Depending on your freelance skills of choice, there’s a good chance they allow you to travel the world and work wherever you please. You can explore new places, meet new people, and experience incredible new things.
But there’s a catch: not all countries are created equal for freelancers.
I’ve researched the 5 top countries for freelancers and digital nomads based on local income tax, cost of living, location, and other unexpected benefits to find the best places that have everything you need to live and work comfortably.
Quick Menu
The 5 Top Freelancing Countries
Georgia
Gem Of The Caucasus
| Continent | Intersection of Europe and Asia |
| Capital | Tbilisi |
| Currency | Georgian Lari (₾) |
| Tax Rate For Freelancers | As low as 0% (1% should be expected) |
| Corporate Income Tax Rate | 15% |
| Capital Gains Tax Rate | 0% |
| Cost of Living | 65th globally out of 197 countries ($1090~/month) |
| HDI 2022 | 63rd/191 |
| Doing Business 2020 | 7th/190 |
General Overview
When most people hear Georgia, they tend to associate it with the US state. However, the Georgia I’m talking about is sat in the picturesque Caucasus region, to the northeast of Turkey and a little south of Russia. It’s a small and mountainous country, and has a whole lot to offer, from its beautiful landscapes to its delicious food (and wine!).
In the interests of transparency, I currently live in Georgia (so may be somewhat biased in its favor), but for all the reasons why I choose to live here, I also feel like it’s a great choice for freelancers overall.
Visas
Access to the country as a freelancer is a breeze in most cases. Georgia is very inviting to outsiders and allows citizens of 95 countries to enter the country on a tourist visa and stay for up to 1 whole year. Even better, you can simply leave the country and re-enter and the visa will restart!
The visa allows citizens of listed countries not only to enter but also to reside, work, and study in Georgia without the necessity to obtain either a work visa or residence permit. This makes it an extremely attractive destination for freelancers and digital nomads who may struggle with entry requirements elsewhere.
You can check here whether you need a visa to enter and/or stay in Georgia.
Additionally, EU citizens can enter Georgia on the basis of just their ID card indicating their name, last name, and date of birth, along with their photograph.
Taxes
Perhaps best of all is the incredibly low tax rate. If you’re self-employed you can register for so-called “Small Business Status” (SBS), which allows you to pay just 1% tax if your business activity falls under a relevant category. Fortunately, it’s quite inclusive – we’ve written more about it in our article on why you should freelance in Georgia.
Acquiring and retaining the Small Business status, i.e. qualifying for a 1% tax rate, is possible exclusively for individual entrepreneurs, not employees. The line between being an employee or a self-employed person can be tough to distinguish nowadays. We’ve written a full breakdown to give you a clearer understanding of how being a freelancer is different from being an employee.
You’ll qualify for full tax residency after being in the country for 183 consecutive days, although you can already register your SBS and start paying your minimal taxes before then. Just be sure to check how compatible this is with your previous country of tax residency before pulling the trigger.
Georgia has 58 active double taxation treaties to help individuals and businesses avoid being taxed twice on the same income, making it a friendly place for many expats and their international investments.
Diving into the world of taxes for digital nomads and freelancers abroad can feel like navigating a shadowy maze. We created a guiding torch, illuminating the essential tax nuances for those working beyond borders.
Lifestyle
Setting yourself up as a freelancer is especially easy here – Georgia has repeatedly ranked highly on The World Bank’s Doing Business list. In 2020 it came 7th overall, and 2nd-highest for the “Starting a business” category. Minimal bureaucracy is something that Georgians are particularly good at – in fact, all of the initial business setup for a sole trader is possible with just your passport.
Georgia is an affordable country to live in, with average monthly expenses of around 1,500 GEL (~$470), plus rent. The rental costs in Georgia vary depending on the location, type, and amenities of the accommodation.
From my own experience of living in Tbilisi (the capital of Georgia) for over 2 years, despite recent price increases due to the war in Ukraine, the cost of living remains relatively affordable compared to many Western cities. Dining out, petrol, utilities, local travel, and events are particularly affordable. Luxury items (including electronics) and brand-name groceries can at times match or exceed Western prices, but there are generally good local alternatives.
