In this article, we’ll discuss the best countries for digital nomads, what makes a country digital nomad friendly, and how you can integrate the Nomad Capitalist lifestyle with digital nomadism.
The pandemic changed the world. One aspect that completely transformed post-pandemic was the work model. Working remotely became the norm rather than a privilege for many professionals. Countries starved of tourist money started rolling out digital nomad visas to attract digital nomads. Remote workers ditched their workplaces and home offices to work from scenic locations worldwide.
Things clearly worked out for the best since digital nomads now contribute around $787 billion to the global economy annually.
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Rise Of Digital Nomadism
7.3 million – that was the number of digital nomads in the US in 2019. Do you know what that number is in 2023? 16.9 million. That’s a staggering 131% increase. The reason? The pandemic and the work model changes that followed.
The sudden rise in the remote working trend, the introduction of digital nomad visas, and ever-increasing conversations about the digital nomad lifestyle have made people believe that digital nomadism is a fairly new concept. That’s not true, though.
People have been living an untethered life of freedom as nomads for ages. The term digital nomad was coined in 1997. Soon after, the internet boom was the best thing to ever happen to nomads because now the options were endless. They could just pack a laptop, pick a place with good Wi-Fi and go about their adventure.
Speaking of digital nomad essentials, even in this day and age, you can’t just randomly go to any pretty place and have a smooth remote work experience. Let’s see how Nomad Capitalist selects the best digital nomad hotspots.
What To Look For In A Digital Nomad Destination?
Sure, Venezuelan beaches are great, but good luck finding a stable internet connection to support your work requirements.
Similarly, you can hop on the next flight to France, but are you aware of the hefty tax burden that may come with your stay?
At Nomad Capitalist, we look at far more than just strong WIFI and dainty cafes to judge a country’s nomad friendliness. We look at the following.
Safety
Safety comes first. No amount of natural beauty, thriving community, or tax incentives can top safety when living somewhere, no matter how short the stay. Safety is a top domain on our list.
Digital Nomad Community
Exploring new cultures and places is great, but it gets lonely sometimes. That’s where a like-minded community comes in. Nothing is more joyful than working in a beautiful location with, or around, people who share your nomadic ideas.
Immigration Policies
Here at Nomad Capital, we love countries with liberal immigration policies. It makes things easier for the visitors as well as the country. Any country with an official digital nomad visa takes the preference here since it streamlines the process for digital nomads seeking to work remotely in the country. Moreover, tourist visas don’t usually allow you to work from a country.
Tax Regime
Everyone loves the idea of working remotely from the US, UK, or France until they realize what that could mean for their tax bill. Zero-tax and tax-friendly countries take the preference here since you can work there without worrying about the tax burden.
Investment Opportunities
Finally, we would prefer a country with investment opportunities over a pretty country any day.
Nothing’s more disappointing than spending time in a beautiful country, getting to know its people and culture, planning a business or a home there, and then realizing that the country doesn’t even sell land to foreigners. At Nomad Capitalist, investment portfolio enhancement is an integral part of the offshore strategy.
Now that you know how we select the best countries for digital nomads, let’s get right into it and see where you can live the ultimate digital nomad life.
Best Countries For Digital Nomads In 2023
Costa Rica
Costa Rica is a country in Central America with coastlines in the Caribbean and Pacific. The country is known for its picturesque waterfalls, stunning beaches, low cost of living, and biodiversity.
Costa Rica means rich coast – the name makes perfect sense when you get to know that it contains nearly 6% of the world’s biodiversity despite being less than 1% the size of the US. The country also consistently tops the charts for the best retirement destinations in the world.
Tax-Friendly Regime
People come to Costa Rica for the beaches and stay for the pura vida lifestyle, low cost of living, and favorable business environment that protects your privacy. Not to mention the territorial tax regime exempting foreign-sourced income.
Costa Rica Digital Nomad Visa
Before Costa Rica rolled out its digital nomad visa, digital nomads used to visit Costa Rica on a tourist visa and do border runs to extend their stay. Now, the digital nomad visa allows remote workers, freelancers, and location-independent professionals to enter and stay in the country for a year as long as they work remotely and can prove the required (minimum) monthly income, i.e., $3,000 USD or $4,000 for a family.
