Below, we’ll go over what digital nomads need to know about this visa, including how to apply for the temporary resident visa, what the cost of living in Mexico is like, where to consider living, and more.

Snapshot of Expat Life in Mexico

Population: 129.9 million

Capital city: Mexico City

Currency: Mexican peso

Primary language(s): Spanish

Approximate number of American expats: 1.6 million

Obtaining the Mexico Temporary Resident Visa

While Mexico’s temporary resident visa isn’t necessarily the most difficult digital nomad visa to get, it does require some time and effort. It also has a higher minimum income requirement than several countries in Latin America, such as Colombia, Brazil, and Ecuador.

That being said, its proximity to the US and adherence to US time zones make Mexico an attractive option for American expats with close ties to their home country.

Application eligibility and visa duration

Mexico’s temporary resident visa is for those who want to stay in Mexico on a long-term basis. You can apply under several different categories:

• Economic solvency
• Scientific research
• Invitation from an organization or institution
• Under the auspices of an international legal instrument governing the mobility of people
• Family unity
• Real estate
• Investor

The most common application category for digital nomads is “economic solvency,” which requires them to meet one of the following criteria:

• A monthly income of $3,275 USD per month over the last 6-12 months, depending on the consulate
• Qualifying savings/investments worth at least $54,600 USD over the last 12 months

*Specific requirements vary from consulate to consulate. Bringing dependents requires additional income.

It’s important to note that Mexico’s temporary resident visa in itself only allows you to stay in the country for six months.

However, holders of the temporary resident visa are allowed to apply for a temporary resident card, which allows them to stay in the country for up to four years. After that point, they can apply for permanent residence.

Permitted activities and work restrictions

Mexico’s temporary resident permit allows you and your dependents to live, access public healthcare, and work in Mexico, although you may only work for employers located outside of Mexico (unless you apply for a separate work permit).

Mexico Digital Nomad Visa Application Process

To apply for Mexico’s temporary resident visa, you must:

• Gather the required documents
  • Completed visa application form
  • Valid passport & copy
  • Color passport photo (3.9 cm x 3.1 cm)
  • Proof of legal residency if not a US citizen (e.g., Form I-797, I-20 advance parole)
  • Proof of income (e.g., bank statements, financial documents)
• Make an appointment at your designated Mexican embassy or consulate in your home country.
• Submit your documents in person
• Pay the $51 USD visa application fee
• Receive approval
  • Often, you can receive your temporary resident visa on the same day as your application — in some cases, however, you may need to wait up to ten business days
• Travel to Mexico 
• Within 30 days, apply for a temporary residence permit at your nearest Instituto Nacional de Migración (INM) or National Institute of Migration office.
• Receive your permit (typically within two to three weeks)

Related: How to Become a Digital Nomad (Updated for 2024)

Where to Live in Mexico

Mérida

Located in the Yucatán Peninsula, Mérida consistently ranks among Mexico’s best places to live thanks to its safety, tropical climate, rich culture, and low cost of living. The influence of both indigenous and Spanish cultures is palpable in this city, with indigenous art, music, food, and dance blending seamlessly with colonial-style buildings and plazas. And despite its jungle setting, Mérida is only about a 40-minute drive to the beach.

Mexico City

The thriving cosmopolitan capital of Mexico City draws in everyone from entrepreneurs to artists to families. It’s become a worldwide digital nomad hub in recent years, with co-working spaces and trendy cafés on just about every corner. Expats in CDMX appreciate the world-renowned cuisine, arts and cultural scene, and sprawling parks. Some of the best neighborhoods in Mexico City for expats include Condesa, Roma, and Polanco.  

Sayulita

Sayulita is an up-and-coming beach town just about 25 miles north of Puerto Vallarta. Known for its pristine beaches and excellent surfing, it offers a laid-back, bohemian atmosphere. Among the palm tree-lined streets, you’ll find vibrant murals, artisan shops, and delicious street food. And with a population of just a few thousand people, there’s a true feeling of community.

Oaxaca

Oaxaca, a mid-size city in Southern Mexico, exudes old-world charm around every corner, from its cobblestone streets to its colorful buildings to its bustling street markets filled with indigenous crafts. Even in a country known for its cuisine, Oaxaca stands out as a gastronomic superstar, with tamales, mole, and mezcal among its most lauded offerings. Its mountain setting, meanwhile, gives the city a mild year-round climate, a tranquil vibe, and easy access to nature.

Playa del Carmen

Playa del Carmen has long attracted Americans to its sandy shores, but its status as an expat hotspot has been even further cemented in the wake of the COVID-19 pandemic. While its white-sand beaches offer a peaceful retreat, the city still has plenty to do. Walk along the main pedestrian thoroughfare of Quinta Avenida for shopping, dining, and dancing, or head to a beach club for live performances and all-night parties.

Related: Costa Rica Digital Nomad Visa – The Ultimate Guide

Digital Nomad Life in Mexico

5 things that should be on your Mexico bucket list

Mexico is an enormous country, offering more than a lifetime’s worth of things to do and places to go. But whatever you do, make sure to prioritize these five activities:

• Tour the ancient ruins of Chichén Itzá for a glimpse into life during Mayan rule
• Visit Oaxaca during Día de los Muertos to marvel at the processions, marigold petal-laden streets, ofrendas honoring deceased loved ones, and colorful calaveras (decorated skulls)
• Explore the world-class museums of Mexico City, including La Casa Azul, Frida Kahlo’s former home, and the Museo Nacional de Antropología (National Anthropological Museum), which contains the world’s largest collection of Mexican art
• Take a refreshing dip in the turquoise blue cenotes — or water-filled sinkholes — of Quintana Roo
• Head to the town of Tequila to tour distilleries that brew the city’s namesake spirit

Related: The Top 7 Countries For Digital Nomad Visas in 2024

Expat community in Mexico – how to find your people

Moving to a new country is a big step, and it can be nerve-racking — especially when you don’t know anybody there. Fortunately, there are plenty of ways to meet new people in Mexico. Here are a few ideas:

• Work from a co-working space
• Move into a co-living space
• Stay in a social hostel when you first move there
• Sign up for a class (e.g. Spanish, pottery, cooking, etc.)
• Attend events on Meetup & Couchsurfing
• Join local expat groups on Facebook
• Attend a language exchange or use a language exchange app
• Volunteer in your community

Moving to Mexico

Before you arrive in Mexico, make sure you tie up loose ends in the US: 

• Round up your most critical documents (passport, copy of medical record, etc.)
• Go to the doctor to get any vaccines you might need and pick up three months’ worth of prescriptions.
• Book your travel to Mexico
• Make arrangements for short-term accommodations
• Look up what to bring to Mexico, create a list, and pack your bags
• Store, donate, or sell your remaining belongings
• Cancel any remaining subscriptions or services you won’t use (e.g., streaming services, utility bills, etc.)
• Alert your bank to your move so they don’t flag foreign transactions as fraudulent.
• Consider having your mail forwarded to a family member or trusted friend’s house.
• Connect with other digital nomads in Mexico on sites like Reddit or Facebook.
• Arrange care for your pets while you’re gone, or look into how to bring them with you.

Taxes for Mexico-Based Digital Nomads

The Mexican government defines those who establish a home in Mexico as tax residents unless they also have a home and maintain their “vital interests” in another country. If you a) earn more than 50% of your income from Mexican sources or b) conduct the majority of your professional activities (including remote work) in Mexico, Mexico will be considered the center of your vital interests.

Mexican tax residents are subject to taxation on their worldwide income. Tax rates vary from 1.92% in the lowest tax bracket to 35% in the highest. Non-tax residents, on the other hand, pay taxes only on their Mexican-sourced income — which includes income earned from working remotely in Mexico — at a rate of either 0%, 15%, or 30%, depending on their income band.

Related: Taxes in Mexico: What US Citizens Need to Know

US Taxes for Digital Nomads in Mexico

Even if you’re living in Mexico, you’ll still have to file a US tax return, provided that you meet the minimum income reporting threshold. That’s because the US uses a tax system called citizenship-based taxation, in which all citizens and permanent residents — regardless of where they live — are subject to income taxes.

If you also have to pay Mexican taxes, this puts you at risk of double taxation. Fortunately, there are several tax breaks you can leverage that often greatly reduce your US tax liability or even completely eliminate it.

Read More: Digital Nomad Taxes: Frequently Asked Questions

Expat tax provisions for Americans filing US taxes in Mexico

Some of the key US tax breaks to be aware of as a digital nomad are:

Foreign Earned Income Exclusion (FEIE)

The FEIE lets you exclude a certain amount of foreign-earned income from taxation (up to $120,000 USD for tax year 2023). To be eligible, you need to pass either the physical presence test or the bona fide residence test. Doing so will also allow you to qualify for the Foreign Housing Exclusion/Deduction, which lets you write off certain housing expenses (e.g., rent, utilities, etc.).

Foreign Tax Credit (FTC)

The FTC gives you dollar-for-dollar US tax credits for the income taxes you pay to a foreign government. Many expats pay higher tax rates in Mexico than they do in the US, so by leveraging the FTC, they can typically eliminate their US tax bill entirely.

Child Tax Credit (CTC)

If you have qualifying dependents living with you in Mexico, you can file the CTC just as you would in the US to get as much as $2,000 USD in partially refundable credits.

Living abroad can also alter your reporting obligations, however. Some of the more common reports US expats must file include the following:

Foreign Bank Account Report (FBAR)

If you possess foreign financial accounts whose contents exceed $10,000 USD at any point in the year, you’ll need to report them to the Financial Crimes Enforcement Network (FinCEN) via FinCEN Report 114.

Read more about the FBAR here.

Foreign Account Tax Compliance Act (FATCA)

Possessing over $200,000 USD in foreign assets by the last day of the tax year, or over $300,000 USD in foreign assets at any point during the tax year, triggers a requirement to file Form 8938. (Thresholds for those residing in the US are quite a bit lower).

We Ensure Digital Nomads in Mexico Are US Tax Compliant and Strategic

Taxes are hard enough — add an international move to them, and they become even more challenging. At Bright!Tax, however, we specialize in US expat tax services. Partner with us, and we’ll help you file optimally, accurately, and on time.

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Don't spend your precious time in Mexico worrying if you got the taxes correctly. Our certified CPAs with 10+ years of experience working with US expats worldwide guarantee accurate and timely filing.

Book a free consultation today

References

1. Population Clock: World – Mexico
2. Americans Move to Mexico at Record Pace as Remote Work Beckons
3. Temporary Resident Visa
4. Financial Criteria for Legal Residency in Mexico 2023 (2024)
5. Temporary Resident Visa (TRV)
6. Temporary Resident
7. Obtaining Temporary Residency in Mexico
8. Time Scales for Obtaining Mexico Residency Visas and Cards
9. Mexico – Individual – Residence

Disclosure: Some of the links on this website may be affiliate links. This means we may earn a small commission at no additional cost to you if you make a purchase. We only recommend products and services that we have personally used or thoroughly researched. Your support through these affiliate links helps us continue to provide valuable expat tax services. Thank you for your support!

The post Mexico Digital Nomad Visa Alternative: The Temporary Resident Visa appeared first on Bright!Tax Expat Tax Services.

Below, we’ll go over what digital nomads need to know about this latest visa, including what living in Peru as a digital nomad is like, where to live, how costs stack up, and more. 

Snapshot of Expat Life in Peru:

Population: 34.35 million

Capital city: Lima

Currency: Peruvian sol

Official language(s): Spanish, Quechua, Aymara

Approximate number of American expats: 13,444

Peru digital nomad visa expected to have economy-boosting effect

The COVID-19 pandemic had a devastating impact on the global economy, leading many countries to seek out novel ideas for economic recovery. Capitalizing on the increasing prevalence of remote work, Estonia became the first country to launch a digital nomad visa in July 2020 to help stimulate its economy.

Many other countries have since followed suit, especially those whose economies were largely dependent on tourism — including Peru. While tourism in Peru has significantly increased since the worst of the COVID-19 pandemic, the number of visitors in 2023 is still expected to be down more than 50% from pre-pandemic levels. Combine that with economic declines in 2023, and it’s clear that the Peruvian economy is in need of a boost.

With the digital nomad visa, Peru hopes to attract visitors whose spending (and, as a result, tax dollars) can help grow the sluggish economy in 2024 without adding competition to the local labor market.

Requirement breakdown for the Peru digital nomad visa

While the Peruvian government is still finalizing the digital nomad visa requirements, they have released some general information:

Application eligibility

Peru’s digital nomad visa is geared toward those who work remotely for a company registered outside of the country.

Visa requirements and duration

Peru has announced that the digital nomad visa will allow holders to stay in the country for 365 days with the option to renew it upon expiration, although they have not yet stated whether it can be renewed multiple times. 

While Peru has not yet stated specific requirements, many similar digital nomad visas require applicants to possess a valid passport, have a clean criminal background, and earn a minimum amount of monthly income.

Health insurance for digital nomads in Peru

The Peruvian government has not yet stated whether it will require digital nomad visa applicants to purchase health insurance, but many digital nomad visa programs do require applicants to hold a private health insurance policy for the whole time that their visa is valid.

Even if digital nomads aren’t required to purchase private health insurance as part of the application process, however, it is often a good idea to do so, as it can give them access to higher-quality healthcare facilities and shorter wait times. 

In Peru, you can choose from large international plans like Cigna Global, local plans like Mapfre, or plans geared specifically toward digital nomads like SafetyWing. Prices vary widely between plans depending on the company and level of coverage, as well as your age and health, but they are generally more affordable than in the US.

A few things to keep in mind about healthcare in Peru:

• While the quality of healthcare is typically quite good in major cities like Lima, the infrastructure is often lacking in rural and remote areas
• Visitors are advised against drinking tap water in Peru
• Altitude sickness is common in high-altitude areas in Peru, like Cusco or along the Andes Mountains
• Visitors should be vaccinated against COVID-19, hepatitis A, hepatitis B, malaria, measles, rabies, typhoid, and yellow fever
• There is an elevated risk of leptospirosis, Chagas disease, leishmaniasis, Zika virus, hantavirus, tuberculosis, and dengue fever in Peru

Permitted activities and work restrictions

Holders of the digital nomad visa will not be allowed to work for companies located in Peru.

Peru vs. Colombia: A digital nomad visa face-off

There are a handful of other digital nomad visas available in South America, with one of the most popular options being Colombia’s digital nomad visa.

Peru digital nomad visa application process

Again, without specific guidelines, the application process for Peru’s digital nomad visa is still a bit up in the air — but it will likely look something like this:

• Gather the required documents (e.g., completed visa application form, passport, criminal background check, work contract, bank statements, etc.)
• Make an appointment at your nearest Peruvian consulate/embassy
• Submit your documents in person
• Pay the application fee
• Receive approval
• Travel to Peru

Related: How to Become a Digital Nomad (Updated for 2024)

Where to live in Peru as a digital nomad

Lima: The vibrant, slightly chaotic capital beckons

Peru’s bustling capital is home to the highest number of US expats, who enjoy access to the city’s historic center, Pacific Ocean coastline, archaeological sites, and world-class culinary offerings. While the cost of living in Lima, Peru, is higher than in other parts of the country, it’s still considered affordable by American standards. Popular neighborhoods for expats include Miraflores, Barranco, and San Isidro.