Consider This Before Freelancing in Georgia:
- Prior to the war in Ukraine, rental prices were a lot lower than in the West, but since then the influx of both refugees and Russian immigrants has caused a spike in the housing market.
- You should expect to spend around 1000 GEL ($400~) and up for a standard studio, and from 2000 GEL ($800~) for a nice 1 bedroom. Of course, deals can still be found, but it’s not as easy anymore. Fortunately, utilities such as electricity, gas, and water are very cheap.
UAE (Dubai)
Gateway to the Middle East
| Continent | Asia (Middle East) |
| Capital | Abu Dhabi |
| Currency | UAE Dirham (د.إ) |
| Personal Income Tax Rate | 0% |
| Corporate Income Tax Rate | 0% on income up to $102,000 9% on income above that |
| Capital Gains Tax Rate | 0% |
| Cost of Living | 21st/197 ($1,700~/month) |
| HDI 2022 | 26th/191 |
| Doing Business 2020 | 16th/190 |
General Overview
Nestled in the Middle East, in the United Arab Emirates (UAE) you’ll be blessed with practically year-round good weather, access to beautiful beaches, and being in an overall great hub to travel from.
Although it’s not the capital, Dubai is currently the preferred destination for freelancers within the UAE. In fact, roughly 85% of Dubai’s inhabitants are expatriates, with the majority stemming from Asia. This also makes English the unofficial most-spoken language in Dubai, which is a situation you’ll seldom find yourself in while traveling – and makes socializing a lot easier!
Taxes
The United Arab Emirates is one of very few countries with 0% personal income tax for individuals, making it an extremely attractive proposition for freelancers and digital nomads.
Companies pay 0% CIT on the first $102,000 of taxable income, and 9% on any amount above this. Individuals are only subject to CIT on income from their business or business activities if their turnover exceeds AED 1 million ($272,257).
However, it only affects income over that amount. Those registered in so-called UAE “free zones” and not conducting business with mainland UAE should still remain exempt from any changes (which should include most freelancers), but you should consult your individual case with a local accountant first.
Please note that as of 2022, corporate tax rates in the UAE have been announced to increase to 9% for those earning above AED 375,000 ($102,000).
If you’re interested in cryptocurrency, the UAE is also one of the few countries with no crypto tax for individuals and among the most crypto-friendly jurisdictions.
Visas
If you’re planning to stay in the UAE for more than 90 days, you’ll need to sort out a longer-term method of remaining in the country. There are a few ways of doing this, ranging from a one-year virtual working program to a full freelance visa.
You can read more about the UAE virtual work residence visa requirements in our article on the best Asian countries for freelancers.
If you’re planning to be based in Dubai, you should consider applying for Dubai’s virtual working program. One of the preconditions for it is a monthly minimum income of $5,000, which should give you an idea of what the government expects to keep you comfortable (with an extra financial safety net).
Keep in mind that getting this visa and the associated business license isn’t cheap – you’ll likely need to cough up a few thousand USD for the ability to move there!
Lifestyle
Dubai offers a high standard of living. From the vast desert landscapes to pristine beaches, luxury shopping malls, and a vibrant dining scene, there’s always something to do. The city hosts numerous international events, concerts, and festivals, ensuring a lively cultural scene.
The skyline, dotted with iconic structures like the Burj Khalifa, showcases the city’s rapid development over the past few decades. The infrastructure is top-notch, with world-class public transport systems, including the metro, trams, and well-maintained roads.
The city is clean, there’s a strong emphasis on public health, and the education system offers a range of international curriculums for expat families. The city has also a strict legal system with severe penalties that deter most forms of criminal activity.
Leisure and entertainment options are abundant. From the vast desert landscapes to pristine beaches, luxury shopping malls, and a vibrant dining scene, there’s always something to do. The city hosts numerous international events, concerts, and festivals, ensuring a lively cultural scene.
