More and more countries are setting themselves up to attract remote workers from other places. These cross-border workers earn money from foreign sources, either by being employed by companies based overseas or running their own business abroad.
If you’re interested in this way of living and working abroad, in this article, you’ll find out about what a digital nomad lifestyle is and how to be a digital nomad.
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What Is a Digital Nomad Lifestyle?
Digital nomads are often described as a rapidly emerging class of highly mobile professionals, whose work is done regardless of place. They are individuals working remotely who often travel to different locations on a regular basis. Find out more about what remote work means and why it works so well.
As a rule, digital nomads don’t move for work purposes – rather, their skills and the type of work they perform allow them to move.
The term “digital nomad” represents an individual who is location-independent and tech-savvy. Accordingly, the digital nomad lifestyle is a highly mobile and technology-enabled lifestyle made feasible by the global availability of high-speed internet, cloud solutions, video conferencing, and online platforms that facilitate team collaboration.
Digital nomads are categorized under ‘lifestyle mobilities’ because their movement is driven by personal lifestyle choices rather than external factors like work. This means that they generally choose to move based on their desired lifestyle, even if their job doesn’t require it. Although they aren’t driven by work when deciding to relocate, digital nomads are focused on their careers along with experiencing the new location.
The below diagram (researched by Cook 2020, p. 356) presents how digital nomads perceived and differentiated themselves from other groups such as tourists, backpackers, and expats. It showcases intersecting rating scales that represent high to low mobility and work to non-work.
Cook, D. (2020). The freedom trap: digital nomads and the use of disciplining practices to manage work/leisure boundaries. Information Technology & Tourism, 22(3), 355–390, licensed and adapted under the Creative Commons Attribution 4.0 International License.
Each quadrant represents a unique combination of how work and travel intersect in a person’s life. According to the above research, many self-identified digital nomads subjectively rated themselves as highly mobile and quite work-focused.
While both digital nomads and business travelers have a work-oriented purpose for their travels, business travelers have a stronger work focus. Please note that, according to the diagram’s author, the positioning of other categories also came out of subjective discussions and should be considered as such.
The typologies can help us understand the diversity within the digital nomad community. Not all digital nomads live the same way, and their lifestyles can vary based on how they manage their mobility and work routines.
If you haven’t already started, what would your digital nomad lifestyle look like?
Pros and Cons of Being a Digital Nomad
Cross-border remote work, i.e. living abroad while working for a foreign employer or with foreign clients, commonly called digital nomadism, can offer plenty of benefits. It often allows access to a higher quality of life and the choice of a more favorable cost of living and tax regime, among others.
Below you’ll find a table presenting the advantages and disadvantages of a digital nomad lifestyle.
| Location Flexibility | Customizable living and working conditions tailored to your individual preferences. | Lack of a fixed community, isolation, loneliness. |
| Travel Exposure | Diverse cultural interactions and experiences. | Travel fatigue and acclimatization to varying social norms, new cultures, and environments. |
| Quality of Life | Potential for more cost-effective or better standard of living in certain regions or countries (such as access to better healthcare, education, and recreational facilities in certain areas). | Fluctuations in income, lack of stable routine. |
| Living Environment | Freedom to choose favorable climates and culturally rich environments. | Continual adjustments to new environments. |
| Creative and Economic Ventures | Exposure to new ideas, projects, business opportunities, markets, and investments. | Time zone discrepancies, virtual communication limitations. |
| Global Networking | Opportunity to be part of various global and local communities. | Navigating cultural nuances and language barriers, forming short-term relationships, having difficulty in developing deep and enduring connections, and experiencing homesickness. |
| Legal, Tax, and Finance Regulations | Possibility of favorable tax regimes and simplified business regulations in certain jurisdictions. | The complexity of international legal, tax, and financial landscapes, including considerations like visas, residence and work permits. |
| Work-Life Balance | Opportunity for better integration of work and personal pursuits. | Lack of structure and blurred boundaries between work and leisure. |
*Tax evasion is a crime that can result in fines, penalties, and even jail time depending on the jurisdiction. On the other hand, tax planning and optimization are not only legal but wise. It’s crucial you understand taxes for digital nomads and freelancers abroad to make informed and beneficial decisions.
Analyzing the above table, being a digital nomad has its clear advantages and disadvantages which are individual and depend on your attitude and skills. Embracing the digital nomad lifestyle inherently presents a spectrum of experiences, which can vary profoundly based on individual perspectives.
What stands as a benefit for you might be a setback for somebody else, largely contingent upon your unique skills and disposition. Discover the best books for digital nomads & remote workers to build a successful location-independent career.
The undeniable allure of this lifestyle is that it offers unparalleled liberty to tailor your daily routines, travel the world, learn about new cultures, and build a global network. But there are plenty more benefits of living in another country as a freelancer, digital nomad, remote worker, or online business owner.
