Connect with us

Travel

Looking to work abroad? What to know to get started on a digital nomad visa.

Published

2 weeks ago

on

Looking to work abroad? What to know to get started on a digital nomad visa.

play

Balancing travel and work can be tricky – but you don’t necessarily have to choose one or the other.

Many countries offer digital nomad visas, allowing employees who can work remotely to make the world their office.

“Digital nomad visas are basically temporary residency permits for remote workers,” Sally French, Travel Expert at NerdWallet, told USA TODAY. Visa holders can work remotely from that country while being employed and paid by a foreign company – usually back home. They could also be self-employed.

“Especially as COVID-19 enabled the rise of remote work, digital nomad visas have become increasingly attractive,” she said in an email. But there are some things Americans should keep in mind if they’re considering working while abroad.

Which countries offer digital nomad visas?

Dozens of countries offer them, including popular destinations like Spain, Portugal and the Netherlands, according to French. “Mexico is also especially popular among Americans, unsurprising given the close proximity to home and affordable cost of living,” she said.

Some allow workers to stay for up to a year or longer, but the terms vary by country.

How do I get a digital nomad visa?

Prospective globetrotters can usually begin the process by applying online. French recommended searching “digital nomad visa” and the desired country to find its criteria.

“Many of these visas have requirements, like having a minimum monthly income, being able to show proof of remote employment, and sometimes other requirements like having valid health insurance,” she said.

How much do digital nomad visas cost?

That depends on where you’re headed, but application fees usually run less than $100, French said. Applicants must also typically pay a roughly $100 visa fee.

Those aren’t the only potential expenses, though. “With countries that have health insurance requirements, you might need to purchase a separate insurance plan that your employer might not necessarily cover, which becomes another out-of-pocket expense for you,” she said. 

Consider other costs associated with moving abroad, as well, like credit card foreign transaction fees and charges to ship items.

How long does it take to get a digital nomad visa?

The timeline varies by country but the process could take as little as a couple weeks if applicants are speedy, according to French.

How to move to a different country: What to know before swapping citizenships

Do I have to pay taxes while working abroad?

Yes. Americans must pay taxes based on citizenship, according to H&R Block. “That means it doesn’t matter where you currently live – if you’re legally considered a U.S. citizen and make over the minimum amount of worldwide income, you have a tax obligation as a U.S. tax resident,” the company said on its website.

Wages, rental income, interest and dividends are all considered taxable foreign income. Those who don’t pay could face fines or possibly lose their passport.

“Sometimes, you’ll have to pay taxes in both your home country and host country,” French added. “And many might end up hiring a tax attorney to navigate those tax liabilities – which is yet another cost.”

The foreign earned income exclusion can help those working abroad cut down on what they pay if they meet certain requirements. “The FEIE excludes your foreign earned income from U.S. income tax, which lowers (or eliminates) your U.S. tax liability,” H&R Block said. The Foreign Tax Credit could also come in handy.

Nathan Diller is a consumer travel reporter for USA TODAY based in Nashville. You can reach him at ndiller@usatoday.com.

Related Topics:
Continue Reading