Cusco: The cultural capital of the country

The cobblestone streets, colonial architecture, and ancient ruins of Cusco — the former capital of the Incan Empire — give it a historic and captivating feel. Just as notable as its historic sites, however, are its awe-inspiring panoramic views of the Andes Mountains and colorful markets full of traditional crafts. Expats in Cusco tend to favor areas like San Blas, Plaza de Armas, and San Cristobal.

Arequipa: A southern rose surrounded by volcanoes 

Arequipa, also known as “The White City” for its iconic white volcanic stone buildings, is a charming colonial city that boasts a gorgeous cathedral, a bustling central plaza, rich local cuisine, and stunning views of nearby volcanoes. Some of the more popular areas for expats include Yanahuara, Cayma, and San Lázaro.

Trujillo: Where work breaks are characterized by surf and sun

Trujillo offers an alluring combination of history and laid-back coastal living where colorful buildings, Moche and Chimu heritage sites, and sandy beaches coexist in harmony. Welcoming locals and a warm, sunny climate add to the appeal even more. You can find expats concentrated mainly in the historic city center and the nearby beach town of Huanchaco — a favorite among expats who hold the Peruvian retiree visa.

Tarapoto: An up-and-coming digital nomad destination

The under-the-radar but increasingly popular town of Tarapoto, Peru, is known for its lush, tropical ambiance. Surrounded by an Amazonian cloud forest, Tarapoto is steeped in indigenous culture, with traditional music, dance, cuisine, and markets found on every corner. Nature lovers, meanwhile, will appreciate the nearby waterfalls, rivers, and mystical lagoons.

Cost of living in Peru in US dollars

Peru’s cost of living tends to be significantly more affordable than that of the US, with the cost of rent in Peru nearly 80% lower than it is in the US. Meanwhile, consumer prices (excluding rent) are about 58% lower. That being said, some areas of Peru are more expensive than others — namely, the capital city of Lima. Other pricier parts of the country include Cusco and the resort areas near the beach town of Máncora.

While small to mid-size cities and towns will be more affordable, budget isn’t the only thing digital nomads should keep in mind. A strong internet connection is essential for remote workers, and you won’t want to dismiss the importance of things like safety and infrastructure.

Related: The Argentina Digital Nomad Visa – Work Remotely in South America

Digital nomad life in Peru

5 things that should be on your Peru bucket list

While there are a nearly endless number of things to do and places to visit in Peru, don’t leave the country without crossing off these five activities:

• Hike the Inca trail, which passes through a cloud forest, alpine tundra, and multiple ancient ruins, culminating in the Lost City of Machu Picchu.
• Visit Vinicunca, aka Rainbow Mountain — a mountain in the Andes known for its colorful mineral sand stripes that must be seen to be believed.
• Trek through the Amazon jungle to see flora and fauna like scarlet macaws, capybaras, howler monkeys, and more.
• Go on a gastronomic tour of Lima to sample some of Peru’s finest dishes like ceviche, lomo saltado, and ají de gallina.
• Soar over the Sechura Desert in a chartered plane for a bird’s eye view of the beautiful and mysterious Nazca Lines.

Related: The Top 7 Countries For Digital Nomad Visas in 2024

Expat community in Peru – how to find your people

Living in a new country is a big change, so it’s not unusual to feel a little lonely or even have doubts when you first move. Fortunately, Peru offers plenty of opportunities to get to know new people. With a little effort, you’ll be making new friends in no time. To ensure you’re getting a healthy level of social connection, try:

• Moving into a coliving space
• Working from a coworking space
• Booking a stay in a hostel
• Taking classes (e.g., Spanish, cooking, surfing, etc.)
• Attending events on Meetup & Couchsurfing
• Joining local expat groups on Facebook
• Attending a language exchange or using a language exchange app
• Volunteering in your community

Moving to Peru

Before starting your new life in Peru, make sure to cross the following off of your to-do list:

• Gather all of your important documents (passport, copy of medical record, etc.)
• Schedule a doctor’s appointment to get any vaccines you might need and a three-month prescription for any medications you regularly take
• Book your tickets
• Reserve a short-term stay while you look for more permanent accommodations
• Research what to bring, create a list, and pack your bags
• Store, donate, or sell any items you don’t plan on bringing with you
• Notify your bank of your travel plans so they don’t flag purchases abroad as suspicious
• Set up a forwarding address for your mail, if necessary
• Arrange for someone to care for your pets while you’re gone, or research what you must do to bring them with you
• Connect with other digital nomads in Peru on sites like Reddit or Facebook to learn about their experiences and ask for advice

Peru digital nomad visa taxes

Peru has not yet released taxation details for their digital nomad visa program, but many digital nomad visas — such as Croatia’s and Greece’s — offer beneficial tax rates for visa holders or even completely exempt visa holders from in-country income taxes.

VAT in Peru

Peru’s VAT — aka the tax added to the sale of most goods and services — is 18%. It technically comprises two different taxes: a 16% General Sales Tax (known locally as the Impuesto General a las Ventas, or IGV) and a 2% Municipal Promotion Tax (known locally as the Impuesto de Promoción Municipal, or IPM). Some goods and services, like staple foods, financial services, and public transport, are exempt.

Do American digital nomads in Peru have to pay US taxes?

Yes. All citizens and permanent residents who meet the minimum income reporting threshold must file a federal tax return, as America’s tax system is based on citizenship—even if they live abroad.

Related: 2024 Taxes for Expats: 12 Tips from the Best Expat Tax Service

Expat tax provisions for Americans filing US taxes in Peru

Living abroad can often complicate your taxes, though it’s not always bad news. While an overseas move may bring additional reporting obligations, it can also afford expats additional tax breaks. Here are a few of the most important US expat tax items to read up on:

Foreign Earned Income Exclusion (FEIE)

The FEIE allows you to exclude a certain amount of foreign-earned income from taxation ($120,000 USD for tax year 2023, aka the taxes you’ll file in 2024). To be eligible, you need to pass either the physical presence test or bona fide residence test. Passing either of these tests also makes you eligible for the Foreign Housing Exclusion/Deduction, which allows you to write off qualifying housing expenses like rent and utilities.

Foreign Tax Credit (FTC)

The FTC allows you to essentially subtract what you’ve paid in income taxes to a foreign government from your US tax bill (though, like with all things US-tax related, it’s not quite that simple).

Foreign Bank Account Report (FBAR)

If you have a combined total of $10,000 USD or more across foreign bank accounts at any point in the year, you’ll need to file FinCEN Report 114, also known as the FBAR.

Foreign Account Tax Compliance Act (FATCA)

FATCA requires American expats with over $200,000 USD in foreign assets by the last day of the tax year — or over $300,000 USD in foreign assets at any point during the tax year — to report them on Form 8938. (Threshold for US taxpayers living in the US vary).

Enjoy Peru without stressing over US taxes

US expat taxes can be complex, but you don’t have to go it alone. Partner with Bright!Tax and we’ll introduce you to a CPA who can help you file optimally, accurately, and on time.

Meet Your Dedicated CPA

References

1. Perú: Estadísticas de la emigración internacional de peruanos e inmigración de extranjeros, 1990-2021
2. Machu Picchu: Peru to dramatically increase number of tourists allowed to visit attraction each day
3. Decreto Legislativo Nº 1582
4. Peru – Travelers’ View
5. Peru Health Insurance
6. Guide to the Colombian Digital Nomad Visa
7. Colombia – Individual – Taxes on personal income
8. Cost of Living Comparison Between United States and Peru Reverse
9. Peruvian VAT rates and VAT compliance

Disclosure: Some of the links on this website may be affiliate links. This means we may earn a small commission at no additional cost to you if you make a purchase. We only recommend products and services that we have personally used or thoroughly researched. Your support through these affiliate links helps us continue to provide valuable expat tax services. Thank you for your support!

The post The Peru Digital Nomad Visa: A Guide for US Expats appeared first on Bright!Tax Expat Tax Services.

Rest assured, these more affordable countries maintain the European standard of living that most expats hunger for, including rich cultures to discover and excellent public transportation. You just need to know where to look.

Below, we’ve reviewed five of the best, cheapest* countries in Europe so you don’t have to choose between indulging your wanderlust and breaking your budget. 

Note: When we use the word “cheap” as a descriptor in this article, we do so as a means of signaling affordability, not a lack of quality.

Starting your digital nomad journey in a low-cost country 

Many digital nomads aspire to live in countries like France, Germany, and the Netherlands. However, these countries can present a challenge in that they do not currently offer dedicated digital nomad visas, and the cost of living can still be prohibitive to some nomads. 

Living in a lower-cost European country, on the other hand, offers many of the same advantages at a more economical price point. That way, you can fully enjoy your time there without having to worry about overspending, and you can save or invest the money you have left over.

Basing out of a cheap European country is an especially good option for digital nomads who plan on traveling as much as possible. Setting up a home base in a cheaper country makes it much easier to save and use those funds to travel.

Related: The Top 7 Countries For Digital Nomad Visas

A mix of countries in & outside the Schengen Area

The Schengen Agreement facilitates short-term travel among 27 different participating countries, including the US. The area that it covers comprises the Schengen Area and includes most of the EU, as well as a few non-European Union countries in Europe. This agreement allows Americans to stay in any Schengen Area country for up to 90 days at a time without having to apply for a visa beforehand.

However, these 90 days don’t reset every time you leave the country. To stay in compliance with immigration laws, American digital nomads without a valid long-term residence permit in a Schengen Area country must not exceed 90 days in the Area within a 180-day period. As a result, many split their time between Schengen and non-Schengen Area countries.

If you plan on living in Europe for an extended period, you’ll need to either a) secure a long-term residence permit or b) carefully track the time you spend in the Schengen Area. 

Concerning the latter point, it’s crucial to ensure that you respect the entry and exit rules and timeframes to avoid violating the 90-day rule.

The best low-cost countries for digital nomads

Romania

Capital city: Bucharest

Digital nomad visa: Yes, launched in 2022 

Cost per 1-bedroom apartment: $540.84 USD¹

Hidden gems: While you don’t want to skip hotspots like Brasov’s charming, historic Old Town, Peleș Castle, or the beaches along the Black Sea, the beautiful country of Romania has many sites off the beaten path worth visiting.

 Bigar waterfall, which cascades over moss-covered stones, is something straight out of a fairytale, while the Sinca Veche Temple Cave — a temple carved into stone — is as striking as it is mysterious. 

Those looking for a quaint, traditional retreat, meanwhile, will love the peaceful, mountainside village of Rimetea.

Bulgaria

Capital city: Sofia

Digital nomad visa: No, but the Freelance Visa is a good alternative

Cost per 1-bedroom apartment: $510.75 USD²

Hidden gems: While the popular medieval seaside town of Nessebar and Rila Monastery are both must-sees, you won’t want to miss Bulgaria’s under-the-radar spots either.

Belogradchik offers both a stunning castle and rock formation, while Devetashka Cave is one of the most breathtaking views in the country. 

For a fascinating look into traditional Bulgarian village life, head to the open-air museum of Etar.

Estonia

Capital city: Tallinn

Digital nomad visa: Yes, launched in 2020

Cost per 1-bedroom apartment: $690.72 USD³

Hidden gems: Tallinn’s Old Town and the Kadriorg Palace (and its picturesque surrounding park) may be among Estonia’s most well-known attractions, but this Northern European country is chock-full of overlooked locales as well. 

The village of Kaali on the island of Saaremaa boasts nine different meteorite craters, while Telliskivi Creative City is a bohemian hub for the arts. 

Adventurous nature lovers, on the other hand, may want to head to the Brown Bear Watching Hole.

Albania

Capital city: Tirana

Digital nomad visa: Yes, launched in 2022

Cost per 1-bedroom apartment: $534.45 USD⁴

Hidden gems: Visitors to Albania flock to the ruins of Butrint National Park and the Blue Eye natural springs, but there are still places where tourists are relatively scarce. 

Head south of the Adriatic Sea, and you’ll find sandy beaches like Gijipe and Filikuri that can only be reached on foot, while the Albanian Alps offer incredible (if challenging) hikes. 

If you’re in the mood to unwind, however, opt for the natural hot springs of the Benja Thermal Baths.

Greece

Capital city: Athens

Digital nomad visa: Yes, launched in 2021

Cost per 1-bedroom apartment: $581.92 USD⁵

Hidden gems: Odds are, you’ve heard of the ruins of Acropolis and the idyllic island of Mykonos — but that doesn’t mean Greece doesn’t have surprises in store as well. 

Meteora’s cliffside monasteries make it among the most gorgeous places in Europe, while the turquoise blue waters of Melissani Cave’s hidden underground lake must be seen to be believed. 

And for an island getaway without the crowds or high prices, take a ferry from Santorini to Folegandros.

Other affordable European countries to visit as a digital nomad

A few more of the cheapest places to live in Europe include: 

• Belgrade, Serbia: With an unbeatable café culture, thriving nightlife, and impressive fortresses, Belgrade is an affordable yet happening hub for digital nomads.
• Riga, Latvia: Riga’s world-class culinary scene, abundance of green spaces, and hipster vibe make it an excellent home for budget-conscious nomads. Bonus: It’s one of the most walkable affordable cities in Europe!⁶
• Brno, Czech Republic: Brno may not be as well-known as the capital city of Prague, but it offers beautiful architecture, lively bars, and incredible museums at a fraction of the price.

Related: The 13 Best Digital Nomad Cities for US Expats

Practical tips when considering a move to Europe

It stands to reason that digital nomads seeking cheap European countries to live in are primarily thinking about affordability, but the average cost isn’t the only factor that should be taken into account when researching potential home bases. Before moving to a European city, you’ll want to consider practicalities like wardrobe, SIM cards, and internet connectivity, among others.

Clothes for winter in Europe

As you likely gathered from our list above, Eastern European countries tend to be more affordable than Western European countries.

Eastern Europe, however, is known for having cold winters — especially in countries like Estonia, Romania, Bulgaria, and the Czech Republic. 

To survive a cold European winter, make sure to stock up on warm coats, sweaters, hats, boots, and maybe even thermal leggings and tops for those extra frosty days.

SIM cards

Even if you only plan on staying in a European country for a couple of weeks, it’s usually worth getting a SIM card, as using your US phone plan in Europe tends to be expensive (and often, offers less extensive coverage).

If you plan on hopping around from place to place, you might want to consider an eSim like Holafly or Airalo. If you plan on setting up a home base in one country for an extended amount of time, on the other hand, you may be better off purchasing a contract specific to that country.

Most European countries have different providers, so research options specific to the areas you’ll be spending the most time in. While you can typically buy prepaid SIMs at the airport, they tend to come with a markup — so you may want to hold off until you can hit up a local mobile phone or convenience store.

Internet connectivity

Historically, affordable countries in Europe haven’t always offered the best Wi-Fi — but fortunately, that’s changing. Living in Romania, for example, gives you access to the second-fastest internet in Europe.⁷ 

That being said, the best internet coverage is concentrated in the most populated areas, particularly major cities and capitals. Rural areas, on the other hand, may have spotty connectivity, or in some particularly remote villages, no internet coverage at all.

Low-cost living in Europe as a global US taxpayer

While living in one of the cheapest European countries may lower your monthly bills, it won’t free you of your US tax obligations. The US employs a citizenship-based taxation model, meaning that all citizens and permanent residents earning above a minimum threshold must file a federal tax return, even if they live abroad.

That means if you meet another country’s definition of tax residency, you can potentially open yourself up to double taxation. While the US does have tax treaties with some countries, they contain tricky clauses that limit the benefits for US taxpayers. 

Fortunately, the US does offer some tax breaks specifically for US expats.

