9 Common Questions About Digital Nomads

Author:
"Digital nomad working in a modern urban cafe with cityscape view, featuring a young Asian male using a laptop at a table surrounded by natural light, lush indoor plants, and fellow customers in a stylish, glass-walled coffee shop. Perfect setting for remote work and technology lifestyle."

What Is a Digital Nomad?

A digital nomad is an individual who leverages technology to work remotely from various locations around the world.

These locations can be:

  • coffee shops;
  • co-working spaces;
  • Airbnb working oriented (with comfortable desk / work space);
  • etc.

This lifestyle emphasizes freedom from geographical constraints, allowing individuals to explore new cultures and experiences while maintaining their professional roles.

According to this article that I enjoyed a lot, most digital nomads works in hotels (https://passport-photo.online/blog/digital-nomad-statistics-and-trends/):

"Infographic displaying accommodation preferences among digital nomads, revealing that 51% prefer staying in hotels, while 41% opt for staying with friends or family. Additionally, 36% choose Airbnb locations, 21% travel in cars, vans, or RVs, and 16% stay in hostels. This data provides insight into the varied lifestyle choices of remote workers worldwide."

How Do Digital Nomads Make Money?

Digital nomads typically earn money through various remote work models.

According to my personal experience and according to a reply that I liked a lot on a reddi post about this topic:

“You get the job first, *then* become a digital nomad.”

In my opinion, the most important is to get a remote job first which is stable, in which you have experience and that you’re (of course) able to do fully remotely.

This list that I found here summarize well what kind of jobs are fits well into the digital nomad model.

"Discover the top 20 careers for digital nomads in 2024, ranked by percentage of remote job opportunities, from IT data analysts to product managers. This infographic, presented by The Social Hub, details the best sectors for remote work including technology, marketing, and financial services, ideal for professionals seeking flexibility and global work options."

Many also run their own online businesses, manage e-commerce stores, or develop software and digital products.

How much how much do digital nomads earn?

According to this article most digital nomads (60%) earn between 50 000 and 250 000$ USD / Year.

"Bar chart showing the income distribution among digital nomads, highlighting earnings from less than $25,000 to over $1,000,000. This visual guide emphasizes the majority of digital nomads earning between $50,000 to $250,000 annually, providing insights into the financial outcomes of remote working lifestyles."

The earnings of digital nomads can vary widely, ranging from a few thousand dollars to over six figures annually. Factors affecting income include skill set, industry, experience level, and the ability to secure consistent work. Successful digital nomads often combine multiple streams of income to enhance their financial stability.

What Are the Best Countries for Digital Nomads?

I found this map pretty accurate in order to have a quick overview of the places where digital nomads choose to live:

"Interactive world map highlighting the top digital nomad cities, showcasing scores from Madrid to Tokyo. Each city is ranked based on its appeal to digital nomads, with color-coded dots indicating the quality of life, internet speed, and coworking spaces. Essential guide for remote workers looking to find the best cities for digital nomads, provided by ETIAS.com."

Countries that attract digital nomads often have strong internet connectivity, a low cost of living, and a supportive expat community. Popular destinations include Thailand, Indonesia (especially Bali), Portugal, and Mexico. These countries offer not only the logistical advantages but also scenic landscapes and vibrant cultures that enrich the nomadic experience.

I’ve also write a page that is dedicated to statistics about digital nomads place to live in!

What are the Legal Requirements for Becoming a Digital Nomad?

You need to take into considerations that this topic is complex and : the legal requirements for digital nomads depend on the destination country.

The easiest choice is to take into considerations the countries that are currently offering digital nomads visas.

"Infographic listing the top 7 countries for digital nomad visas in 2024, with Portugal leading, followed by Spain, Costa Rica, Colombia, Croatia, Greece, and Argentina. Ideal for remote workers seeking long-term stays in countries supportive of digital nomads. A valuable guide for those planning to work while traveling internationally."

Common considerations include visas, permits, and local regulations regarding work and residency. Some countries offer specific ‘digital nomad visas’ that facilitate long-term stays for remote workers.

The article that is giving the most amount of information for this topic can be found here.

How Do Digital Nomads Pay Taxes?

Tax obligations for digital nomads can be complex. They must often navigate the tax regulations of their home country and the country they are residing in. Many consult with tax professionals to ensure compliance with international tax laws and take advantage of treaties to avoid double taxation.

Here is an example of taxes that you will pay in the following countries as a digital nomads:

  • Cyprus: corporate tax rate of 12.5%, tax residency certificate with just 60 days of stay.
  • Dubai: 0% income tax rate and up to 9% corporate tax, tax residency certificate with 90-120 days of stay.
  • Estonia: approximately 20% depending on the business type.
  • Andorra: 10% tax rate through the andorran digital nomad visa, minimum stay for the certificate is 90 days.
  • Spain: around 24% on income and 0% on foreign dividends thanks to the Beckham Law.
  • Malta: various tax schemes at 15%. Tax residency certificate with reinforced stay in the country.

More information can be found here.

What Skills Are Needed to Be a Successful Digital Nomad?

Key skills for successful digital nomads include self-discipline, strong communication, and proficiency in digital tools and technologies. Adaptability and cultural sensitivity are also crucial as working across different time zones and cultures is a common challenge.

Those skills can be summarize in the following list:

  • Managing time zones
  • Remote Communication 
  • Flexibility
  • Financial Savvy 
  • Self-Discipline
  • Tech Proficiency
  • Networking
  • Problem solving
  • Wellness Balance 
  • Cultural Awareness 
  • Safety Awareness
  • Work-Life Harmony

How Do Digital Nomads Manage Health Care?

Digital nomad securing health insurance online in a cozy apartment setting, highlighting the importance of maintaining healthcare while traveling remotely.

Health care management for digital nomads typically involves purchasing international health insurance that provides coverage worldwide. Many also plan for medical emergencies by familiarizing themselves with healthcare facilities in their current or planned destinations.

Writing this article I found this list of Health Care companies that offer digital nomads options:

  • Safety Wing
  • Medical for Nomads
  • World Nomads
  • Insured Nomads
  • True Traveler
  • TCP Insurance
  • PassportCard Nomads
  • Genki
  • Protect you Bubble
  • Travel Guard
  • IMG
  • Travelex
  • Faye

More information can be found on this following post.

How Do Digital Nomads Stay Connected While Traveling?

Digital nomad utilizes modern connectivity tools at an airport lounge, demonstrating efficient remote work setup with smartphone and Wi-Fi technology.

To stay connected, digital nomads rely heavily on technology. Key tools include smartphones, portable Wi-Fi devices, and cloud-based applications. Regular use of communication platforms like Slack, Zoom, and social media helps maintain connections with clients and peers.

According to me, the most important is to have a good e-SIM plan!

If you never hear about e-SIM, feel free to check what is it: https://www.pcmag.com/explainers/what-is-an-esim-card.

TLDR: It’s basically a virtual SIM card that you can add in your smartphone without needed a physical SIM card.

The provider I’m using – there is no sponsorship here – is Maya Mobile.

For example, you have plans for Europe that start for 17$ US for 1 month for 10GB all over Europe. Considering the fact that most of the time will have WiFi in Coffees, Hotels, Airbnbs etc – 10GB is enough for me for one month.

Resources

Finding online communities

I foul several digital nomads communities online:

Thanks for your time! Please don’t hesitate to contact me with suggestions or any kind of feedback—I welcome them all!