American professional seeks digital nomad path abroad
A 46-year-old earning $98,000 annually wants to leave the U.S. due to its political climate and become a digital nomad overseas. Financial experts advise on visa options, tax considerations, and practical steps for making the transition. They emphasize thorough planning to ensure financial stability and legal compliance.
The inquiry comes from a 46-year-old U.S. resident who earns $98,000 per year and feels disillusioned with the country's political environment. 'I want to escape the U.S. political climate and be a digital nomad abroad,' the individual wrote in a query to MarketWatch. As a remote worker, they seek guidance on how to relocate internationally while maintaining their income.
Experts responding to the query highlight several viable destinations offering digital nomad visas. Portugal's D8 visa, for instance, requires proof of at least €820 monthly income—well below the querier's earnings—and allows stays up to two years. Spain's equivalent program demands €2,646 per month, while Mexico offers a temporary resident visa without a strict income threshold but with requirements for financial solvency. Estonia's e-residency provides a digital identity for business but pairs with a separate visa for living there. 'Countries like these have tailored programs for remote workers,' notes Alison L.E. Norris, a partner at Expat Tax Professionals.
Tax implications are a key concern for U.S. citizens, who remain subject to federal taxes on worldwide income regardless of location. However, the foreign earned income exclusion allows excluding up to $120,000 for 2024 if qualifying residency tests are met, such as spending 330 days abroad in a 12-month period. Norris advises consulting a tax professional to navigate nuances like state taxes and potential double taxation treaties. 'You can minimize your U.S. tax burden, but planning is essential,' she says.
Practical advice includes budgeting for international health insurance, as U.S. plans often don't cover abroad comprehensively—costs can range from $100 to $500 monthly. Housing in nomad hubs like Lisbon or Bali varies but starts around $1,000 per month for modest accommodations. The experts stress starting with a trial visit to test the lifestyle and warn against underestimating culture shock or family ties. 'Digital nomadism offers freedom but demands discipline in finances and work,' adds Norris.
Overall, the path is feasible for someone in the querier's position, with low barriers for high earners. Yet, success hinges on research into local laws and personal readiness for a nomadic life.