The world isn’t ready for the digital nomad movement.
If projections are to be believed, the growing trend in how people choose to live and work is fast outpacing the service and policy enhancements needed to keep up with a borderless workforce bound only by its need for a reliable Wi-Fi connection. But that’s not slowing down the nomads.
The Economist theorizes that there could be as many as one billion remote workers by 2035. Such a movement has implications for entities ranging from banks and insurance companies to national governments — but few organizations are in the habit of looking 15 years down the road and altering course appropriately. But even short-term, the numbers deserve our attention: about 59 million people are considering joining the digital nomad movement in the next two to three years.
Put another way: in the next 24 to 36 months, roughly the population of Italy plans to sever traditional workplace ties so they can go mobile. How are our global services and infrastructures going to accommodate these individuals?
Having spent more than six years as a digital nomad myself, I can tell you that there’s a steep learning curve to this lifestyle. While it’s one that I’ve found well worth the effort, tapping into the networks and services needed to sustain my professional and personal networks hasn’t always been easy. Looking back to when I first gave into my wanderlust, after starting my career in the late ‘90s dot-com era as a serial entrepreneur in the U.S. digital marketing and ad tech industries, I can’t help but muse that I wish I knew then what I know now.
So for all of those aspiring or early stage nomads out there, in hopes that your own transitions to the nomadic lifestyle might be easier than my own, I’m here to tell you what I know now. While we can expect to see a great deal of change over the next couple decades, as the world economy races to catch up to the digital nomad movement, these are the essential considerations — and your best options — when it comes to the core elements needed to sustain yourself in your nomadic ramblings today.
Accommodations
Let’s start with the basics: where to live.
It’s almost impossible for digital nomads to find suitable accommodations at fair prices within major U.S. metropolitan areas that foster the standard of living they’re seeking. That’s one of the main reasons why so many nomads are ending up in Asian countries and other economical international destinations. In addition to being lower-cost, these destinations offer desirable alternatives to city environments where the standard 9-5 is required to afford everything the city has to offer.
When it comes to finding a place to live, whether for a few days or many months, there are a lot of options. The one that makes the most sense has a lot to do with your individual situation and preferences. Most important is having a place to stay with strong Wi-Fi. Consider:
Airbnb: Given its popularity for vacation rentals, a lot of new nomads initially turn here. While it allows for a more “at home” feel in a rental (because it is someone’s home), it can quickly become cost-prohibitive. Airbnb is great for short-term rentals, but comparatively expensive for anything more than a couple weeks.
Booking and Agoda: Similar to Airbnb, but these sites are more professional in that they’re mostly used by professionally-run apartments, hotels and resorts. All are great for those who are looking for more services with their accommodations. But they don’t always have the home-like feel that many nomads crave, and like Airbnb, they can get expensive fast.
Facebook Groups: A number of Facebook Groups for digital nomads have emerged recently. These groups can be handy because they let guests and hosts connect directly and come to mutually agreeable arrangements. However, these groups aren’t a rental platform. Guests don’t have access to reviews or an easy way to issue payments confidently. So while accommodations can be a bit more affordable when organized through groups, it’s hard to know what you’re going to get.
Hostels: As any rambling college student can attest, hostels are an affordable, social way to see the world. But living at a hostel offers little privacy and near-constant disruption, often of the drunken partying variety. It’s not a terribly viable route for nomadic couples or anyone looking for living space that can also double as an office.
Hotels: On the flip side, hotels are great for couples. But for nomads spending weeks or even months abroad, they’re expensive and can be isolating for people looking to truly immerse themselves in new local cultures. Hotels are best reserved for short-term expeditions.
VIP hostels (e.g., Selina): This new breed of the hostel experience offers a great combination of co-working and social connections that help nomads connect with like-minded people. They provide some level of privacy, but these accommodations — like others — become expensive in the long term if you want your own bedroom.
