The Ultimate Digital Nomad Visa Guide

Have you ever dreamed of starting a new life abroad? Perhaps you want to travel the world without sacrificing the career you’ve worked so hard for. If this is the case, then a digital nomad visa could be the perfect fit. In this digital world, more and more people are working online and as a result, countries all over the world are offering special digital nomads visas. Whether in Spain, Portugal or Bali, digital nomad visas make traveling the world easier than ever. Find out which countries you could work in with this comprehensive guide for digital nomads.

• Methodology

  “The “Cost of Living Index,” “Rental Price Index,” “Grocery Index”, and “Safety Index” were collected from the world’s largest cost of living database, numbeo.com. In order to compare the results of all surveyed destinations, the survey was standardized on the basis of a reference destination. With an index of 70, for example, the value of the respective destination is 30 percent below the index of the reference destination. With a value of 120, on the other hand, the index is 20 percent above the reference. 

  The method of investigation of the given index can be found here: numbeo.com/common/motivation_and_methodology.jsp. The evaluation results of all destinations were also standardized to enable comparability. Further data comes from research on official websites representing the country or from editorial content containing surveys received on the figures given. The destinations in the given table were sorted in ascending order based on the cost of living index — from lowest to highest. The research was conducted on February 2023.”

What are digital nomads?

In this ever-growing digital world, you can be online anywhere and anytime—an important foundation for digital nomadism. Both freelancers and remote employees can become digital nomads. After all, a stable internet connection and laptop is all you need. The typical career paths of digital nomads often include marketing, IT, design, media and consulting. 

What makes someone a digital nomad? Now that remote work has become the norm, we need to distinguish between digital nomads and home office workers. The major difference is that digital nomads are not tied to any place—similar to nomadic people, as the origins of the word suggest. Digital nomads often travel from one country to the next while continuing to pursue their professional ambitions in their home country. Digital nomadism offers people the freedom to explore the world while supporting themselves and advancing their careers—making it a great visa option for people who work from home.

H3. What information do digital nomads need to know? 

Most digital nomads work entirely via their laptops and rely on connecting with coworkers or clients online, so a stable internet connection is key. To support this, cities across the world now offer coworking spaces, which are rentable, fully equipped offices for freelancers and digital nomads. The spaces also offer a sense of community and the opportunity for networking.

Many digital nomads also seek affordable living spaces to support their adventurous lifestyle. The cost of living is important to consider before starting your digital nomad journey. Those working abroad need to cover costs for food and rent, while keeping a leftover budget to enjoy the local culture and explore the area. Those who want to stay in a foreign country for a long time typically require a visa, as opposed to those who travel for vacation. As this trend has increased, many countries have followed suit and introduced digital nomad visas to accommodate this growing need, including a wide range of countries in Europe.

Digital nomad visas: Working and living abroad

During the pandemic, tourism significantly declined in many countries. Simultaneously, the emergence of remote work skyrocketed, making it easier than ever to work from anywhere. In order to promote tourism and support local economies, some countries introduced a digital nomad visa to attract working travelers. The rationale: the spending power of long-stay digital nomads is higher than short-stay tourists. 

A digital nomad visa can give you the freedom to travel the world and follow your passions. If you dream of working during the day and visiting ancient ruins or hiking through the alps in the evening, then a digital nomad visa is for you. Remote worker visas can open doors to places you’ve only dreamed of visiting. 

It’s important to note that you may only work remotely for a company that is not based in your host country. For example, if you are traveling to Spain, you cannot work for a Spanish company with a digital nomad visa. Continue reading to find out which countries offer a special visa for digital nomads and find your perfect match. 

Digital nomad visa checklist

When applying for a digital nomad visa, you need to have a valid passport and fill out the visa application. Prepare the following documents:

• Health insurance coverage, which is valid in your desired country
• Employment contract from a company that is not based in the host country
• A letter from your employer stating they permit remote work
• Proof of income

Which countries offer visas for digital nomads?

Whether you’re looking for warm beaches and palm trees or icy tundras and mountainous landscapes, you’re bound to find a country that offers a digital nomad visa.

Find the best location to start your digital nomad journey

Have you already started packing your bags? Before you book that flight, keep reading to find out the best countries for digital nomads based on a range of important criteria:

• Cost of living
• Safety
• Number of coworking spaces
• Internet speed
• Flexible application requirements
• Family-friendly destinations

Digital nomad life on a budget: The most affordable countries 

If you think traveling always has to be expensive, then you need to change your mindset. Even life for digital nomads can be affordable—‌it’s even cheaper to live and work abroad, helping you save money for more adventures!

