What kind of beast?
One of the first to use the term "digital nomad" was Tsugio Makimoto and David Manners in a book that was published in 1997. The authors predicted that the development of technology will open up new opportunities for people, but at the same time will put them before a choice: "The 21st century will bring back to life a dilemma that has not been relevant for 10,000 years, and a person will again have to answer the question of which lifestyle is closer to him, nomadic or sedentary."raquo;. It is noteworthy that scientists long before the digital age also noted the likely problems that nomadism would entail, for example, taxation.
As a rule, when talking about digital nomads, they mean "IT specialists", however, the list of professions that make it possible to lead a nomadic lifestyle in the modern sense is much broader: marketers, social media specialists, copywriters, designers, as well as teachers, psychologists, lawyers who read online courses or consulting via the Internet. According to experts, today there are from 50 to 200 million people in the world who are not tied to a specific workplace, who are already or potentially could be digital nomads.
The virus of "nomadism"
With the development of high-speed Internet, people's ideas about the way of life and work began to gradually transform. So, young and brave freelancers from Europe and America were the first to go to the ocean with their laptops. (Looking ahead, let's say that modern remoters have moved away from this kind of templates). However, if only a few people decided on such steps before 2020, then during and after the pandemic, the migration of specialists turned into a mass phenomenon that governments of different countries have to reckon with.
The epidemic and lockdowns have shown both the management of companies and the employees themselves that remote work or a combination of remote and office work (hybrid formats) is in many cases more effective: it is more convenient for staff and more cost-effective for business. Thus, a whole army of specialists was released, to whom companies, including international giants, were given the opportunity to perform their functions completely outside the office.
New startups today often initially recruit a team consisting of remote specialists, who, nevertheless, may have a clear work schedule, online meetings and other forms of team interaction, translated into digital form.
To sum up, the pandemic has given a rather extensive category of people a precious opportunity to freely choose a place to work and live. To be fair, it must be said that there has been a reverse trend – as the anti-covid restrictions are lifted, many companies are returning employees back to their offices, but it is hardly possible to resist the global reformatting of life.
Countries compete for digital nomads
If the first digital migrants chose mainly paradise resorts on the coast, today nomads have a little less romance and a little more pragmatism. Traditionally, the criteria for choosing a country include the climate (not necessarily hot, everyone has their own preferences), the development of air communication with their country, the availability of fast Internet, the cost of living, the cost of renting or buying real estate, the presence or absence of a language barrier, the level of schools and the prospect for teaching children (if the nomads have already got a family). It also matters how hospitable a particular country is, whether the local population is loyal to foreigners, as well as what opportunities there are to obtain legal status.
The first country to introduce a Digital Nomad Visa for digital nomads in 2020 at the height of the pandemic and the tourist crisis was Estonia. Since then, the spread of programs for this category of people is like a virus. Today, special residence permits for digital nomads are issued in more than 30 countries, such as Portugal, Greece, Cyprus, Croatia, Czech Republic, UAE, Thailand, Costa Rica. In several other countries, for example, in Spain, Montenegro, Indonesia, Sri Lanka, similar programs have been announced and will be implemented soon.
It is advantageous for states to attract digital nomads, because they do not apply for jobs and do not create competition for citizens, but at the same time actively spend money, thereby supporting the local economy. In addition, according to a study by Harward Business Review, such specialists from abroad contribute to the emergence of innovations and the development of technology in the country they come to.
Residence permit programs for digital nomads
The legalization programs for digital nomads in different countries are similar, but there are also quite significant differences.
Note that, despite the word "visa" in the name of most programs, it is more correct to talk about a residence permit, since we are talking about a fairly long stay (unlike a short-term tourist visa, which does not open such opportunities). As a rule, a digital nomad visa is issued for a period of six months to 2 years. You can work in Norway for 6 years, in Thailand for 4 years, and wealthy nomads are 10 years old. In Taiwan, such a visa is indefinite.
Common to all such residence permits is the inability to apply for citizenship in the future. The exception is the programs in Greece and Portugal, which open up such a prospect.
In most countries, a visa applicant must pay a fee. So, in Georgia it will be $33, in Cyprus $63, in Dubai (UAE) $611. Those wishing to move to Barbados will have to pay $2,000.
Requirements for applicants for a Digital Nomad visa
Proof that you are a digital nomad
A digital nomad must present proof of his status as a remote employee of a foreign company or an online entrepreneur. Such supporting documents may include an employment contract in which the functionality is prescribed and the remote nature of the work is indicated. For a business owner, you will need constituent documents.Minimum income
Each country has its own minimum income threshold, which will allow a digital nomad to support himself and his family. So, in Greece and Cyprus, it is 3,500 euros per applicant plus 20% for a spouse and 15% for a child. In Portugal, the limit is significantly less than 705 euros per month for the main applicant, 50% for the spouse and 30% for each child.
