The digital nomad lifestyle has seen a massive boom in popularity in the last few years.
According to Expatnetwork, Google searches for “digital nomad visas” surged 1,135% worldwide in 2024.
Given the freedom, flexibility and increasing global opportunities, it may not come as much of a surprise that both everyday 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 a casual one and requires considerable planning and strategy. This includes everything from choosing the right visa and understanding tax implications, to planning finances and finding the right insurance.
Euronews Business looks at the nine most important things European entrepreneurs, especially small business owners, need to keep in mind before going full digital nomad.
Finding the right visa category
The very first step before planning to go abroad as a digital nomad should be researching and finding 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 like Brazil, Costa Rica, Thailand and Indonesia have dedicated digital nomad visas, others like 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, the minimum income requirements, how long you can stay and whether you can renew your visa if you decide to extend your time abroad,” Alex Miles, chief operating officer at business credit card company Capital on Tap, advised.
Understanding tax and legal implications
Your tax and legal obligations are some of the most crucial factors to keep in mind while moving abroad as a business owner. If disregarded, you may find yourself paying taxes in two jurisdictions, which could significantly hurt profit margins, or facing huge legal costs, penalties or compliance issues down the line.
“Relocating abroad can affect both your personal tax residency and your business’ legal obligations. Depending on where you move and how long you stay, you could become liable for tax in more than one country,” Miles pointed out.
“Before making the move, it’s worth speaking to a tax or legal professional who can explain how double taxation agreements work, whether your tax residency will change and what reporting requirements you’ll need to meet,” he added.
Setting up finances for international spending
Another important factor is managing your finances properly for international spending.
This includes setting up new bank accounts, applying for loans abroad and testing various payment solutions to find the one that best meets your business’ needs.
“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 bookkeeping, budgeting and tax reporting 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 is still often one of the most underestimated factors for how smooth, efficient and reliable your business operations may be.
Similarly, the wrong workspace and patchy internet can cause a lot of unnecessary stress and friction, especially during the early days of working in a new country, when entrepreneurs may already have to deal with a medley 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 noted.
Reviewing your insurance cover
Insurance is another often overlooked factor, with several business owners filing it away as something to look at later on when they have time, rather than of utmost urgency.
However, having the wrong insurance cover, or none at all, can cost you much more than expected in unforeseen circumstances.
Many entrepreneurs may also assume that standard travel insurance policies will cover them for long-term remote working, expensive business equipment or business related activities, which may not be the case.
“When comparing insurance providers, ensure that you have the right travel, health and business insurance in place to suit your needs. Ensuring you’re properly covered can protect you against unexpected costs such as medical emergencies, lost or stolen equipment and business interruptions that could otherwise be costly,” Miles explained.
Keeping time zone differences in mind
Several digital entrepreneurs don’t adequately account for the toll of different time zones while 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 mental and physical health.
“It’s important to consider how you’ll manage meetings, deadlines and day-to-day communication. For example, if you’re relocating to Australia, the 8-11 hour time difference (depending on the time of year) could mean early morning or late-night calls become part of your routine,” Miles warned.
“Before committing to a destination, ask yourself whether your business can realistically operate across those hours,” he added.
Protect your devices and data
Given the sharp rise of cybersecurity attacks and other data breaches seen worldwide 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 set-up and will be changing working locations frequently.
“Remote working 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 avoiding accessing sensitive information over unsecured networks,” Miles noted.
Don’t forget emergency funds
Moving abroad, whether as a digital entrepreneur or otherwise, can be extremely chaotic and unpredictable, even in the best of circumstances.
As such, having a financial safety net should be non-negotiable, especially if you don’t want to be taking money out of your business to cover unplanned expenses.
“Unexpected costs such as visa delays, medical emergencies, or sudden changes in accommodation can quickly add up. Having a financial buffer ensures your cash flow remains steady and your business operations aren’t disrupted by personal travel hiccups,” Miles said.
Plan for long-term revenue stability and business continuity
Finally, while all of the above factors are vital to making sure your business stays healthy and profitable while being a digital nomad abroad, it is even more important to not 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 revenue streams will be affected if client demand fluctuates, payment cycles change, or you’re operating outside your usual market hours,” Miles cautioned.