Digital nomad tax provisions 

Two of the most beneficial tax breaks for digital nomads include the:

Foreign Earned Income Exclusion (FEIE)

With the Foreign Earned Income Exclusion (FEIE), digital nomads can exclude a certain portion of their income earned overseas from US taxable income. For tax year 2023 — aka the taxes you’ll file in 2024 — that number is $120,000. To be eligible for the FEIE, digital nomads must meet one of two tests: the Bona Fide Residence Test or the Physical Presence Test.

Foreign Tax Credit (FTC)

If you reside in a foreign country and pay income taxes there, the Foreign Tax Credit (FTC) allows you to deduct those tax payments from your US tax bill. For example, let’s say you owe $2,000 to the US but already paid a $500 tax credit to Spain. With the FTC, you can subtract that $500 you paid to Spain from your US tax bill, and end up owing the US government just the remaining $1,500 in taxes.

Related: Digital Nomad Taxes: A Complete Guide for US Nomads

Keep in mind that the best tax strategy varies from person to person. We always recommend consulting with an expat tax professional to ensure you’re filing in the most tax-efficient manner.

Ensure your US expat tax return is filed correctly and to your maximum advantage.

At Bright!Tax, we've helped thousands of clients in hundreds of countries file taxes simply, on time, and with minimal tax liability — and we’d love to help you, too!

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References 

1. Cost of Living in Bucharest
2. Cost of Living in Sofia
3. Cost of Living in Tallinn
4. Cost of Living in Tirana
5. Cost of Living in Athens
6. The 10 most walkable cities in Europe
7. These Are the Countries with the Fastest Internet Speed in Europe

The post 5 Low-Cost European Countries for Digital Nomads in 2024 appeared first on Bright!Tax Expat Tax Services.

In the following article, we’ll break down the two types of digital nomad visas available to remote workers, discuss the application requirements and eligibility associated with each one, and showcase the best places to live in Estonia for digital nomads.

Snapshot of expat life in Estonia

Population: Over 3 million 

Capital city: Tallinn

Currency: Euro

Official language(s): Estonian 

How Estonia came to be at the forefront of the digital nomad phenomenon

Digital nomad visas are a great way for countries to attract residents who will stimulate their economies without adding competition to the local job market. While many countries have only begun catering to digital nomads in earnest in the past few years, Estonia is significantly ahead of the curve.

In 2014, the Estonian government launched a ground-breaking e-Residency program. After the success of that program, they became the first country in the world to launch a full-on digital nomad visa in July 2020, even as many countries remained closed to foreign visitors.

Perhaps it’s no surprise, then, that Estonia has become a hotspot for startups and innovators¹ not just in the Schengen area, but the world in general. 

The country is currently home to the most “unicorn” startups² — aka startups valued at a billion dollars or more — per capita in the world, including companies like Bolt, Wise, and Skype.

What is the difference between e-Residency and the digital nomad visa?

While there’s a good amount of overlap between the type of people who apply to Estonia’s e-Residency program and the digital nomad visa, there are a few key differences.

Two types of digital nomad visas in Estonia

There are two types of digital nomad visas in Estonia, and the main difference between them is the amount of time granted to the visa holder. 

Estonia Type C Digital Nomad Visa

The Type C digital nomad visa is a short-stay visa that allows holders to live and work in Estonia for up to 90 days.

Estonia Type D Digital Nomad Visa

The Type D digital nomad visa is a long-stay visa that allows holders to live and work in Estonia for up to one year.

Requirements and process to become a digital nomad in Estonia

As you dig into the application process for the Estonia digital nomad visa, you’ll want to carefully note your eligibility and organize the necessary documents required for the application. 

Application eligibility

To apply for a digital nomad in Estonia, you must meet the following requirements:

• Be able to do remote work via telecommunications technology (the internet)
• Meet one of the following three conditions:
  • Be employed by a company registered in another country
  • Work as a consultant/freelancer primarily for clients registered in another country/countries
  • Serve as a partner/shareholder for an employer in another country
• Earn a monthly income of at least €4,500 gross of taxes (i.e., before taxes)

Application materials and visa duration

You must include the following required documents as part of your digital nomad visa application:

• A completed visa application form
• A valid passport
• A clean criminal background check
• A written explanation detailing how you plan to telework from Estonia
• A letter from your employer(s) confirming that you can perform your duties remotely
• An employment contract or contract for services rendered
• Documentation that details your state/local tax and social security obligations
• Documentation containing information on your employer/clients, including the name, location, industry, your role, and their legal representatives 
• Proof of income of at least €4,500 per month over the past six months 
• A travel medical insurance contract for the duration of your stay in Estonia

Once granted, type C visas last up to 90 days, while type D visas last up to one year. While these visas can’t be renewed, you can apply for a new one six months after the initial one has expired.

Permitted activities and work restrictions

While Estonian digital nomad visas allow foreigners to legally live and work remotely in Estonia,⁴ keep in mind that you cannot work primarily for or with companies based in Estonia itself.

What’s more, the visa is not a residence permit, nor does it provide a path to permanent residency in Estonia. The most you can stay in the country is 548 days out of a period of 730 consecutive days; and after 1.5 years in Estonia, you must leave.

In summary: The Estonia digital nomad visa application process

To apply for a digital nomad visa in Estonia, you must:

• Confirm that you meet the requirements
• Fill out the application form
• Gather the required documents mentioned above
  • Note: All documents must be in English, Estonian, or Russian
• Make an appointment at your nearest Estonian embassy or consulate (if necessary; some locations allow drop-ins)
• Submit your documents in person
• Pay the associated fee (€80 for a C-visa, €100 for a D-visa)
• Receive approval (typically within 15-30 days of submission)
• Return to the Estonian embassy or consulate to verify your identity and pick up your visa
• Book your travel to and pack your bags for Estonia! 

Note: The official Estonian website has an excellent and comprehensive FAQ section for prospective digital nomads!

Where to live in Estonia

There are plenty of great places to live in Estonia, many of which offer a reasonable cost of living. Below, we’ve highlighted three cities as excellent choices for digital nomads.

Tallinn 

Tallinn, the enchanting capital of Estonia, offers a perfect blend of medieval charm and modern vitality. Cobblestone streets, a picturesque Old Town, and ancient forts coexist alongside an innovative tech industry, vibrant arts scene, and lively cafés. And as the top hub for digital nomads, you’ll have plenty of opportunities to form friendships with like-minded individuals.

Tartu

The lively university town of Tartu exudes a youthful, intellectual feel. Among historic architecture, tree-lined avenues, and scenic parks, you’ll find students and young professionals around every corner. Whether you’re into concerts, craft beer, or avant-garde art performances, you’re sure to find your niche in this distinctive, inviting town.

Pärnu

If you’re looking for a seaside getaway, you’d be hard-pressed to find a better option in Estonia than Pärnu, a charming coastal town with a laid-back and leisurely vibe. Locals and visitors alike enjoy leisurely strolls and bike rides along the beautiful promenade, with sun-soaked beaches, spas, and outdoor dining just a stone’s throw away.

Related: US Expat Taxes for Americans Living in Estonia – What You Need to Know

Digital nomad life in Estonia

There’s a nearly endless amount of places to go and things to do when living or traveling in Estonia — but whatever you do, make sure not to skip these five activities.

5 things that should be on your Estonia bucket list⁵

• Explore the underwater prison in Ruumu
• Stroll along the Türisalu Cliff
• Visit the Ruhnu Lighthouse
• Admire Estonia’s brown bears (from a safe distance!)
• Have a bowl of soup in Supilinn, the quirky town where every street is named for a type of soup

Related: The Top 7 Countries For Digital Nomad Visas in 2023

Expat community in Estonia – how to find your people

It’s normal to feel unsure and even a little lonely when you move to a new country. Fortunately, Estonia is bursting with opportunities to get out and meet new people — you’ll be making new friends in no time. 

Moving to Estonia

Before making the leap to becoming a digital nomad in Estonia, make sure you cross the following off of your to-do list:

• Gather all of your important documents (passport, visa, etc.)
• Set up a doctor’s appointment to get any vaccines or medications you might need
• Buy tickets for your flights both into and out of Estonia
• Book accommodations for your arrival
• Research what to bring, create a list, and pack your bags
• Flag your travel plans to your bank so they don’t mark purchases abroad as suspicious
• Set up a forwarding address for your mail, if necessary
• Connect with other digital nomads in Estonia for advice on sites like Reddit or Facebook

Estonia digital nomad visa taxes

If you reside in Estonia for more than 183 days, then you become a tax resident. US citizens living as digital nomads in Estonia with the Estonia Type D Digital Nomad Visa will be taxed at a flat rate of 20%. 

Additionally, Estonia and the United States do have a tax treaty that prevents double taxation. However, most tax treaties include a Savings Clause provision that states that the US can tax its citizens as if the treaty did not exist in the first place. The clause generally prevents the US citizen taxpayer living abroad from taking advantage of the treaty’s contents. 

That being said, some exceptions to this saving clause exist, providing a narrow but existent window of application of the tax treaty for US taxpayers living abroad. 

Related: Digital Nomad Taxes: A Complete Guide for US Nomads

VAT in Estonia

Currently, the general VAT rate is 20%. However, from January 2024, that rate will increase to 22%.

Do US digital nomads in Estonia have to pay US taxes?

America’s tax system requires all citizens and permanent residents to file a federal tax return (provided that they meet the minimum income reporting threshold) regardless of where in the world they live and regardless of whether there’s a Tax Treaty in place. However, US citizens living abroad may not necessarily owe US taxes.

Expat tax provisions for Americans filing US taxes in Estonia

Moving abroad may complicate your taxes and can feel overwhelming to navigate. Below are some of the additional reporting obligations tax breaks expats should read up on.

Foreign Earned Income Exclusion (FEIE)

The FEIE allows you to exclude a certain amount of foreign-earned income from taxation ($112,000 for tax year 2022, $120,000 for tax year 2023). 

To be eligible, you need to pass either the Physical Presence Test or Bona Fide Residence Test. If you qualify, you’re also eligible for the Foreign Housing Exclusion/Deduction, which allows you to write off qualifying housing expenses like rent and utilities.

Foreign Tax Credit (FTC)

The FTC allows you to subtract what you pay in income taxes to a foreign government from what you owe the US government in income taxes if those taxes were driven by foreign-sourced income. 

Foreign Bank Account Report (FBAR)

If you have $10,000 or more in foreign bank accounts at any point in the year, you’ll need to report the contents of those accounts to the Financial Crimes Enforcement Network (FinCEN) via FinCEN Report 114.

Related: FBAR Filing Online in 2023: A Guide for Expats

Foreign Account Tax Compliance Act (FATCA)

If you have over $200,000 in foreign assets by the last day of the tax year, or over $300,000 in foreign assets at any point during the tax year, FATCA you might be required to file Form 8938.

Smoothly navigate your US expat taxes with Bright!Tax.

Estonia is a hub for digital nomads and entrepreneurs, and Bright!Tax can help set you up for success by optimizing your US tax strategy. With 10+ years of experience working with US expats worldwide, we guarantee a perfect filing.

Get Started

References

1. Estonia – Global Village
2. Full List of Estonian Unicorns
3. e-⁠Residency vs digital nomad visa
4. Official Estonian legislation – e Residency visa
5. 50 Amazing Things to Do in Estonia

Disclosure: Some of the links on this website may be affiliate links, which means that we may earn a small commission at no additional cost to you if you make a purchase or take any action through those links. We only recommend products and services that we have personally used or thoroughly researched. Your support through these affiliate links helps us continue to provide valuable expat tax services. Thank you for your support!

The post The Estonia Digital Nomad Visa for Remote Workers appeared first on Bright!Tax Expat Tax Services.

There is one catch though. The Czech Republic digital nomad visa is only available to workers in a certain industry: IT.

Below, we break down the requirements and application process for the Czech Republic digital nomad visa that IT professionals will need to adhere to in order to obtain the visa.

Snapshot of expat life in the Czech Republic

Population: 10.5 million

Capital city: Prague

Currency: Czech Koruna

Official language(s): Czech

Approximate number of American expats: Less than 10,000

Building on the Czech freelancer visa to introduce a visa for digital nomads

In the wake of the COVID-19 pandemic, countries worldwide have been launching digital nomad visas. With remote work booming, remote workers have become an attractive cohort of foreign residents for governments worldwide. In theory, making residency more accessible to foreigners whose spending will stimulate the economy without necessarily adding competition to the local job market.

While the Czech Republic already offers a freelance visa — also called the Zivno Visa — the new digital nomad visa is an exciting alternative for foreign remote workers hoping to move to the Czech Republic.

Unlike the Zivno Visa, the digital nomad visa is only open to applicants from one of eight countries and does not require you to be self-employed. Additional callouts include the monthly income requirement (as opposed to a savings requirement) and the explicit focus on attracting tech/IT/STEM workers.

Czech Republic digital nomad visa: Eligibility and requirements

Each country’s digital nomad visa has certain requirements relating to details such as work type and income level, and the Czech Republic digital nomad visa is no exception. Below is an overview of what to know about your eligibility, the visa’s duration, and other important notes.

Application eligibility

In order to be eligible for the Czech digital nomad visa, you must:

• Be a citizen of Australia, Canada, Japan, New Zealand, South Korea, Taiwan, the UK, or the USA
• Work remotely for more than three months in the Czech Republic as an employee of a foreign company or as a freelancer who holds (or will obtain) a Czech trade license
• Earn a monthly salary of at least 60,530 CZK (~$2,681 USD)

Visa duration

The Czech Republic Digital Nomad Visa is valid for up to one year. If the holder continues to be eligible and wants to renew the visa, they may apply to the Ministry of Industry and Trade of the Czech Republic for an extension. If granted, they may then apply for a long-term residence permit at their nearest Ministry of the Interior.¹

Permitted activities and work restrictions

Holders of the Czech digital nomad visa can legally live in the country and work for non-Czech employers. A nomad’s close family members (spouses/registered partners, minor children, and dependents under 26 years old) can also apply.²

Czech Republic digital nomad visa application process

Applying for the Czech digital nomad visa will require you to email a completed application form and proof of education or at least three years of experience in an IT field to digitalnomad@mpo.cz. The additional required documentation depends on whether you are an employee or a freelancer.

Employees must include:³

• A document equivalent to an extract from the European Business Register proving the existence of a foreign employer
• An affidavit confirming that the foreign employer employs at least 50 employees worldwide
• A contract in English with key parts translated to Czech confirming that:
  • Your salary meets the minimum monthly income requirement
  • You will work for your employer remotely while in the Czech Republic

Freelancers must include:⁴

• Proof that you have registered with the relevant trade department for a license
• A contract with or affidavit from a client confirming that:
  • Your work is in the IT field
  • You will work remotely for your client(s) for the entire duration of your stay in the Czech Republic
  • Your salary meets the minimum monthly income requirement

If approved, you will receive written confirmation and a recommendation for a visa from the Ministry of Industry and Trade (typically within five days), who will then inform the Ministry of Foreign Affairs and the Ministry of the Interior of their decision.

Over the course of the next two weeks, you will receive an email from your local Czech Embassy assigning you a date to come in person.

When you arrive for your appointment to apply for a residence permit for yourself (and any family members applying with you) you will also undergo an interview.

