NextAdvisor Financial Independence See the Lives of ‘Digital Nomads’ Who Do Their Jobs While Living Outside the US. How You Can, Too
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Kimanzi Constable Contributing Writer Kimanzi Constable is an author of four books and a freelance writer whose articles have been published… Full Bio: externa link icon Follow: Kimanzi Constable on youtube November 11, 2022 | 6 Min Read
Kimanzi Constable
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Your new strategy for navigating America’s cost of living crisis? Leave.
“I lived in Silicon Valley, where the cost of living was expensive,” says Keith Romes, a quality assurance analyst, who moved to Mexico to work remotely in August 2020. “When companies moved to remote work during the pandemic, I got a taste of it. I love to travel, and thought I could get the best of all worlds: work remotely, travel, and save money.” The idea of digital nomadism — working from another country or multiple countries — has been around for years, but the remote work revolution has renewed interest in the wanderlust lifestyle.
When people have the chance to work flexibly, 87 percent do so, according to the American Opportunity Survey, a report published by McKinsey & Company, a global management consulting firm. Some fully-remote workers are moving abroad to lower their cost of living and invest their extra savings to create financial independence.
But will your employer let you make the leap? Here’s what you need to consider if becoming a digital nomad is a goal of yours, according to people who’ve been doing it for years.
Get Your Employer’s Buy-In First
If you’re an employee, know that there are state-specific labor laws your company must abide by. If you want to work from outside the United States, doing so may mean becoming a contractor with your employer or moving into a different role.
“I wanted to start traveling in January of 2020,” says Christa Knox, a client implementation and support specialist who has worked remotely for seven years. “I decided to see if my employer would approve of me working mainly outside the U.S.” Knox says the company she was with at the time reclassified her from a standard W2 employee to a 1099 contractor to limit its liability. “It was still the same type of job, with the same role and amount of hours,” she says. Knox later moved to a company set up to hire her as a W2 employee working remotely outside of the United States.
Since becoming a digital nomad in 2020, Knox has traveled to 17 countries. She spent extended time in Colombia and Mexico because of both the cheaper cost of living and good visa terms for Americans.
Consider Visa Lengths When Choosing a Location
Visa lengths are another factor you must consider when deciding to remote work outside the United States. Most countries offer U.S. citizens a tourist visa that gives you 90 days in the country. Some, like Colombia, where I’m living, allow you to apply for a 90-day extension. If you want to stay in a country longer, you’ll need to apply for a student visa, work visa, or investor’s visa.
Some countries see so much potential in digital nomad life that they’ve launched digital nomad visas, allowing remote workers to stay in countries longer. These visas have terms, such as requiring you to have healthcare and a certain income threshold that you produce outside of the country, so that you don’t take a local job.
“I work from my laptop, so I work from everywhere,” says Zach Benson, an entrepreneur who travels full-time. “I’m the founder of the company, but have a CEO who runs the day-the-day of the company. Outsourcing has helped me work less and be efficient with my time.”
Choose Destinations That Help You Accomplish Your Financial Independence Goals
The U.S. dollar goes far in many countries, allowing you to take the money you make in dollars and stretch it further by living abroad. According to Nomadlist, a global digital nomad community, some of the most popular digital nomad destinations include:
- Lisbon, Portugal
- Canggu, Bali
- Bangkok, Thailand
- Mexico City, Mexico
- Medellin, Colombia
Romes, the former Silicon Valley resident, sold most of his belongings and relocated to Mexico in August 2020. He says the cost of living allows him to save and invest in the markets as well as an online consulting side hustle he’s building.
Romes pays $1,500 a month for a three-bedroom, three-bathroom place with a private pool and office, a rate “you can’t even get for a room in the Bay Area,” he says. The median monthly payment for an apartment in San Jose is currently $3,702, according to rent.com.
If You Have a Mortgage, Consider the Sublet Economy
When COVID-19 arrived, Bretley Hanson got permission from his company to work remotely. He moved himself, his wife, and two daughters (10 and 8) from Oregon to the Dominican Republic in 2020.
“We sold some smaller items and left all the larger items in our house to make it a fully-furnished home that we could and did list on Airbnb,” Hanson says. On Airbnb, their home brings in $3,000 of extra income per month.
The family stayed in the Dominican Republic for one year, then spent the holidays in Cairo, Egypt, and Bangkok, Thailand. The family is now in Tokyo, Japan. Hanson says his kids love the travel lifestyle.
Use the Opportunity to Create New Income Streams
Sometimes, having a lower cost of living can give you the time and mental space you need to explore new projects or streams of income.
