A silver lining of the pandemic is that work has become more flexible than ever—leading more Canadians to take “workations” or relocate to other countries for weeks or months at a time. It’s more than just a change of scenery. Planned carefully, working abroad can mean seeing the world affordably.
If you’re intrigued by the idea of working very remotely, here’s what you need to know, with financial and lifestyle tips from those who have been doing it since the dawn of digital nomadism.
Nora Dunn, a content creator and former financial planner, is a long-time nomad. In 2006, she sold everything she owned—including her busy financial planning practice in Toronto—and went travelling. Burnt out from work, she realized she was unwilling to wait until retirement to pursue her lifelong dream of travel. What if, when the time finally came, she couldn’t for some reason? “It felt like a greater cost to me than the cost of selling everything I own,” says Dunn, who shares her adventures and travel tips on her blog, The Professional Hobo.
At the time, “digital nomad” wasn’t yet a term, and the lifestyle Dunn was pursuing felt as foreign as the places she would visit. Resources for long-term travellers, like online forums and meet-ups, were scarce, and few employers were open to having nomadic employees.
Of course, the pandemic has changed that. What started as work-from-home has become work-from-anywhere. Some Canadian employers are even encouraging their staff to explore the world. For example, communications firm Media Profile offers a “Work Away” benefit that covers up to $3,000 of employees’ travel expenses.
Countries, too, are getting on board. Until recently, digital nomads operated in a grey area—ineligible for work visas, they maxed out their stays on tourist visas. As a solution, countries like Greece, Portugal, Croatia, Iceland and the Bahamas have introduced digital nomad visas or permits, many of them launched since the pandemic, to allow foreign remote workers to stay up to one year. (And if you’re thinking about working as a digital nomad in Canada, on June 27 our federal government announced a new six-month digital nomad visa for foreign tech/STEM workers, at the 2023 Collision Conference in Toronto.)
Not all nomads sell off their possessions and quit their careers, as Dunn did, but it’s become increasingly common to see your co-workers join a Zoom meeting from another province or another country.
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While there are no exact figures, some estimates say there are 35 million digital nomads worldwide, with Americans making up the majority. A 2022 study by MBO Partners reports that 16.9 million American workers describe themselves as digital nomads—131% more than in 2019, before the pandemic.
But Canadians are setting up their home offices away from home, too—according to Statista, Canadians make up 4% of the digital nomad population, ranking fourth behind the U.S., U.K. and Russia.
I’m one of them. I maintain a home base in Toronto, but I’m only there for about half the year. The other half, I’m in places like Thailand, Greece and Italy. I’m writing this article in Glasgow, Scotland, where I spend weekdays at a Spaces co-work office and go sightseeing on weekends.
It’s a lifestyle that has enabled me to see the world and experience other cultures at a much slower pace and in a more immersive way than if I were limited to annual vacation days. I keep expenses low by staying in each place longer—usually four weeks to three months—since many rentals give discounted rates for long-term stays and I can grocery shop and cook rather than eat out all the time. Moving around strategically is another tactic. I visit destinations during their low season and often choose out-of-the-way towns and local neighbourhoods that are less susceptible to tourism inflation.
“Hotspots for digital nomads include Thailand, Vietnam, Colombia, Panama, Mexico and Georgia (the country),” says Andrew Hallam, a personal finance journalist, speaker and author—his most recent book is Balance: How to Invest and Spend for Happiness, Health, and Wealth (Page Two, 2022). “Even on incomes that would be considered low in Canada, digital nomads can spend time in lower-cost countries, living well and saving money.” (It’s why many Canadians retire abroad.)
Hallam has been a digital nomad for nine years, spending a few months in different countries while maintaining official residency in Panama. He’s seen the number of digital nomads grow steadily and has met financial planners, lawyers, online teachers, marketers, web designers, software developers and more, all making their living on-the-move.
Best travel credit cards in Canada READ NOW
Social media can make it look like digital nomadism means working beachside. But the lifestyle isn’t all rainbows and coconuts. Here are the good and the bad about remote life.
