Becoming A Digital Nomad in 2021
Becoming A Digital Nomad in 2021
No doubt, becoming a digital nomad in 2021 is way easier than it was a few years ago. A lot of countries introduced nomad visas, telecommunication has shown rapid development and a lot of industries went remote. Anyway, the COVID-19 year 2020 has made nomadity a rather complicated and pricey lifestyle due to restrictions, coronavirus tests and canceled flights.
Still craving for a digital nomadity? You are not alone. Here is a piece of advice that your first touch with diginomadity is as smooth and satisfying as possible.
Let’s start!
Becoming A Digital Nomad in 2021
RESEARCH
1.
To get a glance on the true nomadic life you will need to make a thorough research. The first to pop up are the shiny ads with hummocks and palm trees. Nevertheless, it is not the full truth of the diginomadity. As some real people for their true stories to learn and make decisions.
2.
What skills do you own that are worth selling online? What new skills can you learn?
3.
Study the laws, regulations and recommendations. In many cases you need to know a lot about the legal side of diginomadity in different countries to avoid legislation traps.
Becoming A Digital Nomad in 2021
MAKE A DECISION
1.
That is the hardest part of the plan. If you are alone, everything’s up to you: the destination, the duration and the pace. If you are not, it is about negotiation. Couples and families are not that rare phenomenon in digital nomadism.
2.
What would be your destination country/countries? The better you are prepared, the more you learn about your destination country/countries, the easier the trip will be.
In some you just can’t live cheap. Hong Kong, Singapore, Norway, Switzerland, Monaco, Finland – just few to name.
Apparently, there are countries, where long lettings could be a problem. Ireland, China, Finland, Great Britain – in those countries the market is targeting the locals with stainless tenant history and intention to stay at least one year. Also most apartments are leased unfurnitured. Riviera coast in Europe is season oriented: long lets are available from October to April, but from May to September the owners prefer to let it out short term. No problem, if you can easily afford triple the price.
3.
Staying connected is the crucial part of the project, so be sure that your destination offers you this luxury. In some countries it is pretty hard to get a local internet connection if you don’t have local ID (eg. Portugal). To get a reliable local connection you might need an official local address, TAX number and etc. Fulfilling those requirements as a digital nomad can appear a problem. Usually prepaid Internet is not getting you anywhere, so the solution can come from your backyard: research your national operator offer, as it could probably be cheaper and more reliable than local or prepaid connection.
Becoming A Digital Nomad in 2021
MAKE A PLAN
1.
Try to alienate some funds for the initial period of your diginomadity. The beginning may demand some adjustments and investments.
2.
Getting rid of all excess belongings isn’t always simple. If you feel like saving some very personal stuff, it may need a safe place to be kept. Incase of real estate some transfer period can apply (read: you have to finance it until it’s sold or rented out). Some of my friends still keep their real estate rented out and their belongings at their friends/parents places, but this option is not applicable to everybody.
3.
In case you have school age children, figure out what obligations you have regarding their schooling and accommodation. There are few schools, which offer remote education, but it won’t necessarily be in the language you would like your children to study.
4.
Citizens of most countries need a permanent address to keep their rights to vote, own a bank account and some kind of social security. Nobody can take your citizenship away, but to keep other rights – you have to take care about the rules beforehand. For Europeans it is worth figuring out, which EU country offers the best background for digital nomads. We have chosen Estonia.
5.
Before hitting the road, try to separate some deposit into a bank account, which will secure your back if something goes wrong. Things rarely go along with the finest plan, and it is good to have a fund to duck to.
Becoming A Digital Nomad in 2021
MAKE YOUR DREAM COME TRUE
1.
Jumping from 9am-5pm employee to a nomad could be too radical. Try it safely as working from home first. Feels great? Go ahead then.
2.
Start up. A VAT registered company will delight your potential clients. It doesn’t matter if it is a sole proprietor, limited company or any other legal entity – as far as it gives them an official invoice. In many countries a company will not be happy to order a work from a private person, as it will make the company your employer and you – a taxable person in a bespoken country. Believe me, they do not anticipate it.
3.
In some cases joining the appropriate invoicing network or community will help (check on PeoplePerHour.com)
4.
A hefty portfolio is a piece of gold in your digital nomadity. It will prove your clients your skills. Invest some time into collecting one.
5.
Learn new skills. Knowledge doesn’t weigh anything in your nomadic backpack.
6.
Refresh your language skills. It is 99% sure your working language will be English. Most of the information is presented in English. For sure, the local diginomad community uses English. Other useful languages are Spanish, Portuguese, French, Chinese and Russian. Niche languages are better paid, but it is harder to find jobs in them.
7.
You will need a lot of mental stamina to keep it up when chaos is blooming around you, so train your mental flexibility and imperfection tolerance.
Becoming A Digital Nomad in 2021
UNDERWATER REEFS
1.
Turning from a normal employee to a digital nomad will cut the greater part of your social life and contacts. A diginomad may spend weeks solely in foreign environment. Will you cope with it?
2.
Most of experienced diginomads advise learn to reduce your life expenses first. It’s wise advice: a novice digital nomad income collapses at least in the beginning. Also there can come out a lot of expenses you do not anticipate. Even if you think you are prepared for everything, there can be still some money holes you just don’t acknowledge existing.
3.
The competition is tough in most trivial digital industries. Now you are standing the row with a million other young and hungry digital nomads, freelancers and remoters, who are ready to do the same work but cheaper. The reasons are obvious: they live in more affordable countries. So, be ready to persuade your potential client in your outstanding abilities. Or obtain some unique skills.
4.
