What Is A Digital Nomad?
People who work remotely and travel frequently are known as digital nomads. They utilize up-to-date technology to carry out their work from various locations such as coffee shops, hotels, co-working spaces, or libraries, with access to the internet through their laptop or smartphone from any corner of the world.
There exist numerous categories of digital nomads. Certain individuals journey within their nation through campervans or RVs, while others reside on sailboats and perform their work in varying ports.
While traveling from one country to another, some choose to stay in backpacker hostels or opt for renting Airbnb apartments.
The overall concept is to have unrestricted mobility when carrying out tasks on the internet.
Pros & Cons Of Location Independence
The Benefits
The freedom to work from anywhere in the world brings numerous benefits to digital nomads. Imagine being able to complete your dream activities while working remotely from your laptop!
- Save money living in a low cost-of-living area
- The flexibility to live where you want
- Ditch the toxic environment of office politics
- Experience new cultures & make new friends
- Learn new skills or languages
- Broaden your mind through travel experiences
- Set your own schedule and take time off when you want to
- Spend winters on the beach, and summers in the mountains!
The Downsides
A lot of individuals dream of having the opportunity to work from any location they desire. However, like all decisions in life, there are advantages and disadvantages to living a wandering lifestyle. Here are some of the unfavorable aspects:
- Moving constantly is exhausting
- Your productivity can suffer
- Digital nomads often battle loneliness
- Finding stability is difficult
- A general lack of private space
- Travel loses its luster & wow factor
My wife, child, and I returned to the United States after a decade of world exploration, as the negative aspects had finally taken their toll, and settled down in a newly acquired residence.
Although I enjoyed my transient existence during those years, the prolonged experience of carrying my belongings around lost its allure. I was prepared to begin a family, establish a home base, engage in remote work, and reduce my traveling.
As someone who has gained experience over time, I am delighted to offer guidance to those who are new to the digital nomad lifestyle!
Digital Nomad Job Examples
- SEO Agency Work
- Virtual Assistants
- Software Developers
- Website Designers
- Selling On Amazon
- Creating Online Courses
- Language Education
While it’s not possible to enumerate all the jobs that can be performed remotely, there are a few common ones I’ve encountered on my journeys. To access a more extensive list of travel-friendly jobs, visit this link.
In my case, I operate a travel blog which aligns with both my talents and interests. There is a plethora of blog genres available such as cooking, creating, finances, equipment, trekking, and photography.
Remote Work & Entrepreneurship Resources
One of the most challenging obstacles to achieving location independence as a digital nomad is determining how you will generate income.
Regrettably, I am unable to provide you with specific instructions – as each individual possesses their own unique set of talents, knowledge, and personal preferences. Therefore, you will have to discover the solution on your own.
What I CAN do is point you in the right direction with the following books and websites that I’ve found super helpful over the years!
Thanks to their assistance, I have reached my current position, and I am confident that they will be able to provide you with the same level of support.
BOOKS
- Remote: No Office Required by Jason Fried aims to help you convince your boss why it makes sense to allow you to work remotely.
- The 100 Dollar Startup by Chris Guillebeau interviews 50 different people who started successful businesses for as little as $100.
- The 4-Hour Workweek by Tim Ferriss gives tips for working less and earning more by starting a business and hiring others to run it.
- Job Escape Plan by Jyotsna Ramachandran explains the steps of building a location independent business on the side before quitting your job.
- Rework by Jason Fried shows you how succeed with starting a business as quickly and easily as possible in the modern world.
WEBSITES
- Flexjobs has an updated job board for remote work opportunities.
- Remote.co is dedicated to resources for remote workers.
- How To Become A Freelancer shares the basics of a freelance career.
- Power To Fly lists dream jobs around the world.
- We Work Remotely is the largest remote work community online.
- Working Traveller is a place where employers can hire digital nomads.
Taxes For Digital Nomads
As a digital nomad, what are the tax payment procedures? In essence, Americans are obligated to file taxes even while residing in foreign countries, meanwhile this does not apply to the majority of nations.
If you spend the majority of the year in a foreign country and pay taxes to that country, you may be eligible for the Foreign Earned Income Exclusion. This exception enables you to exclude up to $100,000 of income from being taxed by the United States.
To decrease their tax expenses, certain individuals establish businesses in digital nomad accommodating nations such as Singapore.
Recommending for those aspiring to be a digital nomad to consider seeking the services of a competent accountant who possesses expertise in catering to those residing abroad.
What are Digital Nomad Visas?
The digital nomad visa enables remote workers to stay longer in a location while performing online work for an overseas employer. This temporary residency permit restricts the holder to remote work only, and typically has a limited duration without any options for permanent residency or citizenship.
Who Can Get A Digital Nomad Visa?
Digital nomad visas have different prerequisites depending on the country. Typically, meeting a minimum income threshold and demonstrating employment in another nation are necessary to be eligible. Although most working travel visas have age constraints, digital nomad visas are open to anyone over 18 who meets the minimum standards and do not have an age limit.
Top 10 Countries That Offer Digital Nomad Visas in 2023
1. Colombia
The visa fee for the Colombia visa is an initial cost of $52USD, with an additional fee of up to $230. The visa is valid for two years, but the maximum period you can stay in Colombia per year is 180 days. In addition, there is an income requirement of $620USD.