For each applicant, bring:⁵

• A valid passport
• A letter of purpose for your stay
• Proof of funds
• Proof of accommodation
• A passport-size photo
• Payment for the associated fee, typically 2,500 CZK (~$111 USD) for those aged 15+ and 1,000 CZK (~$44 USD) for those under 15
• A clean criminal record
• Proof of travel health insurance

If approved, you will receive a decision from the Department of Asylum and Migration Policy of the Ministry of the Interior (typically within 45 days) allowing you to enter the Czech Republic.

Within three days of your arrival, you must report your residence to your local police office.

Related: How to Become a Digital Nomad (Updated for 2023)

Why become a digital nomad in the Czech Republic?

Although it may not be at the top of the average European travel bucket list, the Czech Republic is a favorite of many seasoned travelers.

Besides its famed tourist hotspots, Czechia’s reasonable cost of living, safe environment, and steady economy have enticed many regular visitors to become lifelong residents.

Affordability

The cost of living in the Czech Republic is significantly more affordable than in the US, considering that:⁶

• Consumer prices are about 31% lower
• Rent prices are about 59% lower
• Restaurant prices are about 53% lower
• Grocery prices are about 40% lower

Central European location

The Czech Republic’s central European location and its well-connected capital airport facilitate travel across the continent, extending beyond Eastern Bloc countries like Poland, Bulgaria, and Hungary. Other travel destinations include:

• Western European countries (e.g. Portugal, Germany, France)
• Mediterranean countries (e.g. Italy, Greece, Cyprus)
• Scandinavian countries (e.g. Norway, Finland, Sweden)
• Balkan countries (e.g. Croatia, Serbia, Albania)
• Countries in the British Isles (e.g. England, Ireland, Scotland)
• Middle Eastern countries (e.g. Turkey, Israel, Jordan)
• Northern African countries (e.g. Morocco, Egypt, Tunisia)

Close-knit digital nomad community

Even before the launch of the digital nomad visa, the Czech Republic was home to a blossoming community of digital nomads. These individuals came on the freelancer visa, attracted by the country’s affordability, central location, rich culture, and natural beauty. 

As a result, today there are many digital nomad meetups, groups, coworking spaces, coliving spaces, cafés, and more.

Related: The Top 7 Countries For Digital Nomad Visas in 2023

Where to live in the Czech Republic

While the Czech Republic tends to be defined by its capital city, we’ve included a couple of cities in addition to Prague on the list below to give prospective digital nomads an idea of where to look beyond the famous capital.

Prague

The capital city of Prague is undoubtedly the biggest digital nomad hub in the Czech Republic (although there are other exciting places to live as well, which we’ll detail below!).

Due to its stunning Gothic, Romanesque, and Baroque architecture, Prague’s nickname is “the city of a thousand spires.”

Those living in Prague have access to a thriving cultural scene, with endless options for art, music, and museum lovers; a plethora of independent cafés known for their delicious coffee and eccentric atmospheres; and some of the best beer in the world.

Note: Digital nomads moving to Prague may want to check out the Adventurous Kate blog in particular, as the seasoned globetrotter ultimately decided to permanently settle there.

Brno

Although it’s the second-largest city in the Czech Republic, Brno has a much more tranquil feel than its larger counterpart, Prague. The city contains both a historic Old Town and a modern center, where you’re just as likely to find locals catching up over coffee on a centuries-old plaza as hitting up trendy bars and shops.

Olomouc

If you favor authentic, off-the-beaten-path locations, you’ll be hard-pressed to find a better destination in Czechia than Olomouc. This city has all of the architectural beauty, historical significance, and culture of Prague, with just a fraction of the tourists. Between its cobblestone streets, UNESCO World Heritage monuments, and hip university town vibe, you may never want to leave.

Related: The Croatia Digital Nomad Visa: A Guide for US Expats 

5 things that should be on your Czech Republic bucket list

There are more than enough sites and activities in the Czech Republic to keep you busy throughout the full year of your digital nomad visa (or even more if you choose to extend it!). But make sure not to miss out on these must-dos:

• Tour the Prague Castle, home of the current Czech president and a collection of breathtaking artifacts like 16th-century paintings, historical documents, and even the crown jewels
• Sample some freshly brewed beer at the Pivovar Plzeňský Prazdroj, better known as the Pilsner Urquel Brewery
• Stroll along the Charles Bridge — first built in 1357 — for unparalleled views of the Vltava river
• Relax in the soothing hot springs at one of the numerous spas in Karlovy Vary
• Get your nature fix at the Šumava National Park, where you can explore the Bohemian forest, mountains, and glacial lakes

Expat community in Czech Republic – how to find your people

It’s normal to feel unsure and even a little lonely when you move to a new country. Fortunately, the Czech Republic is bursting with opportunities to get out and meet new people — you’ll be making new friends in no time. A few ideas to get you started:

• Move into a co-living space
• Work from a coworking space
• Stay in a social hostel
• Take classes (e.g. learn how to make Czech beer, cooking, etc.)
• Attend events on Meetup & Couchsurfing
• Join local expat groups on Facebook
• Attend a language exchange

Moving to the Czech Republic

Before making the leap to becoming a digital nomad in the Czech Republic, make sure you cross the following off of your to-do list:

• Gather all of your important documents (passport, visa, etc.)
• Set up a doctor’s appointment to get any vaccines or medications you might need
• Buy tickets for your flights both into and out of the Czech Republic
• Book accommodations for your arrival
• Research what to bring, create a list, and pack your bags
• Flag your travel plans to your bank (or open a new account as needed) so they don’t mark purchases abroad as suspicious
• Set up a forwarding address for your mail, if necessary
• Connect with other digital nomads in the Czech Republic for advice on sites like Reddit or Facebook 

Czech Republic digital nomad visa taxes

The Czech government classifies individuals who reside there for more than 183 days in a tax year as tax residents, making them subject to Czech taxes on their global personal income.

Fortunately, the Czech Republic’s personal income taxes are among the lowest in Europe,⁷ and there are a number of strategies Americans can employ to avoid double taxation (more on that below).

VAT in the Czech Republic

The Czech Republic’s value-added tax (VAT) — aka the tax placed on the sale of most goods and services in the Czech Republic — is generally 21%, although there are discounted rates available:⁸

• 15% VAT: Groceries
• 10% VAT: Certain medications, books, newspapers, heating/cooling, hotel accommodation, cultural events, etc.

Do American digital nomads in Czech Republic have to pay US taxes?

If you live in the Czech Republic as a digital nomad, you will be required to file a US tax return. However, it’s possible that you will not owe any taxes, so long as your US expat tax return is filed correctly.

Expat tax provisions for Americans filing US taxes in Czech Republic

Moving abroad may complicate your taxes and can feel overwhelming to navigate. Below are some of the additional reporting obligations tax breaks expats should read up on.

Foreign Earned Income Exclusion (FEIE)

The FEIE allows you to exclude a certain amount of foreign-earned income from taxation ($112,000 for tax year 2022, $120,000 for tax year 2023).

To be eligible, you need to pass either the Physical Presence Test or Bona Fide Residence Test. If you qualify, you’re also eligible for the Foreign Housing Exclusion/Deduction, which allows you to write off qualifying housing expenses like rent and utilities.

Foreign Tax Credit (FTC)

The Foreign Tax Credit (FTC) allows you to subtract what you pay in income taxes to a foreign government from what you owe the US government in income taxes.

Foreign Bank Account Report (FBAR)

The FBAR requires that you report your foreign bank accounts on an administrative form if you have $10,000 or more in your foreign bank accounts at any point in the year. This report is not sent to the IRS, but to the Financial Crimes Enforcement Network (FinCEN) via FinCEN Report 114.

Child Tax Credit (CTC)

If you have qualifying dependents living with you in the Czech Republic, you can file the Child Tax Credit (CTC) just as you would in the US to get as much as $2,000 in partially refundable credits.

Foreign Account Tax Compliance Act (FATCA)

If you have over $200,000 in foreign assets by the last day of the tax year, or over $300,000 in foreign assets at any point during the tax year, FATCA requires you to file Form 8938.

Confidently navigate your US tax obligations while living as a digital nomad in the Czech Republic.

Bright!Tax CPAs are US-certified and specialize in completing tax returns for Americans living abroad. We are fully committed to minimizing your tax liability so that you can focus on enjoying your time abroad.

Meet Your CPA

References

1. THE DIGITAL NOMAD PROGRAM
2. Digital Nomad Program
3. Step-by-step procedure – employee of a foreign company
4. Step by step procedure – freelancer
5. A visa for a stay of over 90 days (long-term)
6. Third country nationals – Fees
7. Cost of Living Comparison Between United States and Czech Republic
8. Top Personal Income Tax Rates in Europe
9. Czech Republic – Corporate – Other taxes

Disclosure: Some of the links on this website may be affiliate links, which means that we may earn a small commission at no additional cost to you if you make a purchase or take any action through those links. We only recommend products and services that we have personally used or thoroughly researched. Your support through these affiliate links helps us continue to provide valuable expat tax services. Thank you for your support!

The post The Czech Republic Digital Nomad Visa Guide appeared first on Bright!Tax Expat Tax Services.

So, what precisely is an LLC, how does one establish it, and what are the compelling reasons for doing so? In the following sections, we provide comprehensive answers to these inquiries, specifically tailored for self-employed digital nomads.

What is an LLC?

A Limited Liability Company (LLC) is a type of business entity that offers owners (also called members) a degree of personal protection against business liabilities. It also allows owners to choose whether they want to file taxes as a sole proprietor/general partnership or corporation.

LLC pros and cons

There are several distinct advantages and disadvantages to opening an LLC as a digital nomad. Let’s take a look first at the benefits. 

Benefits of starting an LLC as a digital nomad

Some of the pros of starting an LLC as a digital nomad include:¹

Limited liability protection

Your personal assets are considered separate from those of your business, and generally cannot be seized if your business incurs any debts or other liabilities.

Taxation flexibility

For federal income tax purposes, you can choose to be taxed as a sole proprietorship/general partnership, S-Corp, or C-Corp.

Credibility

Registering as an LLC can lend your business an air of legitimacy.

Low barrier to entry

Starting an LLC requires relatively little paperwork and money.

Related: The Top 7 Countries For Digital Nomad Visas in 2023

Drawbacks of starting an LLC as a digital nomad

Some of the cons of starting an LLC as a digital nomad include:²

Upfront costs

You’ll have to invest time and money into starting an LLC.

Maintenance

You typically need to file additional documents or pay additional taxes/fees annually to continue to run your business on an ongoing basis as an LLC.

Growing pains

An LLC may not be the right fit for you if you plan to significantly grow your business in the near future. Additionally, if your business plan includes attracting investors, a corporate structure may be more fitting.

Types of LLCs

There are eight different types of LLCs:³

• Domestic LLCs operate in the same state they were registered in
• Foreign LLCs operate in a different state than the one they were registered in
• Series LLCs own and operate one or more LLCs
• Nonprofit LLCs focus on purpose rather than profit
• Low-Profit LLCs are also purpose-driven, but retain & distribute small amounts of profit
• Anonymous LLCs can be formed without having to publicly disclose members’ information
• Restricted LLCs are exempt from taxes for 10 years, but also can’t make distributions for 10 years
• Professional LLCs are for licensed professionals

Depending on how they’re owned and managed, these LLCs will also fall into one of four categories:

• Single-Member LLCs are owned and operated by one member (also called a disregarded entity)
• Multi-Member LLCs are owned and operated by two or more members
• Member-Managed LLCs have members make business decisions 
• Manager-Managed LLCs have a third party make business decisions

How to open an LLC while living abroad

While you’ll need to register your LLC in at least one US state, you don’t have to live there. Different states have different registration requirements, but the process of opening an LLC generally includes:⁴

Choosing & registering a name

Make sure that the name complies with the state’s rules and doesn’t infringe on any trademarked names.

Designating a registered agent

You’ll need to choose a registered agent, or someone to file and receive your business’s legal documents. You can typically name yourself, another individual, or a business — or hire a company that provides registered agent services.

Filing articles of organization

Filing this series of documents — which contain information on your business’s name, address, members, LLC type, etc. — with the state will officially establish your LLC.

Getting licensed

Depending on your location, profession, and business type, you may need to secure additional licenses and/or permits.

Other potential steps could include:

• Applying for an employer identification number (EIN)
• Opening a business bank account
• Drafting an operating agreement

How much does it cost to start an LLC?

The cost of creating an LLC varies by state and circumstances, but you can use this rough breakdown for reference:⁵

Online filing/legal service: ~$39-$79 (If your business is particularly complex, you may want to hire an attorney (~$1,000-$1,500))

Registered agent fees: ~$0-$300

EIN Application: ~$0-$99

State filing fees: $35-$500

Name reservation: ~$10-140 (only mandatory in Alabama)

Publication fees: ~$40-$2,000 (only mandatory in Arizona, Nebraska, and New York)⁶

You may incur additional fees if you choose to draft an operating agreement (~$200),⁷ establish a DBA name (~$10-$100),⁸ or apply for a business permit/license (~$50-$300).⁹

Best states to open an LLC from overseas

It’s typically easiest and most affordable for Americans abroad to register an LLC in their home state.¹⁰ If you do choose to open an LLC in another state, however, here are a few factors to consider:

• State income tax: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington & Wyoming all have no state personal income tax.
• LLC filing fees: The states with the lowest filing fees are Montana ($35); Kentucky ($40); and Colorado, Iowa, Michigan, Mississippi, & New Mexico (all $50).
• LLC maintenance fees: Arizona, Idaho, Mississippi, Missouri, New Mexico, Pennsylvania, & South Carolina all have no additional annual fee for LLCs.

Related: Do Expats Pay State Taxes? What to Know When Living Abroad

How is an LLC taxed (for digital nomads)

LLC tax rates depend on which of three ways you choose to be taxed:

Sole proprietorship/general partnership

LLCs are taxed as a pass-through entity by default. This means that rather than paying taxes as a business, members report their share of profits and losses on Form 1040 for individuals or Form 1065 and Schedule K-1 for multi-member LLCs. 

Tax authorities apply standard personal income tax rates of 10% to 37% to tax net earnings. Additionally, you must pay a self-employment tax of 15.3% on your net earnings to cover Social Security and Medicare.¹¹

C-Corp

LLCs eligible for the choice can elect to be taxed as C-Corporations by submitting Form 8832 (Entity Classification Election). This choice necessitates that they file a corporate tax return (Form 1120) and pay the corporate income tax rate of 21%. Subsequently, they distribute dividends to shareholders, which are subject to taxation at personal income tax rates. This is essentially a “double tax,” but there are ways to avoid it.¹²

S-Corp

Finally, other LLCs choose to file Form 2553 and opt for taxation as S-Corporations, which also obliges them to submit a corporate tax return. They then pay shareholders a “reasonable” salary, some of which can be classified as dividends rather than earnings — but unlike a C-Corp, dividends from an S-Corp are not subject to Social Security and Medicare taxes. S-Corps may also be eligible for a 20% qualified business income deduction until 2025.¹³

Note: Neither S-Corp nor C-Corp dividends are subject to Social Security or Medicare taxes.

Related: Digital Nomad Taxes: A Complete Guide for US Nomads

Tax write-offs for an LLC

Some people choose to form LLCs because they mistakenly believe that they can write everything, including personal expenses, off as a tax deduction. While there are quite a few things you can write off as business expenses, they must all directly help you do your job and be ordinary and necessary in the course of your business.

This includes things such as software & services, education & training, equipment & supplies, advertising & marketing costs, business insurance, and certain startup costs.

