Digital nomad visas (DNVs) offer digital nomads a cost-effective way to strategically choose their tax residence country, in addition to providing other direct tax incentives. This paper examines the effective tax burden of digital nomads under these visas in the EU in a simulation analysis. Our preliminary findings indicate that digital nomads with a taxable nexus in the United States or the United Kingdom can achieve a lower effective personal income tax burden by working from EU countries that offer DNVs. Moreover, we employ travel data of digital nomads to gain insights into their movement patterns and the resulting tax revenue implications. Consistent with the tax advantages associated with these visas, we find that destinations offering DNVs attract digital nomads more frequently than those without such a visa.

This paper investigates whether and why pensioners move across borders in response to tax rate differentials. In 2013, retirees relocating to Portugal became eligible to a full tax exemption of foreign-source pensions. Contrary to the broadly held belief that seniors "age in place", we find substantial international mobility responses to the reform, concentrated among wealthy and educated pensioners in higher-tax origin countries. The implied migration elasticity of the stock of foreign pensioners to the net-of-tax rate is large (between 1.5 and 2) and increases at longer horizons. Tax-induced retirement migration clusters in space, and exhibits peer effects, amplification, and hysteresis patterns consistent with agglomeration through endogenous amenities. We show such forces theoretically and empirically have significant implications for optimal tax rates, and for the limited efficacy of unilateral policy responses to tax competition, like the source-based taxation of pensions.

This paper investigates the dynamics of income and sales tax evasion within a framework of competitive labor market and price competition between firms, emphasizing the interplay between collusion between firms and its workers, and price competition. Through a novel model, the paper demonstrates how competitive pressures can lead to increased income tax evasion, as firms leverage their strategic position to offer off-the-books component in wages, thereby incentivizing workers to participate in tax evasion schemes. The findings reveal that the level of evasion is directly proportional to sales tax rates. By employing a general equilibrium approach, the paper elucidates the broader consequences of tax evasion, including its effects on consumption patterns, price levels, wage rates, and overall welfare. This research contributes to the literature by integrating various strands of tax evasion theory and providing a theoretical foundation for the evolving empirical evidence regarding limitations of efficacy of TPR systems.

This paper studies the impact of investor citizenship and residence schemes on local real estate markets. We do so by examining the Spanish golden visa programme that was introduced in 2013 and grants visas and full residence rights to foreign investors who invest at least 500,000 Euro in the Spanish real estate market. Using the universe of real estate transactions in Spain and difference-in differences as well as spatial techniques, we obtain three main findings. First, the number of real estate transactions above the threshold increased by 0.24% more for non-EU relative to EU and investors after the introduction of the programme. Second, non-EU investors appear to pay a premium of 9,228 Euro around the threshold relative to non-EU and Spaniards. Finally, we find that the programme had spillover effects on the real estate market increasing overall real estate transaction prices.