It is recommended for digital nomads to follow the duration restrictions of their visas and keep a low profile while working
Have you ever wondered about the legalities of working abroad as a digital nomad?
Is it legal to be a digital nomad? Lets look at the facts and try to make sense of it. Digital nomads are individuals who utilize the internet and technology to perform their job while on the move. They engage in remote work as they travel from one location to another.
Typically, digital nomads spend a considerable amount of time, longer than a tourist but shorter than a permanent resident, in their chosen destination and work for clients online. They often benefit from lower living expenses in the countries they visit, enabling them to finance their travels and maintain a good income.
The trend of digital nomadism has been increasing in recent years and with it, questions about its legality have emerged.
It is important to note that this article is not intended to provide legal advice, but rather an overview of the current state of digital nomadism.
That’s a good question and the answer is not straightforward. Technically, there is nothing illegal about being a digital nomad. However, the concept of digital nomadism is relatively new and many laws and regulations have not caught up to the trend. Labor and immigration laws were written before the era of the internet, so they don’t always apply to remote work and digital nomads.
In some cases, aspects of the digital nomad lifestyle may fall within a grey area of the law, as these laws were not written to cover work that can be done remotely. This means that there may be ambiguities in regards to taxes, visas, and other legal issues that digital nomads face.
It’s important to keep in mind that the information provided in this article is not intended as legal advice, but rather as a general overview of the current situation of digital nomadism and its relationship with the law.
For the most part, digital nomads travel on tourist visas, which grant them stays in various countries for periods ranging from 90 to 180 days, depending on their nationality and the country’s laws. Obtaining a work visa negates the essence of being a digital nomad, as it requires a long-term commitment and a formal employment contract.
Recently, some countries and cities have begun offering specific visas for digital nomads and remote workers. Examples include Estonia, Croatia, the Czech Republic, Costa Rica, Dubai, Cayman Island, Barbados, and Antigua & Barbuda. However, some digital nomads feel that even these visas take away from their lifestyle, as they require pre-planning, which goes against the essence of being a free-spirited, unencumbered traveler.
Only time will tell how these digital nomad visas will be implemented and used.
When it comes to the legality of working on a tourist visa, the laws prohibit work in the country. However, this restriction is to prevent visitors from taking jobs from local residents, which does not apply to digital nomads.
Although there is a possibility of the authorities cracking down on digital nomads working on tourist visas, it is unlikely due to the legal gray area and the fact that digital nomads bring in economic benefits without taking jobs from locals.
It is recommended for digital nomads to follow the duration restrictions of their visas and keep a low profile while working, just to be safe. Also, seeking advice from other digital nomads who have been to the destination you plan to visit can be helpful in understanding the legal situation and best practices.
The taxation aspect of digital nomadism is a murky area, as it’s unclear where digital nomads should pay taxes.
For citizens of the United States, the situation is clearer, as they are taxed based on citizenship, not location. For non-Americans, the situation is more complicated. The reality is that you have to be a tax resident somewhere; many nomads opt to pay taxes in their home country to avoid the complex world of international taxes.
Some digital nomads choose to de-register in their home country and constantly move to avoid taxes, but the legality of this is disputed.
Other nomads establish residency in countries with favorable tax systems, such as no-tax countries like the Bahamas, UAE, and Bermuda, or territorial tax countries like Costa Rica, Gibraltar, Malaysia, and Hong Kong, where you’re taxed only on what you earn within the country.
Countries like Greece are offering tax breaks for digital nomads to attract them.
It’s crucial to consult with an expert in international tax law to determine the best and most legal option for your specific situation.
When people ask me is it legal to be a digital nomad I like to remind them that digital nomadism is a relatively new phenomenon and there are many legal ambiguities surrounding remote work while traveling. However, being a digital nomad is not necessarily illegal.
It is important to educate yourself on the visa and remote work regulations in your destination. Seeking advice from experienced nomads can also ensure a smooth experience.
As the trend of digital nomadism grows, it is likely that laws will be established to address various aspects of it.
Should there be laws specifically for digital nomads?