Residing in the UAE, specifically Dubai, can be quite costly, with average monthly expenditures hovering around 2,600 AED (~$700), not factoring in rent. Dubai’s rental market is pricier than that of many Western countries. A one-bedroom apartment in Dubai, for instance, can set you back anywhere from 3,000 AED to 7,000 AED (about $815 to $1,900) per month, while a two-bedroom apartment may cost between 4,500 AED and 10,000 AED (about $1,225 to $2,720) per month.
That being said, it’s known that the UAE isn’t a cheap country and your own income should somewhat mirror this. After all, there’s not much point in paying 0% taxes if your monthly expenditures completely wipe these savings back out!
Consider This Before Freelancing in the UAE:
- It’s worth noting that living here won’t be for everyone. You have to contend with extreme heat during a lot of the year, which can lead to a lot of time spent indoors in air-conditioned buildings.
- If you love spending time in the great outdoors (not just a desert) or are averse to sweltering heat, there are better countries to freelance from.
Montenegro
Mountain Hub of Europe
| Continent | Europe |
| Capital | Podgorica |
| Currency | Euro (€) |
| Tax Rate For Freelancers | From 9% to 15% |
| Corporate Income Tax Rate | From 9% to 15% |
| Capital Gains Tax Rate | 15% |
| Cost of Living | 99th/197 ($900~/month) |
| HDI 2022 | 49th/191 |
| Doing Business 2020 | 50th/190 |
General Overview
If you’re considering whether you should move to Europe as a freelancer, Montenegro is a very interesting (and beautiful) option.
Montenegro is bordering on Croatia, Serbia, Albania, Bosnia and Herzegovina, and Kosovo, while its coastal border is on the Adriatic Sea, right opposite Italy. This makes it an ideal hub for traveling around Europe, with incredible local landscapes (Montenegro literally means “Black Mountain”), and a pleasant Mediterranean climate.
Although Montenegro isn’t an EU member, it uses the Euro – commonly shared with the majority of EU countries and the second-most widely-circulated currency worldwide.
Taxes
At just 9%, Montenegro offers one of the lowest personal income tax rates in Europe. To become a tax resident in Montenegro you need to spend 183 days in a given calendar year there.
Besides the low 9% income tax rate, there’s also a 15% capital gains tax rate. This can make it an attractive option if you’re an investor in assets such as equities alongside your regular freelance activities.
Visas
Montenegro offers a favorable visa regime, allowing citizens from numerous countries, including the EU, US, and UK, to enter for up to 90 days visa-free using only a passport. Furthermore, EU citizens, along with certain other nationals, have the privilege of entering Montenegro for 30 days using their national ID card. It’s the perfect chance to experience Montenegro’s charm before deciding on a longer adventure.
However, if you’re planning to stay in Montenegro for longer, you need to apply for a D Visa at the Montenegrin embassy or consulate in your country of citizenship or residence. Once in Montenegro, there is the option to apply for a Temporary Residence Permit (TRP), available for digital nomads and remote workers, at the designated immigration authorities within Montenegro.
You have to submit evidence that you’re working with a foreign employer located outside Montenegro, and that you also have sufficient funds and valid medical insurance coverage, among other things.
If you start a company in Montenegro and operate your business through, for example, an LLC, you can apply for a residence card through the company setup.
Thinking about setting up an LLC as a freelancer? Dive into the key differences between being a sole proprietor or an LLC to see which suits you best!
Lifestyle
Montenegro offers a relatively affordable cost of living, with monthly expenses averaging around 400 EUR (~$450), not accounting for rent. Rental rates in Montenegro are more budget-friendly than those in Western countries, though they still differ based on aspects like location, property type, and amenities.
In Podgorica, for example, a one-bedroom apartment can be rented from roughly $300-$450, whereas a two-bedroom apartment will cost from $600 upwards. Food and bills are also generally quite cheap.
Consider This Before Freelancing in Montenegro:
- English isn’t hugely widely spoken outside of the main tourist areas. In fact, there are 5 official languages in the country: Montenegrin, Bosnian, Serbian, Croatian, and Albanian.