Understanding how to file LLC business taxes from abroad

To stay tax compliant with taxes as an LLC owner abroad, you’ll want to research your business’s tax and reporting obligations and fill out the corresponding forms, which may include:

• Form 1040
• Form 1065 & Schedule K-1 (for LLCs being taxed as general partnerships)
• Form 8832 & Form 1120 (for C-Corps)
• Form 2553 & Form 1120-S (for S-corps)

It’s worth noting that living abroad may change your personal tax and reporting obligations, as well as the credits and deductions available to you. Scheduling a consultation prior to registering your business with an expert in US expat taxes can help you get familiar with this information. 

Your conversation will likely cover topics such as the Foreign Bank Account Report (FBAR), the Foreign Tax Credit (FTC), the Foreign Earned Income Exclusion (FEIE), and the Statement of Specified Foreign Financial Assets.

Open an LLC as a digital nomad with Bright!Tax’s full support.

At Bright!Tax, we serve the expat small business community worldwide. Whether you’re a one-person show or have more complex considerations, we can strategize the best approach to US expat taxes for both you and your business.

Meet Your CPA

References 

1. Pros and Cons of Sole Proprietorship, LLC and More
2. Pros and Cons of Owning an LLC
3. Different Types of LLCs: Which One Is Best for You?
4. How Much Does it Cost to Start an LLC?
5. How to start an LLC in 7 steps
6. HOW MUCH DOES IT COST TO START AN LLC?
7. How Much Does It Cost To Start An LLC?
8. How Much is a DBA: Everything You Need to Know
9. How much is a business license?
10. Best States To Form An LLC In 2023
11. How Limited Liability Companies (LLCs) Are Taxed
12. LLC electing S corporation tax status: An option you may not know you have
13. Should You Choose S Corp Tax Status for your LLC?

The post How to Start an LLC as a Digital Nomad: What to Know  appeared first on Bright!Tax Expat Tax Services.

Below, we’ll go over the HSVP and a few other visa options that allow American expats to work and live in Japan. Before we dive in, though, let’s take a look at an interesting technicality American freelancers in Japan must navigate.

Freelance work in Japan as a foreigner

While there isn’t a dedicated self-employed visa in Japan, many Americans living there work as freelancers to earn supplementary income when their visa allows it. There are strict rules about freelancing, however.

Generally, foreign nationals with valid work visas can do freelance work, but it’s always a good idea to double-check that both your visa and your employer allow your freelance work activity. Those who move to Japan to teach English via the popular JET program, for instance, are not allowed to moonlight.¹

Work visas that do permit freelance work tend to allow holders to freelance as long as the work they do is within the same visa category (e.g., a software engineer could do freelance web development). 

Those who want to freelance outside of their work category will need to apply for a Permission to Engage in Activity other than that Permitted under the Status of Residence Previously Granted. This requirement also applies to students seeking to pick up freelance work.²

How to live as a freelancer in Japan

As mentioned earlier, there is no dedicated self-employed visa for Japan, but there is a workaround. 

Those who pick up freelance work in Japan while on a different work visa and want to transition to a different visa associated with their freelance activity can apply for a general work visa sponsored by a client based in Japan.³ 

Because an individual must already hold a visa when they apply to switch, the process is technically classified as a visa renewal. The renewal process for a Japan visa for freelancers includes:⁴

1. Gathering required visa applicant documents
2. Providing proof of annual income that shows you earn about ¥3,000,000 per year (about $20,600 USD) from a Japan-based employer
3. A university degree related to your freelance work or 5 years of experience directly related to your freelance work. Note: Proof of experience may include your resume and previous contracts or Certificates of Employment (CoE) from clients
4. A copy of your completed notification for starting or ending a personal business
5. Proof that you have been paying your Japanese taxes, such as copies of your tax return
6. Information from your sponsoring client/customer. This information includes: 

• A signed contract
• A completed CoE application form
• An engagement letter describing why your services are important to their business
• An official pamphlet or printout of their homepage
• A certified copy of their business registration or their notification for starting or ending a personal business (if you work for another freelancer)
  • Their latest financial statements
  • Their last tax return (if the company/client is a registered business)
  • Note: You may also need to provide proof of insurance and a sole proprietor form

7. Submitting the required documents to your local immigration bureau office
8. Receiving approval via post
9. Picking up your visa in person

Japan Highly Skilled Professional Visa (HSPV)

This visa category is designed to make it easier for highly skilled foreign professionals to work and live in Japan. The visa is not limited to a specific profession and covers a range of fields including academics, researchers, engineers, specialized technicians, business managers, and more.

The Highly Skilled Professional Visa in Japan is divided into three categories, each with its own criteria and benefits:

• Advanced Academic Researcher: For researchers, scientists, and academics with advanced expertise and achievements in their field
• Advanced Specialized/Technical Professionals: For individuals with advanced skills and extensive experience in fields such as engineering, technology, natural sciences, healthcare, etc
• Advanced Business Management: For individuals in managerial positions with a high degree of responsibility and expertise in business

To qualify for this visa, you must receive a job offer in one of the fields above and reach at least 70 points according to the Japanese Immigration Bureau’s points matrix. 

If you qualify for and obtain this visa, you’ll be eligible to receive:⁶

• An automatic five-year residence visa
• Permanent residency after one or three years of residence in Japan (depending on your specific circumstances)
• An employment visa for your spouse
• Permission to bring your parents or a nanny, provided they meet certain criteria

Related: The Top 7 Countries For Digital Nomad Visas in 2023

Developing your business in Japan

Expats living in other countries often pursue entrepreneurial endeavors, as being their own boss gives them greater control over where and how they work. US freelancers in Japan are no exception.

While most Americans working as freelancers in Japan start out as sole proprietors, over time, some may choose to register as a business. 

There are four main types of businesses in Japan: Joint-Stock Company (Kabushiki-Kaisha), Limited Liability Company (Godo-Kaisha), General Partnership Company (Gomei-Kaisha), and Limited Partnership Company (Goshi-Kaisha).⁷

The first two are the most popular, given that they offer limited liability for business owners. Here are a few more details:

• Joint-Stock Company (Kabushiki-Kaisha): An ordinary company with shareholders and directors, roughly equivalent to a corporation in the US. 
• Limited Liability Company (Godo-Kaisha): A company with members that own and operate the company, roughly equivalent to an LLC in the US

Business Manager Visa

This visa category is designed for individuals who are planning to establish, manage, or operate a business in Japan. It falls under the broader category of work visas and permits individuals to work in managerial positions or engage in business-related activities.

To be eligible for a Business Manager visa in Japan, you typically need to meet certain criteria, including:

• Proof of a legitimate business plan: You need to demonstrate that you have a viable and well-detailed plan for the business you intend to establish or manage
• Investment or capital requirements: Depending on the type of business, you might need to show a certain amount of capital investment
• Relevant experience and qualifications: You may need to demonstrate your qualifications and experience that make you suitable for the business management role
• Legal requirements: Your business should adhere to all legal requirements and regulations in Japan
• Potential contribution to the Japanese economy: Your business should be deemed to have a positive impact on the Japanese economy, such as creating jobs or contributing to local communities

Self-employment tax in Japan

Japan uses a progressive tax structure, meaning that as your income goes up, so do your taxes. The tax rates in Japan for 2023 in Japanese yen (JPY) are as follows:

In US dollars (USD), these figures are approximately:

You may be wondering if Japan has a self-employed tax on top of the income tax. While there’s not a self-employment tax per se, there may be additional taxes and/or a different taxation system depending on whether you’re a sole proprietor or a business owner. The applicable taxes also depend on what type of structure your business is.

Related: Taxes in Japan for US Expats – A Complete Guide

US taxes for self-employed US citizens living in Japan

All US citizens and permanent residents must file US tax returns as long as they meet the minimum income reporting threshold. Some tax requirements and breaks that expats should know include: 

• Foreign Earned Income Exclusion (FEIE): Allows you to exclude up to $120,000 (for tax year 2023) of foreign-earned income from taxation and write off qualified housing expenses via the Foreign Housing Exclusion
• Foreign Tax Credit (FTC): Allows you to subtract what you’ve paid in foreign income taxes from what you owe the US government
• Foreign Bank Account Report (FBAR): Requires anyone with over $10,000 in foreign accounts to file FinCEN Form 114
• Child Tax Credit (CTC): Allows you to claim up to $1,500 in partially refundable credits for each of your qualifying dependents
• Foreign Account Tax Compliance Act (FATCA): Requires anyone with over $200,000 in foreign assets on the last day of the tax year — or over $300,000 at any point in the year — to file Form 8938 (these thresholds vary for those residing in the US)

There are also many considerations for self-employed US expats with registered businesses abroad. Running businesses in foreign countries results in additional forms and declarations, some of which can actually be beneficial to file if you do so strategically. 

Optimize your Japanese business by delegating your US taxes to Bright!Tax experts.

If you’re an American freelancer or business owner in Japan, contact our Bright!Tax team for US tax assistance. As a team of US-certified CPAs specializing only in taxes for Americans abroad, we guarantee minimized US tax liability.

Get Started

References

1. Can I Work At Another Job While Employed With The Jet Program?
2. Freelancing in Japan as a student: the possibilities and limitations
3. Getting a Visa as a Freelance Engineer in Japan
4. Visa Loophole to Work in Japan as a Freelancer
5. Visas For Freelancers In Japan
6. Highly Skilled Professional (HSP) Visa FAQ
7. Sarkar Office Japan KK

The post A Japan Digital Nomad Visa? Not Yet, but Other Options Exist appeared first on Bright!Tax Expat Tax Services.

We did some research to put together a list of some of the top digital nomad hotspots in the entire world. Here’s a quick rundown of the best digital nomad cities in 2023.

How we evaluated the best digital nomad cities for this list

To come up with our list of the top digital nomad cities, we looked at different criteria like:

• Cost of living
• Healthcare
• Safety
• Digital nomad visa requirements
• Local culture
• Digital nomad community

Considering that dream destinations are largely subjective, we’ve ordered the following list of digital nomad hubs randomly. Let’s dive in! 

The best digital nomad cities: 2023 edition

Lisbon, Portugal

💰 Cost of living

About €1,200 (~$1,320 USD) per month.¹

🏥 Healthcare

Lisbon generally has high-quality private and public healthcare options, although wait times can sometimes be an issue. Those on the digital nomad visa must arrange their own coverage for their first four months after arrival, but after getting their resident permit, they can apply for local health insurance plans.

🚨 Safety

Lisbon is considered quite safe, with a lower crime rate than many other major European cities. Violent crimes are rare — the most common crimes are petty crimes like pickpocketing in crowded tourist areas.² Follow common-sense precautions, and you’ll be less likely to encounter problems.

🗺️ Digital nomad visa requirements

To apply for Portugal’s digital nomad visa, you must work remotely, earn a minimum of €3,040 ($3,350 USD) per month, have a clean criminal record, and arrange private travel insurance for the first four months of your stay.

Related: The Portugal Digital Nomad Visa: What You Need to Know

👋 Local culture

Portugal’s capital and largest city, Lisbon is a vibrant and captivating destination with a unique blend of history, culture, and modernity. Lisbon is known for its beautiful architecture (often featuring azulejos, a type of glazed, colorful tile), rolling hills, great beaches, and excellent cuisine, including the ever-popular pastéis de nata custard tarts.

🌍 Digital nomad community

Lisbon is a hot destination for digital nomads, and the city has taken intentional steps to pave the way for them. Nomads in Lisbon are nearly spoiled for choice with a wide variety of co-working spaces, including one of the most distinguished in the world. There are also dedicated communities and events for digital nomads. Some of the most popular neighborhoods for location-independent workers include Alfama, Bairro Alto, and Principe Real.³

Madrid, Spain

💰 Cost of living

About €1,860 (~$2,045 USD) per month.⁴

🏥 Healthcare

Madrid has a robust, high-quality healthcare system. While those holding the digital nomad visa are not granted access to the public system, there are a number of great private options that can be accessed at a cost of anywhere from $50 to $200 USD per month, depending on your age, health, and how extensive of your coverage is. 

🚨 Safety

Madrid is a very safe city to visit. Violent crimes are rare, with petty crimes like pickpocketing much more common (especially in tourist areas).⁵ Exercise the same caution you would in any major city.

🗺️ Digital nomad visa requirements

To apply for Spain’s digital nomad visa, you must work remotely and earn at least €2,160 (~$2,375 USD) per month, no more than 20% of which can come from Spain. Additionally, nomads must purchase health insurance with coverage during their entire stay in Spain, in addition to demonstrating a clean criminal record.

Related: Spain Digital Nomad Visa 2023: A Guide for US Remote Workers

👋 Local culture

Madrid is a beautiful, historically rich city that greatly values culture. With some of the best museums in the world, one of the best international soccer teams, and a seemingly endless array of tapas bars to visit, it’s hard to get bored in this European capital. On top of that, the locals tend to be outgoing, friendly, and eager to practice their English.

🌍 Digital nomad community

Madrid is home to a growing digital nomad community, especially since the launch of the Spain digital nomad visa. There are plenty of coworking spaces, and coliving spaces are starting to pop up. Some of the most popular neighborhoods for digital nomads include Malasaña, La Latina, and Chamberí. 

Uvita, Costa Rica

💰 Cost of living

Around $2,000 to $4,000 USD per month.⁶

🏥 Healthcare

Costa Rica’s healthcare system is one of the best in the world — the United Nations ranked it at number 20.⁷ Uvita specifically has a large number of healthcare clinics, dentists, and even a hospital nearby. For more serious or complicated issues, however, you may need to travel to San José, which is three hours away by car.⁸ 

🚨 Safety

Uvita is generally safe, with many foreign tourists (including families) visiting each year. That being said, crimes like petty theft and pickpocketing are not unheard of. The town (and especially the beach) are widely patrolled, but you’ll want to avoid dressing flashy, bringing valuables in public, and walking alone at night.

🗺️ Digital nomad visa requirements

To apply for Costa Rica’s digital nomad visa, you must work remotely, earn at least $3,000 USD per month ($4,000 USD if you’re bringing family members), and purchase private health insurance for the entirety of your stay in the country.

Related: Costa Rica Digital Nomad Visa – The Ultimate Guide

👋 Local culture

This town along Costa Rica’s Pacific coast is beautiful and tranquil, perfectly emblematic of Costa Rica’s pura vida lifestyle. However, there’s still plenty to do. Uvita is particularly well known for its stunning beaches, excellent surfing, and outdoor activities like whale-watching and hiking.

🌍 Digital nomad community

Uvita has a relatively small but tight-knit digital nomad community that is growing larger every year. There are several different co-working spaces and cafés to work out of, and fast, reliable Wi-Fi.

Medellin, Colombia

💰 Cost of living

About COL$4,250,000 (~$1,050 USD) per month.

🏥 Healthcare

Colombia has a high-quality healthcare system. The World Health Organization ranked it as the 22nd best in the world, and the top one in Latin America.⁹ Medellin in particular has some of the best facilities in the country, with many hospitals and healthcare facilities. Those holding a digital nomad visa must purchase a private insurance plan, which may cost around $180 – $325 USD per month.

🚨 Safety

While Medellin had a turbulent past from the ‘70s to the ‘90s, safety has improved enormously in recent years.¹⁰ Most tourist areas and affluent neighborhoods are safe during the daytime, although it is often recommended that people avoid walking alone at night. Common recommendations for foreigners include taking Ubers instead of taxis, exercising particular caution in the downtown areas, and don’t take more than they need while going out.¹¹

🗺️ Digital nomad visa requirements

To apply for Colombia’s digital nomad visa, you must work for or with a company located outside of Colombia, earn a minimum of $3 million Colombian pesos (~$745 USD) per month, and purchase private health insurance.