The amount on the account
In some countries, you will need a bank statement with a certain minimum amount.
Medical insurance policy
In all countries, medical insurance is required. At the same time, the required minimum of services that the insurance program should include also varies from country to country.
Housing rental agreement
In some countries, a prerequisite is the availability of a rented apartment. Moreover, the requirements for housing may also vary depending on the country.
Other conditions
Digital nomads must work for companies registered in other countries, not in the country of actual residence. However, in Norway, for example, it is necessary to have at least one local client.
Digital nomads continue to be tax residents of their country and do not pay taxes in the country of actual residence. But there are exceptions. So, in Estonia, starting from 183 days, a foreigner must make tax deductions to the budget.
The grounds for refusing to grant a digital nomad residence permit to a foreigner may be: lack of work, insufficient income, insufficient funds in the account, providing false information, having a criminal record.
We have reviewed several countries where the program for digital nomads is already working or in which it has just been announced.
Cyprus
The Republic has introduced Digital Nomad Visa since January 2022. The program implies a quota – every year only 100 digital nomads from non-EU countries can get residency. A legal residence permit is issued for a year with the possibility of extension for another 2 years. The minimum income threshold should be 3,500 euros forthe main applicant plus 20% for the spouse and another 15% for each child. You will need a certificate of non-conviction from your home country.
A digital nomad can become a tax resident of Cyprus by spending only 60 days in the country. As you know, residents of this state have significant tax benefits.The cost of living in Cyprus roughly corresponds to Moscow. According to Numbeo, in order to maintain a standard of living corresponding to an income of 1 000 euros in Moscow, an income of 1 034 euros is needed in Limassol. The calculation takes into account rental housing in both cities.
Greece
As in similar programs in other countries, the applicant for this type of residence permit must work for a foreign, non-Greek company, and it is necessary that the employment contract be with an open date. (Note that it is not prohibited to receive passive income on the territory of the country). The contract must specify that the employee performs the work remotely. If we are talking about an entrepreneur, confirmation is required that the foreigner is the owner of the company.
The minimum income limit is the same as in Cyprus, 3,500 euros per month for the main applicant, plus 20% for the spouse and 15% for each child. Thus, the required minimum income for a family of three people should be at least 5,200 euros.
The applicant's bank card for a digital nomad residence permit must have a minimum amount for a year. With a monthly limit of 3,500, it turns out that for 12 months it is necessary to have 40,000 euros per person. For a family of parents and a child - 60,000 euros.
The applicant for residence under this program must obtain a TIN, conclude a lease agreement, arrange medical insurance for the whole family (it will cost approximately 100 euros per person), as well as pay a state fee of 1,000 euros for the main applicant, 150 euros for a spouse (children under 18 years old exempt from duty).
On the day of submitting the application, the digital nomad receives a so-called "blue certificate" with the seal of the ministry, and after 1.5-2 months he is already issued a plastic card.
The holder of a digital nomad residence permit must stay in Greece for at least 180 days a year.
Employees of local agencies note that this program has become a real lifesaver for Russians lately. Due to sanctions, many legalization methods are frozen. So, "golden visas", which provide for investments in real estate in the amount of 250,000 euros, are not issued to citizens of the Russian Federation now. "The program for the well-off has not been canceled, but in fact, it has also stopped issuing visas to holders of a Russian passport.
To summarize, in the current situation, the described legalization route makes it possible to obtain a residence permit, and then unblock accounts. The holder of the coveted card has the right to make transactions for the purchase of real estate, open a business, freely visit the countries of the Schengen area, can buy a car.
According to local realtors, in April 2022 there was a boom in digital nomads wishing to obtain a residence permit. Moreover, the social portrait of these people is very different, from young people to older people who have their own online business. The range of job seekers' professions is also wide, from programmers and website developers to lawyers, psychologists and teachers.
You can apply for a digital nomad residence permit either independently or through an agency. In the latter case, the procedure will be accelerated, and the result is almost guaranteed. However, you will need to pay for the services of an intermediary.
The cost of living in Greece is lower than in Moscow. The standard of living with an income of 1,000 euros in Moscow corresponds to the standard of living in Athens with earnings of 825 euros.
