Ditch the Desk: How to Become a Digital Nomad
How does this sound: sipping espresso at a café in Milan one week, lounging at a beachside bar in Bali the next, perhaps a few days in Singapore after that — all the while with your trusty laptop, earning on the go and working to your productive best.
If only life were this simple! Too often, little things like dodgy Wi-Fi (and paying taxes) make for a different reality. Yet, with the right set of online tools and a certain kind of mindset, the digital nomad thing could work for you. Digital platforms can bridge the gap between work and wanderlust, keeping your workflow uninterrupted no matter where you’ve set up office.
Becoming a Digital Nomad
What is a digital nomad? l How digital nomads make money l Is the digital nomad lifestyle right for you? l Best places to be a digital nomad l Top Digital Nomad Visas l Navigating taxes l Making your plan l After arrival
What is a digital nomad?
The ability to make a living online has opened up new possibilities. This shift towards a more flexible work environment has been a boon for adventurous remote workers, offering the opportunity to work from just about anywhere.
‘Digital Nomad’ was added to the Oxford Dictionary in 2020, defined as “a person who earns a living working online in different locations that they choose for themselves.”
Working as you travel, not tied to any single location — it’s a lifestyle choice as much as anything. To succeed, you’ll be reliant on technology and the internet to stay connected and productive no matter where in the world you are.
The global digital nomad population is now estimated to be around 35 million, with most aged between 25 to 44 years. Nevertheless, around a quarter of self-described digital nomads are over the age of 40.¹
❝The global digital nomad population is now estimated to be around 35 million❞
And this new craze isn’t going away. The UK now has the second highest proportion of digital nomads (12%) after the USA (37%), with Germany a distant third (5.6%).¹ The digital nomad community is diverse and there’s a near-even split between genders.
So what’s the difference between being a digital nomad and just working abroad? One key part of it is that most digital nomads spend less than four months in any one location.
This isn’t a coincidence. Rightly or wrongly, many are working while on tourist visas that last 30 to 90 days. They should, therefore, still be paying tax back home. More on that later.
Excitingly, the last few years have given rise to ‘digital nomad visas’. Valid for a full 12 months, these visas offer the chance to stay medium-long term, blending the flexibility of remote worker travel with the stability of traditional work.
Almost 60 countries (and counting) now offer visas like these — and we’ll list a few of the best!
How do digital nomads make money?
According to Flatio’s Digital Nomad Report, the majority earn between €10-50k annually. Two-thirds of those respondents said that they pay tax back to their home country.
There are essentially three main ways to make money remotely online: (1) as a remote employee, (2) freelancing, or (3) running your own business. Here are just a few of the most popular choices:
Remote Employees
Web Design: Creating and designing websites for clients globally.
Programmers/Software Engineers: Building and maintaining software apps
Writing/Editing: Producing written content for blogs, websites, and publications
Social Media Content: Managing social media accounts and strategies for businesses
Graphic Design: Designing visual content for digital marketing, branding, or product design
Virtual Assistance/Remote Customer Service: Offering technical or customer service support, whether that’s B2B or B2C
Freelance Consultancy: Offering expert advice in your field of expertise, such as marketing, finance, or IT.
It’s especially important for digital nomads to have strong portfolios to showcase skills and projects (and to prove you’re working, not at the beach!) Don’t forget to keep your LinkedIn and other career site profiles/CVs up to date.
See also: Portfolio Websites for Creatives
Freelancers, Side Hustlers
Freelancing is well-suited to the digital nomad lifestyle. Many of the careers listed above are options for going it alone as a freelancer. With smart side hustles, you can add further income streams. Other ways of making money online include:
Affiliate marketing: Earning commissions by promoting products
Selling digital products: eBooks, courses, or stock photography
Teachers/Tutors: Teaching languages, academic subjects, or skills
Vloggers/Youtubers: Creating and sharing video content
Bloggers: Crafting written content to inform, educate, entertain
Influencers: As with bloggers, they might endorse brands and products, or perhaps sell ad space
See also: 10 Passive Income Streams to Unlock Financial Freedom and How to Build Your Side Hustle on a Budget
Online Business Owners
Starting an online business is a great fit for the digital nomad lifestyle, offering the freedom to work on your own terms. This flexibility means you can adjust your business to match your needs, growing your range of products or services as you move around the world.
