Digital nomad visas: Who should apply, who shouldn't, top countries for Indians

For years, working abroad meant securing a foreign job or investing heavily through a golden visa programme. Today, digital nomad visas offer a new route, allowing professionals to live overseas while working remotely for employers or clients elsewhere. With no multi-crore investment requirement and remote work on the rise, they are attracting Indian software professionals, consultants, founders and content creators seeking global mobility without changing careers. Industry experts say enquiries from Indians have surged over the past three years, reflecting the shift towards flexible work and the growing appeal of countries offering a better quality of life.

New mobility

A digital nomad visa is a residence permit that allows an individual to legally stay in a foreign country while earning income from an employer or clients located outside that country. Unlike traditional work visas such as the H-1B in the US, it is not tied to sponsorship by a local employer.

“It provides legal clarity to work remotely, longer stays than tourist visas, access to local services and, in some countries, simplified tax treatment or pathways to residency,” says Andri Boiko, Founder and Global CEO, GARANT IN.


Varun Singh, Managing Director, XIPHIAS Immigration, calls digital nomad visas “one of the biggest shifts in global mobility over the past decade”. He says they allow professionals to experience living abroad without changing employers while enabling host countries to attract skilled individuals who contribute to the local economy without competing for local jobs.

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One limitation is that these visas generally don’t allow local employment, requiring holders to earn foreign income. Those wanting local jobs usually need a work visa. Spain is an exception, allowing up to 20% of the main applicant’s income from local clients, while spouses can work without such restrictions.

What’s a digital nomad visa
A residence permit that lets you live in another country while working remotely for an employer or clients based outside that country. It is designed for remote workers, not people seeking local employment. It allows:

• Work for a foreign employer/client
• No local job sponsorship needed
• Temporary residence
• Usually cannot take local jobs
• Remote work or freelancing

Best suited for

• Software professionals
• Consultants
• Content creators
• Freelancers
• Startup founders

Not meant for

• People seeking local employment
• Those without a stable remote income

Why now?
The primary reason for the rise in these visas is the mainstream acceptance of remote work following the Covid-19 pandemic. “Remote work moved from a niche idea to a mainstream way of working after the pandemic, and governments quickly saw the economic upside of attracting remote earners,” says Boiko. He notes that these professionals spend on housing, food, transport and leisure without competing for local jobs, making them attractive for governments. Estonia’s launch of the first dedicated digital nomad visa in 2020 encouraged other countries to introduce similar programmes.

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Singh says professionals are no longer choosing countries only for career opportunities. Lifestyle, safety, healthcare, infrastructure and international mobility have become equally important considerations. Entrepreneurs also see overseas residence as a way to expand globally and access new clients and investors. While favourable tax regimes matter, he cautions that a visa by itself does not change tax residency.

Both experts say demand from India has accelerated sharply since 2023. Boiko says software and IT professionals remain the largest applicant group, followed by consultants and freelancers, while startup founders and content creators are emerging as fast-growing segments. Investors and retirees, on the other hand, usually prefer golden visas because those programmes are investment-led.

Singh says his firm has seen enquiries rise significantly over the last three years. Initially dominated by software professionals and freelancers, interest has broadened to include startup founders, senior corporate executives, consultants, digital creators, architects, designers, financial consultants and online educators. “Many of these professionals are not looking to permanently relocate. Instead, they want international exposure while maintaining their existing careers and income sources,” he says.

Top destinations

Spain has emerged as the top choice for many Indians. Boiko says its relatively low income threshold, favourable tax regime, Schengen access and flexible work rules make it more attractive than rivals. Portugal, Greece, Estonia, Malta and Dubai are also popular.

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Singh says the UAE remains a top choice too due to its zero personal income tax, strong infrastructure and large Indian community. Spain and Portugal offer a European lifestyle and long-term residency prospects, while Greece and Croatia provide lower living costs. Spain grants an initial entry visa valid for up to a year. Once you arrive in Spain, you can transition or renew this into a digital nomad residence authorisation that can last up to three years, while Portugal provides a four-month entry visa followed by a two-year permit. Greece issues a one-year visa, convertible to a two-year renewable permit All three can lead to permanent residency after five years, subject to eligibility. Applicants typically need stable overseas income, work contracts, health insurance, sufficient funds and a clean record; some countries require employer approval for overseas remote work. Including visa, insurance, documentation and advisory costs, expenses can range from Rs.1.5 lakh to Rs.8 lakh; for Spain, it’s Rs.9 lakh and for Portugal, Rs.8 lakh.

Tax matters

This is where it can get challenging. “Many people assume that obtaining a foreign visa automatically changes their tax residency. That is not the case,” says Singh.

Under the Income Tax Act, residency status hinges mainly on how many days you spend in India physically during a financial year, with extra rules for high earners. Time spent abroad on a digital nomad visa can push someone into Non-Resident or RNOR (Resident but Not Ordinarily Resident) status — which changes whether their worldwide income stays taxable in India. The Foreign Exchange Management Act (FEMA) rules and Double Taxation Avoidance Agreement (DTAA) provisions apply on top of this. “Tax treatment usually follows where the work is physically performed, not where the pay cheque originates,” says Boiko.

For salaried employees, overseas remote work may also require employer approval, as it can raise permanent-establishment concerns for the Indian company. “Some Indian companies are cautious about signing off on this,” Boiko notes.

Challenges ahead

While immigration itself may be straightforward, settling into another country often presents practical hurdles. Both experts identify taxation, banking, insurance, housing, employer compliance and understanding local regulations as the biggest challenges. Salaried employees may also need explicit permission from their employers, who could face tax or compliance issues arising from overseas remote work.

Another important consideration is the long-term objective. Some countries, including Spain and Portugal, offer pathways to permanent residency after several years of legal residence, while others treat digital nomad visas as purely temporary arrangements with no route to settlement.

For professionals with stable remote income, digital nomad visas offer an accessible alternative to golden visas. Instead of committing crores towards investment-linked residency, they allow individuals to test life abroad while continuing their careers. But experts caution these visas are not simply about working from a beach. Tax planning, employer consent, compliance and long-term immigration goals require careful consideration.