Portugal
Foreigners wishing to live as a digital nomad in Portugal are recommended to apply for a D7 visa. It will give the right to enter Portugal (no more than twice) and within 4 months to apply for a residence permit for financially independent persons for a period of 2 years. The residence permit can be extended for 3 years, and after that (that is, in total after 5 years) a foreigner has the right to apply for citizenship.
To obtain a residence permit under this program in Portugal, it is necessary to obtain a NIF (individual number), open a bank account, conclude a housing lease agreement for at least 12 months, issue health insurance policies for each family member with coverage of at least 30,000 euros, prepare a certificate of no criminal record for crimes, and also provide evidence of passive income in the amount of 8,460 euros per year per applicant, 4,230 euros per spouse and 2,538 euros per child.
According to representatives of local agencies, today it is extremely difficult for Russians and Belarusians to apply for a D7 visa, since due to sanctions it is not possible to fulfill a mandatory condition for the applicant, namely, to open a bank account. It is preferable to look for alternative legalization options, for example, with a work visa – Manifest of interest. This type of residence permit is issued for 2 years and, as in the case of D7, requires a minimum monthly income of 705 euros. The advantage of this method of obtaining residency is that there is no need to open an account with a local bank. However, a significant disadvantage is the need to live for 2 years in the status of "waiting for a residence permit" and the inability to leave the country during this period, otherwise the efforts are reset.
Realtors and immigration consultants say that in most cases you have to go the second way. Local agents help with the relocation of both individual specialists and companies from Russia, mainly small startups.
The cost of living in Portugal is relatively low. According to Numbeo, an income of 850 euros in Lisbon will provide approximately the same standard of living as in Moscow with earnings of 1,000 euros. The calculation takes into account the rental of housing in both cities.
Foreigners moving to Portugal can send their child to a free local school with instruction in Portuguese. Many people prefer for their children paid private schools also with instruction in Portuguese (it will cost an average of 350 euros per month) or international schools with instruction in English (on average 1,000 euros per month).
Italy
The regulation on the visa program for digital nomads was adopted by the Italian government on March 28, 2022, but it has not yet entered into force. Soon, digital nomads will be eligible to apply for a work visa and residence permit in Italy for a period of 1 year with the possibility of extension for another year. At the same time, residence permits will be issued outside the quotas that are defined for other residence permit programs. Note that the law still implies some restrictions. According to The Local, a new type of residence permit will be issued only to highly qualified specialists;(the authorities will have to decipher who fits this definition).
As in other countries, to obtain a residence permit for a digital nomad, you will need to provide a medical policy, a certificate of no criminal record, and also confirm that the income corresponds to or above the minimum allowable.
Today, the closest alternative to a digital nomad visa is a Self-employed visa (Self-employment visa). However, the number of permits issued under this program is limited by a quota. In order to choose this path of legalization in Italy, a foreigner must have a dwelling (rented or his own) that meets the criteria for area and configuration, depending on the composition of the family, have a minimum amount in a bank account, and also be a member of a professional guild.
The cost of living, for example, in Naples is lower than in Moscow. The Numbeo calculator shows that for approximately the same standard of living in Moscow, you need to earn 1 000 euros, and in Naples 853 euros.
Spain
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The Start-up law visa, designed for digital nomads, has not yet been introduced into the migration practice of Spain. The law on startups, according to which digital nomads will be allowed to live in the country without obtaining a work visa, was submitted to parliament for discussion in the spring of 2022.
The proposed visa has not yet been fully developed. However, it is already known that it is designed for citizens of countries outside the European Economic Area (digital nomads with EU passports or arriving from Schengen countriesagreements can already work remotely in Spain for 6 months without the need for official registration). The new visa is designed for foreigners employed in foreign companies. However, among the requirements is the need to have at least 20% of income from Spanish companies.
It is assumed that the new visa will also facilitate the procedure for obtaining a residence permit on arrival. The validity period of the Start-up law is 1 year with the possibility of extension for another 2 years, if the person continues to meet the requirements for applicants.
As in Italy, in Spain you can use an alternative visa program – a visa for the self-employed (Self-employment visa). It allows citizens from the EU, as well as from other countries, to legally live in Spain for a year. To obtain this visa, it is necessary to prove that the applicant has sufficient funds, as well as to pass an identity check.
The cost of living in Spain is comparable to Moscow. For example, an income of 955 euros in Barcelona corresponds to an income of 1000 euros in Moscow.
