Planning a Yoga Retreat Abroad? Here’s What You Need to Know About Taxes
So, you’re a yoga teacher or studio owner here in the U.S., and you’ve decided to host a dream retreat in another country. You’ve picked the perfect retreat center, and you’re bringing a group of students from your local community. You’re handling all the planning, bookings, and payments from here in the U.S.—and no one local to the destination is attending.
Sounds amazing, right? But naturally, you’re wondering: how does this work from a tax standpoint?
Let’s break it down in simple terms:
1. Yes, Your Retreat Income Is Taxable
Even though the retreat is happening in another country, you’re running it through your business and getting paid by your clients here in the U.S. So yes—you’ll need to report that income on your U.S. taxes, just like you would for any other program or offering.
2. Many of Your Expenses Can Be Deducted
Since this is a business event and you’re working (not vacationing), most of the money you spend to run the retreat can be counted as a business expense. That includes:
The cost to rent the retreat space
Your flight and lodging
Marketing and materials for the retreat
Meals while you’re working
Paying anyone who helps you run the retreat
The key is to keep good records and separate what’s for business and what’s personal. If you stay extra days for fun or bring family along, that part wouldn’t count as a business write-off.
3. You Don’t Have to Worry About Foreign Taxes (Most Likely)
Since you’re not taking local clients or earning money in that country, and you’re only paying a retreat center abroad, you likely won’t owe any taxes in the retreat country. Just make sure their fee includes any local taxes or service charges—that’s their responsibility to handle, not yours.
4. You Don’t Have to Send Them a 1099
You might be used to sending a 1099 form to contractors or service providers in the U.S.—but in this case, since the retreat center is located in another country, you don’t need to send them anything for tax purposes.
That said, it’s smart to ask them for a form (called a W-8BEN or W-8BEN-E) just to have on file. It’s a simple document that shows they’re a foreign business.
Final Thoughts
Hosting a retreat abroad can be a powerful way to grow your business and deepen your client relationships—and with a little planning, it can be a smooth experience financially, too.
As long as you:
Report the income
Track your business expenses
Stay organized with receipts and invoices
—you’ll be in great shape come tax time.
Want help sorting through the financial side of your retreat? At The Holistic CPA, we help wellness business owners stay ahead of their finances so they can focus on what they love.
Let’s chat if you’re planning a retreat and want to make sure it’s set up right from the start.
