Immigrant Invest helps remote workers find the best relocation strategies — legally, efficiently, and with expert support. One of the most popular modern tools is the digital nomad visa, which combines mobility and tax efficiency.

Albert Ioffe, Legal and Compliance Officer at Immigrant Invest, explains how digital nomad visas offer flexible and tax-friendly solutions for global citizens.

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What is a digital nomad visa?

A digital nomad visa is a legal permit that allows foreign nationals to live in a country while working remotely for an employer or running an online business registered abroad. These visas typically offer a stay of 6 to 24 months, often renewable. Applicants must prove:

  • stable income;
  • valid insurance;
  • remote work capability.

Unlike tourist visas, digital nomad visas provide legal long-term stay with the right to work remotely. Unlike work permits, they do not require sponsorship from a local employer.

What makes a country tax-friendly?

A tax-friendly visa minimises an individual’s liability to pay income tax in the host country. This depends on two concepts:  tax residency and tax relief mechanisms.

A country becomes attractive when it either:

  • does not tax foreign-sourced income;
  • applies a territorial tax system;
  • has double tax treaties with the applicant’s home country;
  • offers clear rules for avoiding tax residency.

Tax benefits vs tax residency

Tax benefits refer to provisions such as low tax rates, tax exemptions, or zero tax on certain income types. These can be available to both residents and non-residents.

Tax residency is the legal status that determines where one pays taxes on global income. Typically, a person becomes a tax resident by:

  • spending more than 183 days in a country;
  • maintaining a permanent home there;
  • having economic or personal ties to the jurisdiction.

A visa may offer tax advantages if it does not lead to automatic tax residency or if the country does not tax worldwide income.

Key tax benefits offered by the digital nomad visas

No tax on foreign income. Some countries do not tax income earned outside their borders. This is ideal for remote workers whose clients or employers are abroad. While living in the country, one’s income remains untouched by local tax authorities.

Territorial taxation. Territorial taxation means only income sourced from within the country is taxed. Foreign-earned income remains untaxed, even if received locally. Countries like Panama, Costa Rica and Greece.

Double tax treaties. Tax treaties prevent double taxation when a person is considered a tax resident in two countries. These agreements usually provide:

  • assignment of tax rights;
  • tax credits or exemptions;
  • clear residency tiebreakers.

They are especially useful for long-term nomads who risk establishing ties in multiple jurisdictions.

Benefits of tax-friendly digital nomad visas

Minimisation of income tax. Visas in countries with territorial taxation allow residents to receive foreign income without paying local tax. For example, a digital nomad in Malta benefits from a 12-month exemption from income tax. After this period, they pay a flat tax rate of 10% on authorised remote work income, which is significantly lower than the progressive rate of 0 to 35% applied to other residents. This makes Malta an attractive jurisdiction for structuring remote work in a tax-efficient way.

Protection from double taxation. When tax residency is unavoidable, treaties and local laws often provide relief. For example, in Greece, digital nomads may be eligible for a 50% income tax exemption for seven years.

Global mobility. Tax-friendly visas allow individuals to:

  • move freely between countries without accumulating tax obligations in each;
  • stay long-term with legal security;
  • avoid contributions to local pension or social systems.

This financial relief is particularly attractive for self-employed professionals and remote contractors.

Top tax-friendly digital nomad visa countries

Spain:

  • visa duration: 1 year, extendable up to 5 years;
  • income requirement: at least 200% of the national minimum salary;
  • taxation: special expat regime; 24% flat tax on Spanish income up to €600,000;
  • tax residency: acquired after 183 days, but a special regime applies.

Spain’s digital nomad visa is part of its Startups Law. Qualifying applicants can benefit from a special tax regime that limits the tax rate and scope, offering predictability for high-earning professionals. Barcelona, Valencia, and Madrid are popular hubs with strong digital infrastructure.

Malta:

  • visa duration: 1 year, renewable;
  • income requirement: at least €32,400 per year;
  • taxation: 12-month income tax exemption, then 10% flat tax on authorised work;
  • ax residency: not automatically granted to nomad permit holders.

Malta offers a dedicated Nomad Residence Permit, designed for remote professionals working with companies outside Malta. Combined with EU location, English-speaking environment, and Mediterranean lifestyle, Malta is ideal for digital nomads seeking a base in Europe.

Costa Rica:

  • visa duration: 1 year, extendable;
  • income requirement: at least $3,000 per month;
  • taxation: territorial; foreign income not taxed;
  • tax residency: not automatically acquired.

Costa Rica is ideal for freelancers and remote employees. With its territorial taxation and relaxed residency criteria, applicants can legally minimise taxes while enjoying tropical beaches and rainforests.

Panama:

  • visa duration: 9 months, renewable once;
  • income requirement: $3,000 per month or $4,000 if bringing family;
  • taxation: territorial system;
  • tax residency: based on stay and economic centre.

Panama’s visa is highly accessible and offers strong privacy protections. It is a preferred option for digital entrepreneurs who want to optimise taxes in a stable and cosmopolitan environment.

Greece:

  • visa duration: 1 year, renewable for 2 more;
  • income requirement: €3,500 per month;
  • taxation: worldwide, with 50% exemption for new residents;
  • tax residency: triggered by stays over 183 days.

While Greece does tax global income, digital nomads may halve their tax burden if they qualify for the incentive scheme. The cultural richness and EU access make it a balanced option for lifestyle and savings.

Conclusion

Digital nomad visas empower remote workers to explore the world, enhance their quality of life, and reduce their tax burden — all legally. With the right planning, one can structure their residency to avoid unnecessary taxation.