Benefits of choosing an affordable destination
The primary benefits revolve around the cost factor. First of all, the digital nomad visa can be relatively expensive. For instance, a twelve-month visa in Anguilla comes with a $2,000 price tag, while a visa lasting up to 3 years in Germany costs just $100. Alternatively, the digital nomad visa is even more budget-friendly in Cape Verde at $60, but it only allows a stay of 6 months. Recognizing the significance of attracting these modern workers, countries are progressively embracing the digital nomadic approach, often supported by communication campaigns, as seen in Brazil.
Yet, the visa fee is just one part of the essential costs; insurance is another crucial factor. Most countries require expatriates to acquire health or travel insurance. The expat is responsible for seeking the most competitive insurance plan that meets their needs. At this stage, you might consider destinations with the most affordable visa fees, such as Georgia ($35), Mexico ($35), Seychelles ($50), Iceland ($60), Saint Lucia ($70), or Greece ($90). Be careful when it comes to visa duration. Most digital nomad visas are valid for one year, with the option to renew or not. This is the case for Georgia, Mexico, Seychelles, and Saint Lucia. In contrast, Iceland's digital nomad visa grants residency for only 6 months.
The duration of your stay will depend on your professional project. Opting for a pricier visa that offers a more extended stay might be more economical. Take the Norwegian digital nomad visa, for instance. Although it costs $630, it grants a 48-month duration.
Remote working: the cost of living in a foreign country
Beyond these initial startup expenses, there are additional costs essential for day-to-day living in the country, including accommodation, transportation, and the indispensable internet connection. A study conducted by the Dutch neobank Bunq compared various European capitals, considering five main categories of expenses: rent, transportation, electricity, internet, and workspace rental. These represent the primary expenses of a digital nomad. Bucharest ranks as the least expensive city in which to work remotely. According to the study, you can live in the Romanian capital for 804 euros a month (around $860), which is cheaper than in Greece (1,042 euros/month/about $113) and even cheaper than in London (3,013 euros/month/about $3,220).
However, digital nomads aren't just constantly moving between different homes or coworking spaces. It's also crucial to consider the expenses related to local food and entertainment. Local options can help cut costs, whereas relying solely on imported products can dent your budget.
Consider other factors that may not be directly measurable but still impact your budget. The most affordable place to eat might not align with the most economical place to travel or reside. The cheapest neighborhood may require a long commute to reach your desired destinations. Additionally, the least expensive place may not be suitable for your needs.
How do you choose your destination?
While saving money is important, relying solely on prices for comparison might not be sufficient. This is why the most budget-friendly destinations may not be the top choices for expats. According to Bunq's study, despite having a relatively high cost of living, Dublin, Luxembourg City, and Copenhagen rank among the most popular capitals for digital nomads.
Still, it all depends on your kind of work, the kind of life you aspire to as a digital nomad, and for how long. These questions play a significant role in shaping your decision about which country to move to. In fact, they will likely influence your choice of expatriation country. This is why countries with a reputation for being expensive still manage to attract expatriates. It's essential to also factor in the environment and the lifestyle you aim to experience abroad. Whether you prefer country living over city life or if you plan to settle in one place or make multiple stops within a region or country, these are additional aspects to ponder before embarking on the digital nomad journey.