Dropshipping to order (holding no stock) is one way to reach customers worldwide right from the get go. Selling digital products is also popular choices that allow entrepreneurs to set their own hours and work from anywhere. As your business grows, it’s possible to grow without being held back by physical space.
See also: The 2024 Guide to Starting an Online Business
Is the digital nomad lifestyle the right choice for you?
Digital nomads often report high levels of satisfaction when it comes to work-life balance. Much of that can surely be attributed to the flexibility and autonomy the lifestyle affords.
There are both good and bad points, though. Digital nomadism isn’t for everyone. Recent statistics suggest many of those who tried it post-pandemic have since returned home.
This could be down to shifting policies — some bosses have ordered return-to-office mandates, for example. Brexit is another factor: us Brits abroad used to be able to live and work in the EU visa-free. Now, we need to clear off after 90 days (like Americans do).
Nevertheless, the digital nomad thing is here to stay, and a huge number of digital business owners and freelancers aspire to it.
Pros
✓ Ditch the desk – do away with the desk job and the daily commute
✓ Travel the world – explore new cultures and gain new experiences as you go
✓ Be your own boss – if you’re doing your own thing, that is
✓ Personal growth – travel broadens the mind
✓ Upwards mobility – becoming a digital nomad could take you to a new place with new opportunities
✓ Network globally – meeting new people from all over the world
✓ Romance – let’s go out on a limb and suggest this is easier to find when travelling!
✓ Lower living costs – moving somewhere more affordable. You may be able to earn in a high-income economy while living somewhere much, much cheaper.
Cons
✗ Connection woes – the fastest thing to derail the digital nomad dream
✗ Time zone troubles – get ready for those tropical sunsets
✗ Finding a comfortable, suitable workspace
✗ There’s no place like home – being overseas for months or years at a time, you may feel like you’re “missing out” on life back home, returning every so often like Peter Pan.
✗ Loneliness – it’s difficult making friends, even in the friendliest of countries. When you do, they might be digital nomads like yourself – there one day, gone tomorrow.
✗ Imagine no possessions – you’ll almost certainly need to travel light. This could be a pro, if you’re feeling really zen. But it isn’t always so easy saying goodbye to that 50-inch smart TV (or cat).
✗ Wrath of the locals – the rise of apartment hotels is pushing locals out of the world’s most desirable locations. Some cities/nations are taking action to prevent this.
✗ Visa complications
✗ Tax implications
More on these last two a little later.
Where’s the best place to be a digital nomad?
Portugal has emerged as the world’s favourite destination for digital nomads, with Spain coming in second. Thailand and Bali always rank highly. But then there’s Dubai. Or perhaps Latin America is more your kind of thing?
There are, of course, simply too many nice places to list. The world is your oyster. If you’re looking to embrace the digital nomad lifestyle, think carefully about quality of life and the sort of environment a place can offer remote workers. It’s a matter of preference.
Choose somewhere you’d like to be
Choose a place where you’ll enjoy the lifestyle and feel the most comfortable. Think about the weather and the culture — be that sunny beaches or mountain snow.
You’ll need to factor in the cost of living. Staying within your budget means you can enjoy life more and not just spend on basics like rent and food. A cheaper place lets you explore and try new things without worrying about money too much.
Think about time zones. If you’ve relocated to the Bahamas, get ready to enjoy stunning sunsets during your lunchtime Zoom calls from London. If you’re in Bangkok, you’ll be up at midnight to catch late afternoon meetings.
Healthcare and safety are important. Make sure you can get good medical care if you need it, and pick a place that’s safe. This way, you can work and have fun without stressing about health issues or safety risks.
