Let’s face it, the British summer has been very British this year. It’s making us all wish for sunnier climates and a holiday or two. But for some, the pull is too much and working abroad is the right fit for them. The rise of digital nomad visa has been a chef’s kiss moment for those who want to move to another country and work remotely.

Since the pandemic there’s been a rapid acceptance of remote working. Initially a necessity during lockdowns, it is now the norm for many. Tools like Zoom and Skype have become essential for digital communication and that means more people can work from more places. Building on this trend, numerous countries now offer digital nomad visas (DNVs) or remote worker visas, allowing foreign workers to relocate and experience new cultures. 

What is a Digital Nomad Visa?

DNVs are ideal for single individuals or young professional couples who can easily move and work from anywhere. Second homeowners and those nearing retirement also find DNVs appealing, using them to transition to life abroad sooner.

To obtain a DNV, you must be able to work remotely for a company or as a freelancer not based in your host country. These visas are generally available to non-EU nationals, and requirements often include:

• A valid work contract

• Proof of work experience

• Proof of education and qualifications

• A valid passport

• A minimum gross monthly income (usually based on the local minimum wage). 

• Private healthcare coverage 

In return, you’ll receive a visa to live and work in the host country. Partners and children can often be included, although this may require a higher monthly income. While DNVs are typically short-term, they can be renewed multiple times, potentially leading to long-term residency. According to recent research by a Dubai-based citizenship consultancy, there were 16.9 million digital nomads worldwide in December 2023, a 162% increase since 2019.

Where Are DNVs Available?

Many popular European expat destinations now offer DNVs. Spain requires applicants to earn a multiple of its national minimum wage, which in 2024 is €2,646 per month or €31,752 annually. Freelancers can earn up to 20% of their income from Spanish clients.

Portugal’s DNV requires a monthly income of €3,280 (four times its 2024 minimum wage) and offers either a one-year or more permanent two-year visa. Italy’s new DNV, introduced this year, requires a monthly income of €2,333 (three times its minimum wage excluding healthcare contributions). In the Caribbean, DNVs typically require an annual salary of $50,000.

Read more about a DNV in Portugal here. 

Moving your money as a Digital Nomad 

As a digital nomad, you’ll likely deal with a new local currency. It’s crucial to find the best way to exchange and transfer funds. *Enter Moving Currency*. 

Moving Currency offers competitive exchange rates and personalised service, competitive fees compared to traditional banks. We can also assist with managing wages payments, rent or education payments, sending money back home and making tax payments.

Paying Tax as a Digital Nomad

As a digital nomad, it’s essential to research and plan your tax status. Tax rules vary by country, and some visas offer partial or complete tax exemptions. For instance, Spain’s Beckham’s Law allows certain DNV applicants to benefit from a special non-tax resident rate of 24% on annual income up to €600,000, depending on circumstances and job type.

In Europe, the tax year usually runs from January 1 to December 31, and most countries use a territorial tax system. Spending 183 days or more in a country within a calendar year typically makes you a tax resident, liable for taxes on all income. However, other factors might also contribute to tax residency. Given the UK’s different tax year dates, you may need to consult a tax specialist to make sure you are paying the right amount and don’t pay twice, but this will depend on your personal income and situation.  

Digital nomads can enjoy the benefits of living and working abroad thanks to modern technology and the easy of which money can be transferred between accounts and currencies.  If you’re thinking of taking the digital nomad plunge, get in touch with the Moving Currency Team so we can help you take the first steps with confidence.