Residency Options
If you want to establish residency in the country, you won’t get it through the digital nomad route. Instead, you’ll have to explore other options like the Pensionado visa, Rentista visa, or Inversionista visa. The country has plenty of residency programs for foreigners seeking a home there.
Expat Community
Costa Rica has a population of over five million, of which over half a million are expats (mostly from the US). The country frequently makes the top ten lists of countries where expats are the happiest with work, life, and cost of living.
Georgia
Situated at the intersection of Europe and Asia, Georgia is a beautiful Eastern European country famous for its wines, cuisine, ancient monasteries, and capital city Tbilisi.
Liberal Immigration Policy
At Nomad Capitalist, Georgia is one of our favorite digital nomad destinations thanks to its business-friendly environment, tax-friendly regime, liberal immigration policies, to name just a few reasons.
Citizens of over 90 countries can enter and stay visa-free in Georgia for up to a year. How many countries can boast of that?
Tax-Friendly Regime
The country has a personal income tax rate of 20% and a corporate tax rate of 15%, but foreigners can enjoy tax rates as low as 1% under the Individual Entrepreneur scheme. The country has plenty of tax incentives and even has a tax residency route for high-net-worth individuals looking to benefit from its low tax rates without spending half a year there.
Residency Options
Georgia is exceptionally foreigner-friendly, and one can see that in their range of residence permits. A foreigner can get residency in Georgia by purchasing real estate or starting a company.
Expat Community
Tbilisi, the largest city in Georgia, is quickly becoming a digital nomad favorite in the region thanks to its charismatic vibe boasting a unique mix of modern and ancient architecture, aesthetically built co-working spaces and a thriving expat community.
Thailand
Can it really be a list of the best digital nomad hotspots if it doesn’t mention Thailand? Thailand is a crowd-pleaser with lush green mountains, ancient temples, delicious food, and a rich culture.
Our first Southeast Asian entry on this list, Thailand, has everything a digital nomad would want in a country – scenic locations, a large expat community, speedy WIFI and much more.
Residency Options
Thailand has a wide range of visas for foreigners depending on their lifestyle, income, profession, and motives. Whether you want to live in the country for a few months or ten years, Thailand has a visa for you.
The most recent is the Thai long-term visa (Thailand Golden Visa), allowing four categories of foreigners (including digital nomads) to live in Thailand for ten years, among other privileges.
Tax-Friendly Regime
Non-residents in Thailand are only taxed on their Thailand-sourced income. Moreover, depending upon your residency route, you may be entitled to certain tax cuts and benefits.
Expat Community
Thanks to the low cost of living and a laid-back lifestyle, Thailand is beaming with expats and tourists. Most expats can be found in Bangkok (the capital), Chiang Mai, Pattaya, and Phuket.
Indonesia
Comprising over 17,000 islands, Indonesia is situated at the intersection of Southeast Asia and Oceania.
For many digital nomads, Indonesia is all about Bali. True, the hype about Bali is not without reason. Famous for breathtaking sunsets, rice terraces, volcano trekking, and infinity pools in the middle of the jungle, Bali is a cult favorite among digital nomads and remote workers.
Bali Digital Nomad Visa
In 2021, the Indonesian government announced its plans to launch a Bali digital nomad visa allowing remote workers to live and work tax-free in Indonesia for up to five years, as long as they could prove a foreign income and not work for a local company. So far, the program hasn’t been launched, but we will of course update you once more news is available.
Visa Options
Until the Bali Digital Nomad Visa becomes a reality, digital nomads looking to work in Indonesia have the following visa options.
Visa On Arrival: This visa option is valid for 30 days and can be extended once for another 30 days. It is available to citizens of over 150 countries.
B211A Visa: It is also called the Social Cultural Visa. It is valid for 60 days and can be extended twice for 60 days each, giving you 180 days in total. This is an excellent visa option for remote workers who want to avoid border runs.
Tax-Friendly Regime
Non-residents are taxed on their Indonesian-sourced income, so you can save big bucks in Indonesia if you earn a foreign income.