Related: Colombia Digital Nomad Visa: A Complete Guide

👋 Local culture

Medellín, Colombia, exudes a dynamic and innovative vibe. With year-round pleasant weather, Medellin has been dubbed the “City of Eternal Spring.” Medellín’s warm and welcoming locals contribute to a sense of community and hospitality, fostering a sense of connection for both residents and visitors. From a thriving tech community to an active arts and cultural scene, there’s something for just about everybody.

🌍 Digital nomad community

Historically an off-the-beaten-track destination for the world’s backpacking community, globalization has positioned Medellin extremely well for the digital nomad boom. Although prices aren’t as low as they once were, by today’s digital nomad standards Medellin remains known for its affordable cost of living, many co-working and co-living spaces, and fast and reliable internet. Additionally, there are a variety of different digital nomad groups that offer community support, gatherings and events. Some of the top neighborhoods for digital nomads include Laureles, Poblado, Envigado, and Sabaneta.¹²

Split, Croatia

💰 Cost of living

About €1,400 to €3,000 (~$1,550 – $3,250) per month, depending on lifestyle.

🏥 Healthcare

Split, Croatia, generally has high-quality, accessible healthcare. There are several major hospitals and many medical clinics that are modern and well-equipped, offering both basic care and specialized services. Digital nomad visa holders do have to purchase private health insurance, which costs around €36-€135 ($40 to $150 USD) per month.¹³

🚨 Safety

Croatia is ranked as the 15th-safest country according to the Global Peace Index. Split in particular ranks well for safety, with low rates of both violent and petty crime.¹⁴ Foreigners that follow common-sense precautions are unlikely to encounter safety issues.

🗺️ Digital nomad visa requirements

To apply for Croatia’s digital nomad visa, you must work for a company based outside of Croatia, earn at least €2,300 (~$2,520 USD) per month, purchase private health insurance, and possess a clean criminal record.

Related: The Croatia Digital Nomad Visa: A Guide for US Expats 

👋 Local culture

Split, Croatia, is a charming coastal city that offers ancient monuments, such as the UNESCO World Heritage site Diocletian’s Palace; modern bars, restaurants, and shopping; and gorgeous beaches. Residents are spoiled for views as they stroll along Rica, the city’s waterfront promenade, and there cafes for catching up with (and making!) friends are in abundant supply. 

🌍 Digital nomad community

While Split may not have as large of a digital nomad community as other major cities, it’s growing all the time. There are a number of co-working spaces and work-friendly cafés already open, and many new spaces opening every month. Some digital nomads note that the internet isn’t quite as quick and reliable as it is in other places, but the government is actively working on addressing the issue. Popular neighborhoods for digital nomads include Radunica, Meje, and Bacvice. 

Athens, Greece

💰 Cost of living

About €900 – €3,000 (~$990 – $3,200 USD) per month, depending on lifestyle.

🏥 Healthcare

The healthcare in Greece as a whole is generally of good quality, with the best care available in major cities such as Athens or Thessaloniki. With a number of large, well-equipped hospitals and various clinics, it’s easy to receive both general and specialized care — although private facilities tend to be better than public ones. Private insurance costs depend largely on factors like your health and age, but they can cost as little as €80 or as much as €1,000 per year or more. 

🚨 Safety

Athens is largely a safe city, although there has been an increase in petty crimes such as pickpocketing and bag snatching. The best way to stay safe is by keeping to the central neighborhoods, and avoiding or being hyper-vigilance in areas like Omonia Square, Metaxourghio station, and Exarchia. In addition to practicing basic common sense, it’s recommended to stay away from demonstrations and only ride in licensed taxis.¹⁵

🗺️ Digital nomad visa requirements

To apply for Greece’s digital nomad visa, you must work for or with a company located outside of Greece, earn a minimum of €3,500 (~$ 3,850 USD) per month, have a clean criminal record, and purchase private health insurance.

Related: The Greece Digital Nomad Visa: A Complete Guide for US Expats

👋 Local culture

Few places blend the past and the present as much as Athens. The bustling city is home not only to historic sites like the Acropolis and the Parthenon, but also trendy bars and restaurants, and contemporary art galleries. The warm Mediterranean climate encourages many residents to spend time outdoors, whether they’re taking a stroll, dining on a terrace, or heading down to a nearby beach.

🌍 Digital nomad community

Athens’ digital nomad community is still developing, but it’s expected to grow in the wake of Greece’s recently-launched digital nomad visa. The internet in Athens is fast and reliable, and there are many co-working spaces (although they are largely populated by small startups vs. individual remote workers). A couple of particularly popular neighborhoods for digital nomads are Koukaki and Pangrati.

Buenos Aires, Argentina

💰 Cost of living

About $1,000-$1,300 USD per month.¹⁶

🏥 Healthcare

Buenos Aires offers exceptional healthcare at a much lower price than in the US, something which has turned it into a destination for medical tourism. Hospitals and health clinics abound and provide care for everything from minor injuries to major procedures. Digital nomads will need to purchase private insurance, which typically costs about $80 USD per month for those 26 and below and $100 USD for those 27 and older.¹⁷

🚨 Safety

Argentina is a generally safe country overall, with the Global Peace Index rating it as the third-safest country in Latin America.¹⁸ Buenos Aires specifically is quite safe as well, although petty crime is on the rise in certain areas (including San Telmo, Florida Street, and Avenida de Mayo). There is some civil unrest as inflation continues to grow, so foreigners should be aware of protests and demonstrations. 

🗺️ Digital nomad visa requirements

To apply for Argentina’s digital nomad visa, you must work for or with a company located outside of Argentina, be able to financially support yourself (there aren’t any specific income requirements, but some recommend earning around $2,500 USD per month), have a clean criminal record, and purchase private health insurance.

Related: The Argentina Digital Nomad Visa – Work Remotely in South America

👋 Local culture

Buenos Aires is a lively, cosmopolitan, and multicultural city where the traditions of Europe and Latin America combine. Don’t be surprised if you find people dancing the tango on a street filled with ornate, European-style buildings, or a traditional parilla next to an authentic Italian restaurant. Digital nomads in particular will enjoy the city’s thriving arts scene, lush parks, and festive nightlife.

🌍 Digital nomad community

Buenos Aires’ digital nomad community has been on the rise as the US dollar continues to outperform the Argentinean peso, making it one of the top digital nomad destinations in South America. There are multiple digital nomad groups, such as Buenos Aires Digital Nomad Meetups and Digital Nomads Buenos Aires, that arrange meet-ups and events. While there are many co-working places to choose from, some find that the internet speed and reliability are spotty from place to place.

Tallinn, Estonia

💰 Cost of living

About €1,500 (~$1,650 USD) per month.

🏥 Healthcare

Tallinn has a high-quality healthcare system with modern, well-equipped facilities (hospitals, clinics, medical centers, etc.) that cover a range of medical services.

🚨 Safety

Tallinn, Estonia is a generally safe city. Violent crime is very low — much more typical are things like petty theft and vandalism. That being said, it’s recommended that foreigners stay away from the outskirts of the city, and be particularly diligent while on public transit (especially during high tourist seasons).¹⁹

🗺️ Digital nomad visa requirements

To apply for Estonia’s digital nomad visa, you must be older than 18, be an employer/partner/shareholder of a company outside of Estonia, work remotely for clients based outside of Estonia, and verify that you have a monthly income of at least €3,500 (~$3,850 USD).²⁰ 

👋 Local culture

Tallinn’s Old Town, with its cobblestone streets and historic architecture, may make you feel like you’ve stepped right into a fairy tale. But don’t be fooled — it’s still a modern, tech-savvy city. The culture is a blend of Baltic and Scandinavian influences, reflected in the city’s cuisine, arts, and design scene. The warm and welcoming locals, bustling cafés, artesanal markets, and many cultural events make it a great place to live.

🌍 Digital nomad community

Estonia has been at the forefront of the digital nomad visa trend. Launched in July 2020, at the time it was the first of its kind. Since then, Estonia (and Tallin in particular) have become synonymous with digital nomadism, with the result being a large digital nomad community and many services such as co-working spaces, co-living spaces, and laptop-friendly cafés readily available. The nomad population spikes during the summer, when the weather is mild and the sun doesn’t set until late in the night. 

Saranda, Albania

💰 Cost of living

Less than $1,000 per month.²¹

🏥 Healthcare

Healthcare in Saranda is improving as it receives more and more tourism, but there are still sometimes challenges in quality and accessibility, and facilities may not be as numerous or modern as in other large cities in Europe. If you develop a healthcare issue requiring complex or specialized care, you may need to fly elsewhere in Europe.

🚨 Safety

Saranda, like Albania as a whole, has a low rate of crime. Crimes against tourists are rare, but when they do occur they are typically petty crimes like pickpocketing (typically on crowded places like public transport). Additionally, water quality can vary, so it’s best to stick to bottled water or to boil tap water before drinking it.

🗺️ Digital nomad visa requirements

To apply for Albania’s digital nomad visa, you must have a valid employment/service contract with a foreign company, sufficient income, a clean criminal record, and private health insurance.

Related: The Albania Digital Nomad Visa (Unique Permit) – A Guide

👋 Local culture

Saranda is located along the Ionian Sea, featuring a wide array of things to do, such as visiting historic ruins, sunning on beaches, and trying out fresh seafood restaurants and local markets. The pace of life is relaxed, and the people welcoming. Nature buffs will enjoy exploring wonders like the Blue Eye Spring and exploring up and down the Albanian Riviera.

🌍 Digital nomad community

Saranda’s digital nomad community is small, but growing, with remote workers flocking to the city for its world-class beaches at affordable prices. Internet speed and reception is typically good, especially at work-friendly cafés. However, 10-20 minute power outages are not uncommon.²² While the co-working space economy is still developing, more are opening all the time.

Cuenca, Ecuador

💰 Cost of living

Less than $1,000 USD per month.

🏥 Healthcare

The quality of healthcare in Cuenca can vary, but it tends to be better in private facilities rather than public ones. If you have complex or specialized medical needs, you may need to head to a bigger city (such as Quito) to be properly attended to.

🚨 Safety

While crime rates are overall higher in Ecuador than in the other Latin American countries on this list, it varies widely from location to location. Cuenca, for its part, is considered one of the safest areas. 

Streets are clean, widely patrolled, and safe to stroll during the day — though it’s better to take an Uber or official taxi at night. Be particularly aware of your surroundings at the bus station, and avoid or exercise particular vigilance in areas like Cayambe, La Merced, and Feria Libre.²³

🗺️ Digital nomad visa requirements

To apply for Ecuador’s digital nomad visa, you must prove that you work remotely for a company or client abroad, earn at least 3x the basic monthly salary ($1,350, as of 2023), have a clear criminal record, and purchase private health insurance.

👋 Local culture

Cuenca’s culture is a rich blend of indigenous heritage and Spanish colonial influence. Preserving tradition is important to this city— which makes sense, given that the historic center has been labeled a UNESCO World Heritage site. Locals are warm and welcoming, and pride themselves on craftwork like Panama hat weaving and ceramics. While the pace of life may be a bit slower, they know how to celebrate as well, with festivals, parades, and celebrations all throughout the year.

🌍 Digital nomad community

Cuenca’s digital nomad community may not be as large as the one in Ecuador’s capital city of Quito, but it’s growing nonetheless. There are a few co-working spaces and laptop-friendly cafés, with more expected to open. The internet is generally high-quality, as much of the city has fiber-optic connectivity, although it varies between neighborhoods.

São Paulo, Brazil

💰 Cost of living

Approximately $1,200 – $1,500 USD per month.

🏥 Healthcare

São Paulo boasts a well-developed healthcare system with both public and private options.²⁴ Private facilities often offer a higher quality of care and shorter wait times, making them preferable for expatriates and digital nomads. However, public healthcare is available and can be a more affordable alternative.

🚨 Safety

Safety can be a concern in some areas of São Paulo, as it is a bustling metropolis. While violent crime rates have decreased in recent years, petty crimes like pickpocketing can still occur, especially in crowded tourist areas. It’s advisable to stay cautious and avoid displaying valuable items in public.

🗺️ Digital nomad visa requirements

As of 2023, Brazil doesn’t offer a specific digital nomad visa. However, you can enter the country on a tourist visa and work remotely for up to 180 days within a year. Be sure to check the latest visa regulations before planning your stay.

Related: The Brazil Digital Nomad Visa: Work Remotely as a US Expat

👋 Local culture

São Paulo is a melting pot of cultures, resulting in a diverse and vibrant local scene. The city is known for its art, music, and culinary experiences. You’ll find a mix of traditional Brazilian culture, as well as modern and international influences. The locals, known as Paulistanos, are known for their friendly and welcoming nature.

🌍 Digital nomad community

São Paulo boasts a thriving digital nomad community due to its status as Brazil’s economic hub. Co-working spaces, tech meetups, and networking events are common. The city offers excellent internet connectivity, with many areas having access to high-speed fiber-optic internet. Neighborhoods like Vila Madalena and Pinheiros are particularly popular among the digital nomad crowd.

Mexico City, Mexico

💰 Cost of living

Roughly $1,000 – $1,500 USD per month.

🏥 Healthcare

Mexico City offers a mix of healthcare options, with both public and private facilities.²⁵ Many private hospitals are well-equipped and provide high-quality care. Expats and digital nomads often opt for private healthcare due to its efficiency and English-speaking staff.

🚨 Safety

While Mexico City has had a reputation for safety concerns in the past, it has made significant strides in improving security. Most areas frequented by tourists and expats are considered safe, especially during the day. Like any big city, it’s important to stay aware of your surroundings and take precautions against petty theft.

🗺️ Digital nomad visa requirements

As of 2023, Mexico doesn’t have a specific visa for digital nomads. You can enter the country on a tourist visa and engage in remote work, however, the length of time for which visas are issued is changing, as is government regulation regarding remote work.²⁶ It’s advisable to follow immigration rules and ensure that your work activities comply with visa regulations.

👋 Local culture

Mexico City is a dynamic and culturally rich metropolis with a deep history. From ancient Aztec ruins to colonial-era architecture, the city is a blend of tradition and modernity. The locals are known for their warmth and hospitality. The city’s vibrant arts scene, street food culture, and lively festivals make it an exciting place to explore.

🌍 Digital nomad community

Mexico City has been gaining popularity among digital nomads due to its affordability and cultural offerings. The city has numerous co-working spaces, cafes with reliable Wi-Fi, and networking events. The internet connectivity is generally good, and you’ll find various neighborhoods like Condesa and Roma Norte that are favored by the digital nomad community.

Dubai, UAE

💰 Cost of living

Approximately $2,500 – $3,500 USD per month.

🏥 Healthcare

Healthcare in Dubai is of high quality, with modern medical facilities and well-trained professionals. Both public and private healthcare options are available. Expats and digital nomads often choose private healthcare for quicker service and English-speaking staff.

🚨 Safety

Dubai is known for its strict approach to law enforcement, making it one of the safest cities in the world.²⁷ Crime rates are generally low, and the city is known for its safe streets, even at night. However, it’s still advisable to exercise caution and follow local laws and regulations.

🗺️ Digital nomad visa requirements

As of 2023, Dubai offers a one-year virtual working program that allows remote workers and their families to live in Dubai while continuing their jobs. The program requires proof of employment, health insurance with UAE coverage, and a passport with at least 6 months of validity.

