Best countries for being a Digital Nomad (DN) in 2024: visas, taxes and tech and innovation

Laura Madrid
Laura Madrid Research Lead at Global Intelligence Unit
Best countries for being a Digital Nomad (DN) in 2024: visas, taxes and tech and innovation

According to our overall Global Digital Nomad Index, 9 out of the top 10 countries for a DN to live and work are located in Europe, with only 1, Canada, in the Americas.

In analyzing the best jurisdictions for digital nomads, the Global Intelligence Unit (GIU) at Global Citizen Solutions created a 12 indicators Global Digital Nomad Index. We consider factors like visa costs and benefits, economic stability, cost of living, beneficial tax regimes, and technological infrastructure that affect DNs decision when deciding to relocate.

Estonia was the first European country to implement a DN visa, in 2020, followed in the same year by Iceland, Norway, Ireland and France. However, topping the list for digital nomads to work and live is not a Nordic country but Spain. Spain has secured the top position in the ranking due to its exceptional and affordable quality of life. Additionally, the country has significantly boosted its attractiveness to remote workers by enacting a new law in 2023 that encourages and facilitates the settlement of remote workers. This legislation includes various incentives, making Spain a premier destination for digital nomads seeking a vibrant and welcoming environment.

The prominence of Europe in our Global Digital Nomad Index reflects the continent’s ongoing efforts to attract highly skilled labor, especially as many European countries grapple with aging populations, pension system pressures, and a shortage of young workers. The demographic shift in the EU, characterized by a shrinking working-age population and a growing number of older individuals, is expected to continue over the coming decades as the post-war baby-boom generation transitions into retirement. According to Eurostat, Europe’s population is aging at an unprecedented rate. The number of people aged 65 or older in the EU-27 is projected to surge from 90.5 million in 2019 to 129.8 million by 2050 (approximately 43%)1. This trend will have significant repercussions for individuals, governments, businesses, and civil society, affecting health and social care systems, labor markets, public finances, and pension entitlements.

To address these challenges, policymakers are exploring various strategies, including encouraging older people to stay in the workforce longer and attracting high-skilled immigrants. Additionally, immigration can help fill labor shortages and bolster pension systems. However, beyond traditional immigration strategies, some regions are finding success by attracting digital nomads. This involves creating a welcoming environment through robust technological infrastructure. High-speed internet, co-working spaces with cutting-edge equipment, and digital nomad visas offering streamlined application processes and attractive tax breaks can be a powerful draw.

See below the top 10 Digital Nomads destinations:

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The Spain Startup Law, enacted in January 2023, is designed to foster an innovative business ecosystem and attract high-skilled professionals. This legislation offers significant tax benefits and streamlines procedures to support startups and remote workers. Key features include the Digital Nomad Visa, which allows remote workers and freelancers to live and work in Spain under the favorable Beckham Law tax regime. This law has been expanded to encompass a broader range of individuals, such as freelancers and entrepreneurs, who can now be taxed as non-residents at a flat rate of 24% on income up to €600,000 annually, significantly lower than the progressive tax rates for residents. The law also introduces substantial corporate tax benefits, reducing the rate to 15% for the first four years of profitability, and provides options for tax deferrals to support startups’ cash flow.

Additionally, the law enhances the tax treatment for employees receiving compensation in non-cash forms, such as shares or stock options, raising the annual tax exemption limit to €50,000 and deferring taxation until liquidation events like IPOs. Furthermore, the law simplifies eligibility for the non-resident income tax (IRNR), reducing the non-residency requirement from ten to five years to attract more international talent and investment.

The Spanish Startup Law is notable for being one of the few jurisdictions where time spent under a Digital Nomad Visa, which is valid for up to five years, can count towards the residency requirement for citizenship. Typically, to apply for Spanish citizenship through residency, an individual must have legally resided in Spain for ten consecutive years. The five years spent under the Digital Nomad Visa will contribute towards fulfilling this ten-year requirement, making it an attractive option for remote workers and entrepreneurs seeking a long-term stay and eventual citizenship in Spain. According to GCS’ passport index, Spain ranks 4th in the Enhanced Mobily index, making Spanish passport highly desirable.

Pedro Sánchez, the Spanish Prime Minister, recently announced plans to eliminate the real estate option for acquiring a golden visa in Spain, thereby reducing the pathways for establishing residency through property investment. However, he assured that the country remains committed to welcoming professionals who come to work. The Startup Law in Spain exemplifies this commitment, offering a “red carpet” for digital nomads and entrepreneurs. The law not only facilitates the entry and residence of remote workers and business innovators but also provides significant incentives and streamlined processes to support their integration and success in Spain.

