The digital nomad lifestyle has seen a huge surge in popularity in recent years.
According to Expatnetwork, Google searches for “digital nomad visas” increased by 1,135% worldwide in 2024.
Given freedom, flexibility and growing global opportunities, it may not be a big surprise that European remote workers and business owners alike want to escape as quickly as possible to the next laptop-friendly beach.
However, for entrepreneurs, this move is far from casual and requires considerable planning and strategy. This includes everything from choosing the right visa and understanding the tax implications, to planning your finances and finding the right insurance.
Euronews Business looks at the nine most important things European entrepreneurs, especially small business owners, should consider before becoming digital nomads.
Finding the right visa category
The first step before planning to travel abroad as a digital nomad should be to do your research and find the best country that suits the stage your business is at right now, as well as your lifestyle and long-term goals.
This also means finding the right visa category for you. While several countries such as Brazil, Costa Rica, Thailand and Indonesia have specific digital nomad visas, others, such as Australia and Japan, still prohibit working on a standard tourist visa.
“Before booking your flight, research whether your chosen destination offers a visa tailored to business owners, as well as what the eligibility criteria are, minimum income requirements, how long you can stay, and whether you can renew your visa if you decide to extend your stay abroad,” advised Alex Miles, chief operating officer at business credit card company Capital on Tap.
Understand the tax and legal implications
Your tax and legal obligations are some of the most important factors to consider when moving abroad as a business owner. If not taken into account, you may have to pay taxes in two jurisdictions, which could significantly hurt profit margins, or face huge legal costs, penalties or compliance issues in the future.
“Relocating abroad can affect both your personal tax residency and your business’s legal obligations. Depending on where you move and how long you stay, you could have to pay taxes in more than one country,” Miles said.
“Before taking the plunge, it’s worth speaking to a legal or tax professional who can explain how double tax agreements work, whether your tax residency will change, and what reporting requirements you’ll need to comply with,” he added.
Establish finances for international spending
Another important factor is to properly manage your finances for international spending.
This includes opening new bank accounts, applying for loans abroad, and testing various payment solutions to find the one that best suits your business needs.
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“Consider using business banking and payment solutions that offer competitive exchange rates, low foreign transaction fees, and support for multiple currencies. Keeping your business and personal finances separate will also make accounting, budgeting, and filing taxes much simpler,” Miles explained.
Choosing the right workspace and internet options
While choosing the right Internet connection and workspace for your business may seem obvious, it often remains one of the most underrated factors in how smooth, efficient, and reliable your business operations can be.
Similarly, an inadequate workspace and spotty internet connection can cause a lot of unnecessary stress and friction, especially during the first few days of working in a new country, when business owners may already have to deal with a mix of new adjustments.
“Before choosing a destination, research internet speeds, mobile data coverage, and the availability of coworking spaces if you don’t plan to work from home,” Miles said.
Reviewing your insurance coverage
Insurance is another factor that is often overlooked, with many business owners filing it away as something to consider later when they have time, rather than something of utmost urgency.
However, having the wrong insurance coverage, or none at all, can cost you much more than expected in unforeseen circumstances.
Many business owners may also assume that standard travel insurance policies will cover them in the event of long-term remote work, expensive business equipment or business-related activities, which may not be the case.
“When comparing insurance providers, make sure you have the right travel, medical, and business insurance that meets your needs. Making sure you have the right coverage can protect you against unexpected costs, such as medical emergencies, lost or stolen equipment, and business interruptions that could otherwise be costly,” Miles explained.
Taking into account time zone differences
Several digital entrepreneurs do not adequately consider the cost of different time zones when moving abroad. However, this is one of the things that could potentially make or break your business, with far-reaching consequences on everything from operational issues to physical and mental health.
“It’s important to consider how you’ll manage meetings, deadlines and daily communication. For example, if you’re moving to Australia, the 8-11 hour time difference (depending on the time of year) could mean that early morning or late-night calls become part of your routine,” Miles warned.
“Before committing to a destination, ask yourself if your business can realistically operate during those hours,” he added.
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Protect your devices and data
Given the sharp increase in cybersecurity attacks and other data breaches seen around the world in recent months, it is vital to protect your devices and data as much as possible. This is especially if you don’t have a dedicated office building or home setup and will change workplaces frequently.
“Remote work often means connecting to public Wi-Fi, which can increase cybersecurity risks. Protect your business by using a VPN, enabling multi-factor authentication on all business accounts, regularly updating your devices, and preventing access to sensitive information over unsecured networks,” Miles said.
Don’t forget emergency funds
Moving abroad, whether as a digital entrepreneur or not, can be extremely chaotic and unpredictable, even under the best of circumstances.
As such, having a financial safety net should be non-negotiable, especially if you don’t want to take money out of your business to cover unplanned expenses.
“Unexpected costs, such as visa delays, medical emergencies or sudden changes in accommodation, can add up quickly. Having a financial cushion ensures that your cash flow remains stable and that your business operations are not interrupted by personal travel issues,” Miles said.
Plan for long-term revenue stability and business continuity.
Finally, while all of the above factors are vital to ensuring your business stays healthy and profitable while you are a digital nomad abroad, it is even more important not to lose sight of the long-term vision and goals set for the business.
“While working abroad can offer flexibility and inspiration, it’s important not to overlook business continuity. Consider how your income streams will be affected if customer demand fluctuates, payment cycles change, or if you operate outside of your normal market hours,” Miles warned.