Digital nomadism isn’t for everyone. Before you pack up your laptop, ask yourself these questions:
Does your job suit working remotely and/or in another time zone? Is your employer agreeable to this arrangement? Even if you already work from home, it’s important to be transparent about your plans, as your physical presence in another country could trigger a corporate tax liability, warns Dunn. (And it could affect your own income tax.)
If you have a partner, will they go with you? Do you have kids on a school schedule? It’s also important to think about how you’ll feel being physically apart from your support network. Loneliness and fatigue from moving around too much or from the constant unfamiliarity are common among digital nomads.
Travel doesn’t always go smoothly. And when you add in work obligations, those little hiccups can feel a lot bigger than they would on vacation. Be honest with yourself about how well you handle the unexpected. An emergency fund and insurance are always good ideas—no matter where you spend your days.
Consider factors like affordability, safety, time zones and internet reliability. You may also want to seek out cities with established digital nomad communities and co-working spaces, to ease culture shock and loneliness.
Planning for travel can be as time-consuming as the travel itself. Plus, while the cost of living may be cheaper where you’re going, there are several upfront and ongoing costs to consider:
Arranging a workation or digital nomad lifestyle takes legwork and determination, but it’s also a rewarding way to see the world. And while it may seem like an overwhelming decision at first, it doesn’t have to be. You can choose where and when to go—and when to come home.
“Don’t go all in right away,” says Dunn. “Take a test trip first. Go away for three or six months… You may figure out a few things about yourself and the lifestyle that you want to design.”
These Canadian nomads have charted their own paths, working while travelling across Canada and around the world.
Photo courtesy of Jenn Averink
Job/career: Senior agent and client experience manager at Zolo Canada, Airbnb owner, petsitter
Where I’ve nomaded: I house/petsit all over Ontario and in the U.S. I mostly find myself in a new town and a new house every week, caring for other people’s fur family.
Typical day/week: A typical day starts with a cup of coffee from my Aeropress (which travels with me!) and a quick check-in on today’s work to be done on my laptop. From there I structure my workday around dog walks through new trails and experiences that I discover by chatting with the locals.
What I love about being a digital nomad: I love exploring new places that are off the beaten path. Because house-sitting rarely takes me to the touristy hot spots, I usually find the local favourites, which tend to be less busy. I can explore places more slowly, make friends and network.
Biggest challenge of nomad life: Changing my wardrobe for the seasons or different climates without a home base!
Job/career: Director of sales and client services, Wild Women Expeditions
Where I’ve nomaded: Poros, Greece, and different cities throughout Canada.
Typical day/week: Depends on the time zone. Wild Women Expeditions is a fully remote company, so all our meetings are online. I can adjust my hours to have more overlap with my team as needed. Then I’ll work in my space or at a local coffee shop if the wifi is decent. When in a city, I’ll use a co-working space. In the evenings and on weekends, there is lots of time to explore. Renting a bike in Poros was great for exploring!
What I love about being a digital nomad: The ability to spend a chunk of time in a new place and be immersed in local life. As opposed to being on vacation for a week, you can really start to understand a place.
Biggest challenge of nomad life: Living out of a suitcase can have its challenges, especially if travelling to multiple climates!
Photo courtesy of Kayla Kurin
Job/career: Freelance writer, but I started my nomad life as a social media and content marketer.
Where I’ve nomaded: During the pandemic, small towns in Canada and Costa Rica. Pre-COVID, I spent most of my time in Europe, New Zealand, Southeast Asia and Latin America.
Typical day/week: My day-to-day changes by location. Sometimes I’m travelling with other nomad friends, at an artist residency, or somewhere I have a strong community, and I spend a lot of time with friends or going to social events. Other times I’m completely on my own and enjoy the solitude and having complete control of my schedule.
What I love about being a digital nomad: The adventure. I love going into the unknown, meeting new people, feeling like a part of a different culture even as an observer or outsider, and, perhaps most importantly, trying a lot of new foods.
Biggest challenges of nomad life: Finding the balance between stability and adventure. Especially in recent years, the desire to have a home base to store a few things and go back to recharge is very appealing.
The post How to become a digital nomad—and not go broke appeared first on MoneySense.
If you’re intrigued by the idea of working very remotely, here’s what you need to know, with financial and lifestyle tips from those who have been doing it since the dawn of digital nomadism.
Living the digital nomad life: Can you take your job on the road?
