What is a digital nomad and how to become one?

Remote work has transformed how we think about careers, but some professionals have taken it a step further. They've untethered themselves from a single location entirely, choosing to work while exploring the world—a group that in the U.S. alone was estimated to include over 18 million digital nomads in 2024, representing a 148% increase since 2019. If you've wondered whether this lifestyle could work for you—or what it actually involves—this guide breaks down everything you need to know about becoming a digital nomad.

We'll explore what digital nomadism really means, which careers make it possible, and the practical steps to get started. You'll also learn about the benefits and challenges, plus the tax and legal considerations that come with working across borders.

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What is a digital nomad?

A digital nomad is a remote worker who uses technology and online communication tools to work from changing locations. A digital nomad can be temporarily based anywhere, but they are still subject to their host country's entry and visa regulations.

Workers choose the digital nomad life for a number of reasons, including the desire to travel while earning a living. Digital nomads can be full-time, part-time, or contract workers, but a 2023 global survey found they are primarily self-employed, with over half being business owners and 42% identifying as freelancers or gig workers.

Timothy Ferriss's bestselling book "The 4-Hour Workweek," is often credited with helping the idea of digital nomadism become more mainstream. Additionally, the advancement of mobile internet and synchronous and asynchronous collaboration technology has made this work model more accessible.

Common digital nomad jobs and careers

So, what jobs actually work for digital nomads? According to MBO Partners, the most common careers include:

• Creative roles: Writers, editors, graphic designers, and content creators

• Technology positions: Programmers, developers, and IT specialists

• Marketing and sales: Digital marketers, social media managers, and sales professionals

While age isn't the limiting factor, recent research shows that 75% of digital nomads belong to the two youngest generations in the workforce: Gen Z and Millennials. The key is whether your work can be done entirely online with just a laptop and internet connection.

Pros and cons of digital nomadism

The digital nomad lifestyle offers incredible freedom, but it's important to weigh the benefits against the challenges.

Pros:

• Flexibility and autonomy: You control your schedule and work environment.

• Travel and cultural immersion: Experience new places while earning a living.

• Potential cost savings: You can live in locations with a lower cost of living.

Cons:

• Instability and uncertainty: Finding consistent work and dealing with logistical hurdles can be stressful.

• Loneliness and isolation: It can be challenging to build community while constantly on the move.

• Logistical challenges: Navigating time zones and reliable internet requires constant planning, and while visas can be a hurdle, 64 countries now offering specific digital nomad visas are making it easier for mobile professionals to work legally.

How to become a digital nomad?

Ready to make the leap? Here's what you'll need to get started:

• Documentation: A valid passport and visas or entry permits for your destination countries

• Equipment: A reliable laptop or tablet, plus portable internet devices for backup connectivity

• Financial setup: Easy access to your salary and budget planning for accommodation and co-working spaces

The practical aspects—like finding accommodation and reliable Wi-Fi—become second nature once you get started.

Tax and legal considerations

So, what about taxes and legal considerations? Working across borders brings unique challenges. As a digital nomad, you're responsible for understanding tax obligations in both your home country and host countries.

It's wise to consult with a tax professional to ensure you remain compliant and avoid unexpected penalties. Find out more about how to tackle these issues in our guide on how to pay tax as a digital nomad.

Can anyone become a digital nomad?

For legal and tax reasons, many companies still prohibit their employees from working from other countries, although some workers bypass these rules—research shows 13% of digital nomads with traditional jobs report their employers are unaware they are nomadic. They may also be less inclined to hire freelancers or contractors from abroad for similar reasons.

Supporting digital nomad team members

For companies, embracing the digital nomad trend is a powerful way to attract and retain top talent, and a recent survey found that 47% of companies already allow employees to work from anywhere globally. By building a distributed team, you can access a global talent pool and create a more inclusive and flexible work culture. The key is to establish clear policies and provide the right support for payroll, benefits, and compliance.

A global employment platform can simplify this process, making it easy to manage team members no matter where they choose to work. If you're ready to build a borderless team, you can start hiring globally with confidence.

FAQ

What does a digital nomad do day-to-day?

A typical day combines focused work with exploring local areas and connecting with people. Many use co-working spaces or cafes, balancing productivity with the freedom to experience new locations.

Do digital nomads pay US taxes?

Yes, U.S. citizens must file federal tax returns and report worldwide income regardless of location. However, you may qualify for foreign income exclusions—consult a tax professional for guidance.

What equipment do digital nomads need?

Essential gear includes a reliable laptop, smartphone, universal power adapter, portable charger, and noise-canceling headphones. Many also carry a portable Wi-Fi hotspot for backup internet access.

Disclaimer: This article and all information in it is provided for general informational purposes only. It does not, and is not intended to, constitute legal or tax advice. You should consult with a qualified legal or tax professional for advice regarding any legal or tax matter and prior to acting (or refraining from acting) on the basis of any information provided on this website.