The concept of working as a digital nomad has endured long enough to be ruled out as simply a trend.
The lifestyle is more than appealing, but there is a little more to it than throwing caution to the wind and backpacking wherever the internet speeds allow. The tax implications vary from place to place and can be a headache to navigate.
However, with its popularity, many countries are lining up to provide the right visas, but some have complex tax systems, while others have streamlined the process nd even offer perks.
Today, we will talk you through some of the easier destinations for digital nomads, to make remote work less taxing.
Portugal: The Heart of Europe’s Digital Nomad Scene
Portugal is one of 13 European countries with a digital nomad visa. In their first year, they granted over 2,600, and quickly emerged as a European favorite. Once you look into its tax policies, it is easy to see why.
Beyond the tax perks, it is a Mediterranean treasure with ancient cities and beautiful coasts that offers fiber-optic dependability.
The Portuguese Non-Habitual Residency Program
Foreigners residing in Portugal can take full advantage of the country’s Non-Habitual Residency (NHR) program.
It provides them with significant tax exemptions for an entire decade. This makes it very attractive for freelancers and remote workers earning from clients abroad.
Add to that the cheaper living and pace of life, and Portugal makes an idyllic location, whether itś Lisbon or the Algarve.
Specific Visa for Digital Nomads
If you don´t fancy the residency route but still fancy a long stay, then Portugal also now offers a specific digital nomad visa.
It allows you to stay at length and work remotely without too much bureaucracy involved.
It is pretty easy to qualify. You just need to prove your income is sufficient and that you have health insurance, and you can settle in without worrying about an overstay.
Mediterranean living and a laid-back lifestyle are inviting, but adapting to a new culture can be a learning curve. Remember: a reliable VPN TV service can help you access your favorite shows and online platforms when you crave a taste of home.
See also: How Tech Is Making Live Casino Games More Immersive Than Ever
Georgia: The Perks of Working Remotely in The Caucasus
Georgia is another country that is quickly winning the hearts of digital nomads worldwide. With charming towns, beautiful sights far from the beaten path, and relaxed tax regimes, it is quickly becoming a firm favorite.
The 183-Day Rule & Individual Entrepreneurs
Anyone is welcome to stay in Georgia and work remotely for up to 183 days a year, without owing taxes there. So you can split your year between the Caucasus charm and your usual residence.
Staying longer will require becoming a tax resident, but with the countryś relaxed “Individual Entrepreneur” tax regime, the tax you pay is incredibly fair. The lowest income thresholds are accountable for as little as 1%.
Widely Accessible Low-cost Living
Georgia allows visa-free entry to over 90 countries, and you can stay for an entire year. The cost of living is comfortably low, so you don´t need a high digital income to enjoy its stunning mountain ranges and local wine.
Costa Rica: Lush and Laid-back
Costa Rica is another idyllic location for digital nomads with its strong digital infrastructure and a laid-back tax system.
If you want somewhere in Central America, then the exemptions and visas on offer make it very appealing to the entrepreneur.
Costa Rica’s Rentista Visa
Costa Rica has introduced a new digital nomad visa, following suit with many other countryś; however, its Rentista Visa remains a popular choice.
If you are self-employed with a foreign-earned income, then all you need is to prove it, and you can stay without owing tax. The only requisite is that you are billing clients outside the country.
Territorial Taxes = Exemption
The territorial tax system that Costa Rica operates with is a huge advantage for digital nomads billing overseas clients.
Foreign income isn’t taxed, making the destination hugely popular. In light of its popularity, many coworking spaces are cropping up in hotspots such as San José and Santa Teresa.
Thailand: A Digital Nomad’s Playground
Thailand has a welcoming culture and combines high-tech city living with beachside living.
It has long been a popular destination for digital workers, and now that the tax system has seen a modern overhaul, it has never been easier to settle in.
Thai Smart Visas
In Thailand, remote professionals can take full advantage of the country’s Smart Visa program and stay for up to four years. It helps bypass traditional visa hurdles but is geared toward tech specialists and startups.
Territorial Tax & Affordable Leisure
Foreign income brought into the country is taxed the year after it was earned, so with the right planning, nomads can prepare and settle with ease.
Thailand is a hotbed for digital entrepreneurs, and places such as Chiang Mai and Koh Lanta offer coworking spaces with solid Wi-Fi.
With the easy visas, tax advantages, cheap entertainment, world-class street food, islands, and beaches, Thailand provides the perfect work-life combo.
Panama: The Financial Haven of Latin America
For tax simplicity and financial privacy, the robust infrastructure, dollar-based economy, and easy entry make Panama a great choice. It also has a strong, welcoming expat community, which makes the transition smoother.
The Friendly Nations Visa
Panama has a Friendly Nations Visa in place that simplifies the residency route for citizens of over 50 countries.
It operates with a territorial tax system, meaning that income earned outside the country won’t be taxed locally.
Urban Convenience & a Laid-Back Lifestyle
Panama is a city that truly offers the best of both worlds for digital nomads. It has stunning skylines and offers stunning beaches and jungles with all the modern amenities that one could possibly ever need.
Final Thoughts
Your digital nomad destination depends on a little bit more than great WiFi and stunning views.
In addition to the necessary modcons, you want somewhere that makes the digital nomad lifestyle as smooth as possible, as far as tax is concerned.
Hopefully, today’s guide will have given you some inspiration on the easier options available to you.
Whether it’s an NHR program in Europe or the territorial tax laws in the US that you’re looking to take advantage of, financial freedom and job flexibility await.