Expat Community
Nearly 350,000 expats live in Indonesia, mainly in Jakarta (the capital). Nomads who prefer a more laid-back vibe prefer Bali. Whether you choose Bali or Jakarta, Indonesia has plenty of co-working spaces filled with expats from every corner of the world. Indonesia has also ranked second in the Expat Insider 2022 survey thanks to the ease it provides to expats regarding settling in.
Malaysia
We love to call Malaysia Asia’s hidden gem. Why? Because many people tend to ignore Malaysia, blinded by the grandeur of nearby countries like Hong Kong and Singapore.
Malaysia’s charm lies in its skyscrapers, bustling cities, charming countryside, and stunning beaches.
Malaysian Digital Nomad Visa
DE Rantau Nomad Pass allows foreign remote workers to live and work in Malaysia for 3 to 12 months. The pass allows multiple entries and can be renewed for another 12 months.
Residency Options
For those looking to stay in Malaysia long-term, the country has an excellent MM2H program allowing foreigners to live in Malaysia for ten years. Other options are the entry permit and the Labuan work permit.
Expat Community
Malaysia is one of the few highly developed Asian countries that allow complete foreign property ownership. Foreign income is tax-exempt for non-residents. Moreover, digital nomads with a DE Rantau Nomad Pass can benefit from nomad hubs and communities established by the MDEC.
Malta
An island country in the Mediterranean Sea, Malta is known for its incredible landscapes, fascinating military history, and stunning churches. Malta is part of the Schengen zone as well as the EU.
Maltese Digital Nomad Visa
Malta introduced its digital nomad visa called the Nomad Residence Permit (NRP) in 2021, enabling remote workers to legally live and work (remotely) in Malta. The Nomad Residence Permit is issued for one year and can be renewed.
Expat Community
Malta never had a shortage of tourists or expats, even before the digital nomad visa. The country hosts digital nomads from all over the world, seeking Malta’s excellent year-round sun, high-speed internet connectivity, diverse community, and excellent living standards. Speaking of speedy internet, Malta is the first EU country to have a nationwide 5G network.
Malta Citizenship By Investment Program
Malta is known in the RCBI world for one of the best citizenship-by-investment programs. The country has a highly favorable business environment, the stability of an EU member state, and excellent living standards. Of course, Europe’s Golden Visa programs are closing rapidly and Malta is certain to follow, sooner rather than later. So if you are interested in obtaining Maltese CBI we strongly urge you not to waste time and get in touch with us today.
Portugal
Located on the Iberian Peninsula, Portugal is a southern European country known for its rich history, diverse terrain and climate, vibrant culture, and high living standards.
Portugal Digital Nomad Visa
Portugal has a digital nomad visa allowing digital nomads to work remotely from Portugal for a year if their monthly income is at least €2,800. Digital nomads under this scheme will be subjected to a flat 15% tax rate instead of the standard 48%.
Residency Options
The country has many residency options for digital nomads looking for something more elaborate than a nomad visa. The most significant among them is the Portugal D7 Visa. It allows financially independent non-EU citizens to live in Portugal for two years, and the permit can be renewed for another three years. After five years, you can be eligible for permanent residency and citizenship.
Tax-Friendly Regime
Western European countries are not known to be tax-friendly, but that isn’t always the case.
Portugal’s non-habitual tax residency program offers tons of tax incentives to foreigners who want to live in Portugal and work toward residency or citizenship.
Expat Community
Lisbon is the heart of Portugal’s digital nomad community. Its proximity to beaches, vibrant culture, colorful streets, and friendly atmosphere makes it a nomad favorite.
Antigua and Barbuda
Situated at the juncture of the Caribbean and Atlantic, Antigua and Barbuda is famous for its award-winning beaches, coral reefs, and luxury resorts. The country made a name for itself in 2013 when it introduced its citizenship-by-investment (CBI) program – the cheapest Caribbean option for families seeking economic citizenship. Antigua and Barbuda’s natural beauty and CBI program make it an excellent choice for investors, entrepreneurs, and digital nomads.