- This can make it a little more difficult to get by if you don’t speak any of the above, but there are plenty of expats spread across the cities to help you find a local network.
Czech Republic
Unique Flat Tax for Freelancers
| Continent | Europe (in the EU) |
| Capital | Prague |
| Currency | Koruna (Kč) |
| Tax Rate For Freelancers | Monthly flat tax of $285~ possible (otherwise 15% up to 23%) |
| Corporate Income Tax Rate | 19% |
| Capital Gains Tax Rate | 15% |
| Cost of Living | 41st/197 ($1300~/month) |
| HDI 2022 | 32nd/191 |
| Doing Business 2020 | 41st/190 |
General Overview
The Czech Republic is the only EU country on this list. If you’re already an EU citizen, this will make it a walk in the park for you to move there. If not, don’t be discouraged! If you’re from outside the EU, the process involves obtaining a long-term visa and a trade license, referred to as the “Živnostenský list”. Despite the added steps, there are plenty of benefits of starting your freelance business in the European Union.
Located in the heart of Central Europe ensuring easy connectivity to other major European cities, the Czech Republic offers professional opportunities, a serene European lifestyle, stunning architecture, and an overall fulfilling expat experience. If you’re a big traveler, you’ll also appreciate the affordable flights all across Europe and further afield.
Taxes
The Czech Republic is known for having among the most competitive tax rates for individuals in the EU. One of the more unique features for “individual entrepreneurs” is its flat tax (“paušální daně”) introduced in January 2021.
Under this program, you pay a minimum of 6,209 CZK (roughly $285) every month – as long as your earnings don’t exceed 2 million CZK/ $91,360 annually. You may pay more than this minimum depending on which one of the 3 brackets you fall into based on income, up to a maximum of CZK 26,000 ($1,173~) if you earn between 1.5 – 2 million CZK.
If you successfully opt-in to this, you’ll no longer need to file your annual tax return or additional reports to the social and health insurance authorities. In terms of streamlining your freelance admin, it’s pretty amazing. There are some preconditions to being accepted to the program, but it’s generally fairly simple. Note that it’s only possible to apply for it until the 10th of January every year for the given calendar year.
Besides the flat tax program, there’s a very favorable 15% tax rate available if you earn under 1,935,552 CZK (roughly $88,500). Any of your earnings above this level are taxed at 23% (with the rest remaining at 15%).
Visas
If you’re an EU citizen, you’re entitled to work – for an employer or as a self-employed person – in any EU country without needing a work permit. You can enjoy equal treatment with nationals in access to employment, working conditions, and social and tax advantages. You and your family members have a right to live, move, study, work, trade, do business and retire freely in any of the EU countries.
If you are a non-EU citizen and wish to be self-employed or run a business in the Czech Republic, you may consider applying for the visa designed for freelancers, often referred to as the Zivno visa. This visa is initially granted for 1 year. One of the prerequisites for the visa for freelancers is to demonstrate financial stability, requiring proof of funds of $7,185 (156,500 CZK).
Lifestyle
As for where to live, Prague is the #1 option (and is one of our top European cities for freelancers). Here you’ll find a huge expat community, great nightlife, and events to keep you busy, and an overall beautiful and historical city to spend your time in.
English is also quite widely spoken (at least in Prague and the larger cities), and the large expat community means you’ll quite easily find a network of English speakers.
You can expect to get by on roughly 12,800 CZK/month $600 without rent, putting it roughly in the affordability middle-ground. Rent, at least in more touristic places like Prague, will swallow the bulk of your outgoings, while food and transportation are highly affordable.
Renting a one-bedroom apartment in Prague, for instance, may range from 10,000 CZK to 20,000 CZK (about $465 to $930) per month, while a two-bedroom apartment could cost between 15,000 CZK and 30,000 CZK (about $700 to $1,400) per month.