Choose somewhere you can work comfortably
Comfort is king to the digital nomad. Alas, it’s not always so easy finding a quiet, convenient workspace with available sockets and stable internet.
Internet speed is super important. You need fast and reliable internet to do your job well. Before settling on a place, check if the internet is speedy and stable.
Choose hotels or serviced apartments with dedicated workspaces. Larger hotels may have business centres, with all the necessary amenities for productivity, from high-speed internet to printing services. If you’re looking more at cafes, pubs, or bars, Google Maps is your best friend — scan where you’re headed to get a better idea.
Make sure you have the right gear. Of course, you’ll need a dependable PC or Mac. Buying a laptop stand will save your neck, while other sorts of ergonomic gear can save everything else. You might want to invest in noise-cancelling headphones to block out distractions.
Depending on the sort of work you do, a VPN can come in handy to hide/change your IP address. Oh, and remember to back up your work!
What countries have digital nomad visas?
Heaven-sent for online professionals, so-called ‘digital nomad visas’ offer a new and legitimate way to work overseas.
Estonia became the first country to offer a digital nomad visa (mid-pandemic) back in 2020. What started as a drip has become a stream, with 50+ countries scrambling to offer them.
The list now includes some of the UK’s most popular tourist destinations — Spain, Portugal, and Greece have all laid down the welcome mat. Italy’s has just been voted into law and is coming soon.
Most digital nomad visas set remote workers up for 12 months, with a few outliers, like Argentina, Iceland, and Uruguay, offering 180 days.
Top Digital Nomad Visas in 2024:
| ✓ Antigua and Barbuda ✓ Argentina ✓ Barbados ✓ Bermuda ✓ Brazil ✓ Columbia ✓ Costa Rica ✓ Croatia ✓ The Czech Republic ✓ Estonia ✓ Greece ✓ Iceland | ✓ Indonesia ✓ Malaysia ✓ Malta ✓ Mauritius ✓ Mexico ✓ Portugal ✓ Romania ✓ Saint Lucia ✓ Spain ✓ The UAE ✓ Uruguay |
All ask for specific entry criteria. Income is the main sticking point in most cases. At one end of the spectrum there’s Iceland, calling for a whopping $7700 a month, followed closely by Dubai. A cynic might say these are more like the “Investor” or “Golden” visas that have been around for years.
At the other end of the scale there are countries like Malaysia, asking for a very modest and doable $24k a year. Fancy a year in Kuala Lumpur? (Seriously affordable and underrated city!)
A number of countries offer ‘not-quite-digital-nomad’ skilled worker visas within strict job categories. Thailand has its ‘Smart Visa’, for example. While 100,000 Baht (around £1100) per month is modest, it’s aimed specifically at pros in advanced tech fields.
Note: Digital nomad visas tend to be about as transient as their namesakes — so be sure to check the latest info on official government websites!
How do digital nomads pay tax? Do they pay tax?
Yes, they do. Next!
Well — yes, they should. If you start to work as a digital nomad, it’s really important to keep an eye on your taxes. Granted, navigating the world today might feel easier than navigating tax obligations.
Whether you need to pay UK taxes depends on if the government thinks you’re still based in the UK for tax reasons. If they do, you’ll need to pay UK taxes on the money you make — even if you’re earning it abroad in various countries.
HMRC will want to know how many days you’re in the country, and if you have family or a home there, to decide if you’re a UK resident for taxes. HMRC offers its own Guidance for Employees Working Abroad. Give it a good read. It also gives a full list of countries the UK has social security agreements with.
Visit: HMRC Guidance for Employees Working Abroad
Always seek guidance from the official government website and qualified professionals (we’re neither!)
Working on a 90-day tourist visa
In the short term, you’ll continue to pay taxes in the UK and are unlikely to owe taxes in the host country, though you may need to fulfil some local reporting requirements.
If you’re from the UK, you don’t need a visa when travelling to the EU or Schengen area for less than 90 days in a 180-day period. This means you cannot keep hopping back and forth between Spain and Portugal all year round.
