Digital nomadism has continued to grow in popularity with more opportunities to work or do business remotely from anywhere on the globe, becoming more available.
If you are already living, or considering, this lifestyle, the locations covered in this article might interest you.
Read on to discover five top locations for crypto-wealthy digital nomads and entrepreneurs.
TL;DR
- What makes a destination great for digital nomads includes friendly regulations, low taxation, bitcoin adoption, and, generally, a high quality of life.
- The list of popular destinations for wealthy digital nomads includes Panama, Portugal, Singapore, Switzerland, and the United Arab Emirates.
- Most of these destinations are highly Bitcoin-friendly, encompassing ease of use of the digital asset, low taxation, and active local communities.
What Makes a Location Attractive for Wealthy Digital Nomads?
There are close to 200 countries to choose from and thousands of locations to consider as a digital nomad. That can make planning a little overwhelming, and that calls for a focus on the most critical aspects.
When charting the course of your digital nomad journey as some who hold a substantial amount of their money in cryptocurrency, the following are the most critical factors to consider:
- Regulation: You need legal certainty, especially regarding the enterprise you are engaged in, and also the use of crypto.
- Tax obligations: It is important to understand how much tax you are expected to pay, and destinations that charge low tax are most preferred.
- Crypto adoption: If you earn, hold, trade, or prefer to make payments using crypto, it helps if you can do that without hindrance.
- Quality of life: Financial benefits must be accompanied by safety and comfort, and that includes access to critical amenities and safety.
Top 5 Bitcoin-Friendly Destinations for Wealthy Digital Nomads
Based on the most important qualities that you need to look for when choosing your next destination as a digital nomad, the following are the five places to consider:
Panama
One of the top locations is Panama, a country in Central America that has become popular with tourists and digital nomads in recent years. From the modern skyscrapers of Panama City to the azure blue waters of Bocas del Toro, the country offers most of the things a digital nomad would enjoy.
Regulation
Panama’s regulation on remote work and enterprise is generally a work in progress. However, the country has a visa specifically designed for digital nomads. Meanwhile, virtual assets aren’t classified as securities by financial regulators, and there is a move towards making cryptocurrency acceptable in commerce.
Tax obligations
According to this guide on obtaining a residency in Panama, the country has a territorial tax system. That means income earned outside of the country isn’t taxed, and this is a perfect setup for a digital nomad. The government also doesn’t impose wealth or inheritance tax.
Crypto adoption
In Panama City, you can use crypto for the payment of fees and city permits. It also has a sizable network of Bitcoin ATMs and an active crypto community. There is also a growing number of businesses and organizations that will accept your bitcoin for goods and services.
Quality of life
The cost of living, even a luxurious lifestyle, is lower than in many developed countries. Panama offers high-quality healthcare and has a stable economy. While it is a safe destination, it isn’t entirely crime-free. In the capital, neighborhoods such as Costa del Este or Punta Pacifica are generally considered safer.
Portugal
Another top location for digital wealthy nomads is Portugal, mostly popular because of its historic Iberian heritage, sun-drenched beaches, and the more open-minded approach to new technologies, including Bitcoin. It is a destination that will lead you to crossing paths with like-minded individuals from around the world.
Regulation
The law is generally accommodating to remote workers and entrepreneurs. There is a digital nomad visa you can apply for (the D8 Visa).
Meanwhile, Bitcoin and other cryptocurrencies aren’t considered a security by the Portuguese financial regulator (CMVM). Providers of crypto-related financial services must be licensed with the Bank of Portugal and adhere to AML, CFT, and MiCA regulations.
Tax obligations
If you stay in Portugal for less than 183 days, you can only pay taxes on income generated within the country. That means income from outside isn’t subject to taxation. After that, you can pay taxes on your income ranging between 14% and 48% for your income.
Meanwhile, in 2023, Portugal adopted a new tax regime that imposes a flat 28% capital gains tax on cryptocurrencies held for less than a year. Long-term holders remain exempt from taxation. Professional crypto trading, staking, or mining are taxed as standard income, which can be up to 48%.
Crypto adoption
Portugal ranks among the best globally for crypto adoption. Many businesses, law firms, and real estate developers accept payments in crypto. Lisbon and Porto have world-class infrastructure that allows nomads to lead a crypto-centric lifestyle.
