Whilst return-to-office debates continue to make headlines, the demand for remote work remains high amongst jobseekers. To adapt to this shift, many countries are introducing digital nomad visas (otherwise known as remote work visas or freelancer visas) to entice foreign talent to contribute to their economies.
Companies that hire international talent have been proven to have a happier, more productive, and more inclusive workforce compared to their office-bound counterparts. Plus, it helps companies explore new markets, helping them gain a competitive edge - it’s a win-win situation for everyone!
What is a digital nomad visa?
A digital nomad visa allows you to work remotely and legally stay in a foreign country beyond standard tourist visas.
Unlike most tourist visas, digital nomad visas often allow a stay of a year or more, with the possibility of extensions and renewals.
What documents do employees need to apply for a digital nomad visa?
The requirements needed to obtain a digital nomad visa are likely to include:
- Valid travel document: Your passport must be valid for at least six months past your planned stay.
- Civil documents: You will need to provide civil documents (birth certificate, CV, qualifications). Some may need to be translated into the local language.
- Proof of income: For most countries, you must prove your salary is over a certain threshold to qualify for a visa.
- Proof of residence: An applicant must provide proof of their legal residence in the desired country.
- Criminal record certificate: Applicants often need to submit a certified, clean criminal record.
- Health insurance coverage: Your medical insurance must be valid in your chosen destination.
What do employers need to consider?
Offering employees the opportunity to work abroad with a digital nomad visa is a great way to attract and retain talent, especially during these tough economic times.
But there are many things to take into consideration as an employer when hiring abroad, such as:
- Data protection
- Local labour law
- Employment rights
- Immigration policies
- Tax and social security
- Payroll and accounting regulations
For employers and employees exploring remote work possibilities, these countries consistently come out on top for their digital nomad visa offerings:
Spain
Whether you’re hopping between tapas bars in Málaga or simply basking in the sun in the Canary Islands, Spain has something to offer for everyone. And let’s be honest, it beats the awkward small talk in the office any day.
Introduced in January 2023, Spain’s Digital Nomad Visa was unveiled alongside the Startup Act, a set of initiatives aimed at boosting entrepreneurship and attracting foreign talent.
The country consistently ranks among the top destinations for digital nomads, offering some of the most favourable remote working conditions for employees and employers, including:
- Spain's low cost of living and low minimum wage allow global companies to offer competitive salaries whilst still providing attractive offers for potential candidates.
- The visa allows non-EU/EEA remote workers and freelancers to live and work in Spain for up to 12 months, with the option to extend to a maximum of five years.
- Spain boasts a strong internet infrastructure, with 96% of households having access to internet speeds of over 115 Mbps.
- Barcelona is known as the startup capital of Spain and is a thriving hub for innovation and investment.
- Spain is one of the sunniest places in Europe, with an average of 3,000 hours of sunshine every year.
To apply: Applicants must earn €2,160 per month (€25,920 per year). This increases if they will be accompanied by a partner or children.
Portugal
Adorned with warm beaches and a laid-back, friendly culture, Portugal is a country that has mastered the art of the work-life balance and was even named the world’s best country for digital nomads in 2022.
The country’s D8 visa, also known as the Portugal Digital Nomad visa, offers a hassle-free and fast-track process for remote workers to establish legal residence in Portugal.
Portugal has long been on the radar as a great destination for digital nomads and companies from all over the world. Here’s why:
- Portugal is home to a big community of expatriates, especially in its capital. Out of the nearly three million residents in Lisbon, around 344,000 are from overseas (as of 2022).
- Portugal has one of the most highly skilled workforces in Europe. The country also produces around 100,000 university graduates a year with strong IT, engineering, manufacturing, and telecommunications skills.
- Portugal took top spot in Forbes’ 'Cheapest Places to Live in the World’ article.
- The Digital Nomad visa allows you to stay in Portugal for a period of 12 months, with the possibility of renewal.
- Portugal boasts a favourable business environment such as competitive labour costs, tax incentives, and low cost of living. For employees, there are additional benefits to balance out the country’s low minimum wage, such as the 13th and 14th salary.