Where can you comfortably live and work on a budget?

The cost-of-living index tracks costs of regular expenses ranging from food, rent, healthcare and much more on a scale of 1-100. Basically, the cost-of-living index helps you determine how your income will cover basic expenses.  These countries have a cost-of-living index below 35 while the USA has an index of 72.4—that’s more than double. This means that living in one of these countries stretches your dollar, so you can spend less on the necessities and more on what you love most.

Source: https://www.numbeo.com/cost-of-living/rankings_by_country.jsp, Status: 03.2023

Source: https://www.investopedia.com/ask/answers/100214/how-cost-living-index-calculated.asp Status: 03.2023

Stay connected both on- and offline

While the cost of living is important, other factors will also play a huge role when deciding which country to live in. As a digital nomad, your Wi-Fi connection and ability to work comfortably are crucial to your success. 

Internet connection

Bad internet is a digital nomad’s biggest fear. A stable connection is vital for completing your work on time. These countries boast speedy internet connections: Denmark, Dubai, Romania, Spain and Thailand. Forget the worries of missed meetings or endless hours of downloading thanks to incredible internet speeds of 158.22–198.98 megabits per second (Mbit/s).

Source : https://www.speedtest.net/global-index, Status: 03.2023 

Coworking spaces

Working from home can be a joy whether it’s the time saved from no commute or the opportunity to pop in some laundry during your break. However, digital nomads might get homesick from time to time or want ways to meet new people while living in a foreign land. Coworking spaces are the perfect solution for digital nomads. Offering the comforts of modern offices, coworking spaces provide dedicated workspaces, electricity, internet access and sometimes even drinks and snacks, all included for a set price.

Number of coworking spaces Source: https://www.coworker.com/, Status: 03.2023

Stay safe abroad

If you’ve never lived abroad, you might wonder just how safe it is in other countries. Whether traveling alone or with small children, choosing a country with a high level of safety will ease your mind. The safety index score for the U.S. is only 51. Consider Estonia for a digital nomad visa thanks to the high safety index score. Croatia, Estonia, Georgia, Japan, Switzerland and Taiwan all have a safety index5 higher than 74—making them a safer choice for your digital nomad adventure. 

Source: https://www.numbeo.com/crime/rankings_by_country.jsp, Status: 03.2023

What goes into the safety index score? Risk of pickpockets, terrorist attacks and also natural disasters all factor into the score. Women’s safety when traveling alone was also a consideration.

You should proceed with caution when choosing a country that has a low safety index score. While it doesn’t mean you should avoid these countries entirely, take certain precautions for safe travel. Argentina, the Bahamas, Brazil, Namibia and South Africa, rank the lowest on the safety index. 

• Who qualifies for a digital nomad visa?

  Each country sets its own requirements for digital nomad visas. Proof of income is one factor that may determine whether you are eligible to apply for certain digital nomad visas. Typically, anyone who has a flexible job that allows them to work remotely can apply for a digital nomad visa.

• How much income is required for a digital nomad visa?

  The minimum income required differs between countries. Countries like the Czech Republic only require proof that you earn $560 per month. On the other side of the spectrum, the Cayman Islands require proof that you earn $8,180 per month. Most countries offering digital nomad visas require proof of a monthly income between $2,100-$3,200.

• Do digital nomads need health insurance?

  Proof of health insurance in the host country is typically a must when applying for a digital nomad visa. Make sure your insurance policy covers you both at home and in the country you plan to work in. Many health insurance providers offer worldwide coverage for long stays, so it’s better to opt for this kind of policy to ensure you can work and travel with peace of mind.

• How are digital nomads taxed?

  U.S. citizens get taxed based on citizenship, regardless of their current residency. This means that if you make more than the minimum amount required to file, then you will need to file your U.S. tax return. Your wages, interest, dividends and rental income are all forms of taxable foreign income.9  There are a few tax benefits for digital nomads to help you lower your tax return. The Foreign Earned Income Exclusion and the Foreign Tax Credit are two important forms to fill out to help you get a tax break while working as a digital nomad abroad.

  Depending on the foreign country you choose to live in, they may also tax you. However, many countries keep digital nomads exempt from local taxes for a period. It’s important to check all the tax requirements in your host country to make sure you know which taxes you handle.

  Source: https://www.hrblock.com/expat-tax-preparation/resource-center/filing/status/digital-nomad-taxes-10-things-americans-abroad-should-know/, Status: 03.2023