Is a new wave of digital nomadism coming? Interest in moving abroad is on the rise

Digital nomadism boomed during the pandemic, when many people were no longer restricted to the workplace and could travel freely to faraway, often cheaper, destinations to live and work remotely. More than 50 countries offer digital nomad visas today.

In the wake of the US election, Americans’ interest in digital nomad visas and moving abroad is on the rise.

When it became apparent early Wednesday that Donald Trump won a second term as president, Google searches for terms like “best countries to move to” and “how to move to Canada” peaked.

Digital nomadism boomed during the pandemic, when many people were no longer restricted to the workplace and could travel freely to faraway, often cheaper, destinations to live and work remotely.

Since then, most employers have mandated that workers return to the office, but many companies continue to offer flexibility around remote work, allowing employees to travel for extended periods. Freelance workers seeking lower living costs have also caught on to the trend.

If you’re thinking of relocating, here’s what you need to know.

Which countries offer digital nomad visas?

Digital nomad visas are permits that allow remote people to reside and work in a foreign country for extended periods ranging from several months to five years. More than 50 countries offer digital nomad visas, including New Zealand, Japan, Kenya and Thailand, but conditions and fees differ.

Spain, Portugal, the Netherlands and Norway are among the most popular digital nomad destinations in Europe. Spain invites a range of remote workers, from freelancers to company employees who earn twice the national minimum wage, around $2,450 per month. The application fee costs $80 and the visa is valid for one year with an option to renew. In Portugal, the minimum monthly income is higher, at $3,500. Once the one-year visa is granted, applicants have the option to renew four times.

Digital nomads with US citizenship do not need a visa to work from Canada and are permitted to stay and work in the country for up to six months at a time.

South American countries like Argentina and Ecuador are also popular digital nomad destinations for their relatively cheaper living costs. A full list of countries with digital nomad visas can be found on Citizen Remote, a website that helps remote workers move abroad.

If you work for a US company, consider the time difference. You don’t want to be up taking Zoom calls at 3 a.m. Many destinations, like the Bahamas, Mexico and Costa Rica, correspond to US time zones and have digital nomad visas.

Am I eligible?

Prerequisites differ from country to country, so be sure to read the conditions carefully before you apply. Most countries require applicants to earn a specific minimum income from a job suitable for remote work and have health insurance and accommodations secured for the duration of their stay.

Background checks are usually carried out as part of the application process, and most countries won’t accept applicants with criminal records.

How do I apply?

Most countries require foreigners to apply for a digital nomad visa at an embassy or a consulate before arriving. In many destinations, it is illegal to enter as a tourist with the intention of seeking a long-stay visa. Some countries, like Spain, Malta, Costa Rica, Croatia and Latvia, allow foreigners to apply online or in the country upon arrival.

Visa processing times can vary, ranging from one week to six months.

Do I have to pay taxes while working abroad?

Most US citizens and residents are required to file income tax returns regardless of whether they are living or working abroad and will be taxed based on their income, wherever it is earned.

While some countries offering digital nomad visas exempt foreigners from local taxes, many require payment depending on the duration of their stay. In some cases, the IRS will credit US citizens for foreign taxes.

Understanding your tax liability before embarking on your trip is important to avoid issues with local authorities that could lead to fines or deportation.