Thailand
Where Ancient Temples Meet Modern Cities
| Continent | Asia |
| Capital | Bangkok |
| Currency | Thai Baht (฿) |
| Tax Rate For Freelancers | 17% possible with the 10-year LTR Visa (otherwise 0% to 35% depending on income) |
| Corporate Income Tax Rate | 20% |
| Capital Gains Tax Rate | Most types taxable as ordinary income |
| Cost of Living | 103rd/197 ($880~/month) |
| HDI 2022 | 66th/191 |
| Doing Business 2020 | 21st/190 |
General Overview
Thailand is a popular destination for freelancers and digital nomads who want to enjoy a tropical paradise with a low cost of living.
The country has a vibrant culture, delicious cuisine, and a friendly population. Thailand also has a lot of freelance opportunities, especially in the fields of web development, graphic design, and online marketing.
Taxes
Thailand has a progressive tax system, with rates ranging from 0% to 35% depending on your income level. However, if you qualify for the 10-year Long-Term Resident (LTR) Visa, you can enjoy a reduced tax rate of 17% on your income. You can also benefit from the double taxation agreements that Thailand has with many countries.
If you establish a company in Thailand, the company will be subject to a corporate income tax rate of 20%.
Visas
Thailand has a special visa for highly skilled professionals and foreign startup entrepreneurs who want to start their own business in the country. The visa is called the SMART Visa and it is valid for up to 4 years.
To qualify under the category for highly-skilled professionals, you need to have a minimum income of 200,000 THB (~$6,000) per month, a minimum 1-year employment or service contract with a company in Thailand, and relevant qualifications. You also need to prove that your work will contribute to the development of Thailand’s targeted industries, such as digital technology, smart electronics, robotics, and several others.
Lifestyle
Thailand is a very affordable country to live in, with average monthly expenses of around 17,000 THB (~$500), plus rent. The rental costs in Thailand vary depending on the location, type, and amenities of the accommodation, but generally, they are significantly cheaper than in Western countries.
For example, a one-bedroom apartment in Bangkok can cost anywhere between ฿8,000 to ฿20,000 (about $234 to $585) per month, while a two-bedroom apartment can cost between ฿15,000 to ฿40,000 (about $439 to $1,170) per month.
It’s a hugely diverse country with a lot of attractions, such as the Grand Palace in Bangkok, deep jungles, its multitude of paradise islands, and the (in)famous Full Moon Party. Whether you like city life with vibrant nightlife or a quiet retreat far away from the noise, Thailand has something for everyone. It’s also a great hub to travel from, with low-cost flights and buses to numerous other countries in Asia.
If you’re looking for a country that offers a low cost of living, an easy short-term visa process, and a high quality of life, Thailand might be the perfect choice for you. Thanks to this combination of factors, Thailand is one of the best Asian countries for freelancers.
Easiest Digital Nomad Visas in the EU
Are you a non-EU citizen looking for ways to seize the opportunity to work remotely?
Don’t let stringent visa requirements dampen your digital nomad dreams! While some countries set high-income bars or challenging entry and stay criteria, there are more accessible and favorable digital nomad and freelancer visas in the EU.
Follow our list ensuring you can embark on your expat journey with ease and confidence. Dive in and unlock the doors to your European adventure!
What Steps Should You Take Before Freelancing Abroad?
Pondering the idea of doing remote work from another country? While some of the countries above may seem like enticing propositions, there are a few things you should do before.
- If you’re already a tax resident in a different country, consult with a local accountant. This will involve looking into what leaving will entail for you, such as how to properly end your current tax residency, checking double-taxation agreements, etc.
- Consult with a trusted accountant (preferably one with an expat focus) in the country you’re going to. They should advise you on how to attain the new tax residency, local business structures, and generally what’s best for you.
- Check that the country (and specifically the city where you’ll want to live) has what you need. Internet speeds, quality coworking spaces, and access to things like local healthcare will vary from place to place. Also, consider the climate and local surroundings – whether you’re looking for a top beach town for freelancing or prefer something more mountainous or urban will make a huge difference to your options!
- Ensure you have access to banking. Although some of the countries listed above will give you easy access to local banking (i.e. Georgia has some great banks for freelancers to choose from), you won’t necessarily have easy access to banking everywhere. If local banking is hard to come by, I recommend you sign up to an all-digital platform like Revolut, Wise, or Payoneer, depending on what’s available to you.