It’s no coincidence that the majority of digital nomads switch countries every 1-4 months. Thailand and Vietnam offer 30-day visa-free entry for UK nationals; for Indonesia and Sri Lanka it’s 60; for Japan, Brazil, and the USA, it’s 90.
Be sure to check and never overstay your visa as the repercussions range from serious to seriously-serious, depending on the country.
Make sure to get a certificate to prove your NI contributions. Employers should still take out PAYE tax from your pay to meet UK and foreign tax rules. It’s key to follow HMRC advice and maybe get help to stay on track with taxes and NI while you’re away.
By the way, you’ll also need permission from the company you work for!
Working overseas medium-long term
If you plan on staying somewhere in the medium term (generally 90-180 days) the tax situation becomes trickier. You’ll still be subject to UK taxes, but you may also face tax liabilities in the country where you’re working.
When working abroad, especially in EEA countries, Switzerland, or places with UK social security deals, you may keep paying UK National Insurance (NI) to avoid double payments. Many Anglophone countries have social security agreements with the UK, but so do Turkey and Japan, for example.
Sidenote: Teaching English
Becoming an English teacher can be one of the easiest ways to gain full visa sponsorship from abroad, perhaps even lodgings provided — especially if East Asia is your dream destination. You’ll typically need only a bachelor’s in any subject, a clean criminal background check, and native English proficiency. There might be a Zoom interview, of course.
Even if teaching English doesn’t seem like your thing, it can be a smart way to start life overseas. That is to say: go as a teacher first, join the community, learn the language, then switch to a non-teaching job later. Getting an employer to switch and/or extend a visa is usually easier than starting with nothing. Just be sure to switch to the proper visa category for your type of work.
Ready to go? Make a plan
You’ll need to be sure you have enough money in the bank before you embark. If you’re leaving without an online job or income stream, make sure you have enough cash in the bank to live for three months at the very least. If you’re continuing your current work, that of course gives you more security.
Get travel insurance that covers big issues like medical emergencies and lost bags. Make sure you get a health check and any needed shots before you go. It’s smart to have a plan for emergencies, like knowing where the nearest embassy is.
Make sure your bank cards and phone sims can work overseas — you might need to unlock them. Research banks that are good for travellers to avoid extra fees.
Pack light. Keeping it simple makes moving around easier. Bring the gear you need to work comfortably.
Finding a place to stay for the first few weeks before you get there makes things easier. Join groups of other digital nomads, or Meetup and Facebook events. This can be a big help and a way to make friends.
Do a little cultural prep. Knowing the rules, what’s okay and not okay, in the places you’ll go, will go a long way (as will you). With all this set, you’re ready to start your nomad journey.
It’s a great idea to build your own website and to buy your own domain name. This will make it so much easier to show off your work professionally and bring in money while you move.
You have arrived
You’re there! Porto or Prague, Sydney or Seoul, you made it!
It’s time to enjoy yourself. It’s also time to stay productive. Try to set clear boundaries between work and travel time. This helps you stay productive. Staying organised is key to managing your documents, work, and personal life. It’ll all cut out the stress.
When you’re out there, respect local customs and enjoy the culture. Learn basic (or even not so basic) language skills. You’re almost guaranteed to have a more enjoyable experience. In countries where only a minority speak English, it’s also respectful to the people you meet.
Set a budget and Manage your money well. If you’re travelling with a valid work visa you can open a bank account when you arrive and find one that works internationally. You may also want to send money back home. If so, it’s usually much better to use the top online companies that specialise in digital transfers like Wise, Revolut, or PayPal, rather than making a wire transfer at a local bank.
Build a network and join the digital nomad community for support and advice. These communities are great for making friends who understand the nomadic lifestyle.
Wrap up
Becoming a digital nomad offers up a world of opportunities. But it’s important to understand visa regulations and the rules of the tax game. Planning ahead and knowing these details can help you enjoy working from different places around the world. All pros and cons considered, digital nomadism is very much here to stay. It’s a new lifestyle for the digital age — and an amazing way to see the world while you work.