Croatia
In Croatia, a temporary residence permit for digital nomads is issued from January 1, 2021 on the basis of the "Law on Foreigners" ("Zakon o strancima"). Citizens of other non-EU countries can come on a tourist visa and apply for a residence permit as digital nomads. This residence permit is issued for 6 months. The disadvantage is that after this period it is necessary to leave the country for at least 90 days, after which you again get a tourist visa for 90 days and again apply for a digital nomad residence permit. The residence permit of a digital nomad can be issued immediately for a year, but without the right to prolongation. Also, this program, unlike, for example, the Greek one, does not give prospects for obtaining citizenship.
As in other countries, an applicant for a digital nomad residence permit must present proof that he works remotely for a foreign company or is the founder of his companies registered outside Croatia. At the same time, the minimum monthly income should be about 2,400 euros plus 10% of this amount for each additional family member. If there is no permanent monthly income, it is necessary to confirm an annual income of about 28,800 euros. In addition to the above, the applicant must also have health insurance policies for himself and family members, and must also be registered at an address in Croatia, for example, on the basis of a lease agreement.
The cost of living in Croatia is relatively low. For 755 euros in Dubrovnik, you can afford about the same standard of living as in Moscow for 1 000 euros (data from the Numbeo website). At the same time, Dubrovnik is considered one of the most expensive cities in Croatia.
UAE, Dubai
In the ranking of the best cities for digital nomads, which was published by Savills agency in early May 2022, Dubai took 2nd place after Lisbon (Portugal).
In Dubai, you can get a visa for remote workers and travelers (Remote work and travel visa) for a period of 1 year.
Those wishing to join the wave of foreigners coming here need to provide an annual contract with an employer from another country, and for business owners a confirmation that you are the owner of the company for one year. The minimum monthly income that an applicant must have is $5,000.
From September 2022, some digital nomads will probably be able to legalize in Dubai as freelancers, having received a green visa for 5 years. To do this, they will have to confirm a monthly income of at least 15,000 dirhams ($4,050).
The cost of living here is high. According to Numbeo, for 1 168 euros in Dubai, you can afford about the same standard of living as with an income of 1 000 euros in Moscow. It should be noted that renting housing in the emirate is expensive. One-bedroom apartments in the city center will cost an average of 1 500 euros. Moreover, the lease agreement is concluded immediately for a year, and payment must be made immediately. It should also be noted that rental rates continue to rise under the influence of high demand from foreigners.
Thailand
For digital nomads in Thailand, there is a Smart Visa, which is issued for up to 4 years. To qualify for it, applicants must provide an employment contract with a foreign company, as well as proof of qualifications and experience, since this visa is designed to attract highly qualified workers.
Another type of legalization is the LTR (Long Term Relationship) visa, which gives the right to live in Thailand with your family for up to 10 years. It is designed for wealthy digital nomads, as well as for several other categories of foreigners (pensioners, specialists invited to Thai companies, wealthy citizens). Applicants for LTR must invest at least $500,000 in government bonds or real estate, and also confirm an income of $80,000 per year. Recently, the country's authorities halved the fee for applicants under this program to 50,000 baht ($1,430).
The cost of living in Thailand is low. The standard of living corresponding to 1 000 euros in Moscow, in Phuket, you can afford to maintain for 624 euros (according to the Numbeo website).
Visa to visa discord
Despite the popularity of the topic of so-called nomadism, not all countries have joined the race to attract this, of course, progressive, in most cases financially wealthy stratum of people. So, there is no separate Digital Nomad Visa in Turkey, but there is, say, a tourist residence permit, which is issued for a period of 6 months to 2 years. Bulgaria also does not have such a program yet, although a visa for startups should appear soon. The United States, Canada, and the United Kingdom have also not introduced and are not planning to introduce a nomadic visa yet. There is no such visa in France either, but there is a Visa Visiteur program, which can still be applied for even with a Russian passport. The probability of receiving it is especially high for families with children.
Even for those who are actually digital nomads, the choice of a nomadic visa is not always the best. For example, a tourist visa is enough to stay in Georgia for a year. In Spain and Italy, even after the announced nomadic programs are introduced, before making a decision, it is necessary to compare the conditions with the conditions of a visa for the self-employed. Residence permit programs for freelancers are also available in France and Germany.
Under the sanctions, digital nomad programs are not available to Russians and Belarusians in most countries due to the difficulty of opening a bank account. The exception is Greece, where this program allows you to first issue a residence permit, and then on its basis to open a bank account and enjoy rights almost on a par with EU citizens.
Thank you for your help in preparing the material of our experts:
Natalia Tsiro Rouva, Head of the Russian-speaking department Roula Rouva Real Estate, Greece
Oleg Rilyan, partner in Amber Star Real Estate, Portugal
Photo: depositphotos.com
Author: Elizaveta BARSKIKH
