The digital nomad lifestyle is catching on. Since the pandemic, more and more professionals have been learning about the possibility of becoming a digital nomad. However, information surrounding visa and taxes is still vague.
‘Where to pay taxes?’ or ‘How to start?’ are common queries from people aspiring to this lifestyle. The following discussion should be able to shed some light on the matter.
Visa Options For Digital Nomads
Around 42 countries currently offer digital nomad visas. And if you have been searched ‘digital nomad visa Europe,’ you can find it within these options. These visas usually don’t last more than a year. And when you have one, it permits you to rent and travel freely in that country.
To apply for a digital nomad visa, you must be at least 18; you must present a supporting document to the authorities showing you have a monthly fixed income.
You should also present proof of employment. It is essential to establish with the authorities that you can perform this job from any point of the globe. The average required varies according to the host country.
Best Countries For Digital Nomad Visa
One of the best countries to establish this type of lifestyle has been Germany. If you fulfill the eligibility criteria, you can quickly obtain a Freelance Visa in this country. You can then work with businesses and individuals under various arrangements.
Norway’s Svalbard is another excellent place for those who want to work remotely. If you can prove that you have proper funds, Norway will issue you a digital nomad visa for a lifetime, so you would be able to enjoy this incredible country as much as you want!
In Costa Rica, the digital nomad visa is known as the Rentista visa. This visa will grant you residency for two years in the country. But you can choose to extend it. Here the primary criterion for eligibility is a fixed monthly income of 2500$. If you have a small business looking forward to selling services in Costa Rica, Rentista can be much helpful.
Portugal, Argentina, the Czech Republic, and Mexico are other countries that welcome this kind of digital nomads jobs. So, you are more likely to quickly obtain a digital nomad visa in these countries and enjoy various business benefits.
Tax Rules For Digital Nomads
Taxes might be a bit complicated to understand in this field. For instance, if you are a citizen of one country living in another country with a two-year digital nomad visa, then who will you pay the taxes to? Your birth country or the country you are currently making money in?
The tax issue for people who work remotely varies across countries. For instance, you must pay taxes if you are a digital nomad in France with an undefined stay period.
If you have obtained a digital nomad visa, your next step should be getting a tax residency in that country. Because this will help you with the creation of your digital nomad bank account. Also, paying taxes will make it easier for you to conduct business in that foreign country. Meanwhile, it will help you avoid trouble with the financial authorities.
Getting Tax Residency As a Digital Nomad
To get a new tax residency, you must notify the country where you are currently a citizen. You need to state that you are trying to obtain tax residency in the country you are staying in at present. So, your birth country needs to stop considering that you are a tax resident of theirs.
After that, you will validate your new tax residence. So, register at the new country’s tax office and obtain your unique tax number. You should also open a digital nomad bank account and present proof of economic activity to establish your tax residency status.
This lifestyle is undoubtedly an attractive one. However, entering and earning in a new territory presents a few unexpected challenges. To tackle them, you can take the help of a global mobility services company like ERES.
Our company has offices in nine major cities across six countries, all of them full of enthusiastic experts in relocation and mobility services: a valuable friend for any digital nomad job!