Nora Dunn, a content creator and former financial planner, is a long-time nomad. In 2006, she sold everything she owned—including her busy financial planning practice in Toronto—and went travelling. Burnt out from work, she realized she was unwilling to wait until retirement to pursue her lifelong dream of travel. What if, when the time finally came, she couldn’t for some reason? “It felt like a greater cost to me than the cost of selling everything I own,” says Dunn, who shares her adventures and travel tips on her blog, The Professional Hobo.
At the time, “digital nomad” wasn’t yet a term, and the lifestyle Dunn was pursuing felt as foreign as the places she would visit. Resources for long-term travellers, like online forums and meet-ups, were scarce, and few employers were open to having nomadic employees.
Of course, the pandemic has changed that. What started as work-from-home has become work-from-anywhere. Some Canadian employers are even encouraging their staff to explore the world. For example, communications firm Media Profile offers a “Work Away” benefit that covers up to $3,000 of employees’ travel expenses.
Countries, too, are getting on board. Until recently, digital nomads operated in a grey area—ineligible for work visas, they maxed out their stays on tourist visas. As a solution, countries like Greece, Portugal, Croatia, Iceland and the Bahamas have introduced digital nomad visas or permits, many of them launched since the pandemic, to allow foreign remote workers to stay up to one year. (And if you’re thinking about working as a digital nomad in Canada, on June 27 our federal government announced a new six-month digital nomad visa for foreign tech/STEM workers, at the 2023 Collision Conference in Toronto.)
Not all nomads sell off their possessions and quit their careers, as Dunn did, but it’s become increasingly common to see your co-workers join a Zoom meeting from another province or another country.
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How many digital nomads are there?
While there are no exact figures, some estimates say there are 35 million digital nomads worldwide, with Americans making up the majority. A 2022 study by MBO Partners reports that 16.9 million American workers describe themselves as digital nomads—131% more than in 2019, before the pandemic.
But Canadians are setting up their home offices away from home, too—according to Statista, Canadians make up 4% of the digital nomad population, ranking fourth behind the U.S., U.K. and Russia.
I’m one of them. I maintain a home base in Toronto, but I’m only there for about half the year. The other half, I’m in places like Thailand, Greece and Italy. I’m writing this article in Glasgow, Scotland, where I spend weekdays at a Spaces co-work office and go sightseeing on weekends.
It’s a lifestyle that has enabled me to see the world and experience other cultures at a much slower pace and in a more immersive way than if I were limited to annual vacation days. I keep expenses low by staying in each place longer—usually four weeks to three months—since many rentals give discounted rates for long-term stays and I can grocery shop and cook rather than eat out all the time. Moving around strategically is another tactic. I visit destinations during their low season and often choose out-of-the-way towns and local neighbourhoods that are less susceptible to tourism inflation.
“Hotspots for digital nomads include Thailand, Vietnam, Colombia, Panama, Mexico and Georgia (the country),” says Andrew Hallam, a personal finance journalist, speaker and author—his most recent book is Balance: How to Invest and Spend for Happiness, Health, and Wealth (Page Two, 2022). “Even on incomes that would be considered low in Canada, digital nomads can spend time in lower-cost countries, living well and saving money.” (It’s why many Canadians retire abroad.)
Hallam has been a digital nomad for nine years, spending a few months in different countries while maintaining official residency in Panama. He’s seen the number of digital nomads grow steadily and has met financial planners, lawyers, online teachers, marketers, web designers, software developers and more, all making their living on-the-move.
Best travel credit cards in Canada READ NOW
Pros and cons of the digital nomad life
Social media can make it look like digital nomadism means working beachside. But the lifestyle isn’t all rainbows and coconuts. Here are the good and the bad about remote life.
Pros:
- See the world. “I love the freedom to go anywhere in the world and to chase whatever rabbit hole, whatever geographic hole, I want to go down,” says Dunn.
- Save money (if you plan for it). Making a Canadian salary while staying somewhere with a lower cost of living could help pad your savings. But it’s also easy to spend beyond your means if you’re staying in hotels, dining out frequently or visiting expensive destinations. As I said above, it’s about planning for longer stays and making your money go further.