To apply: To apply for a Portugal D8 Visa, you will need to set up an appointment with the Portuguese consulate or embassy in your home country. You must have a monthly income of at least €3,280.
The Bahamas
This chain of islands has long been a favourite vacation destination for travellers across the globe. Famous for its sandy white beaches and clear, blue waters, it’s no wonder many remote workers have decided to flock here too.
Known officially as the Bahamas Extended Access Travel Stay (BEATS), this visa was one of the very first long-term visas available for remote employees, offering unique advantages:
- The Bahamas has a very high Human Development Index (HDI), which translates to an incredible quality of life. And happy colleagues = productive colleagues!
- The program doesn't require a minimum income as most other countries do. However, applicants must provide proof that they are financially self-sufficient.
- Completing the online application for a BEATS visa only takes a few minutes and you should receive a response within five working days.
- Having employees in the Bahamas works in your favour if you frequently connect with clients or have work hours that match those in North or South America.
- After working in the country for one year, employees can renew their Bahamas digital nomad visa twice and stay for a total of up to 3 years, giving them plenty more time to enjoy the Caribbean paradise.
To apply: The entire digital nomad visa application can be completed quickly online by accessing the BEATS website. After the application is approved, the permit fees are $1000 for remote workers and $500 for students.
Indonesia
South-East Asia is a digital nomad’s paradise, with millions of tourists, businesses, and remote workers lured to its shores every year.
As the largest economy in South-East Asia, it’s no surprise a large number of foreign companies are tapping into the country’s rich pool of talent from a distance.
Currently, the best option for digital nomads is to apply for Indonesia’s BS211a tourist visa. The visa is valid for 60 days and can be extended twice for an additional 60 days each, giving you 180 days in total.
- The remote work culture here is second to none, with thousands of coworking spaces, speedy internet connection, and great infrastructure.
- The country benefits from a large, young and dynamic workforce (with a median age of 29), contributing to a diverse skill set across various industries.
- There are currently talks of a longer-term digital nomad visa that will allow travellers to live and work tax-free for up to 5 years.
- Bali could be the perfect choice for remote workers looking for budget-friendly options. Housing, food, and transportation here are far more affordable compared to many Western countries.
- There are over 17,000 islands to choose from in Indonesia, each with its own unique culture, landscape, and vibe. The most popular among nomads are Canggu, Jakarta, and Ubud.
To apply: A B211a Business Visa typically costs around $650 and can be done online or at a local Indonesian embassy.
Estonia
Estonia made history when it became the world's first country to establish a digital nomad visa. Home to one of the most tech-savvy societies in the world, Estonia’s digital society could also provide the solution for companies grappling with the tech talent shortage.
The country’s Digital Nomad Visa allows remote workers to stay in Estonia for up to 1 year.
- Companies that are searching for tech talent should look no further, as the country has one of the highest concentrations of tech talent in Europe per capita.
- Almost every bureaucratic task can now be done online, sparing employees and employers the hassle of dealing with mountains of paperwork.
- Nomads here can enjoy safety, ease of living (thanks to widespread English proficiency), and plenty of excellent co-working spaces.
- Estonia has one of the cleanest environments in the world. Narva, Tallinn, and Tartu in Estonia rank among the top 10 cities in Europe with the best air quality.
- Estonia also boasts free Wi-Fi in most cafés, restaurants, and public spaces, making it the perfect place to work out and about.
To apply: There are two types of Digital Nomad Visas to choose from: Type C which lasts 6 months and type D which is valid for one year. Employees must meet the minimum threshold (€4,500 gross of tax) during the six months preceding the application.
Conclusion
Ultimately, the best digital nomad destination will depend on an individual’s priorities and preferences. Before buying that one-way ticket, it’s important to consider factors such as budget, preferred climate, and desired level of adventure.
For employers considering hiring digital nomads, we recommend seeking professional assistance due to the intricacies involved in managing workers across borders. Tasks such as team setup, payroll management, and handling digital nomad taxes can be complex. But partnering with Gibson Watts Global can significantly simplify the progress.
Not yet secured your dream work-from-home job? Jobgether can help you find the perfect remote job for digital nomads wherever you are in the world. Check out our vacancies here.
This article is written by Gibson Watts Global.