A digital nomad visa is a passport stamp or sticker that allows you to stay in a country for an extended period while working remotely. As the number of digital nomads continues to grow, more and more countries are starting to offer digital nomad visas.
What Is A Digital Nomad Visa?
A digital nomad visa is a type of visa that is specifically designed for digital nomads. It allows you to stay in a specific country for a set period to work on your online business or as a remote worker.
The country to start issuing digital nomad visas was Estonia. Since then, other countries have followed suit. The digital nomad visa is becoming more prevalent worldwide as digital nomads continue to grow in number.
Each country has its specific requirements for obtaining such a visa. Ensure you meet those requirements and check whether a visa provides tangible benefits.
A Standard (Tourist, Work, Business) Visa Vs. A Digital Nomad Visa
Tourist Visa
The easiest way to enter a country is to obtain a tourist visa. This type of visa allows its holder to spend up to 90 days (depending on the country, this term might be shorter or longer) in the country. A tourist visa doesn’t allow its holder to work in the country or perform any business activity. For this reason, digital nomads residing in the country on tourist visas are in an ambiguous situation. They don’t provide any services to locals, but being remote workers or freelancers running their online businesses, they engage in business activity while on the foreign country’s soil.
Work Visa
Work visas entitle their holders to work for a specific enterprise located in the issuing country. Most work visas serve as employment permits for work that requires different skill sets or more education than others, depending on the nature of work available and the country’s economic needs. In order to obtain one of these permits, applicants must first present their qualifications and prove that they do not pose any threat to society or national security.
The requirements for work visas vary from country to country; some countries require professional work experience, while others issue them after an interview at their embassy or consulate. In most countries, obtaining such a visa for digital nomads is almost impossible.
Business Visa
A business visa is a visa that is specifically for business purposes. This type of visa allows business people to travel to the country that issued the visa for business meetings, negotiations, and other business-related activities. Business visas can be single or multiple-entry visas, and they typically have a validity period of six months to a year.
To be eligible for a business visa, you must usually be able to show that you have an adequate reason for travelling to the country. For example, you may need to show that you have a meeting or conference invitation or are travelling to conduct business negotiations.
Digital Nomad Visa
A digital nomad visa removes those disadvantages by allowing holders to be engaged in online business operations or work remotely and stay in the country for up to 1 year (in some countries, to stay even longer). Such visas provide more certainties for digital nomads. In addition, in comparison to a standard visa, a digital nomad visa is easier to obtain (but not in all countries offering such visas).
However, there are also some disadvantages to consider:
- Such a visa can be more expensive than a standard visa.
- Most digital nomad visas do not allow you to work as employees in the country where they are issued and provide services to locals. If you want to be able to work legally or provide services to locals during your digital nomad experience, make sure your digital nomad visa allows you to do so.
Before applying for a digital nomad visa, it is essential to check local tax requirements. Some countries look very attractive at first glance, but if you look deeper, you may find some unpleasant things.
For example, if you live and work in Spain, you will be subject to a 24% income tax rate on income earned during your first 183 days in Spain. The applicable tax rate will depend on a double taxation agreement concluded between your country and Spain (if any). (Related: Tax Guide For Digital Nomads)
How To Apply For A Digital Nomad Visa?
As a rule, there are three different ways to apply for a digital nomad visa:
- The first option is to visit the embassy or consulate of the country you wish to visit and live there.
- The second option is to apply online if the country provides such a possibility.
- The third option is to print out all documents, sign and send them by post or courier.
How Much Does A Digital Nomad Visa Cost?
A digital nomad visa typically costs around 60 USD to 300 USD. However, the cost of a digital nomad visa may vary depending on the country you are applying for it in. In some countries, it is free of charge, while in others, there is a fee of USD 2,000 or more.
Some countries apply special fees for the procession of your application. For example, a credit card processing fee of 7 per cent of the total application fee is applied in the Cayman Islands.
How Long Does It Take To Process A Visa Application
Generally, digital nomad visa applications take up to two weeks to process. However, in some cases, it may take longer. It is important to note that the time it takes to process a digital nomad visa application can vary depending on the country you are applying to.
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