Quality of life
Given its mild climate, a mix of cultural heritage and innovation, and a high-quality healthcare system, digital nomads can enjoy a great quality of life at a cost that is lower than in many other Western European countries. Most importantly, Portugal consistently ranks among the safest countries in the world.
Singapore
Futuristic skyline, lush tropical gardens, and exceptional safety of a person’s well-being and assets are some of the attractions for digital nomads to Singapore, placing it among the top locations to pick from. The city offers reliable infrastructure, including internet connectivity.
Regulation
Singapore doesn’t have a specific, clear law on remote work. You can apply for an employment pass if you plan to stay in the country long term, and more especially if you plan to do business with local enterprises. The city-state doesn’t have a digital nomad visa.
Bitcoin-related business activities are generally overseen by the central bank (MAS), which keeps retail investors protected through the Payment Services Act (PSA) and Financial Services and Markets Act (FSMA). Cryptocurrencies are generally classified as Digital Payment Tokens (DPTs).
Tax obligations
Singapore doesn’t tax income generated from outside the country. However, that changes after you become a tax resident, which applies after you stay for more than 183 days. Meanwhile, payments for goods and services in crypto are exempt from the Goods and Services Tax (GST), and pro crypto traders are subject to progressive income tax.
Crypto adoption
Increasingly more businesses and brands are accepting crypto. It is generally more convenient to use crypto debit cards and other off-ramp services. Direct use of crypto is hindered by a relatively protective regulatory environment.
Quality of life
Singapore is one of the safest places in the world, with an amazing infrastructure and a healthcare system. However, the cost of living is also one of the highest, especially for housing. It is a high quality of life that is accompanied by a big bill.
Switzerland
This country is superb in every way, whether it’s the Alps, the banks, the watches, or the chocolate. Digital nomads choose Switzerland as one of their top locations for many reasons, including robust infrastructure for business and social services.
Regulation
The Swiss main regulator, the Financial Market Authority (FINMA), developed crystal-clear guidelines for retail investors and businesses that align with international standards. Cryptos like bitcoin can be legally used for payments, while others can be classified as utility or asset tokens.
Tax obligations
Your income is only taxed if you become a resident. However, taxes might apply to income from local businesses even when you are not a resident. Meanwhile, private investors, including digital nomads, are free from capital gains tax. However, all Swiss residents must pay an annual wealth tax, the rate of which varies across cantons. Meanwhile, the income applies to most online enterprises.
Crypto adoption
The Canton of Zug, also known as Crypto Valley, is one of the top spots in the world in terms of crypto adoption, boasting a second-to-none digital infrastructure. Major Swiss banks offer crypto services like custody and trading, all in accordance with FINMA regulations.
Quality of life
There’s no beating Switzerland when it comes to a safe, comfortable, and luxurious lifestyle. However, that comfort and care come at a relatively high cost, especially compared to the other destinations on this list.
United Arab Emirates (UAE)
The UAE is among the top locations for crypto-wealthy digital nomads. In the heart of the great deserts lies the country that lures thousands of digital nomads with extreme luxury and great infrastructure. The destination offers great networking opportunities, as you can meet many from different countries who are there for different business interests.
Regulation
The UAE offers a digital nomad visa, which can be renewed after a year. This visa excludes you from needing a ‘sponsor’ or guarantor to stay and work in the country. Meanwhile, the country has increasingly become pro crypto, and that makes it easy to earn, hold, and spend them.
Tax obligations
There’s no personal income tax on income generated, and it doesn’t matter whether it is from local enterprises or outside the country. This means a nomad keeps all earnings from work and individual investments. Meanwhile, businesses may pay a 9% corporate tax, and there is also a 5% VAT tax.
Crypto adoption
The UAE leads in crypto integration on both a state and business level. For example, Dubai’s VARA has created a progressive rulebook, major real estate developers accept BTC and ETH for properties, and the world’s largest crypto exchanges are headquartered there.
Quality of life
If not for the melting summer heat, the UAE could compete with Switzerland in terms of the standard of living. The infrastructure, the healthcare, the safety—the Emirates have it all.
Final Verdict: Which Is the Best Location for Well-Heeled Digital Nomads?
If the cost of living isn’t a concern for you, then book a ticket to the destination that meets your needs, wants, and tastes. It is difficult for anyone else to decide for you the destination that is best for you.
With that in mind, Panama is generally a more preferable option among the top locations for wealthy digital nomads who want to strike a balance between comfortable living and a crypto-friendly environment.