Yet, many may experience feelings of disconnection, the occasional isolation, or longing for stability and having a fixed home. Also, job satisfaction and productivity can swing dramatically – if you’re disciplined and adapt well to change, you’ll likely find a good work-life balance. For some people, constant relocation can create certain professional rifts, making seamless communication with employers and clients a challenge.
It’s essential to weigh these considerations wisely, always recognizing that your strengths and preferences will be the ultimate determinants in your journey of becoming a digital nomad. And even more importantly, remember that you can learn many required skills along the way.
What Do Digital Nomads Do?
Digital nomad work is typically conducted over the Internet while leveraging technology. Many digital nomads work in marketing, design, IT, web and software development, writing, media, tutoring, e-commerce, financial services, project management, and consulting. Find out more about the top freelance jobs and the skills you’ll need to perform them.
If you’re not sure about the direction you’d like to take your online career, you can find your freelance niche using Ikigai.
An increasing number of professionals, encompassing employees, freelancers, and entrepreneurs, are decisively adopting remote work, skillfully integrating global exploration with their digital professions and ventures.
At the same time, more and more companies are expanding on remote work opportunities to secure and retain top talent. With the relentless advancement of technology and the pervasive adoption of remote work, the demand for digital nomads will inevitably grow, presenting them with unparalleled prospects to cooperate with companies around the world while traveling and discovering new lifestyle.
“There are two kinds of companies: one is going to embrace work from anywhere, and the second is in denial(…).”
Prithwiraj Choudhury, Harvard Business School, quoted in Kelly, Jack, “Harvard and Stanford Professors Predict The Future of Work”, Forbes (January 8, 2022)
What Are the Best Places for Digital Nomads?
Digital nomads typically look for several key attributes in a location, both for work and lifestyle reasons. Here are some common factors you should consider when choosing a digital nomad destination:
Safety. The safety of the location is crucial, including low crime rates, social peace, political stability, and a tolerant local community.
Affordability. Reasonable living costs, including accommodation, food, transportation, and leisure activities.
Tax Implications. Consider local taxation policies, not just the rate but the broader tax framework such as concluded double taxation agreements, available tax benefits, ease of compliance, financial reporting requirements, social security, and other mandatory contributions.
Reliable Internet Connectivity. High-speed, dependable either in the form of broadband or mobile data, is of great importance to digital nomads to be able to perform their remote work (while preferably being affordable, too!).
Cultural and Recreational Opportunities. Interesting attractions, local culture, social events, and outdoor activities to enrich their experience play an important role when choosing the destination. They don’t have to be ‘mass tourism’ activities.
Pleasant Working Environment. Look for places that offer your preferred work environments such as quiet cafés, co-working spaces, a comfortable home office in your apartment, or whatever else tickles your fancy.
Tolerance. Possibilities for authentic interpersonal relationships where the locals are tolerant of diversity, either racial, sexual, or ideological.
Community. The community can offer support, friendships, guidance, networking, and social opportunities, and make your digital nomad journey a truly special experience.
Comfortable Climate. A place with your preferred temperatures and weather conditions.
Friendly Visa Policies. Locations offering straightforward entry and stay conditions, such as dedicated visas like digital nomad visas or other work and residence permits. Countries that offer straightforward online applications, clear guidelines, hassle-free renewal processes, flexibility in terms of leaving the country and coming back, and minimal documentation. Speaking from our own experience, it’s crucial to choose a country that offers an environment where you can work, live, and thrive without constantly worrying about your legal status or being bogged down by red tape.
Ease of Transportation. Good public transportation systems and proximity to major transport hubs, such as international airports, can be appealing.
Language. While not a deal-breaker, locations where the language you’re comfortable with is widely spoken or understood can be a plus.
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FAQs – Being a Digital Nomad
Digital nomads are often defined as professionals who use digital technologies to work remotely and travel simultaneously. They have autonomy and freedom over frequency and choice of location. If it sounds interesting to you, check if you can work remotely from another country.
Becoming a digital nomad has both advantages and disadvantages. It can offer remarkable flexibility, allowing you to work from diverse locations and immerse yourself in various cultures. This lifestyle fosters personal growth and broadens horizons through continuous exposure to new experiences.
However, it also presents challenges, including potential feelings of isolation and the need to navigate varying work conditions. Ultimately, the decision hinges on your personal and professional priorities, as well as your adaptability to an ever-changing environment.
The best place for digital nomads varies based on your personal preferences. However, generally, safety and political stability shouldn’t be overlooked, ensuring peace of mind during your stay. The location should also have reliable and fast internet connectivity to ensure you can actually reliably do your work!
