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What is a digital nomad and how to become one?
Digital nomad
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’s
What documents do you typically need for a digital nomad visa?
Most digital nomad visa programs look for the same core proof points, even though the details vary by country: evidence you work remotely for a foreign employer or clients, proof you meet a minimum income or savings threshold, valid health insurance for the full stay, a clean criminal background check, and basic travel documentation like a valid passport. Some countries also ask for accommodation details or additional local registration after arrival, so it’s worth confirming requirements before you book anything nonrefundable.
How does the “183-day rule” affect digital nomads?
Here’s the thing: the 183-day rule is a common trigger for tax residency, not a universal promise. In many countries, spending around 183 days in a year can make you a tax resident, which may mean local income tax obligations, reporting requirements, or needing a local tax ID, even if your income comes from abroad. Some countries use additional tests beyond days in-country, so if you’re moving frequently or doing longer stays, it’s smart to track your travel days and talk to a qualified tax advisor before you accidentally create a tax home you didn’t plan for.
What’s the difference between being a digital nomad as a freelancer vs. a full-time employee?
The biggest difference is who carries the compliance burden. As a freelancer, you usually control where you work, but you also own the admin: invoicing, self-employment registration where required, and making sure your contracts cover basics like scope, IP ownership, and payment terms. As a full-time employee, you typically get more stability and benefits, but your employer may restrict where you can work because cross-border work can create payroll, tax, and employment-law exposure. That’s why “just let me work from Spain for three months” can turn into a very real compliance headache for HR and Finance.
How do digital nomads manage money across currencies without losing a chunk to fees?
Most experienced nomads treat cash flow like a system, not a scramble. Multi-currency accounts and cards can reduce foreign transaction costs, and keeping a larger emergency fund in a stable, easily accessible currency helps when you hit payment delays, medical issues, or a sudden move. It’s also common to withdraw cash less frequently to limit ATM fees, track spending in one place to avoid “death by a thousand small charges,” and diversify income so one client or employer doesn’t control your entire runway.
How can employers support digital nomad employees without taking on unnecessary compliance risk?
Start by being explicit about what “work from anywhere” actually means, because vague policies are where teams get burned. A practical approach usually includes defining approved countries, maximum stay lengths, and required lead time for requests, then aligning on what triggers a review from HR, Legal, and Finance, such as stays long enough to raise tax residency concerns or locations that require work authorization. If you want a fast way to model the cost and employer-side obligations of employing someone in a specific country, the Global Employment Cost Calculator can help you pressure-test scenarios before you say yes to a move.
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About Oyster
Oyster is a global employment platform designed to enable visionary HR leaders to find, hire, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.
Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.
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