- Meet new people. Hallam says one of the most rewarding aspects is befriending people he wouldn’t otherwise meet.
- Enjoy new experiences. “People measure time based on alternative stimuli,” says Hallam. “That’s why people with extremely routine lives perceive time to pass so quickly. Meanwhile, people who keep exposing themselves to new things extend their perception of time, essentially slowing it down.”
Cons:
- Culture shock. Depending on where you go, you could be dealing with language barriers and cultural differences—while still trying to work as “normal.”
- Time and energy. “People dramatically underestimate the amount of time and energy it takes to do the daily tasks of life that we take for granted,” says Dunn. “Where to buy your milk, how to do your laundry.”
- Isolation. If you don’t speak the local language or you’re not super-outgoing, it may be difficult to make local friends. Digital nomad communities can provide some comfort but could be fleeting if new friends move elsewhere.
- Time zones. You may have to attend Zoom meetings at less-than-ideal times, if your new time zone is different than your employer’s. Expect early mornings or late evenings, depending on where you end up.
Is the digital nomad life right for you?
Digital nomadism isn’t for everyone. Before you pack up your laptop, ask yourself these questions:
Is working remotely in another country feasible?
Does your job suit working remotely and/or in another time zone? Is your employer agreeable to this arrangement? Even if you already work from home, it’s important to be transparent about your plans, as your physical presence in another country could trigger a corporate tax liability, warns Dunn. (And it could affect your own income tax.)
Are your family/friends supportive?
If you have a partner, will they go with you? Do you have kids on a school schedule? It’s also important to think about how you’ll feel being physically apart from your support network. Loneliness and fatigue from moving around too much or from the constant unfamiliarity are common among digital nomads.
How flexible are you?
Travel doesn’t always go smoothly. And when you add in work obligations, those little hiccups can feel a lot bigger than they would on vacation. Be honest with yourself about how well you handle the unexpected. An emergency fund and insurance are always good ideas—no matter where you spend your days.
Where should you go?
Consider factors like affordability, safety, time zones and internet reliability. You may also want to seek out cities with established digital nomad communities and co-working spaces, to ease culture shock and loneliness.
Digital nomad requirements: What do you need before you go? How much will it cost?
Planning for travel can be as time-consuming as the travel itself. Plus, while the cost of living may be cheaper where you’re going, there are several upfront and ongoing costs to consider:
- Passport: $120 to $160
- Visa/permit: Varies by country, but could range from $20 to $1,000-plus; also, digital nomad visas can have minimum income requirements of $40,000 or more
- Travel insurance: $500 to $1,000 for six months; your credit card may have built-in insurance, but this typically only covers trips of a few weeks
- Laptop VPN (private, encrypted network connection): Around $10 per month
- Local phone SIM card: $20 to $50 per month for 10 GB
- ATM fees: Around $5 per withdrawal plus a foreign transaction fee of 1% to 3%
- Credit card fees: Around 2.5% per transaction, unless you have a no foreign transaction fee credit card (annual fee $0 to $150)
- Home/pet sitting: $20 to $100-plus per day (or you could Airbnb/rent/sublet/home exchange your place to break even or make extra cash)
- Flights: $400 to over $2,000 per flight, depending on destination and class
- Accommodations: Varies by location and type, but expect about $1,000 to $5,000-plus per month for an Airbnb
- Taxes: Canada has tax treaties with dozens of countries, which will exempt you from paying local taxes if you’re working for a Canadian employer that doesn’t have a permanent establishment in your destination country and you’re not staying longer than 183 days
Is working abroad a good idea?
Arranging a workation or digital nomad lifestyle takes legwork and determination, but it’s also a rewarding way to see the world. And while it may seem like an overwhelming decision at first, it doesn’t have to be. You can choose where and when to go—and when to come home.
“Don’t go all in right away,” says Dunn. “Take a test trip first. Go away for three or six months… You may figure out a few things about yourself and the lifestyle that you want to design.”
Digital nomad resources
Websites
- The Professional Hobo: Nora Dunn’s blog about “how to travel long-term and full-time in a financially sustainable way.”
- Legal Nomads: This award-winning travel blog by Canadian Jodi Ettenberg has a dedicated section about everything you need to know about being a digital nomad.
