Once something that seemed unattainable, the digital nomad lifestyle has become more mainstream thanks to the remote work boom in the wake of the COVID-19 pandemic.
Now more than 40 countries offer digital nomads remote work visas and they often last a year or longer.
Japan is the latest country to hop on the bandwagon.
And South Africa is set to open its doors to remote workers later this year.
Are you looking for adventurous travels while working from a laptop? Here are the countries that offer digital nomad visas and the requirements you'll need to meet for approval.
What is a digital nomad?
A digital nomad is someone who works remotely while travelling and living in various locations.
They rely on their laptop and internet connection to carry out their work responsibilities from anywhere in the world.
They don't have an office.
Instead, they work from their accommodation, local coffee shops and co-working hubs — basically anywhere with an internet connection.
What drove the rise in digital nomadism?
The pandemic.
University of Melbourne senior lecturer in anthropology Paul Green says it changed the narrative about remote work and made digital nomadism a possibility instead of a pipedream.
"The understanding of remote work and working from anywhere became normalised as a result of lockdowns and working-from-home mandates," Mr Green told the ABC.
"Increasing numbers of companies and organisations have also driven this lifestyle trend by embracing variations of remote employment models and practices."
Why do people become digital nomads?
Mr Green says digital nomadism offers people a pathway to a seemingly idyllic lifestyle.
"It's built around positive images of life and work in some of the world's leading tourism and beach destinations," he said.
"Many are also drawn by the promise of community, of meeting like-minded individuals in popular digital nomad hubs such as Chiang Mai or various spots in Bali.
"The lifestyle is also built on a strong imagining of what has been left behind, in the form of a monotonous and mundane rat race and office work back home."
What is a digital nomad visa?
A digital nomad visa is a permit that allows a person to work remotely in a foreign country.
The nomad's source of income usually has to be located outside the country they plan to move to.
For example, if you work for a company registered in Spain, you cannot apply for a digital nomad visa in Spain.
The visas typically have a duration of 12 months and can be extended depending on the country of issue. In some cases, a digital nomad visa can be the first step on the pathway to permanent residency.
How much does a digital nomad visa cost?
It can cost anywhere from a few hundred dollars to more than $3,000.
But this depends on which country you're going to.
A digital nomad visa for Barbados, for example, costs $US2,000 ($3,000).
Meanwhile, a similar visa for Spain costs 80 euros ($130).
Which countries offer digital nomad visas?
More than 40 countries offer digital nomad visas.
[datawrapper]What are the visa requirements?
The requirements for a digital nomad visa vary from country to country.
Let's run through a few examples to give you an idea.
The data below comes from Numbeo, a website which crowdsources data to give an international picture of the cost of living.
- Length: 12 months with an option to renew
- Application fee: $US2,000
- Income to prove: $US50,000
- Tax: Nomads will not be liable to pay Barbados income tax
- Cost of living: 8.5 per cent higher on average than in Australia
- Length: 12 months with an option to renew
- Application fee: 75 euros
- Income to prove: 3,500 euros gross of tax per month
- Tax: You become a tax-paying resident after six months of your stay (the amount depends on your monthly income bracket)
- Cost of living index: 25.7 per cent lower on average than in Australia
- Length: 12 months with an option to renew
- Application fee: 110 euros
- Income to prove: 2,000 euros per month
- Tax: You become a tax-paying resident after six months of your stay (includes personal income tax and social security tax)
- Cost of living: 40.4 per cent lower on average than in Australia
- Length: Maximum six months
- Application fee: Yet to be confirmed
- Income to prove: 10 million Japanese yen
- Tax: Australia has a double tax agreement with Japan that guarantees that individuals and businesses do not face double taxation on their earnings in both countries
- Cost of living index: 31.2 per cent lower on average than in Australia
What should I think about before choosing this lifestyle?
Digital nomads select their locations based on different elements that might affect their lifestyle and job prospects.
Some of the obvious factors to consider include the ones we've highlighted above (length, cost of living, proof of income/savings).
But it doesn't stop there.
Digital nomads should also think about:
- Weather
- Internet coverage and speed
- Safety — cyber, economic, and social
- Transportation infrastructure
- Culture
- Language barriers
- Isolation
- Health insurance
Mr Green says loneliness is a key concern for many nomads.
"Friendships come and go, just as a return to a favourite destination leaves individuals having to start the process again of building a social network in place.
"In some cases, loneliness or homesickness can lead to nomads returning home.
"Some nomads also have difficulties in sharing their concerns and worries with other nomads because the lifestyle is built on collective expectations and powerful media images of this dream lifestyle built around fulfilment."
If you are drawn to the digital nomad lifestyle, Mr Green says it's important to make sure you have the "skill sets, educational background or project ideas" to transition into a sustainable life as a remote worker.
Do digital nomads have to pay tax?
It depends.
Some countries expect you to pay full tax, some have tax deductions, while others impose no taxes.
The countries with zero tax assume you still pay tax in your home country.
In Greece (which offers a one-year visa), you are exempt from paying local income tax only for the first six months.
So, for the last six months of your visa, you will be required to pay tax.
What's the difference between a digital nomad visa, a tourist visa, and a work visa?
Because all three visas serve different purposes, here are the key differences:
Digital nomad visa | Tourist visa | Work visa |
Allows remote workers to legally work (for an overseas company) and live in a foreign country | Allows tourists to travel to a country for a short period for leisure | Allows individuals to work in a specific foreign country for a specific job/employer |
Usually valid from six to 12 months | Usually valid for a few weeks to a few months (typically 90 days) | Can be valid for several years, and even lead to permanent residency |
May require proof of income/savings | No specific requirements | Usually requires sponsorship from an employer |
Flexibility to work for multiple clients or companies worldwide | Limited to tourist-related activities. You're not allowed to work | Workers are tied to a particular job/employer |
What is the best country for remote work?
That depends on what you're looking for.
Some digital nomads might be more interested in an adventurous experience in nature, while others might want the hustle and bustle of a big city.
Some might want to be in a place where they know no-one and have to learn a new language, while others might be more inclined to move to a place where family or friends are already living.
So it all depends on your individual circumstances.
Cybersecurity company NordLayer has come up with a global remote work index which ranks countries from the most to the least attractive based on four pragmatic criteria:
- Cyber safety
- Economic safety
- Digital and physical infrastructure
- Social safety
According to that criteria, the internet company's top five countries from last year were:
- Denmark
- The Netherlands
- Germany
- Spain
- Sweden
However, the index doesn't take into account things such as cultural experience or scenery, which might be more important to some digital nomads.
And the top-ranked countries tend to be more expensive to live in.
