weeks. And for me, I've been to 27 countries and I'm about to turn 27.
For whatever reason, and I don't ever think this was on purpose, we gathered this group of digital nomads. And as a result, we end up helping so many digital nomads with their finances. Not because we've ever advertised that, just because it's a lot of what we do in our personal lives.
If you are also thinking about a new life in South Dakota, click the Apply For Residency button and let us help you.
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