- Nomad List: A regularly updated ranking of the best cities for digital nomads, based on factors like affordability, safety and internet reliability.
Facebook groups
- Digital Nomads Forum: A group for “beginner, aspiring, successful and experienced digital nomads + remote workers to come together.”
- Female Digital Nomads: This group is designed to “unite, inspire and inform” women-identifying and non-binary digital nomads.
- Nomad Soulmates: A Facebook group and dating app, although those only seeking friendship are welcome to join and connect.
Co-working/co-living programs
- Remote Year: Pre-packaged travel itineraries for remote workers. Co-working spaces, accommodations and group activities included.
- Sojrn: Organized group trips positioned as “work from home meets study abroad,” each centred around a theme (such as learning about wine in Tuscany).
- Hacker Paradise: Adventurous group trips that package together accommodations, activities and co-working space access.
- Sun and Co.: One of Europe’s first co-working and co-living spaces. Located in Alicante, Spain.
- Work from Poros: Off-season “workaways” designed for solo digital nomads or entire remote teams. Located in Poros, Greece.
Out of office: 3 digital nomads
These Canadian nomads have charted their own paths, working while travelling across Canada and around the world.
Photo courtesy of Jenn Averink
Digital nomad: Jenn Averink, 52
Job/career: Senior agent and client experience manager at Zolo Canada, Airbnb owner, petsitter
Where I’ve nomaded: I house/petsit all over Ontario and in the U.S. I mostly find myself in a new town and a new house every week, caring for other people’s fur family.
Typical day/week: A typical day starts with a cup of coffee from my Aeropress (which travels with me!) and a quick check-in on today’s work to be done on my laptop. From there I structure my workday around dog walks through new trails and experiences that I discover by chatting with the locals.
What I love about being a digital nomad: I love exploring new places that are off the beaten path. Because house-sitting rarely takes me to the touristy hot spots, I usually find the local favourites, which tend to be less busy. I can explore places more slowly, make friends and network.
Biggest challenge of nomad life: Changing my wardrobe for the seasons or different climates without a home base!
Digital nomad: Megan Bailey, 42
Job/career: Director of sales and client services, Wild Women Expeditions
Where I’ve nomaded: Poros, Greece, and different cities throughout Canada.
Typical day/week: Depends on the time zone. Wild Women Expeditions is a fully remote company, so all our meetings are online. I can adjust my hours to have more overlap with my team as needed. Then I’ll work in my space or at a local coffee shop if the wifi is decent. When in a city, I’ll use a co-working space. In the evenings and on weekends, there is lots of time to explore. Renting a bike in Poros was great for exploring!
What I love about being a digital nomad: The ability to spend a chunk of time in a new place and be immersed in local life. As opposed to being on vacation for a week, you can really start to understand a place.
Biggest challenge of nomad life: Living out of a suitcase can have its challenges, especially if travelling to multiple climates!
Photo courtesy of Kayla Kurin
Digital nomad: Kayla Kurin, 34
Job/career: Freelance writer, but I started my nomad life as a social media and content marketer.
Where I’ve nomaded: During the pandemic, small towns in Canada and Costa Rica. Pre-COVID, I spent most of my time in Europe, New Zealand, Southeast Asia and Latin America.
Typical day/week: My day-to-day changes by location. Sometimes I’m travelling with other nomad friends, at an artist residency, or somewhere I have a strong community, and I spend a lot of time with friends or going to social events. Other times I’m completely on my own and enjoy the solitude and having complete control of my schedule.
What I love about being a digital nomad: The adventure. I love going into the unknown, meeting new people, feeling like a part of a different culture even as an observer or outsider, and, perhaps most importantly, trying a lot of new foods.
Biggest challenges of nomad life: Finding the balance between stability and adventure. Especially in recent years, the desire to have a home base to store a few things and go back to recharge is very appealing.
Read more about travel and living abroad:
- The tax implications of working abroad for residents and non-residents of Canada
- How to take a gap year trip without breaking the bank
- Is your credit card’s travel insurance enough?
- For Canadians living abroad, it is worth investing in foreign ETFs?
- “Where do we pay income tax if we retire abroad?”
The post How to become a digital nomad—and not go broke appeared first on MoneySense.