“I was working for a hospital and got laid off during the pandemic,” says Corritta Lewis, a digital nomad with a full-time U.S. job she works from Mexico. “We decided to move to Mexico because the cost of living was much cheaper, and there is a black expert community. We were able to live well on $900 a month in Mexico while I applied for unemployment and looked for a new job online.” The experience of being laid off made Lewis realize she needed multiple income streams. After getting settled with her new job as a remote information systems analyst, she started on a side hustle, a website documenting their lifestyle and travel tips.
“I wanted to have as many income sources as possible,” says Lewis. “I needed to be in control of my income as much as I could for my family.” In addition to their time in Mexico, Lewis, her wife, and their son have since traveled to Colombia and Guatemala.
Turn Your Digital Nomad Dream Into Reality
Remote work has created opportunities to both see the world and save more money along the way. If you have the flexibility and are content to work remotely, start your research and conversations with your employer today to help bring your travel aspirations to life.
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FAQs
How do you get a job as a digital nomad? ›
Where to look for digital nomad jobs? The most popular websites to look for digital nomad jobs for beginners are Upwork.com, Freelancer.com, and Fiverr.com. You can simply create your verified profile and sign up for thousands of different online gigs.
Can digital nomad work in USA? ›A digital nomad according to modern living
There is no special digital nomad visa in US yet, however, the States has so many other types of visas and residence permits a foreign citizen can access that living here and working for employers all over the world, or even as freelancers is not a problem.
Merriam-Webster defines a digital nomad as “someone who performs their occupation entirely over the internet while traveling.” They may work remotely for years or weeks and months. Some cross borders, whereas others never leave the U.S. Their professions vary almost as much as the time zones they live and work in.
How do I become a digital nomad and work from anywhere? ›- 1 Get a job that teaches you the skills you need to know. ...
- 2 Become a freelancer in your spare time. ...
- 3 Get Paid for Online Gigs. ...
- 4 Study at an Online University. ...
- 5 Buy an existing Online Business. ...
- 6 Save money and learn in a digital nomad hub.
This also depends on individuals and their job, but most digital nomads work at least 6 hours daily, some even working 8 hours. If you have multiple streams of income, you can afford to work less and enjoy destinations more.
Can I work online outside the US? ›Can I Work Remotely From Another Country? It is legal to work from many countries throughout the world even if you aren't a resident of that country. However, you'll need to comply with your chosen country's visa and tax requirements in order to stay there legally.
Can I work remotely in the US and live in another country? ›You can work remotely for the US and live on another side of the world, but you still need to pay attention to local tax and residence regulations. For instance, if you are working for a US company but living permanently in a European country, you are theoretically working there.
How do I become a digital nomad abroad? ›- Choose a city with a digital nomad community. ...
- Pick the right bank account and credit cards. ...
- Decide what to do with your stuff. ...
- Choose a location that aligns with your working hours. ...
- Consider your technology requirements. ...
- Get travel insurance. ...
- Join co-living communities.
- Writing for the web. ...
- Start a travel blog. ...
- Photography. ...
- Web design and graphic design. ...
- Bar or restaurant jobs. ...
- Teaching English as a second language. ...
- WWOOFING and fruit picking. ...
- Hostel work.
- Put whatever money you can into savings. If you need help with this, look for creative ways to reel in some extra cash. ...
- Deflate your lifestyle costs. ...
- Look for your digital income source. ...
- Start making friends in the digital nomad space. ...
- Take good care of yourself.
Do digital nomads make good money? ›
According to FlexJobs studies, one in five digital nomads makes between $50,000 and $99,000 a year. Generally, remote workers make between $10 and $30 per hour.
Where do digital nomads find jobs? ›- FlexJobs.
- Contena.
- Virtual Vocations.
- Power to Fly.
- Remote OK.
- Jobspresso.
- Working Nomads.
- We Work Remotely.
- Chiang Mai, Thailand. This northern Thai city is a sort of legend in the digital nomad world. ...
- Canggu, Bali. ...
- Ubud, Bali. ...
- Medellin, Colombia. ...
- Lisbon, Portugal. ...
- Bangkok, Thailand. ...
- Ho Chi Minh City, Vietnam. ...
- Buenos Aires, Argentina.
- Chiang Mai – Thailand.
- Canggu – Indonesia.
- Medellin – Colombia.
- Lisbon – Portugal.
- Buenos Aires – Argentina.
- Ho Chi Minh City – Vietnam.
- Bangkok – Thailand.