The Netherlands ranked 2nd in our Global Digital Nomad index, renowned for being a  tech hub in Europe. Working conditions are also excellent when it comes to internet speed and general infrastructure. Although the Netherlands’ Self-Employed Residence Permit is not specifically a digital nomad visa, it does serve a similar function by allowing self-employed individuals and entrepreneurs to live and work in the country. While digital nomad visas are designed for remote workers employed by foreign companies who require the flexibility to move frequently, the Self-Employed Residence Permit is tailored for those who wish to establish and run a business within the Netherlands. A digital nomad with a contractor’s contract can work under the Dutch Self-Employed Residence system, but the permit is primarily aimed at entrepreneurial digital nomads who want to set up and operate their businesses in the Netherlands.

Similarly to the Spanish scheme, the time spent in the Netherlands under the Self-Employed Residence Permit does count towards the residency requirement for acquiring Dutch citizenship. To apply for Dutch citizenship through naturalization, you generally need to have legally resided in the Netherlands for at least five consecutive years and the time spent under the Self-Employed Residence Permit contributes to this residency period, provided that you meet all other conditions for naturalization. The Netherlands ranks 5th in the Global Citizenship Solutions’ (GCS) Global Passport Index, offering its citizens extensive travel freedom with minimal hassle. This makes the Dutch scheme particularly attractive for self-employed individuals and entrepreneurs who value both professional opportunities and global mobility.

Norway

Norway offers an attractive option for digital nomads. Norway’s Digital Nomad Visa, introduced specifically for remote workers and freelancers, permits non-EU/EEA citizens to stay for up to two years. Digital nomads in Norway who stay beyond 183 days become tax residents, facing income tax rates between 22% and 38.2% and mandatory social security contributions.

Pathways to citizenship requires seven years of residency to apply for citizenship, including passing a Norwegian language test and a social studies test, and allows for dual citizenship, which is an added benefit for digital nomads considering long-term relocation and the time spent under their respective visas towards these residency requirements.

Technological infrastructure and innovation are strong in Norway, with average broadband speeds of 129 Mbps, also ranks well on the Global Innovation Index, supported by significant investments in technology and innovation, particularly in Oslo. The country offers numerous coworking spaces and tech hubs, providing vibrant environments for digital nomads and entrepreneurs. Ranked 3rd in our Global Digital Nomad Index and 9th in the Global Citizen Solutions Passport Index, Norway presents top-tier options for digital nomads, balancing professional opportunities with high-quality living standards.

From Northern to Eastern Europe, Estonia and Romania rank 4th and 5th respectively in the Global Digital Nomad Index to live and work as a digital nomad.

Estonia introduced its Digital Nomad Visa on August 1, 2020. This initiative allows remote workers to legally live in Estonia for up to one year while working for employers or businesses based outside of the country. The visa aims to provide a legal framework for digital nomads, who often face ambiguity when working remotely in foreign countries on tourist visas. This move builds on Estonia’s success with its e-Residency program (implemented in 2014), further enhancing its appeal to remote workers globally by offering a stable and supportive environment for their work and lifestyle needs​.

One year after Estonia, in December 2021, Romania introduced its Digital Nomad Visa to attract remote workers and stimulate the economy. This visa allows non-EU citizens to reside and work in Romania for up to one year, with the possibility of renewal if the conditions are continuously met. If digital nomads stay for more than 183 days, they may become tax residents and be subject to Romanian tax laws, which include a flat income tax rate of only 10%. Additionally, the time spent under the Digital Nomad Visa counts towards the residency requirement for Romanian citizenship. Typically, an individual must legally reside in Romania for at least eight consecutive years to be eligible to apply for citizenship.

Romania is renowned for its high-speed internet, ranking among the fastest globally, with an average fixed internet speed of around 260.97 Mbps. Mobile internet speeds are also highly competitive. Bucharest, Timișoara, and Cluj-Napoca have become a hub for digital nomads. Bucharest ranking seventh among the fastest-growing digital nomad destinations over the last five years, having experienced a 71% growth in the number of digital nomads residing there. Cluj-Napoca, often referred to as the Silicon Valley of Eastern Europe, is attracting digital nomads due to its smart city framework, growing tech community, affordable living, vibrant cultural scene combined with high quality of life, excellent healthcare facilities, green spaces, and a safe living environment.

Another  interesting option for digital nomads looking to reside in Eastern Europe is Hungary, ranked 9th in the Global Digital Nomad Index. The country offers the White Card Visa, introduced in 2022, which allows non-EU/EEA citizens to live and work remotely in Hungary for up to one year, with the possibility of renewal. If a person lives in Hungary for up to six months, income tax is not imposed. Even for those who decide to stay longer, the flat tax rate in Hungary is only 15%. Additionally, digital nomads are generally exempt from paying Hungarian social security contributions if they remain employed by a foreign company and continue to pay social security in their home country.

The time spent on the White Card Visa counts towards the residency requirement for permanent residency and citizenship, making it an attractive option for those considering long-term relocation. Typically, one must have legally resided in Hungary for at least three years to apply for permanent residency and at least eight consecutive years to apply for citizenship. This path to citizenship also requires proficiency in the Hungarian language and a clean criminal record.