👋 Local culture

Dubai is a city of contrasts, blending traditional Arabian culture with modern luxury. While it’s a multicultural hub, the UAE’s Islamic values and traditions are deeply rooted. Visitors are expected to respect local customs, including dress codes and public behavior. The city offers a mix of traditional souks, futuristic skyscrapers, and world-class shopping malls.

🌍 Digital nomad community

Dubai has been actively attracting remote workers through its virtual working program. The city boasts a growing digital nomad community with co-working spaces, tech events, and networking opportunities. The internet infrastructure is excellent, providing reliable high-speed connections throughout the city.

BONUS – An upcoming digital nomad city for 2024

Toronto

💰 Cost of living

Approximately $2,000 – $3,000 USD per month.

🏥 Healthcare

Canada is known for its publicly funded healthcare system, and Toronto offers a range of medical facilities and services. Residents and visitors have access to quality healthcare, with no immediate out-of-pocket costs for most medical services.

🚨 Safety

Toronto is generally considered a safe city, with a low crime rate compared to other major cities. Violent crime is relatively rare, and the city’s neighborhoods are generally safe to explore. As with any urban area, it’s wise to remain vigilant, especially in crowded or unfamiliar areas.

🗺️ Digital nomad visa requirements

Canada just launched its remote working scheme, targeting location-independent workers in tech in particular. According to Immigration Minister Sean Fraser, “We’re actually creating a pool of talent of people who will be able to stay in Canada in the long term.”

👋 Local culture

Toronto is a diverse and multicultural city, often referred to as a “cultural mosaic.” You’ll find a mix of cultures, languages, and cuisines. The city’s art scene, theaters, and vibrant neighborhoods offer a rich cultural experience. Torontonians are known for their friendliness and openness to different backgrounds.

🌍 Digital nomad community

Toronto has a growing digital nomad community, thanks to its status as Canada’s largest city and financial hub. The city offers a plethora of co-working spaces, tech meetups, and networking events. The internet infrastructure is robust, with reliable high-speed connectivity available in most areas.

How to choose a city to be digital nomad?

Embarking on a digital nomad journey is an exciting endeavor, offering the freedom to work remotely while exploring new places. However, selecting the right city to call your temporary home requires careful consideration of several factors. Here’s an overview of considerations to help you evaluate potential cities for your digital nomad adventure.

Internet connectivity

As a digital nomad, a reliable and fast internet connection is non-negotiable. Look for cities with a robust internet infrastructure and widespread Wi-Fi availability. Check for areas with high-speed connections and explore co-working spaces or cafes known for their excellent internet services.

Climate and environment

Consider your climate preferences. Do you thrive in a warm tropical paradise or prefer a cooler, more temperate climate? Research shows that the weather can greatly impact our ability to do our work, as demonstrated by the number of people who live with and suffer from Seasonal Affective Disorder (SAD).²⁸ 

Depending on your preferences, research cities that align with your ideal weather conditions. A city’s environment, such as proximity to beaches, mountains, or natural landscapes, can also play a role in your overall experience.

Community and networking

A strong digital nomad community can provide invaluable support and enrich your experience. Seek out cities with a thriving community of like-minded individuals by exploring hashtags associated with digital nomads on social media, and engaging with thought leaders in the space. More and more often, co-living spaces also offer a source of comfort and community to digital nomads.²⁹

While building your community, you can also research co-working spaces, meetups, and events designed for digital nomads. Engaging with fellow nomads can lead to networking opportunities and lasting friendships that endure long after the time you spend together in a city.

Balancing popular destinations with off-the-beaten-track locations

Balancing between popular destinations and emerging cities is essential to developing a holistic understanding of the international digital nomad community. 

Established digital nomad hotspots offer established infrastructure and a welcoming community. On the other hand, up-and-coming cities might provide unique experiences and potential growth opportunities.

In order to evaluate your preference, take honest stock of where you’re at in your life and what you’re looking to get out of a new experience.

Digital nomad visas and regulations

As demonstrated throughout this article, many, many countries are now offering official digital nomad visas to remote and self-employed workers. Digital nomad visas, or even flexible visa options, can assist you in landing on your feet in a new destination by giving you an extended period of time to legally reside there. 

Government support and tax considerations

Some countries offer favorable tax conditions for digital nomads. In addition to researching whether a country offers a digital nomad visa, it’s important to understand and compare the tax incentives between countries. 

Strong incentives indicate that a government is supportive of remote work, and foreign residents. Moreover, favorable tax conditions can significantly impact your financial situation and overall experience.

Cost of living

Evaluate the cost of living in your chosen city. Compare expenses such as accommodation, food, transportation, and entertainment. Consider your budget and how it aligns with the local cost of living to ensure a comfortable and sustainable stay.

Quality of life

Assess the overall quality of life in a potential city. Consider factors like healthcare, safety, cultural attractions, and leisure activities. A city that offers a well-rounded lifestyle will enhance your digital nomad experience.

Personal interests and hobbies

Factor in your personal interests and hobbies. Do you enjoy outdoor activities, art, food, or cultural experiences? Choose a city that aligns with your passions to make the most of your time outside of work.

Future planning

Think about the long term. While your current digital nomad journey might be temporary, consider how the city aligns with your future goals. Whether it’s a stepping stone to your next adventure or a place to settle down eventually, make choices that resonate with your aspirations.

Ultimately, the perfect digital nomad city will be a unique blend of your preferences and practical considerations. Take the time to research and weigh the factors that matter most to you, ensuring a fulfilling and enriching experience as you explore the world while working remotely.

Bright!Tax is proud to support the digital nomad lifestyle.

Bright!Tax CPAs are US expats and world travelers, just like you! Whether you’re launching your digital nomad lifestyle or a seasoned nomad, our US-certified expat accountants bring an empathetic expertise that’s guaranteed to optimize or improve any tax situation.

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References

1. Cost of Living in Lisbon
2. How Safe is Lisbon for Travel?
3. Living in Lisbon as a Digital Nomad
4. Cost of Living in Madrid
5. How Safe is Madrid for Travel?
6. Cost of Living in Uvita
7. Understanding the Costa Rican Healthcare System
8. Living in Uvita, Costa Rica – An Expat’s Guide
9. Overview of Colombia Healthcare System
10. Crime in Medellin – Data Update 2023 (Mid-Year)
11. The Ultimate Medellin Digital Nomad Guide: Is It Worth It?
12. Cost of Living in Croatia
13. Is Croatia Safe to Visit in 2023
14. Is Athens Safe – 2023
15. Cost of Living in Argentina
16. Healthcare During Your Stay in Buenos Aires
17. Global Peace Index in Argentina 2023
18. Argentina Digital Nomad Visa
19. Is Tallin Safe for Travel in 2023
20. Digital Nomad Visa – Estonia
21. Can You Live for Less Than 1000 USD in Sarande, Albania?
22. The Ultimate Guide to Albania for Digital Nomads
23. The Safest City in Ecuador 2023
24. Healthcare in São Paulo
25. Healthcare in México
26.  Changes to Time Allowed in México on a Visitor Permit
27.  Is it Safe to Travel to Dubai in 2023?
28. Seasonal Affective Disorder (SAD)
29.  Seven Ways to Make Your Coliving Experience the Best Yet

Note: Unless indicated otherwise above, for information regarding the estimated cost of living in a certain city we utilize Numbeo.com.

The post The 13 Best Digital Nomad Cities for US Expats in 2023 appeared first on Bright!Tax Expat Tax Services.

Sean Fraser, Canada’s Minister of Immigration, Refugees, and Citizenship, announced earlier this month that the Canadian government would be launching a series of measures to make it easier for highly skilled workers to live and work in Canada.¹

But what exactly does this immigration program entail, and how can you apply for a digital nomad visa in Canada? We’ll go over all of that and more below.

Snapshot of expat life in Canada

Population: 38 million

Capital: Ottawa

Currency: Canadian dollar (CAD)

Official language(s): English, French

Approximate number of American expats: Over one million

Why is Canada trying to attract digital nomads?

The COVID-19 pandemic dealt a blow to economies around the world — particularly in the tourism sector. In the aftermath, Canada (and many countries) became eager to attract highly mobile, well-compensated workers. The overarching goal is to boost local spending and hopefully, the economy as a whole.

Related: Canada Tax Rate VS the US: Do Americans Pay More?

Remote workers from this industry should pay special attention

A unique feature of Canada’s digital nomad rollout is its active targeting of tech professionals. Although tech positions abound within the country, many of the roles are highly specialized in nature. This results in hiring and retention challenges. 

With an insubstantial candidate pool, Canadian employers often turn to international recruiting to fill these positions.² Canada’s remote work visa was largely launched to supplement this effort. In fact, Canadian tech industry stakeholders worked with the government of Canada to craft the details of the plan. 

While many countries with digital nomad visas require holders to work for a foreign employer in order to avoid adding competition to the local job market, Canada’s digital nomad visa actually encourages holders to apply for jobs at Canadian companies. The digital nomad visa essentially serves as a foot in the door for foreign professionals seeking long-term employment after initially coming to the country as a digital nomad. Unlike many other digital nomad visas, companies are encouraged to make their digital nomad workers formal job offers. 

And those who do get hired by a Canadian employer will have an easier time getting permanent residency (something we’ll go into more detail on in just a bit).

Requirements to obtain the Canada digital nomad visa

So, what exactly does it take to apply for a digital nomad visa in Canada? Here’s a high-level overview of what the government has disclosed so far:

Application eligibility

The Canadian government has stated that applicants for the Canadian digital nomad visa must be able to “perform their job remotely from anywhere in the world” on behalf of a foreign employer.³ 

Visa requirements and duration

While not all of the details have been fully fleshed out, it’s likely that Canada will adopt some of the requirements typical of other countries’ digital nomad visas, such as:

• A minimum monthly income
• A clean criminal record
• Private medical/travel insurance
• Proof of accommodation

Once granted, the visa will allow a holder to stay in Canada for six months at a time. It is not yet clear how many times somebody can apply for this visa, nor how long they must wait after their initial visa has expired to re-apply.

Permitted activities and work restrictions

While Canada’s digital nomad visa is largely being launched in an effort to attract tech talent, there has been no mention thus far that you must be a tech worker in order to be eligible for the visa — presumably, any remote worker, regardless of their role or the industry in which they work, will be able to apply as long as they comply with all of the requirements.

Canada digital nomad visa application process

Again, the exact details of the digital nomad visa application process have so far been sparse, although there should be greater clarification once the visa is officially announced toward the end of 2023.

However, based on the application processes for other countries’ digital nomad visas, it’s likely that the process will include:

• Gathering required documents, such as:
  • A valid passport
  • A completed visa application form
  • An FBI background check
  • Two standard-sized passport photos
  • Proof of employment
  • Proof that you meet the minimum income requirements
  • Proof of medical/travel insurance
  • Flight departure & return information
• Scheduling an appointment at your nearest Canadian embassy or consulate
• Attending the appointment to submit your required documents, pay any associated fees, and collect your biometric information
• Waiting for your visa to be approved
• Collecting your visa from the embassy/consulate

Pathways to permanent residency via Canada’s new digital nomad visa

As mentioned previously, Canada’s digital nomad visa is unique in that it encourages holders to find work at a Canadian employer. After they receive a job offer from a Canadian employer, digital nomad visa holders can begin applying for a temporary work permit. This can be extended up to a total of three years.⁴

Depending on how much of that time you spend in Canada, you may even qualify to apply for permanent residency or citizenship. Permanent residency requires you to live in Canada for 730 days within the past five years. Citizenship, on the other hand, requires you to live in Canada for 1,095 days out of the past five years.⁵

Alternatives to the digital nomad visa in Canada

Beyond the digital nomad visa, Canada announced a few other methods to make it easier for highly skilled workers to immigrate to the country:

• As of July 16, 2023, those who hold H-1 B visas in the US may apply for jobs in Canada as well,⁶ with an initial cap of 10,000 applicants
• The Start-Up Visa provides foreign entrepreneurs who receive support from a Canadian VC firm, angel investor, or incubator a pathway toward permanent residency.⁷ In the near future, Canada’s government plans to add more spots to this program and streamline application processing times
• The Global Skills Strategy program allows foreigners whose jobs fall into certain executive/managerial or professional categories to receive expedited processing on temporary work visas⁸
• The “Innovation Stream” will allow certain Canadian employers that contribute toward industrial innovation goals to issue five-year work permits for foreign workers and/or create five-year open work permits for workers in specific, high-demand roles⁹

Where to live in Canada

Some of the top places to live in Canada include:

Toronto

Why move there: Toronto is Canada’s largest city. Boasting nearly three million inhabitants, it has just about everything you could ask for from a big city: great restaurants, shopping, nightlife, museums, and other cultural institutions, professional sports teams, and parks.

Average 1-BR rent in the city center: $2,482 CAD (~$1,881 USD)

Average monthly expenses (excluding rent): $1,482.20 CAD (~$1,123 USD)¹⁰

Montréal

Why move there: Montréal, Canada’s second-largest city, is often described as the country’s cultural capital. As the epicenter of French Canada, it’s perhaps no surprise that the city is known for its European feel — particularly when it comes to architecture. Montréal is also known for its cuisine, festivals, and creative scene.

Average 1-BR rent in the city center: $1,551 CAD (~$1,175 USD)

Average monthly expenses (excluding rent): $1,2831 CAD (~$973 USD)¹¹

Vancouver

Why move there: Vancouver offers the best of both worlds: a bustling metropolis with about 662,000 inhabitants and the abundant natural beauty typical of the Pacific Northwest. Digital nomads in Vancouver can easily spend the day exploring the nearby mountains and beaches. Then, in the evening, head to the heart of the city at night to check out Chinatown, local markets, and breweries.

Average 1-BR rent in the city center: $2,629 CAD (~$1,992 USD)

Average monthly expenses (excluding rent): $1,436 CAD (~$1,088 USD)¹²

Digital nomad life in Canada

5 things that should be on your Canada bucket list

There’s no shortage of incredible things to do in Canada — but these should top your list:

• Get an up-close look at the splendor of Niagara Falls
• See an ice hockey game to cheer on NHL teams like the Toronto Maple Leafs, Calgary Flames, Winnipeg Jets, and more
• Get lost in the European-style cobblestone streets of Old Québec
• Trek through the lush coastal forests of British Columbia
• Go skiing or snowboarding in one of the world-famous ski resorts of Whistler, Banff, or Jasper

Taxes in Canada for remote workers and digital nomads

• Primary tax forms: T1 General 
• Tax deadline: April 30 (June 15 for self-employed)
• Reporting website: Canada Revenue Agency
• Administrative language(s): English, French
• Tax treaty: Yes
• Totalization agreement: Yes

Who qualifies as a tax resident in Canada?

Those who have spent 183 or more days in Canada during the tax year are considered to be Canadian tax residents.

Related: Digital Nomad Taxes: A Complete Guide

Do Americans in Canada have to pay US taxes?

