Tax residency rules are complex and vary significantly by country, making it difficult for individuals and businesses to track their physical presence accurately. This is especially challenging for companies with remote employees or frequent travelers, where manual tracking is prone to errors and can lead to legal risks, fines, or unexpected tax burdens. The rise of digital nomadism and remote work has only intensified this problem, creating a need for an automated solution.

How It Could Work

One way to address this challenge is through a software platform that automates tax residency tracking using location data. The platform could integrate with GPS, travel itineraries, or calendar apps to log days spent in each country and flag potential residency triggers—such as exceeding 183 days in a tax year. Key features might include:

• Real-time tracking: Automatically records presence in different jurisdictions.
• Compliance alerts: Notifies users or HR teams when residency thresholds are approached.
• Optimization suggestions: Recommends actions (e.g., adjusting travel plans) to minimize tax liability.
• Reporting: Generates audit-ready documentation for tax filings.

The platform could primarily serve businesses, such as multinational companies or remote-first organizations, to streamline compliance for their globally distributed teams.

Potential Stakeholders and Incentives

Different groups could benefit from this solution:

• Businesses: Reduce compliance risks and administrative costs.
• Employees: Gain clarity on tax obligations and avoid personal liability.
• Tax consultants: Use the platform as a tool to advise clients more efficiently.

For software providers, there could be an opportunity to integrate this functionality into existing tax suites, making it an attractive acquisition target for companies like Intuit.

Execution and Challenges

A possible starting point could be a web-based MVP that integrates with calendar apps to estimate travel days, supplemented by manual entry. Early testing with remote-first companies could validate usability and accuracy before expanding to automated location tracking and broader jurisdictional coverage. Challenges might include:

• Privacy concerns: Ensuring compliance with GDPR/CCPA through opt-in consent and data anonymization.
• Jurisdictional complexity: Starting with major tax hubs and gradually expanding based on demand.
• Integration: Prioritizing APIs for popular HR and payroll systems.

Monetization could follow a subscription model, with tiered pricing based on features like optimization suggestions or enterprise-level API integrations.

Compared to existing solutions—such as TurboTax (which focuses on annual filings) or Spartan Travel Compliance (which tracks visas rather than tax residency)—this idea offers continuous monitoring and proactive tax optimization, filling a gap in the market.