Hungary offers robust internet infrastructure with average fixed broadband speeds of around 165 Mbps, making it highly conducive for remote work. The country ranks well on the Global Innovation Index, driven by a growing tech sector and strong governmental support for technology and innovation. Budapest, in particular, boasts a vibrant startup ecosystem with numerous coworking spaces and tech hubs, providing an ideal environment for digital nomads and entrepreneurs.

In June 2021, Malta adopted the Nomad Residence Permit, a scheme designed to attract digital nomads and remote workers from non-EU countries. This permit allows individuals to live and work in Malta for up to one year, with the possibility of renewal. The visa is part of Malta’s broader strategy to enhance its economic landscape by leveraging the influx of highly skilled professionals. The application process is straightforward, requiring proof of employment or business activity outside Malta, a monthly income of at least €2,700, health insurance, and a clean criminal record.

In addition to its favorable climate and rich cultural heritage, Malta offers a robust technological infrastructure. The country boasts high-speed internet with average download speeds around 105 Mbps, making it ideal for remote work. Malta ranks well on the Global Innovation Index, driven by a strong IT sector and government initiatives to foster technological growth. Furthermore, the presence of numerous coworking spaces, especially in urban centers like Valletta, Sliema, and St. Julian’s, provides digital nomads with modern amenities and collaborative environments, making Malta a prime destination for remote professionals. The program ranks 6th in our Global Digital Nomad Index.

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The Portugal D8 Visa, also known as the Digital Nomad Visa, was established in October 2022.  This framework is designed specifically for remote workers, freelancers, and entrepreneurs who wish to live and work in Portugal while enjoying the country’s vibrant culture and high quality of life. The D8 allows digital nomads to reside in Portugal for either a temporary stay of up to one year or a long-term stay that can be extended, potentially leading to permanent residency and citizenship after five years​ This visa has become increasingly popular among digital nomads due to its straightforward application process and favorable conditions. The country ranks 7th in our Global Digital Nomad Index and 13th in the Global Citizen Solutions Quality of Life Index. As for  mobility purposes, this passport offers visa-free travel to 117 countries.

Portugal’s NHR scheme offers substantial tax benefits to new residents for their first ten years in the country. Under this scheme, foreign income may be tax-exempt, and certain Portuguese-source income may be taxed at a flat rate of 20%.

Unlike the other countries in the index, France does not offer a dedicated digital nomad visa. Instead, it provides the Long-Stay Visa (VLS-TS), which allows remote workers to live and work in the country for up to one year, with the possibility of renewal. This visa is ideal for those working for companies based outside of France and enables travel within the Schengen Area.

Navigating the tax regime in France is essential for digital nomads planning to stay long-term. France considers individuals who spend more than 183 days in the country as tax residents, meaning they must pay taxes on their global income.

The appeal of France for digital nomads extends beyond visa options to its tech and innovation sectors. Cities like Paris, Lyon, Marseille, Toulouse, and Bordeaux offer an interesting blend of history, culture, nature and modern infrastructure, making them ideal for remote workers. Paris, for instance, supports over 300 startups annually, providing fertile ground for professional growth and networking. For those considering a longer commitment, France offers a path to citizenship, typically requiring five years of continuous residency, which can be reduced to two years under certain conditions, such as completing higher education in the country​.

Canada stands out as the only non-European country in our top 10 Global Digital Nomad Index, ranking 8th overall. As part of its Tech Talent Strategy, Canada has introduced a Digital Nomad Visa that allows remote workers to live and work in the country for up to six months. It is relevant to mention that no income tax is imposed to foreign sourced income during this period. This visa primarily targets tech professionals but is open to anyone engaged in remote work. The initiative aims to attract high-skilled digital nomads and foster interaction between them and Canadian employers. If digital nomads secure employment with a Canadian company during their stay, they can transition to a temporary work permit and eventually seek permanent residence.

Although time spent under this visa does not directly count towards the residency requirement for citizenship, digital nomads who transition to a temporary work permit and reside in Canada for at least 1,095 days within a five-year period become eligible to apply for Canadian citizenship. This pathway offers a strategic advantage for digital nomads looking to make Canada their long-term home.

In sum, the prominence of European countries in our Global Digital Nomad Index highlights the continent’s strategic efforts to attract highly skilled labor amid demographic challenges such as aging populations and labor shortages. Policymakers are increasingly focusing on creating favorable conditions for digital nomads through robust technological infrastructure, streamlined visa processes, and attractive tax regimes.

Overall, the future of digital nomadism looks promising, with more countries likely to implement friendly immigration programs tailored to this demographic. This trend not only benefits digital nomads by providing diverse and enriching living environments but also contributes significantly to local communities by fostering economic growth, cultural exchange, and innovation. As nations continue to adapt and innovate in their approaches, the global landscape for digital nomads will undoubtedly become even more dynamic and inclusive.