- Budapest – Hungary.
Paying taxes as a digital nomad
Nomads who stay away for short periods will probably continue to pay tax as normal in their home country, and will not be liable for local taxes. But some countries, such as France, take a stricter approach if you choose to remain indefinitely.
However, I've found a good estimate for a monthly living to be around $1000 to $2000 if you want a pretty comfortable living with your own place and not just hostels – though it can be achieved for both less and more.
What is the easiest digital nomad visa? ›- #1. Estonia's digital nomad visa. ...
- #2. Croatia's digital nomad visa. ...
- #3. Italian Self-Employment Visa. ...
- #4. The Greek digital nomad visa. ...
- #5. Germany's 'freiberufler' visa. ...
- #6. Czech Republic: zivno business visa. ...
- #7. Hungary Digital Nomad Visa: “White Card”
A good, reliable, secure, fast portable Internet connection that allows you to work on the go independently on the country you are, with a reasonable price is critical for a digital nomad. A great option is hiring a dedicated hotspot solution, a 'MiFi' – internet via a mobile hotspot.
What age are digital nomads? ›According to the source, almost half of digital nomads around the world were in their 30s as of 2022. The survey also revealed that the 40-59 age group was well-represented, accounting for 35 percent of digital nomads worldwide.
How do digital nomads not pay taxes? ›Some digital nomads avoid tax completely by becoming non-resident at home, and moving around to avoid being a resident of anywhere.
Can I get a job in USA outside the US? ›
If you live outside the United States and want to work here, you generally must apply for a visa from the U.S. Department of State (DOS), unless a visa is not required for people from your country of nationality. You may visit DOS' Travel Without a Visa page for more information.
How can I make money online outside the US? ›- Switch to Remote Work. Photo via @digitalnomadistas. ...
- Work for a Travel Company. Photo via @advwomen. ...
- Be a Free Tour Guide. ...
- Consider Becoming an Au Pair. ...
- Teach English. ...
- Work as a Digital Translator. ...
- Monetize Your Gap Year. ...
- Do Freelance Work.
You can work in the U.S. with an employment-related green card (permanent residency), an exchange visitor work and study visa, or a seasonal and temporary worker visa. The type of visa and work permit you'll need will vary depending on your career goals.
Can I work for an American company from my home country? ›Foreign employees who work for a US company remotely from their own country do not need a visa or work permit, as long as they work outside of the US. However, they would need a business visa if the US company wanted to bring them to the US for an extended stay or training purposes.
Can I do remote work as a foreigner for an American company? ›Yes, US companies can hire foreign workers either as full-time employees or independent contractors, with the option of either working remotely in their home country or relocating to the US with the relevant labor certification and visa.
How long can you work remotely in another country without paying taxes? ›Do You Have to Pay Remote Work Taxes in Another Country? Yes. Most countries have tax-residency rules that dictate how long you can stay in their country before becoming a tax resident. In most cases, you must file as a tax resident and pay income tax if you stay for more than six consecutive months in a year.
Who hires digital nomads? ›Some of the best-known companies that hire and work with digital nomads are Dropbox, Atlassian, ConvertKit, GitHub, GoDaddy, and Loom.
How much is a digital nomad visa? ›How Much Does a Digital Nomad Visa Cost? A digital nomad visa can cost from $200 up to $2,000. Some Caribbean countries like Barbados, Antigua and Barbuda have the highest application fees for digital nomad visas, up to $3,000 for family applications.
What countries are open for digital nomads? ›Many countries now offer Digital Nomad Visas in some form or other, including Argentina, Germany, the Czech Republic, Croatia, and Mexico. Portugal has also announced a new Digital Nomad Visa that will launch on 30 October 2022.
Does a nomad pay taxes? ›The amount of time that a nomad has to spend in a country before they're considered a tax resident differs from country to country. In many countries, digital nomads must begin to pay income taxes after spending 183 days there. However, while 183 days (or six months) is a common metric, it's not universal.
Who is the owner of nomads? ›
...
The NoMad | |
---|---|
Owner(s) | Daniel Humm |
Head chef | Daniel Humm |
Rating | Michelin Guide, 2018 |
- Barbados' Welcome Stamp Visa. ...
- Malta's Nomad Residence Permit. ...
- Croatia's Digital Nomad Visa. ...
- Bermuda's “Work From Bermuda” Visa. ...
- Costa Rica's Remote Work Visa.
Although you might think digital nomads are all Generation Z, the reality is that you can become a digital nomad at any age, in your 30s, 40s or beyond. Even better, you have some big advantages that younger people don't enjoy — and that can get your remote working lifestyle off to a great start.