Colombia is gaining popularity as one of the best destinations for remote workers due to its low income requirements that are in sync with its cost of living. An added advantage of this visa is that it paves the way for citizenship, making it an excellent choice for people seeking a more permanent solution.
Applying here is an option, however, it is advisable to be cautious as digital bureaucracy in Colombia is infamous for its lack of reliability. Therefore, it is essential to ensure that all your documentation is organized well ahead of time.
Make sure you experience these amazing activities during your time in Colombia!
2. Portugal
For some time now, Portugal has offered a ‘Passive Income’ (D7) option that can be beneficial for digital nomads seeking residency, but the paperwork is significantly more involved than other specialized options. This year, a digital nomad visa with a simpler process will be introduced, albeit with a substantial income prerequisite. Both permits are applicable for mainland Portugal, Madeira, and the Azores, providing ample opportunities for discovery!
The cost of the D7 visa includes a fee of €83 and an additional €72 for a resident permit. The visa can be issued for a duration of 1 to 5 years, with an income requirement of €600 per month.
The cost of the Digital Nomad Visa is not specified, but it is available for a period of 1 to 5 years, with a monthly income requirement of €3000.
3. Mexico
The program fee ranges from $190USD to $390USD and covers the cost of an interview. The program duration is one year and may be extended for up to four years. Applicants must show proof of a monthly income of $1,620 or have a bank balance of $27,000.
With its beautiful beaches in Yucatan and rich culture in Oaxaca, Mexico offers tempting options for remote workers. Despite the expensive visa fee, living expenses outside of Mexico City and major tourist hubs are reasonable enough to justify the cost.
4. Mauritius
There is no cost for this program, and it lasts for one year. To be eligible, you must demonstrate that you are employed remotely by a foreign company or that you own a business that can operate from any location.
Mauritius, a renowned honeymoon spot, now presents an excellent digital nomad visa that caters to those who desire to work amid a vibrant beach atmosphere. This visa does not require a minimum income, rather it mandates proof that your work is done outside of the country. Once verified, you can stay for a year with zero visa expenses!
Enhance your experience in Mauritius!
5. Malaysia
To cover an additional spouse or dependent, the fee would increase to $110 in addition to the $220 base fee. The initial membership length is 1 year with the possibility of prolonging it for another year. Individuals must earn a minimum annual salary of $24,000 to qualify.
Thailand is recognized as a popular destination for both digital nomads and novice tourists, but Malaysia has a superior visa scheme for remote workers. Thailand mandates a salary of $80,000, whereas Malaysia has much lower prerequisites. Coupled with the affordable standard of living and the convenience of traveling throughout Asia via the Kuala Lumpur airport, Malaysia is an excellent option to consider.
6. Hungary
The cost is €110 and the length of the program is 1 year, with an option to renew for another year. Applicants must have a monthly income of €2,000 for at least 6 months.
Hungary, and in particular Budapest, is a splendid destination for digital nomads and a genuine jewel in Eastern Europe. Despite offering western amenities and a lifestyle, Hungary is considerably cheaper. In addition to this, the 1-year DMV further incentivizes remote workers to explore Hungary. Nevertheless, to apply for the visa, couples will have to meet the requirements individually. However, the income requirements are relatively low compared to other European countries.
7. St Lucia
The cost for the service is $75USD and the subscription lasts for 12 months. No income requirement is necessary.
St Lucia’s long stay visa is the most suitable option among several Caribbean islands that provide opportunities for remote work. Unlike other islands that necessitate earning up to $100,000USD, this option is affordable and doesn’t entail any income prerequisites, rendering it ideal for people seeking a Caribbean getaway.
8. Spain – Coming in 2023
The cost is not specified, but the program lasts for 1 year and may be extended for an additional 4 years. Participants must have a minimum income of €2,000 per month.
A fresh digital nomad visa will be introduced by Spain in January 2023, enabling remote work for 12 months. Nonetheless, they will impose a 15% tax on earnings, making it impractical for those already paying taxes in their native land. Additionally, there is an alternative ‘non-profit visa’ available to those who plan to retire in Spain. It does not allow employment, but it is regularly used by digital nomads working for a foreign firm.
9. Argentina – Coming in 2023
The cost is $200USD for a period of 6 months, with a possibility to renew for an additional year, and there is no information available about the income requirement.
Argentina, which is already a preferred destination for digital nomads, has unveiled a visa designed for this group that will be available later this year. Although there is currently no information regarding any minimal income criteria, the authorities have revealed their goal to be as accommodating as feasible. Nevertheless, as there are extremely lax border rules already in place offering unrestricted entries, several believe that the remote community will choose to ignore the new visa and rather use tourist visas.
10. Italy – Coming in 2023
The cost and income requirement for a period of one year are currently undisclosed.
Since the digital nomad visa was signed into law in March 2022, the remote working community has been eagerly anticipating further information about the highly sought-after Italian visa. Currently, it is only available for highly skilled workers who meet the tax compliance requirements in Italy. Nevertheless, the Self Employed visa could be a suitable option for a large number of digital nomads. For additional insights into both of these options, please click here.
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