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The remote work format became the most popular in the midst of the pandemic. It was then that many appreciated the new opportunities to work remotely. In fact, this format originated even earlier, when some employees traveled the world without looking up from work. Regardless of how, where and on what they move, they are united by one thing — complete freedom of movement.
The opening of borders after the lockdown led to the fact that many did not want to return to the offices, but continued to work remotely. Some countries, in turn, decided to support this format, making it easier for many nomads to enter the country: a special Digital Nomad Visa was opened for this purpose. Thanks to such a visa, you can stay in the country for a longer period, unlike the same tourist visa, which is issued for 3 months. Plus, the Digital Nomad visa opens up opportunities for a European resident. Despite the common name, the conditions for obtaining such a visa in each country are different. The first requirement is to confirm the minimum income level. For example, in Portugal it is considered from 3,000 euros and above, but in Greece from 3,500 euros, in Dubai this income should exceed $ 5,000. The living conditions may also be different: renting or buying real estate. All this is discussed when applying for a DN visa.
The United States is in the first place in terms of the number of digital nomads, which is where this direction came from. The top five also included the United Kingdom, Canada, Germany and Russia, which ranks third in the ranking. But can all people roam so peacefully, having, in fact, only a laptop and Internet access with them?
According to surveys by sociologists, the top main professions of nomads include:
It is noteworthy that more than half of the self-employed own their own business and are therefore free from pressure from management. They also choose the country themselves. Today, about 40 countries support digital nomads, but everyone's requirements are different. Let's look at the example of the more popular ones:
Germany — the visa is issued without confirming the monthly income, but the annual income must be over 40,000 euros. If you have registered as a freelancer, you can only live in Berlin and for three years. After that, the freelancer can apply for a residence permit. If you want to open a CC (digital nomad) visa, you must show what contribution you can make to the economic and cultural development of the country. Taxes are paid according to your status: whether you are a resident or not. A digital nomad is recognized as a tax resident when he lives in the country for at least 183 days a year, or his children study at a German school. With this status, income tax will be from 0% to 45% (depending on the annual income of the resident)
Non-residents pay income tax only on income earned in Germany.
Greece — according to the DN Visa program in Greece, you need to confirm your monthly income in the amount of 3,500 euros; if you enter the country with your spouse and children, then an additional 20% is added to each family member. You will need to provide a letter that you will work remotely and will not apply for jobs in Greece. In addition, you will need to provide documents for housing for living (rent or property). After living in Greece for more than 183 days, you become a tax resident of the country and pay a tax of 9%-44% depending on your annual income, but, as a rule, digital nomads with a monthly income of 3,500 euros pay 44%.
Malta — monthly income from 2,700 euros, for each family member another 20%. The visa is issued for a period of only one year, and it can be extended twice. To extend a residence permit in Malta, you must live for more than five months and confirm your residence with a document for a long-term lease or provide a real estate purchase agreement. Permanent residence in Malta can be obtained by registering real estate in the amount of 300,000 euros or renting housing for a year in the amount of at least 10,000 euros.
Dubai has a minimum income of $5,000. The visa is issued for a year, it can be extended permanently. But if you don't show up in the country for more than six months, it may be canceled. When buying real estate in the amount of $ 250,000 or more, you get a residence permit, so you will no longer be issued a freelancer visa. There is no personal income tax in the Emirates, which makes it possible for many self-employed or businessmen to consider Dubai as an excellent place to live and work.
Spain — income from 2,646 euros, for a period of 1 year. After that, you can get a residence permit for a period of three years. Additional monthly expenses are expected for the spouse and children — about 1,000 euros per adult and 330 euros per child under 18 years of age. Spain considers visas mainly for telecommunications or IT technology workers. When you apply for a non—resident identification number of the Kingdom, your income tax will be in a simplified form for the first 5 years - 24%.
We have cited only a small part of the countries that supported Digital Nomad Visa for comparison. Of course, as we noted earlier, there are many more of them. Each country has its own rules and requirements, so before deciding to travel to one of these countries, study in more detail what you need to live and work. Regarding taxes within your country, there are a number of nuances:
working for a Russian company, you pay a tax of 13-15% per year, but having lived in another country for more than 180 days, you become a resident and pay according to the rates of the state where you opened a visa.
If you are registered as an individual entrepreneur, then you do not pay personal income tax if you assume tax obligations, while indicating that you live abroad. If you work for a Russian company under an employment contract, you are required to pay 13-15% (introduced in January 2024).
At first glance, it seems that being a nomad is quite easy. Let's agree that there are enough advantages in this lifestyle. But freelancers also have their own problems:
To sum up, we can say that the support for digital nomads will continue. It is beneficial for most countries to let such "workers" into their territory: they do not occupy jobs, but bring money to the treasury. We think that in the future the number of countries with Digital Nomad Visa will expand. And the most profitable option is not just to be a digital nomad, but at the same time, to have your own home in another country. Regarding the purchase of real estate, please contact our managers.
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