Most digital nomads earn about 1000€ per month (it’s about $1200 and £850). The income is rather modest in most parts of the world. Before you gain a hefty portfolio, your earnings can be much lower as well. Of course, some digital nomads earn times more. Obviously, it takes time to achieve that luxury level.
5.
Obviously, your productivity will decrease at least at the beginning. Continuous adjusting mode influences human creativity negatively. Previous experience or training can help you significantly to tolerate external disturbance.
6.
Human beings still have features inherited from our cave predecessors. We react with adrenaline hype for unfamiliar environments and circumstances that our brain interprets as dangerous. Apparently, positive stress affects our adrenaline levels the same way. That may result in insomnia, panic attacks and mental disorders. If not feeling well on your nomadic way, just be ready to give up. We are all individuals, some people stand nomadic lifestyle easily and enjoy the hype, and some – get sick of it. There is no shame to confess, that nomadity is not for you. However, it is necessary to recognize the symptoms in time.
7.
Keep your insurance valid. Shit happens, while not many are eager to admit it. Limbs and laptops get broken time to time.
8.
There is no legislation that allows you to be a digital nomad. In other words, it is your headache to obtain all necessary documents to have a nice stay in the country of destination. The practice varies considerably from country to country. There are countries where authorities play pretend blind for your overstay or illegal entrance to the country. In others – it is a serious crime. By the way, Airbnb is not legal everywhere. Surprised? Me too. That comes from Airbnb owners unwillingness to pay taxes.
9.
The speed and freedom of your pace may vary from your expectations. No doubt, nomadic lifestyle allows you to manage your own time. Nevertheless, it is still mostly working, not leisure. You need to adhere to the deadlines and present a result that pleases the client. Otherwise, it could be the last client of yours. Focusing on the task demands time, effort and devotion, and still, not everything goes as desired. There are a lot of small things that can go wrong.
10.
Inquire from reliable sources the visa/residence permit requirements. Some countries put the level of demands for digital nomads so high, that the industry novice can hardly perform it. It goes to costs of visas and insurance, income level and other expenses.
Becoming A Digital Nomad in 2021
SOME LIFE HACKS
A bank account and a bank card
Despite the fact there are banks, which operate virtually only, they are still financial institutions, which follow strict rules appointed to them. There are cases when you can’t open an account if you are not located physically in the place of your permanent address (Bunq); you ID is not accepted by this bank (N26); your account can get blocked for technical reasons (Revolut); your card can’t be posted to the country of your current location… Whatever. So, opt for some old and familiar meanings of receiving and sending payments (like PayPal). In some cases, your old, regular bank is the best option. Anyway,
- try to find 2-3 banks, which issue physical cards (Revolut, Transferwise, Bunq, N26 – read more at e.g. Nomad Gate). While not everything is true for every country, in most cases you will find a solution that suits both, you and the bank ).
- it’s worth finding a bank that allows QR-code and mobile phone payments as well (e.g. LHV and SWEDBANK in Estonia and many banks in China and Hong Kong). In case one card is lost/doesn’t work, you have some other meanings of payment. That doesn’t happen often, but when it happens, it is a catastrophe.
Insurance
Not many insurance companies issue nomad insurance. These are never cheap cases, and you have to read small text carefully. However, those companies still exist. SafetyWing is one of those. Some credit cards have comprehensive travel insurance, in case you qualify for one.
Internet
That’s the vital matter of digital nomadism, and it still has a lot of issues. Some countries, like Thailand, offer the 5G network pretty much everywhere. However, in some destinations Internet connection is from the 20th century.
Accommodation
Short-term accommodation is usually hassle-free, but pretty expensive. While trying to get a budget housing, try to find out as much as you can about the local habits and legislation. The law varies a lot, and in the worst case you can find yourself fined or obtaining the obligations, you could never believe existing. Also the expense level for utilities is worth checking beforehand as detailed as possible. Sometimes it is really hard to get this type of information.
Driving license
Find out beforehand if your driving license is valid in the country of destination, in case you itend to drive. E.g. in Finland every single motor vehicle class requires a driving license (A-E), including scooters.
Company
As you probably know, some particular countries and territories offer residence and corporate services for digital nomads on very favourable terms. For Estonia read: Xolo, LHV. In other words, you and your company do not necessarily reside in the same country. Ireland and Malta offer similar services.
Taxation
This is a nightmare of digital nomadism. Regulations vary so much, you could need a taxation adviser to get out of trouble. In addition, double taxation occurs as well. Estonia is kind of a diginomad paradise, and its government has made it on purpose.
Legal
As a digital nomad, you are obliged to take care about your legal issues all by yourself. For example, you need a permanent residence address in a random country. There is no virtual bank which allows you to skip this stage, anyway. Personally, I recommend you to take into consideration one of the Baltic countries: Estonia, Latvia or Lithuania. They are efficient and offer reasonably priced fully remote services but they are still EU and act accordingly.
Connect to other digital nomads
I guess, every single place in the world has its own diginomad community. Not yet? Create one! Sharing experience could be crucial for your nomadic life and safety.
Engage to other digital nomads
Believe me, engaging with other humans on a personal level is not that scary at all, especially if they are diginomads as well. According to my 20 years experience, uniting with another nomad/other nomads makes life way easier, in case the person is the right one, of course.
Becoming A Digital Nomad in 2021
For more information on the topic, please refer to:
Diginomad Hub
Becoming A Digital Nomad in 2021
Becoming A Digital Nomad in 2021
Reference list:
The Best Business Bank Accounts To Open From Anywhere
PeoplePerHour.com – Hire Freelancers Online & Find Freelance Work
Xolo: Run your EU company online or invoice without one