Yes, all US citizens and permanent residents must file US tax returns as long as they meet the minimum income reporting threshold. Some tax requirements and breaks that expats should know include: 

• Foreign Earned Income Exclusion (FEIE): Allows you to exclude up to $120,000 (for tax year 2023) of foreign-earned income from taxation and write off qualified housing expenses via the Foreign Housing Exclusion
• Foreign Tax Credit (FTC): Allows you to subtract what you’ve paid in foreign income taxes from what you owe the US government
• Foreign Bank Account Report (FBAR): Requires anyone with over $10,000 in foreign accounts to file FinCEN Report 114
• Child Tax Credit (CTC): Allows you to claim up to $1,500 in partially-refundable credits for each of your qualifying dependents
• Foreign Account Tax Compliance Act (FATCA): Requires anyone with over $200,000 in foreign assets on the last day of the tax year — or over $300,000 at any point in the year — to file Form 8938. (These thresholds vary for those residing in the US.)

US remote workers can rely on Bright!Tax to handle their digital nomad journey in Canada.

Whether you’re a seasoned digital nomad or just getting started, Bright!Tax are pleased to offer both US and Canadian tax filing services to digital nomads in Canada. Lay the financial groundwork for a smooth tax season today with a free consultation.

Get Started

References

1. Minister Fraser launches Canada’s first-ever Tech Talent Strategy at Collision 2023
2. Employers In Canada Increasingly Recruiting Tech Workers Abroad Due To Serious Labour Shortages
3. Canada’s Tech Talent Strategy
4. How to Apply for Canada’s New Digital Nomad Visa
5. Guide IMM 5445 – Applying for a permanent resident card (PR card)
6. From July 16, those holding H1-B visa, kin can apply for jobs in Canada too
7. Start-up Visa Program
8. Canada launches new Global Skills Strategy
9. New Canada Visa Targets Digital Nomads To Work Remotely
10. Cost of Living in Toronto
11. Cost of Living in Montreal
12. Cost of Living in Vancouver

The post Canada Digital Nomad Visa: Key Details for US Remote Workers appeared first on Bright!Tax Expat Tax Services.

To help you narrow down your search, we put together a list of some of the best digital nomad jobs available.

How we curated this list

We took multiple factors into account when creating this list. Why? Because we know that every digital nomad journey is personal – some seek higher pay and greater freedom, while others seek simplicity and ease. Bearing that in mind, we used the following to determine the inclusion of a job in this list: 

• Accessibility: Skillsets can be self-taught or learned through online courses
• Location independent: Easy to work outside of a fixed office
• Earning potential: Livable wages with potential for growth (because being a digital nomad does not mean you won’t have a developing career path!)
• Professional growth: Opportunities for professional development
• High demand: Volume of jobs available

Preparing to work as a digital nomad

Before you embark on your digital nomad journey, however, it’s important to think about the practicalities:

• Visas: Most countries will require you to apply for a visa if you choose to live and work there on a long-term basis, 90 days being a common definition of “long-term” for visa purposes
• Securing work: It’s better to find work before you leave; expenses can add up quickly, and searching for a job while adjusting to a new lifestyle can be stressful
• Accommodation: Do you want to roam from place to place, or operate out of a central home base? Keep in mind that long-term rental contracts are typically cheaper than short-term stays at Airbnbs, hostels, and hotels
• Workspace: Will you work remotely from wherever you’re staying, or do you prefer a co-working space or café? If you choose one of the latter, factor those expenses into your budget and look at online reviews for the quality of Wi-Fi & the working space
• Equipment: Make sure that you have all of the gear you need to do your job. Opt for quality over cost savings as repairing or replacing equipment can be difficult or more expensive abroad. If upfront cost is an issue, look into monthly payment plans
• Essential services: Anywhere you work must have reliable Wi-Fi service, so don’t just take their word for it — read online reviews to confirm it. You’ll also want to look into a VPN,¹ online banking or a currency transfer provider, and cellphone plans² that can best accommodate your lifestyle
• Business structure: Anyone who is self-employed should understand the tax implications that come along with it and research which business structure is best for them³

Related: The Top 7 Countries For Digital Nomad Visas in 2023

Best digital nomad jobs 

Below, we’ve compiled a list of the best digital nomad jobs out there. When thinking about which one to pursue, you’ll want to consider factors like which jobs help you leverage or build upon your existing skills, and whether the salaries they offer suit your lifestyle (although of course, your exact pay will depend largely on your skill level, years of experience, and the hours you put in).

Virtual Assistant 

What they do

Serve as an administrative assistant for clients, helping with such tasks as scheduling meetings, answering emails and phone calls, entering data, booking travel, and more.

Who it’s for

Organized, responsible individuals who enjoy working with others, often supporting them as business owners.

Skills required

• Organization
• Time management
• Customer service
• Communication
• Typing

Estimated earning potential

$29,000 – $67,000⁴

Growth opportunities

• Executive Assistant
• Paralegal
• Customer Service Representative
• Marketing Assistant
• Project Manager

Online Educator

What they do

Teach classes or tutor students on a variety of different subjects.

Who it’s for

Patient, empathetic people who enjoy helping others.

Skills required

• Subject matter expertise (e.g. teaching English as a second language, math, science, etc.)
• Communication skills
• Creativity
• Classroom management
• Educational credentials, depending on role (e.g. TEFL certificate, teaching certificate, etc.)

Estimated earning potential

$33,000 – $78,000⁵

Growth opportunities

• Educational Administrator
• Instructional Designer
• Academic Advisor
• Curriculum Specialist
• Department Head

App Developer

What they do

Design, program, and debug mobile apps.

Who it’s for

Creative, technically-proficient individuals who enjoy a challenge.

Skills required

• Mastery of programming languages (e.g. JavaScript, HTML/CSS, Python, etc.)
• Familiarity with Agile practices
• Problem-solving
• Data analysis
• UX and design

Estimated earning potential

$63,000 – $139,000⁶

Growth opportunities

• Product Manager
• Project Manager
• Scrum Master
• Software Engineering Manager
• Data Scientist

Content Writer

What they do

Create written content for clients. Content writing can include short-form assets (e.g. social media copy, web copy, email copy, etc.) and/or long-form assets (e.g. blog posts, white papers, case studies, etc.).

Who it’s for

Creatives with a passion for the written word.

Skills required

• Writing
• Editing
• SEO
• Marketing
• Communication

Estimated earning potential

$32,000 – $92,000⁷

Growth opportunities

• Content Marketing Manager
• Content Editor
• Editorial Director
• Technical Writer
• Marketing Manager

SEO Specialist

What they do

Optimize websites to appear higher on search engine results pages.

Who it’s for

Analytical, results-driven people with a constant desire to learn.

Skills required

• Data analysis
• Google Analytics & Google Search Console
• Knowledge of SEO tools (e.g. Semrush, Moz, Ahrefs)
• Research
• Basic programming

Estimated earning potential

$33,000 – $97,000⁸

Growth opportunities

• SEO Manager
• Digital Marketing Manager
• Data Analyst
• Growth Marketing Manager
• Performance Marketing Manager

Social Media Manager

What they do

Create content, develop strategies, and perform community management for brands’ social media channels.

Who it’s for

Creative, data-driven individuals who love staying on top of the latest trends.

Skills required

• Writing
• Communication
• Strategy
• Knowledge of social media platforms
• Knowledge of social media marketing tools (e.g. Sprout Social, Hootsuite, Sprinklr, etc.)

Estimated earning potential

$36,000 – $91,000⁹

Growth opportunities

• Digital Marketing Manager
• Content Marketing Manager
• Brand Manager
• Head of Social Media
• Chief Content Officer

Web Developer

What they do

Design, build, and optimize web pages.

Who it’s for

People who enjoy creativity, design, and technology in equal measure.

Skills required

• Programming languages (JavaScript, HTML, CSS, etc.)
• UX and UI design principles
• Data analysis
• Knowledge of content management systems (e.g. WordPress, Hubspot, Drupal, etc.)
• Knowledge of design tools (e.g. Adobe Illustrator, Figma, InVision, etc.)

Estimated earning potential

$63,000 – $103,000¹⁰

Growth opportunities

• Software Engineer
• UX Designer
• UI Designer
• UX Researcher
• Head of UX

Marketing Specialist

What they do

Develop marketing campaigns, create marketing strategies, and provide marketing analysis and advice.

Who it’s for

People passionate about the art and science of marketing.

Skills required

• Communication
• Data analysis
• Strategy
• Knowledge of marketing platforms (e.g. Hubspot, Marketo, Moz, etc.)
• Project Management

Estimated earning potential

$37,000 – $92,000¹¹

Growth opportunities

• Marketing Manager
• Marketing Operations Manager
• Brand Manager
• Marketing Research Analyst
• Chief Marketing Officer

Bookkeeper

What they do

Record and maintain financial records for businesses.

Who it’s for

Detail-oriented people who enjoy working with numbers.

Skills required

• Strong math skills
• Organization
• Attention to detail
• Data entry
• Basic knowledge of finance

Estimated earning potential

$31,000 – $64,000¹²

Growth opportunities

• Payroll Specialist
• Accountant
• Certified Public Accountant
• Personal Financial Advisor
• Finance Analyst

Recruiter

What they do

Help companies or agencies fill open roles.

Who it’s for

Those who excel at salesmanship and working with others.

Skills required

• People skills
• Communication
• Organization
• Time management
• Knowledge of applicant tracking systems (e.g. Greenhouse, iCIMS, Lever, etc.)

Estimated earning potential

• $50,000 – $129,000¹³

Growth opportunities

• Talent Acquisition Manager
• HR Manager
• Career Coach
• Employee Experience Manager
• Chief People Officer

Content Creator

What they do

Produce and curate engaging and valuable content across various digital platforms, including blogs, social media, videos, and podcasts.

Who it’s for

Creative individuals with a passion for storytelling, multimedia production, and building a loyal online audience.

Skills required

• Proficiency in content creation tools (e.g. graphic design software, video editing tools)
• Strong writing and communication skills
• Understanding of digital marketing and SEO principles
• Ability to adapt content for different platforms and target audiences

Estimated earning potential

$30,000 – $80,000*

*This figure is based on a review of several different sources and should be considered a starting point when researching the potential here as it is also highly dependent on other factors such as industry, your network, etc. 

Growth opportunities

• Social Media Manager
• Video Producer
• Podcast Host
• Digital Marketing Specialist
• Freelance Writer or Editor
• Online Course Creator

Photographer

What they do

Take and edit photos for their employers, clients, and/or publications.

Who it’s for

Artistic souls with an eye for design.

Skills required

• Advanced knowledge of professional cameras
• Familiarity with photo editing software (e.g. Photoshop, Lightroom, Luminar, etc.)
• Knowledge of photography design principles
• Attention to detail
• Marketing 

Estimated earning potential

$30,000 – $75,000¹⁴

Growth opportunities

• Graphic Designer
• Creative Director
• Videographer
• Video Editor
• Motion Designer

Affiliate Marketer

What they do

Promote and sell products or services for companies through affiliate programs, earning a commission for each successful referral.

Who it’s for

Entrepreneurs with a flair for marketing and a passion for building online relationships.

Skills required

• Digital marketing expertise
• Social media and content marketing knowledge
• Analytical skills to track and optimize campaigns
• Strong communication and persuasion abilities

Estimated earning potential

$40,000 – $100,000¹⁵

Growth opportunities

• Digital Marketing Manager
• E-commerce Strategist
• Influencer Marketing Specialist
• Online Business Owner
• SEO Specialist

Executive Coach

What they do

Guide and mentor executives and professionals to enhance leadership skills, improve performance, and achieve personal and career growth.

Who it’s for

Experienced professionals with a background in coaching, mentoring, or human resources, who have a passion for empowering others.

Skills required

Strong coaching and mentoring abilities

Exceptional communication and interpersonal skills

Understanding of leadership development strategies

Empathy and emotional intelligence

Estimated earning potential

$60,000 – $150,000*

*This figure is based on a review of several different sources and should be considered a starting point when researching the potential here as it is also highly dependent on other factors such as industry, your network, etc. 

Growth opportunities

Leadership Development Consultant

Organizational Development Specialist

Executive Trainer

Human Resources Director

Professional Development Coach

Online Therapist

What they do

Provide counseling and therapeutic support to clients through virtual platforms, addressing mental health concerns, emotional well-being, and personal growth.

Who it’s for

Licensed and qualified mental health professionals who are adept at offering remote counseling services.

Skills required

Clinical expertise in psychology, counseling, or social work

Empathy and active listening skills

Ability to create a safe and supportive virtual environment

Knowledge of online therapeutic tools and platforms

Estimated earning potential

$50,000 – $100,000*

*This figure is based on a review of several different sources and should be considered a starting point when researching the potential here as it is also highly dependent on other factors such as industry, your network, etc.

Growth opportunities

Telehealth Specialist

Mental Health Consultant

Online Counseling Supervisor

Private Practice Owner

Mental Health Advocate

How to find digital nomad jobs

Getting a job as a digital nomad is no small feat; it’s essentially synonymous with getting a remote job. That said, there are several steps you can take to facilitate a productive digital nomad job search: 

• Identify your skills and passion: Define your expertise and interests to shape your job search.
• Use Remote Job Websites: Check out platforms like Remote.co, We Work Remotely, and FlexJobs for diverse nomad job listings.
• Leverage social media and networking: Connect with remote-friendly companies on platforms like LinkedIn and other professional networks.
• Explore freelancing platforms: Market your skills independently on sites like Upwork, Fiverr, and Toptal.
• Attend virtual events: Participate in online job fairs, webinars, and conferences to expand your network and find opportunities.
• Engage with nomad communities: Join forums and social groups to learn from experienced nomads. Be sure to come prepared to listen more than you speak – networking is all about asking the right questions and committing to genuinely growing a relationship with professionals you admire.
• Be persistent and adaptable: Embrace the evolving nature of digital nomad jobs and stay determined in your search.

Best online job boards for digital nomads

In addition to the resources mentioned above, you may also find the following online resources useful for finding the right role for you to apply for: 

Note: All links without a note in parenthesis indicate that you may remote jobs in many industries via the resource. 

Digital nomad tax implications

Understanding taxes is crucial for US digital nomads as they must file a US tax return annually, regardless of their global location. As a beginner, consider these key points:

Residency Status

Determine your tax residency, either as a “resident” or “non-resident” based on IRS guidelines. This impacts which forms you need to file.

Claiming IRS Tax Provisions

As a US digital nomad, you can leverage IRS tax provisions to manage your tax liability effectively. Two essential options are the Foreign Earned Income Exclusion (FEIE) and the Foreign Tax Credit (FTC). Read more about these important digital nomad tax provisions.

Tax Treaties

Be aware of tax treaties between the US and the country you reside in. These treaties can influence how your income is taxed.

Filing Deadlines

Understand US tax filing deadlines, extensions, and payment requirements to avoid penalties.

Consider a Tax Professional

Due to the complexity of international tax laws, consider consulting a tax professional who specializes in expat or digital nomad tax matters.

Digital nomad life is brighter with Bright!Tax.

Lighten your load as a digital nomad when you file your US expat taxes with Bright!Tax. Our CPAs are based worldwide just like you!

Get started

References 

1. Best VPN Service
2. The Best Travel Phone Plans for Digital Nomads
3. Small Business Structure: How to Choose the Right One
4. Glassdoor – Virtual Assistant Salary
5. Glassdoor – Online Teacher Salary
6. Glassdoor – Content Writer Salary
7. Glassdoor – SEO Specialist Salary
8. Glassdoor – Social Media Manager Salary
9. Glassdoor – Web Developer Salary
10. Glassdoor – Marketing Specialist Salary
11. Glassdoor – Bookkeeper Salary
12. Glassdoor – Recruiter Salary
13. Glassdoor – Photographer Salary
14. Glassdoor – Affiliate Marketer Salary

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