Ecuador join the club

Spain and Ecuador started to welcome foreign remote workers to their respective shores in January 2023 with the unveiling of digital nomad visas.

The new Spanish visa, part of the country’s Startups Act, will allow remote workers earning a minimum monthly income of €2,000 to live and work in the county for up to five years – giving close neighbour Portugal’s one-year visa (you must earn at least €2,800 per month) a run for its money.

While South American country Ecuador, known for its high mountains and deep rainforests, is luring remote workers with the promise of “low cost of living” and “authentic experiences”. Under the country’s new Rentista Visa, remote workers who earn at least US$1,313 (€1,266) per month will be able to spend up to two years In the country.

Growing list of countries luring remote workers to foreign shores

Spain and Ecuador join a growing list of countries worldwide – from the Caribbean to Europe – that have rolled out digital nomad visa programs in the last few years, as they look to rethink tourism in the post-pandemic world.

Designed to tap into the digital flexibility being offered by today’s businesses, these programs invite foreigners – whether selfemployed or employed with an overseas company – the chance to reside in, and work from, their countries visa-free.

Barbados was one of the first countries out of the digital nomad blocks, in July 2020, unveiling its 12-month-long Barbados Welcome Stamp, closely followed by Caribbean-island Antigua & Barbuda, which upped the global mobility ante – unveiling a visa that allows digital nomads to reside for up to two years.

Who wouldn’t want to work from an island that boasts 365 beaches, one for every day of the year?

As Antigua & Barbuda’s tourism minister Charles Fernandez puts it – “if you are working from home in an apartment in New York or London at an exorbitant rate, you can come to Antigua where the cost of living is much lower, and the water is beautiful. It’s a win-win for everyone.”

Since then, more Caribbean islands – namely Bermuda, Cayman Islands, British Virgin Islands – and a raft of other countries, including Georgia, Italy, Romania, Estonia, Croatia, Dubai, Czech Republic, Greece, Costa Rica, Portugal, Mexico, and Iceland, have rolled out the red carpet for global remote workers.

Depending upon the country, visas last from six months (Iceland) up to five years (Spain, Indonesia) with most offering one- or two-year stints, though many are renewable and some can even lead to residency (Portugal) or citizenship (Antigua).

Requirements for gaining a visa vary, but most require applicants to show proof of employment with a minimum annual income, ranging from US$25,000 to US$150,000, and proof of health insurance for the duration of the stay.

Perks, pros, and pitfalls of individual visas

One of the main perks of such a visa is a reduction in taxation. Greece is luring remote workers with its digital nomad tax incentive that offers a 50% reduction in income tax and social security payments, while Spain’s new visa grants preferential tax status for the first four years of residency, at just 15% (instead of 24%) income tax.

Tax-free overseas income and tax-free cryptocurrency are two perks of Portugal’s popular digital nomad visa, while in Croatia, Estonia and Indonesia, remote workers are not subject to income tax though must obviously pay tax in their own countries. While Georgia’s visa is quite the pull for individual entrepreneurs, as it taxes just 1% of your business’s gross revenue up to US$155,000.

There are other pros and cons to the various visas on offer. While Bermuda’s digital nomad visa doesn’t require a minimum income to move there (and even accepts postsecondary students), it is one of the world’s most expensive countries so cost of living here is very high.

Barbados’ cost of living is also high, but the island nation remains a pull for remote workers not just for its year-round sunshine and laid-back lifestyle, but its fast broadband which boasts higher speeds than the UK.

European cities like Georgia, Croatia, Italy, Estonia, and Portugal offer a much lower cost of living. Estonia, whose visa entitles remote workers with a minimum monthly income of €3,504 to stay up to one year, is a popular choice thanks to its digital maturity with 99% of public spaces available online 24/7 in the capital city Tallinn (named best city worldwide for remote workers in 2021). That said, Estonia’s visa lasts for just 12 months and isn’t renewable like many others are.

One of the biggest selling points of the Portugal, Spain and Estonia visas is that remote workers can travel visa-free throughout the Schengen Area, a region comprising 26 EU member countries.

Only launched last October, Portugal’s digital nomad visa has been especially popular thanks to this, not to mention an abundance of coworking spaces, including being home to the world’s first digital nomad village located on the Portuguese archipelago of Madeira.

Processing takes anywhere from 5 business days (Barbados) to 15 (Costa Rica) with processing costs minimal, typically US$1,500-2,000. You can travel in and out of the county as you wish without paying income tax.