Unlike traditional work visas that require employer sponsorship, digital nomad visas are specially designed for individuals who earn their income remotely. These visas are legally recognized and provide protection for remote workers, granting them the freedom to live and work in a foreign country without the fear of legal consequences. However, with this freedom come unique legal challenges that must be overcome. In this blog, we will explore how a digital nomad visa can empower remote workers by providing a legal framework for living and working in other countries.

Digital nomads are modern individuals who perform work online, whether they are self-employed (freelancers) or employed in remote positions that do not require a physical presence at a workplace. Their activities are related to computer-based tasks such as web design, graphic design, programming, marketing, dropshipping, cryptocurrencies, social media, and more. Therefore, they seek a comfortable place to settle and work. Key criteria when choosing a country to apply for a visa include internet speed, cost of living, visa application process, visa duration, and potential tax benefits. Additionally, personal preferences, geographical location, climate, safety, and the overall environment also play a significant role in the decision-making process.

This is a hybrid type of visa that combines a work visa with a residence permit because individuals can only earn income through remote work, they are not allowed to be employed in the host country, but they are allowed to live alone or with their family during the visa's validity period. This, of course, is subject to meeting specific conditions regarding net income, bank account balance, healthcare coverage, and additional financial means for each family member living with them. Family members are also not granted the right to employment in the host country but are eligible for residence.

This way of working has seen significant growth after the global COVID-19 pandemic, as countries aim to attract a larger number of digital nomads with the benefits they offer, in return contributing to their economy, multiculturalism, and the emergence of new business ideas (start-ups). Digital nomads have the opportunity to travel, work from different parts of the world, and increase their income.

Understanding Legal Challenges for Remote Workers

With the increasing popularity of remote work, remote workers face various legal challenges. One of the most significant barriers is the lack of recognition and protection in foreign countries. Without the appropriate visa or work permit, remote workers may face deportation or other legal consequences. Additionally, tax obligations can become complex and confusing when working across borders. These challenges can create a sense of insecurity and instability for remote workers, hindering their ability to fully embrace the digital nomadic lifestyle.

Advantages of a Digital Nomad Visa

A digital nomad visa offers many advantages for remote workers. First, it provides legal security, eliminating the fear of deportation or legal consequences. This allows remote workers to fully focus on their work and embrace the digital nomadic lifestyle without constant worries about being on the wrong side of the law. Furthermore, a digital nomad visa can provide access to essential services such as healthcare and banking, which are challenging to obtain without a registered residence. Finally, a digital nomad visa can open up new opportunities for networking and collaboration with like-minded individuals in the country that issues the digital nomad visa, enriching the professional and personal lives of remote workers.

Countries Offering Digital Nomad Visas

Countries that have recognized this trend and decided to attract digital nomads by offering special visas have taken steps to enact legal regulations and streamline the application process (such as Spain, Greece, Cyprus, the Czech Republic, Portugal, Barbados, Costa Rica, Bermuda, and the Cayman Islands). These visas typically allow stays in the country for a specified period, usually ranging from a few months to one year, with the possibility of extensions. Often, a common requirement is that the individual must be employed by a foreign employer or earn the majority of their income through remote work (for example, in Spain, it is not allowed for income from a domestic employer to exceed 20% of the total monthly income). While the concept of digital nomad visas is relatively new, several countries have recognized the potential benefits of attracting remote workers. For example, Estonia launched its digital nomad visa program in 2020, allowing remote workers to live and work in the country for up to 12 months. Other countries, such as Barbados, Bermuda, and Croatia, have also introduced similar visa programs to attract digital nomads. These countries understand the economic value that remote workers can bring and have simplified the application process to make obtaining residence easier.

Qualifying for a Digital Nomad Visa

The requirements for obtaining digital nomad visas vary depending on the country. However, there are common criteria that remote workers typically need to meet. Applicants typically need to provide proof of income demonstrating a stable source of remote income. They may also be required to have health insurance coverage and provide a valid passport with at least six months of validity. In some cases, applicants for a digital nomad visa may be required to submit a detailed travel plan or explain their reasons for choosing that particular country. By meeting these requirements, remote workers can increase their chances of obtaining a digital nomad visa.

Steps to Apply for Digital Nomad Visas

Once remote workers have chosen the country where they want to apply for a digital nomad visa, the application process can begin. The first step is to gather all necessary documents, including proof of income, health insurance, and a valid passport. It is important to thoroughly research the specific requirements of the chosen country to ensure that all necessary documents are provided. After the documents are in order, the application can be submitted to the relevant government agency or embassy. It is recommended to apply well in advance of the desired start date to allow time for the processing of the application. After the application is submitted, remote workers must be prepared to provide additional information or attend interviews as requested by the visa-issuing authorities. Navigating the legal process of obtaining a digital nomad visa can be complex and daunting. Seeking professional assistance, such as hiring an immigration and foreigner's law attorney, can be helpful in ensuring a successful application. Legal Framework in the Republic of Serbia The Republic of Serbia aims to regulate the issue of digital nomads, making their activities and residence legal and documented through residence registration. In this regard, the Law on Personal Income Tax, specifically Article 9b, stipulates the following: "Exempt from taxation is the income of a non-resident taxpayer who spends a maximum of 90 days in the territory of the Republic within a 12-month period that starts or ends in the respective tax year, if such income is earned from a non-resident principal who does not conduct business or activities in the territory of the Republic". Unfortunately, digital nomad visas have not yet been implemented in the Republic of Serbia, but there is hope that the legislator will include this visa in the legal framework in the near future.

Conclusion

The digital nomadic way of life offers numerous opportunities for remote workers, but it also comes with unique legal challenges. A digital nomad visa is a valuable tool that can motivate remote workers by providing legal security for living and working in foreign countries. By understanding the advantages of the digital nomadic lifestyle, as well as the countries that offer it and the application process, remote workers can navigate the legal process with confidence. Although the journey may be complex, the rewards of obtaining a digital nomad visa are priceless. Therefore, if you are a remote worker dreaming of living and working in foreign countries, explore the possibilities that the digital nomadic lifestyle can offer. Lawyers with expertise in labor, tax, immigration law, and foreigner's law can provide valuable assistance in resolving any uncertainties and offering expert legal support to ensure quality and uninterrupted work and residence.