Co-living spaces: As with co-working spaces, there’s a growing movement in which digital nomads come together to share the cost of living accommodations, which range from multi-bedroom apartments to large-scale co-living buildings complete with kitchens, shared and private bathrooms, working and community spaces. These environments are great for making connections while having access to privacy when needed, but branded co-living spaces will still cost more than a local midterm apartment.
Midterm rental platforms: For nomads looking to stay in one place for a month or more and truly soak in the culture, midterm rental platforms represent a more-affordable alternative to platforms like Airbnb. These platforms (full disclosure: I now operate one of them, by the name of NomadX) offer affordable month-to-month options with fast Wi-Fi in everyday neighborhoods, which enables you to connect more deeply with the local community without an overly long commitment. That said, this category is still quite new, so midterm rental inventory might be limited or nonexistent in the market you’re considering.
Couchsurfing: Finally, I’d be remiss not to mention Couchsurfing, a social network for travelers and nomads that makes it possible to connect directly with locals and even crash on their sofas for free. That said, Couchsurfing is only designed for short-term stays, it’s not very professional and it’s quickly evolving into more of a dating/hook-up platform than anything else.
Also, a quick note on Wi-Fi: No matter where you stay, you’ll need to ensure you can always be connected in order to stay on top of work. While you can check with your current mobile provider on international roaming plans, the coverage might be limited and ultimately become expensive. You might instead want to consider buying a local SIM card in every country and using it with your smartphone. That way, you can use your phone as a hotspot and get internet on your laptop. In a pinch, though, it’s good to have a backup mobile hotspot option. (For example, I travel with a Skyroam Solis.)
Insurance
We digital nomads are risk takers by nature, but that doesn’t mean we don’t want or appreciate a safety net. After all, having an accident isn’t a choice. Unfortunately, if nomads can’t get coverage for a fair price, many opt to forego insurance altogether and end up resorting to crowdfunding if they end up in a bad situation. I’ve had several friends get into accidents in foreign countries, and they couldn’t get proper medical treatment until they’d crowdfunded the needed resources. This is a worst-case scenario, and it’s one that I hope becomes a thing of the past as more borderless options for insurance emerge.
There are different types of insurance out there, including travel insurance, travel medical insurance and standard health insurance. International health insurance is designed to offer a comprehensive level of healthcare coverage to those relocating from their home country for a sustained period of time, whereas travel insurance is geared toward providing cover for emergency treatment while you are in another country for a short period of time. The only difference between travel insurance and travel medical insurance is that travel medical insurance is specifically designed to cater to health needs. A travel medical insurance policy includes cover medical expenses as well as lost baggage, delayed flights and so on.
What makes sense for you will depend on where you’re going and how long you’re staying. In general, it can be challenging to find a policy to fit your needs, especially if you’re on the road and not officially “signed in” to a specific country. However, we are seeing some new options emerge with the nomad in mind:
SafetyWing: This is a relatively new company that offers global insurance for traveling nomads at reasonable rates. You can pay monthly, and you don’t need a permanent residency. The maximum coverage right now is $250,000, and it doesn’t cover extreme sports activities. Although the company is new and doesn’t have much operating history, it is a promising and much-needed option in the market.
True Traveller: For the nomads who just can’t resist jumping out of planes and rappelling down cliffs, True Traveller offers a wide variety of coverage for extreme sports and adventure activities. But you must be a resident of the EU.
STA Travel from Allianz: The comprehensive policy includes trip cancellation and interruption, medical evacuation, travel delay, baggage loss and delay, and emergency medical benefits, including coverage for pre-existing conditions if purchased before making the final trip payment.
World Nomads: Recommended by Lonely Planet, this company offers a variety of travel insurance policies, including the ever-important coverage for a digital nomad’s tech, including mobile phones and laptops.
Integra Global: This company offers international health insurance plans for expats, families and businesses. Policies include mental health appointments and preventative care, and you can upgrade to include dental plans and even private hospital rooms. However, the price of the insurance doubles if you want to be insured in the U.S. as well.
