What is a Digital Nomad Visa?
Digital Nomad Visa is a collective name. It has become the term for visas issued to those planning to move to another country and work remotely. In each country where it is issued, the Digital Nomad Visa may go by its own name. In Spain, for example, it's Visado para Teletrabajadores de Caracter Internacional en Espana, and in Norway it's the Independent Contractor Visa.
What a digital nomad visa gives you
With a Digital Nomad Visa you can:
- legally reside in the country for an extended period - while a Schengen tourist visa, for example, allows a stay in Europe of no more than 90 days, a Digital Nomad Visa lets you stay in the country for several years;
- make use of opportunities available to citizens of that country, such as opening a bank account;
- work remotely, earning income from abroad, though in most cases a digital nomad is required to work specifically with foreign employers, although there are exceptions.
There are countries where such a visa makes it easier to obtain a residence permit. In Portugal it is valid for only 4 months, but afterward you can apply for a residence permit for 2 years. After that, the residence-permit holder can extend it for another 3 years, and then apply for permanent residency.
The process of obtaining a Digital Nomad visa
The visa application process differs from country to country, but there are stages that are the same across all countries issuing such a visa.
Gathering documents
To get a digital nomad visa, documents are required that confirm:
- the existence of remote work - this can be a contract with an employer;
- that the level of income meets the requirements of the state issuing the visa.
The documents need to be translated into the language of the country where the visa application is submitted, and apostilled.
Submitting the visa application
The simplest way to apply is through the embassy or consulate of the chosen country operating in Russia. It can also be done directly in the country chosen for residence, if it's possible to travel there on a tourist or student visa.
Some countries offer the option of submitting an online application - these include Hungary, Greece, Malta, Portugal and others.
Waiting for the result
The waiting period depends on the conditions for issuing the visa in the specific country. It usually takes 1-2 months.
Basic document list
The lists may vary slightly by country. Usually the following are required:
- an international passport;
- a photo of a certain size, taken recently;
- documents confirming you receive orders, and that you have permanent work with a remote employer;
- documents confirming your income level: in European countries this is usually from EUR 2,500 a month, but can be lower - for example, in Hungary you need to confirm income of from EUR 2,000;
- a certificate of no criminal record;
- health insurance with a certain coverage amount, valid in that country's territory.
The state issuing the visa also always has the right to request additional documents. For example, a marriage certificate or details of the planned place of residence.
A digital nomad can obtain a visa for a spouse and dependent children. In this case, documents must also be provided for them, and the required income level confirmed.
Does a digital nomad have to pay taxes in Russia
If the "digital nomad" works for a Russian company, there is an obligation to pay tax of 13-15% of income for as long as tax-resident status remains in effect. Under the Tax Code of the Russian Federation, a tax resident of the Russian Federation is an individual who is present in the country for at least 183 calendar days over 12 consecutive months. Consequently, after 183 days of continuous residence in another country, income tax has to be paid under that country's rules, as a resident of that other state. So before choosing a country of residence, you need to study that country's tax conditions.
How to pay personal income tax
The answer to this question depends on what is stated in the employment contract. Under current Russian law, someone who is not a tax resident and earns income outside Russia does not pay Russian personal income tax. Russian tax residents who have sources of income abroad must calculate and pay the tax themselves.
Do you need to notify Russian authorities about opening a bank account outside Russia
Yes, this obligation is set out in current legislation. First, you need to notify the tax authorities about having an account at a foreign bank. Second, a Russian citizen, even if they are not a Russian tax resident, must submit annual reporting to the tax office showing the movement of funds in their accounts at foreign banks.
You can find a list of the most popular countries for digital nomads in our other article.
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