- Research the local rental/accommodation market – good accommodation isn’t always as easy to come by as you might read online! Also, do a little digging on the cost of potential short-term backups (like Airbnb or Booking.com stays) in case you need a temporary place while you search.
How to Choose the Best Freelancing Country for Your Needs
Many freelancers have the freedom to work from anywhere in the world. But how do you decide which country is the best fit for your lifestyle, budget, and goals? There are many factors to consider when choosing a freelancing country, such as:
- The cost of living: How much will you spend on rent, food, transportation, and other expenses? How does it compare to your income and savings? You can use a tool like Numbeo to compare the cost of living across different countries and cities. Note that it isn’t always 100% accurate, but can at least give you a rough idea to start from.
- The quality of life: How safe, comfortable, and enjoyable is the country you want to live in? How is the climate, culture, healthcare, education, and infrastructure? How easy is it to make friends and socialize with locals and other expats? Does it offer enough to keep you entertained and happy outside of work?
- The visa requirements: How long can you stay in the country without a visa or with a tourist visa? Do you need a special visa or permit to work as a freelancer? How easy or difficult is it to get one? What are the fees and documents involved? You can check the official websites of the embassies or consulates of the countries you are interested in to find out the visa requirements and procedures.
- The tax implications: How much tax will you pay in the country you live in and in your home country? Do you need to file tax returns in both countries? Are there any tax treaties or agreements that can reduce your tax burden? How can you optimize your tax situation as a freelancer? You can consult a local professional accountant or check the official government websites to get an estimate of your tax obligations and options.
- Internet speed and reliability: How fast and stable is the internet connection in the country you want to work from? How easy is it to find Wi-Fi hotspots or co-working spaces? How much will you pay for internet access and data plans? You can use online tools like Speedtest or Fast to check the internet speed and quality in different countries and regions.
By considering these factors, you can narrow down your options and find the best freelancing country for your needs. Of course, you don’t have to stick to one country forever. You can always change your location and explore new places as a digital nomad. The world is your oyster!
FAQs – Top Countries for Freelancers and Sole Proprietors
Montenegro has the lowest taxes for freelancers in Europe – income tax ranges from as low as 9% to 15%. Keep in mind that it currently isn’t in the European Union, although the country is now undergoing negotiations and looks likely to join the EU by 2025.
If you want to be specific to the European Union, Bulgaria is the country with the lowest taxes in the EU. We covered it in-depth in our top 5 list of the best freelance countries in the EU.
This depends on the country you choose to visit. Some of the 5 best countries for freelancers offer entry under a tourist visa or even temporary visa-free regimes for citizens from certain countries. However, some other countries have strict visa policies for freelancers who want to enter and work while there.
With 0% income tax, the UAE is possibly the best country for freelancers’ tax. It also offers a 0% tax rate for capital gains, making it a great place for both working and investing.
If you prefer somewhere else, my personal top country for freelancing is Georgia. As a freelancer, you can get a tax rate as low as 1%, while capital gains there are taxed at 0%. It’s also highly affordable compared to Dubai, while offering beautiful nature and extremely simplified administrative proceedings.
You have two main options.
If you want data wherever you go, your best bet is to sign up for one of the best international eSIM providers for digital nomads. An eSIM is essentially a non-physical SIM card (if supported by your phone), which you can use to access mobile data as soon as you land in another country. However, depending on the provider, they often don’t include minutes for calls, or SMS functionality – but you can at least use online messenger apps like WhatsApp, Signal, etc.
If you want the ability to make phone calls and send SMS message, you should look at the best virtual phone number apps. These allow you to both send and receive calls and text messages over a data connection. Especially if you’re an active freelancer or small business owner, this can be an incredibly important and surprisingly cost-effective option to stay in touch with clients, as well as family and friends around the globe.
For the best of both worlds, it’s worth considering combining an eSIM with a virtual phone number! Of course, if you have good WiFi access on your travels, you can also ditch the eSIM and just go with only a virtual phone number if calls and SMS are all you need.