Cigna Global: Cigna also offers health plans for individuals and families living abroad, and it even covers you up to 90 days when you get back home. However, you do need to go to hospitals on the company’s approved list, which can be inconvenient when emergencies strike.
Banking and taxes
Covering bills, collecting revenue and paying taxes has always been a challenge for digital nomads. Systems such as PayPal can be unreliable and expensive, and setting up accounts with local banks is time-consuming and impractical. Digital nomads want to feel “official” when they transact with vendors and customers in the local economies where they live and work, but it’s not easy. When it comes to taxes, it’s even harder, and many feel like they have no choice but to try to skate under the tax radar.
In a future where more than 1 billion nomads are roaming and transacting across the globe, we’re going to need a better system in which individuals can contribute appropriately and be fairly treated by governments throughout the world. Until then, nomads must work with what we have. Here are some of the options.
Revolut: Revolut allows for fast, inexpensive financial transfers. It’s not available in all countries, but it is coming soon to the U.S. This service is easy to use through an app and enables you to store up to five different currencies within your account and withdraw them from any ATM.
N26: This international banking service and app gives you a real-time view of your account and actions and allows you to lock your card when it’s not in use — a useful service for nomads.
TransferWise: This international service has low transfer fees and is exceptionally easy to use. However, it’s not available in every country, so you need to investigate its applicability for your situation.
Schwab’s High Yield Investor Checking Account: Digital nomads love this banking option because it refunds unlimited ATM fees and doesn’t impose service fees of account minimums. It’s also easy to make transfers between these accounts and your primary bank (should you choose to maintain one while traveling).
Moving beyond banking, let’s talk taxes. If you meet a digital nomad who is 100 percent confident that they’re handling their taxes correctly, please introduce me. As for myself and my nomad friends, we’re doing the best we can, but there’s a lot of confusion in this arena. Across the board, governments need to establish more clarity regarding ways that transient nomads can operate legally and pay taxes properly without a permanent home base. Until then, here are some options to consider:
My Digital Company: My business partner works with and recommends My Digital Company, which offers consulting services to nomads and manages their business registration and tax affairs. They offer good prices, and are always available if you have questions.
Tax Free Today: I know other nomads who have worked with this service, which is owned by a famous German-speaking traveler known for his savvy in saving on taxes. However, a consultation is not cheap.
Estonia E-Residency: This is another approach being taken by nomads I’ve met. It enables digital entrepreneurs to start and manage an EU-based company online, and getting established is relatively cheap: 100€ for e-residency and 90€ to set up a business. However, the minimum required share capital for a limited company is 2500€, and you can’t take out any money until you put in that share capital.
Visas
It’s exhausting to deal with the visa regulations in all the different countries, and I’m afraid this is an area where there’s simply no magic bullet. Especially in places with a large number of remote workers (like Bali), there are still not existing proper solutions for digital nomads. In Asian countries, “visa runs” are common, where you leave the country briefly (even same-day return) just to get a new stamp. It’s a huge waste of time, and nomads would rather pay for a proper solution — but that unfortunately doesn’t exist so far.
When entering a country, either for the first time or on a visa run, nomads need to provide flight return tickets to prove they will be leaving. That’s tricky when your stay is essentially open-ended. For that reason, there are services where we can book so-called “onward” tickets:
Onward Ticket Visa: This service lets you quickly and affordably ($7) rent a plane ticket for proof of on onward travel and visa purposes.
Best Onward Ticket: This is a similar service that costs $12 and promises to email your ticket within five minutes of booking.
Some of the solutions I describe above are straightforward options when it comes to living a digital nomad existence, but others fall into the “hack” bucket: they’re workarounds or possible options for people who are trying to live a lifestyle that today’s governments and systems simply don’t accommodate yet. Ideally, these workarounds are temporary ones. The real solution lies in a refinement of international systems and policies that recognizes the importance and prevalence of a global workforce that wants to live and operate in a professional, above-board capacity.
For the time being, we’re going to work with what we have—because in the end, the challenges are worth the rewards.