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Imagine being able to work from almost anywhere in the world. Given the option, where would you go?
Having embraced the opportunity to work from home during the Covid-19 pandemic, the idea of being able to work from an entirely different country became an attractive – and more realistic – proposition.
According to a data from MBO Partners, more than 17 million American workers identified as digital nomads in August 2023 – a 131% increase from pre-pandemic figures in 2019.
Choosing to become a digital nomad offers an alternative, and potentially, more economical lifestyle. Free of the trappings of expensive mortgages and burdensome possessions, being a digital nomad allows you to shake off the shackles, and continue to work as you travel the world.
Many digital nomads work remotely under a tourist visa, but this isn’t ideal, and may not be deemed as legal. While digital nomad visas don’t offer a routeway to permanent residency or citizenship, they do allow you to remain in a country for a pre-defined period.
Thailand is one of the latest countries to offer a digital nomad visa
In June 2024, Thailand announced a digital nomad visa, allowing foreigners to stay and work in Thailand for extended periods without worrying about immigration or tax.
Previously, you could only stay on a tourist visa for up to 60 days at a time. This new multiple-entry visa allows you the right to stay in Thailand for 180 days a year, with an option to extend it for another 180 days, for up to five years.
The initial visa fee is £213.75 and you will need to leave and re-enter Thailand every 180 days (roughly every six months) and pay an additional £212.20 each time you extend and return.
Visa requirements also stipulate that you must:
• Be at least 20 years old
• Have enough money to pay for the visa
• Prove your bank account has a balance of at least £10,867
• Provide proof of employment with a registered company.
More than 50 countries now issue digital nomad visas
While the rules, timings and costs vary, more than 50 destinations now offer official visas to digital nomads. The graphic below lists all those countries currently welcoming digital nomads.
With so many countries you could choose to live and work, it could be easy to romanticise the idea of earning a living while travelling the world, but it’s not all plain sailing.
Read on to find out some of the top pros and cons of life as a digital nomad.
Top pros of being a digital nomad
Embrace freedom and flexibility
A nomadic lifestyle grants you complete freedom. Without ties to an office job, you can explore new places and stay as long as you want, or until your visa expires.
Whether you long to discover South America or explore the beauty of Asia, you can. The biggest and best thing about digital nomadism is that it opens endless opportunities to travel the world, while still earning money and, potentially, even advancing your career.
Work remotely, on your terms
It’s never been so easy to work remotely. All you need is a strong internet connection, a decent laptop, and a skill you can do in a freelance capacity or for an employer who is content for you to work anywhere, and allows for flexible hours.
If you’re employed, with careful planning and a mutual awareness on both sides, it should be possible to overcome potential obstacles. That said, depending on your location, it may mean some late nights or exceedingly early starts – so be prepared to be willing and flexible.
If you can create a well-structured schedule, it’s possible to enjoy an excellent work-life balance. Setting your own schedule and being able to work at a pace that suits you may even mean you find yourself far more productive.
Enjoy a lower cost of living
The most popular destinations for digital nomads tend to be countries where the cost of living is lower than your country of origin.
These choice countries also offer everything you need for a successful experience: beautiful landscapes, fast internet, and safe coworking spaces.
Instead of living in the United States, UK, or Canada, you can live in Mexico, Georgia, or Colombia – and save as much as a quarter of the cost of living expenses.
Typically, you’ll also save on expenses like car payments, car insurance, mortgage payments, electricity, gas, and so on. These expensive items tend to be essential in the “normal” course of life, but as a digital nomad, you’ll be less likely to need such things.
Being able to choose where you live gives you the freedom to control your cost of living. And the lower cost of living could allow you to stretch your budget further and enjoy a higher quality of life.
Cons of being a digital nomad
Dealing with taxes
Let’s face it, dealing with taxes is never fun but it could prove even more of a headache if you’re a digital nomad.
Constantly moving from one country to another can make managing taxes and paperwork challenging. So, before embarking on a life as a digital nomad, you should ensure you have a permanent “base”. This will be the address and tax residence you’ll need to share with your bank and tax officials.
Choosing the right destination for your base address will depend on your circumstances. If you’d like to understand how and where you could establish a suitable “base”, we can help. We’ll also explain how your choice will affect your tax situation.
We can advise you on the best way to manage your financial affairs to ensure you’re paying the correct amount of tax, and making full use of any allowances you may be eligible for.
Depending on your plans, we may also be able to introduce you to tax experts who could help smooth your journey.
Lack of structure
Being a successful digital nomad requires discipline and a strong work ethic. The temptation to drop work in favour of your next adventure or join friends on a trip to the beach on a particularly sunny day may be hard to resist – and if you're doing things right, should be a regular problem!
As such, you'll need to manage your workload and be highly disciplined to ensure your work gets done and you stick to deadlines.
Without a regular routine and structure to your days, you may find you fall into unhealthy habits, succumb to procrastination, or end up working far more than you actually want or need to.
Constant travel can take its toll
Life as a digital nomad means you’ll be on the go – a lot.
At first, you may relish the freedom of being able to pick and choose where you go, hopping from one country to another quite happily. But after a while, you may begin to tire of being constantly on the move.
While many countries offer digital nomad visas, it’s unlikely that this will entirely prevent you having keep moving.
You may just be established in a new place, feeling good about your routine, found the best coworking spaces and started to make some new connections and friends… then, boom! Your visa expires and you have to pack up and start all over again.
As such, if you value a solid routine and a strong sense of stability, then, no matter how much you love to travel, life as a digital nomad may not be right for you.
Get in touch
If you're thinking about embracing life as a digital nomad and would like to understand more about how it might affect your long-term financial plan, please get in touch.
