Around 35 million digital nomads are currently spread across the globe, experiencing the thrill of living in different countries every few months or years. This lifestyle not only is exciting but also opens new opportunities for personal and professional growth.
But to get the most out of it, a digital nomad must plan it correctly, and this piece will highlight the most important factors to consider.
Digital Nomad Visas (DNVs)
Numerous countries offer DNVs for remote workers. Applying for it is typically a simple process that takes days or weeks to finalise. However, there are some factors to consider.
For instance, the validity can differ from one country to the next. Some offer visas valid for six months, while others can go as long as two years.
Renewals are another important aspect, as some can be renewed indefinitely and even lead to permanent residence, while others have a cap on the number of renewals, if not removing the option altogether.
Different DNVs also have different requirements, such as the minimum income amount, type of work, and dependent-defining parameters.
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Remote workers with a consistent income base can plan their journey from one DNV to another based on how much they earn. Those with a fluctuating income rate will have to look into their bank accounts more often and apply at the right time when they meet a specific DNV’s requirements.
Dependent ages (for children) will also play a part, as some countries may limit the maximum age for children to 18 while others allow for much higher age limits.
Finally, understanding the processing time is crucial in order to apply within a comfortable time frame. Applying late may leave you with an expired residence permit but without a new one, be it in the same country or elsewhere.
Digital Nomad Lifestyle for Families Versus Singles
Digital nomads with children may leap at the chance to have their kids study abroad and gain experiences elsewhere, but uprooting a child every six months will do more harm than good.
Longer visas with the ability to renew them offer a sense of stability but keep the door open for well-paced globe-trotting, allowing holders to provide their children with the optimal experience without causing them any “nomad whiplash.”
Single digital nomads are, on average, more flexible and can move around more easily as they have no ties to schools or nurseries.
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Tax, Tax, Tax.
Digital nomads will obtain their income from abroad the DNV-granting country. This can open great tax relief opportunities, but it can also drastically change their tax liability.
Understanding double taxation treaties is essential. Secondly, understanding a country’s tax residency laws is vital. Most countries consider you a tax resident if you spend six months a year as a resident, while some others may increase or decrease that residence period.
Understanding a country’s tax residency laws is vital.
Costs Versus Income
Digital nomads can take advantage of countries with lower living costs to get more value for their money, but at the same time, they do not want to move to a country battling high inflation rates or economic strains.
Moreover, the minimum income requirement is typically tied to the average or minimum wages of its host country. Keeping tabs on a country’s economic growth will give a digital nomad an idea about how much they will have to earn to qualify in a year or more.
Path to Citizenship
For those looking to experience different countries to find their new permanent home, DNVs offer an excellent solution.
Some DNVs do not have unlimited renewal capabilities, and some of them are considered visas and not residency permits, and hence do not lead to permanent residence or citizenship.
That doesn’t mean that there isn’t a route to citizenship, but rather it could be a starting point. The simplest route is to establish a business and obtain a work permit, a matter that is much easier when you are already in the country. Of course, issues such as taxation may pop up, so you will need to understand what liabilities will come with becoming a long-term resident.
By switching to a work visa for your own company, you can start on the path toward naturalisation.
For individuals seeking to explore various nations in search of their future permanent residence, DNVs present an outstanding solution.
The Perfect Plan
By taking stock of all the crucial factors and thoroughly mapping out your journey, you can get the best out of your digital nomad experience.
You can even employ the services of professionals in the field who have extensive knowledge about global economics and immigration laws to create the perfect plan, and that is where Savory & Partners comes in.
If you want to start your journey on the right foot, all you need to do is contact Savory & Partners to book a comprehensive consultation with one of our experts.
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