Antigua And Barbuda Digital Nomad Visa
Going by the name of the Nomad Digital Residence (NDR) program, Antigua and Barbuda’s remote-work visa offers eligible remote workers and their families to live there for up to two years. NDR visa holders and their dependents aren’t subjected to income tax during their stay on the island.
Tax-Free Regime
Antigua and Barbuda has no inheritance, wealth, dividends, interest, capital gains, and personal income tax making it, making it an excellent destination for digital nomads and people looking for a second citizenship or residency options.
Expat Community
Antigua and Barbuda attracts thousands of investors, entrepreneurs, and digital nomads annually thanks to its tax-free regime, tropical climate, laid-back vibe and developed infrastructure.
Barbados
Barbados is an Eastern Caribbean island nation known for its pristine waters, tropical beaches, exquisite rum, and the Bajan lifestyle. Primarily a tourist destination, Barbados has always warmly welcomed foreigners, including digital nomads.
Barbados Digital Nomad Visa
Barbados was the first country in the Caribbean region to introduce a digital nomad visa, after which several other countries jumped on the bandwagon. You are eligible for the Welcome Stamp if you make a minimum annual income of $50,000 for the year you intend to stay in Barbados.
Tax-Friendly Regime
Welcome Stamp holders are exempt from paying income tax in Barbados for a year. Moreover, the standard corporate income tax rate ranges from 1% to 5%, making Barbados an excellent business spot.
Expat Community
Barbados is becoming a digital nomad hotspot thanks to its fiber internet and mobile services that are among the fastest in the Caribbean region. The country also has many co-working spaces designed to meet digital nomads’ needs.
Mexico
How can we miss Mexico on this list? Millions of foreigners visit Mexico annually to retire, vacation, or work there. Most visitors are from the US, UK, and Canada.
Residency Options
Mexico doesn’t have an official digital nomad visa. However, that doesn’t mean the country doesn’t cater to digital nomads. Digital nomads can apply for Mexico’s Temporary Resident Visa, which allows them to live and work remotely from Mexico for six months to four years, depending upon their country of origin.
Expat Community
There are so many things to love about Mexico. Mexico is one of the top ten countries where expats are happiest with work, life, and cost of living, thanks to its excellent food, exciting nightlife, beautiful beaches, and rich culture.
Tax-Friendly Regime
Mexico taxes its non-residents on their Mexico-sourced income, so you can save a lot in taxes by limiting your income generation sources in Mexico.
UAE
Not all digital nomads prefer living in a treehouse in a tropical setting far from the city crowds.
Some love the hustle and bustle of the city, high rise living and proximity to the best things money can buy. If that’s you, you’ll love the UAE, especially Dubai.
Dubai Digital Nomad Visa
Dubai has a digital nomad visa called Work Remotely from Dubai, allowing people from all nations to apply for a one-year remote work visa as long as they can prove that they work for a foreign employee. Business owners can also apply for this visa, although they have to meet additional requirements.
Tax-Free Regime
Dubai has always been a favorite among investors, entrepreneurs, and digital nomads because of its tax-free regime. As a digital nomad living in the UAE, you won’t have to pay personal income tax, saving you lots of money to spend on your lifestyle.
Expat Community
The country has plenty of state-of-the-art co-working spaces, economic zones, and a diverse community attracting millions of foreigners to its shores.
The Future Is Remote
The pandemic made one thing clear; a lot of people don’t want to work from an office unless they absolutely have to, and this sentiment isn’t going away any time soon.
In fact, it will only increase, and that’s why we’re seeing incentives like the 4-day workweek being introduced in some countries.
Many countries have already introduced their versions of digital nomad visas, and that list will only grow as more countries design specific visa options for digital nomads.
If you’re a digital nomad itching to explore your next destination, the only problem you will face is the abundance of options. However, just because a country has a digital nomad visa doesn’t mean it suits you. So, how do you decide what’s best for you?
That’s where we come in. We’ve got nomad in our name, and we’ve also done it all ourselves. If you’re a high net work individual and you’d like to go where you’re treated best, contact us today, and we’ll do exactly that for you.