What skills do digital nomads need? ›- Programming skills. ...
- Writing skills. ...
- Digital marketing skills. ...
- Graphic design skills. ...
- Creative skills. ...
- Proofreading and editing skills. ...
- Architecture-related skills. ...
- Organizational and planning skills.
- Education. Teaching is one of the best occupations for anyone hoping to travel the world. ...
- Linguistics. ...
- Journalism. ...
- English. ...
- Graphic Design. ...
- Web Development. ...
- Computer Science. ...
- Business.
Typically speaking, 80% of digital nomads will stay in one place for up to 9 months while two-thirds prefer to use a destination as their base for 3-6 months, and only a third plan to stay somewhere for up to a year.
How do digital nomads meet people? ›- 1. Facebook Groups. There's a Facebook group for everything and for everyone, digital nomads included. ...
- Nomad List. ...
- Digital Nomad Events. ...
- Coworking Spaces. ...
- Coliving House. ...
- Coliving Communities.
But, what about the hard numbers? Studies suggest that one in five digital nomads make between USD50,000 and $99,000 per year once they're up and running. Plus, remote workers in general can expect to make an average rate of between $10 and $30 per hour.
Why do people become digital nomads? ›Work and travel wherever you want
This is the most important aspect of the Digital Nomad lifestyle for most people. Being free to travel and work when and where you want is a dream come true. The ability to choose whatever country you want to reside in and how long you want to stay.
- Notebook.
- Smartphone.
- Backpack.
- Headphones.
- Internet Connection.
- Data Backup.
- Waterproof cases for your devices.
- Almost ready!
Where is the best place to live in the world? ›
- Sweden. #1 in Quality of Life. #5 in Best Countries Overall. ...
- Denmark. #2 in Quality of Life. #10 in Best Countries Overall. ...
- Canada. #3 in Quality of Life. ...
- Switzerland. #4 in Quality of Life. ...
- Norway. #5 in Quality of Life. ...
- Finland. #6 in Quality of Life. ...
- Germany. #7 in Quality of Life. ...
- Netherlands. #8 in Quality of Life.
- Ko Lanta, Thailand. Ko Lanta is one of Thailand's most beautiful islands, known for its pristine beaches, rainforests, and world-renowned diving and snorkeling. ...
- Ubud, Indonesia. ...
- Da Lat, Vietnam. ...
- Siem Reap, Cambodia. ...
- Belgrade, Serbia. ...
- Medellin, Colombia. ...
- Tirana, Albania. ...
- Tbilisi, Georgia.
The most popular countries for digital nomads to register, according to Danchuk, aren't your stereotypical tax havens like the Bahamas or Cayman Islands, but often European countries like Portugal, Malta and Bulgaria.
Do digital nomads make a lot of money? ›Studies suggest that one in five digital nomads make between USD50,000 and $99,000 per year once they're up and running. Plus, remote workers in general can expect to make an average rate of between $10 and $30 per hour.
Is it hard to become a digital nomad? ›If you really want to be a digital nomad or become location independent, the first thing you need to do is start working toward that goal. You can get started much faster than you think. With hard work and a little luck, you can get started in just a few weeks and have a full-fledged business in one or two years.
Do digital nomads pay tax? ›Paying taxes as a digital nomad
Nomads who stay away for short periods will probably continue to pay tax as normal in their home country, and will not be liable for local taxes.
Average Digital Nomad Age
There is no doubt that digital nomad life is more popular among younger adults. The average age of a digital nomad is 32 years old. Most people start their digital nomad journey at 29.
- Writing for the web. ...
- Start a travel blog. ...
- Photography. ...
- Web design and graphic design. ...
- Bar or restaurant jobs. ...
- Teaching English as a second language. ...
- WWOOFING and fruit picking. ...
- Hostel work.
- Education. Teaching is one of the best occupations for anyone hoping to travel the world. ...
- Linguistics. ...
- Journalism. ...
- English. ...
- Graphic Design. ...
- Web Development. ...
- Computer Science. ...
- Business.
- Coliving Spaces. Coliving is when a group of people share a living space and share resources. ...
- Short or Flexible Term Rental Apartments. Renting an apartment gives you more privacy than a coliving space. ...
- Hotels. ...
- Hostels. ...
- Home Swap and Couchsurfing.
How do I pay no tax as a digital nomad? ›
Some digital nomads avoid tax completely by becoming non-resident at home, and moving around to avoid being a resident of anywhere.