Which countries are best for digital nomads and IT professionals?

In the era of remote work and digital globalization, more and more professionals from IT and creative industries are choosing the life of a digital nomad. This lifestyle is attractive due to its freedom of movement, flexibility in choosing a place to work, and the opportunity to combine career ambitions with personal travel. However, choosing a country for a digital nomad to live and work in is not only a matter of aesthetics or climate. Factors such as visa availability, standard of living, taxation, internet speed, and infrastructure for remote work play an important role. In addition, many countries today are actively creating conditions to attract just such specialists, offering favorable conditions for obtaining a visa or low tax rates. In this article, we will consider how you can legalize yourself in another country, which countries are most suitable for digital nomads and IT specialists, evaluate their advantages, and help you decide where it is best to combine work and a comfortable life.

How can a digital nomad settle in another country?

Settling in another country is a process that requires not only solving logistical issues, but also understanding the legal and tax peculiarities of the chosen jurisdiction. There are various ways for digital nomads to legalize their stay, from obtaining specialized visas to starting their own business. Here are the key steps that will help digital nomads move and settle in a new country:

1. Obtaining a digital visa or residence permit for remote work

Many countries (about 40 countries worldwide) offer special visas for remote workers. These programs allow digital nomads to legally reside in the country without becoming its tax residents, subject to certain conditions (the main condition is to confirm a stable income). Registration of such permits takes on average 2-3 months, and a residence permit under a digital visa can be obtained from 3 months to 3 years, depending on the jurisdiction.

2. Starting your own business or freelancing

In some countries, obtaining a residence permit is possible through the registration of a company or individual entrepreneurship. This option is suitable for IT specialists who work on international projects or provide services online.

3. Tax regime study and compliance with local laws

Before moving, it is important to study the tax laws of the country in order to avoid double taxation and not to end up as a resident of two countries at once. In addition, it is necessary to open a bank account or an account in an international payment system to facilitate payments or settlements with partners, confirm income, obtain a tax number and health insurance, rent/purchase housing in the country of future residence

For a digital nomad, it is important not only to find a country that suits their living conditions, but also to arrange legal and financial issues so that living is profitable, comfortable and safe. In the following sections, we will look at countries that offer the most attractive conditions for this.

Top 5 Countries for Digital Nomads

1. Portugal

Portugal attracts digital nomads, freelancers and startups with its unique atmosphere, mild climate and growing tech ecosystem. The country has become a popular choice and a de facto leader in 2024 among those looking for a balance between quality of life and professional opportunities.

Advantages:

• Digital Nomad Visa: Portugal offers the Digital Nomad Visa program, which is suitable for those who work remotely and receive a stable income from abroad – from 3,280 euros per person and have savings in the account equal to 12 minimum wages. Under this program, you can get your first residence permit for 2 years with the possibility of extending it for another 3 years.
• Tax incentives: Portugal has implemented the NHR (Non-Habitual Resident) program, which provides tax incentives for foreign nationals living in the country, making it a great choice for freelancers and entrepreneurs.
• Growing startup ecosystem: Lisbon and Porto are hubs for tech startups, with plenty of coworking spaces, accelerators and investors.
• High quality of life: Portugal is famous for its climate, quality healthcare and safety, as well as low living costs compared to other European countries.

2. UAE (Dubai)

The UAE, and Dubai in particular, has become a popular choice for those seeking financial freedom and high career opportunities. Dubai actively attracts professionals from various fields, including IT and the startup sector, due to tax incentives and excellent infrastructure.

Advantages:

• Remote Worker Visa: The UAE has launched the Virtual Working Program, which allows remote workers to legally live and work in the country using its infrastructure. The main requirement is a stable income of $3,500 per month and a valid work contract (at least 1 year). The visa is issued for one year with the possibility of annual extension.
• Tax incentives: The UAE offers zero personal income tax and a number of economic zones with tax incentives for businesses. This makes the country very attractive to freelancers and startups.
• High security and infrastructure: Dubai is one of the safest and most technologically advanced cities in the world with excellent transport and internet infrastructure.
• Global business hub: Dubai is a financial and technology hub for startups, with plenty of opportunities for networking and collaboration with international companies.

3. Estonia

Estonia is known for its technological innovation and cutting-edge digital solutions. Tallinn is a place for IT professionals and entrepreneurs looking for convenient conditions for doing business and living. Estonia has become a pioneer in creating a digital country with a number of unique programs for freelancers and startups.

Advantages:

• e-Residency program: Estonia has offered a unique opportunity for entrepreneurs and freelancers around the world to register and manage their businesses remotely using e-Residency. This is ideal for people working for international markets.
• Simple and transparent tax regime: Estonia uses a tax system that is based on corporate taxes only on profits when they are paid, which gives an advantage to startups in their early years.
• Growing startup ecosystem: Tallinn actively supports startups, with a number of accelerators and investors, as well as opportunities for grants and subsidies.
• Digitalization and infrastructure: Estonia is actively introducing digital technologies into everyday life, offering citizens and companies access to government and financial services online.

4. Cyprus

Cyprus attracts digital nomads, freelancers and IT professionals due to its strategic location in the Mediterranean, warm climate and convenient legal system. The island has become a popular choice for startups due to its low taxes and favorable visa program for entrepreneurs.

Advantages:

• Remote Worker Visa: The Digital Nomad Visa program allows you to obtain a long-term visa to work from the country. The foreign worker’s income must be at least 3,500 euros. The residence permit is initially issued for 1 year with the possibility of extension for another 2 years.
• Low Taxes: Cyprus offers a favorable tax regime, with a corporate tax of only 12.5%, as well as tax breaks for freelancers and expatriates.
• Startup Infrastructure: Cyprus actively supports the startup community, offering subsidies and tax breaks for tech companies.
• Attractive Climate: The warm climate and quality life on the coast make Cyprus convenient for long-term residence.

5. Spain

Spain is not only a place with a unique culture and climate, but also a country with a growing ecosystem for startups and freelancers. In recent years, it has been actively attracting IT specialists, offering various visa programs and opportunities for remote work.

Advantages:

• Freelance visa: Spain offers the autónomo visa program, which allows freelancers and sole proprietors to legally work and live in the country. There is also the Digital Spain Agenda, specifically for issuing visas to digital nomads. Income under this program must be at least 2,650 euros per month, but in addition, it is necessary to document qualifications, the employer company must exist on the market for more than a year and cooperate with the employee for at least 3 months. The digital visa is valid for a year, and a residence permit under this method is issued for 3 years with the possibility of extension.
• Tax incentives: For start-ups and new businesses, Spain offers tax incentives and subsidies, especially for companies in the technology sector and for women under 30 who become autónomo (self-employed).
• Quality of life: low stress levels, high quality healthcare, and a favorable climate make Spain one of the most attractive places to live.
• A thriving startup ecosystem: cities like Barcelona and Madrid have become hubs for startups and IT companies, with numerous coworking spaces and support from startup accelerators.
• A community of professionals: Spain has a vibrant tech and entrepreneurial community, making it easy to network and find business partners.

Each of these countries offers unique conditions for living and working. The choice depends on your preferences, professional goals and needs. Our lawyers can help you with opening a business in these countries, as well as provide advice on taxation issues. Contact Azola Legal Services for professional support, and we will help you choose the best solution for your business and future plans.