What Is a Digital Nomad?

Digital nomads are remote workers, including self-employed individuals, freelancers, and employees.

They may travel domestically or overseas, and the internet keeps them connected to jobs, co-workers, and clients. Indeed, the nomadic lifestyle is a unique opportunity millions of Americans choose.

However, a location-independent, technology-enabled lifestyle isn’t for everyone. It can be difficult to stay connected in areas with spotty internet or mobile service and even more challenging to stay productive while enjoying a new adventure. Explore what it means to be a digital nomad to decide if it’s a good fit for your life.

What is a digital nomad? 

Digital nomads are location-independent workers who rely on the internet for work while traveling and spending periods of time in different places. They may work remotely for years, weeks, or months. Some cross borders, whereas others never leave the United States. Their professions vary almost as much as the time zones they live and work in.

More than 1 in 10 American workers describe themselves as digital nomads, according to the MBO Partners 2024 State of Independence report. Since 2019, the number of digital nomads in the U.S. has risen by more than 147%, from 7.3 million to 18.1 million. 

Who are digital nomads?

The typical digital nomad is about 37 years old. More than half share life on the road with a spouse or partner, with 23% traveling with children, the vast majority of whom are school age. Gen Z (26%) and millennials (38%) account for 64% of digital nomads, while Gen X represents 25% and 11% are baby boomers. Only 15% have lived a digital nomad lifestyle for more than five years, whereas 67% have done so for three years or less.

Information technology (IT) workers make up 19% of digital nomads, and creative services account for 14%. In 2024, 10.2 million people held traditional remote jobs, while 7.9 million were independent workers, like solopreneurs and freelancers.

Like successful businesses, digital nomads share common characteristics. Specifically, 8 in 10 digital nomads adopt new technologies early and use artificial intelligence for work. 

Where do digital nomads travel?

Over half of digital nomads remain in the U.S. while working remotely. Just 7% expect to stay abroad for the whole year. The slow travel or “slomading” trend also continues, with today’s digital nomads planning to spend more time in one area and voyage to fewer locations. They visited nearly seven locations on average, with stays ranging from 5.4 days in 2023 to 5.7 days in 2024.

Pros and cons of being a digital nomad

Overwhelmingly, digital nomads are “highly satisfied with their work and lifestyle.” And about 4 out of 5 said they are satisfied or very satisfied with their income. The freedom to travel is the top benefit of the digital nomad lifestyle. Other advantages include better work-life balance and greater autonomy than in traditional lifestyles. Digital nomads also enjoy exploring new cultures and connecting with new people.

The top cited challenges reported to MBO Partners include:

• Financial stress.
• Being away from family and friends.
• Personal safety.
• Time zone differences that make work difficult.
• Travel burnout.

How to become a digital nomad

Embracing the digital nomad life begins with a location-independent income stream and financial, travel, and logistics planning. Traveling domestically is easier, especially if your employer offers a work‑from‑anywhere policy. You won’t have to worry about visas or country-specific travel restrictions.

But many digital nomads prefer working abroad in lower-cost-of-living regions. In this case, you may want to handle domestic tasks in person before beginning your trip. Tie up purchases by requesting business acquisition documents and finalizing account changes. 

Tax and legal implications of working abroad

Health insurance, visa requirements, and tax obligations for digital nomads vary greatly. However, you generally need a specific permit when you perform work, even if it’s remotely, in another country. Over 60 countries offer digital nomad visas (DNVs), tailored to remote workers, self-employed professionals, and entrepreneurs.

Here’s what to consider:

• Taxes: The U.S. taxes citizens on worldwide income, but foreign tax credits or the Foreign Earned Income Exclusion (FEIE) may reduce liabilities. Some visas make you a tax resident after 183 days, meaning you must pay taxes in that country, so it’s important to track days spent abroad.
• Employment rules: Most digital nomad visas ban local employment. You can’t work for companies in your host country. Others only permit remote employees, not gig workers or freelancers working abroad.
• Health and travel insurance: Most countries require proof of private insurance coverage. Employees, business owners, and entrepreneurs should ensure their plan covers medical treatment, evacuation, and long stays.
• Legal rights: Review working holiday or DNV program details to see if you can open bank accounts, drive, rent long term, renew your visa, or bring family members. Rules vary by location and impact your digital nomad lifestyle.

Digital nomad visa programs and how to apply

Most digital nomad visa programs require applicants to have a stable remote income, a clean background, valid health insurance, and a passport that’s valid for six to 12 months. According to the 2025 Global Digital Nomad report, the one-year visa is most common, and over three-quarters of programs allow renewals.

To apply for a digital nomad visa, follow these steps:

• Review visa requirements. Research eligibility criteria for the specific countries you’re traveling to, including the type of documentation and where you can apply.
• Prepare documents. Gather proof of income or business owner salary (bank statements, contracts, or recent pay stubs), an FBI background check, passports, health insurance, and proof of employment or entrepreneurship.
• Submit the application and fees. In some countries, you can apply online; in others, you may need to visit a consulate or embassy in person. Fees range from $50 to over $2,000. Approval times vary. You may need to get a biometrics ID, local tax ID, or residency card.

Health insurance and safety tips for nomadic workers

Going anywhere and transmitting information over the internet has risks. Be proactive by investing in the right types of business insurance and health coverage and by following best cybersecurity practices.

Stay safer with:

• Coworking spaces: Some shared work locations offer reliable internet and safe environments, making them excellent for digital nomads.
• Virtual private network (VPN): When permitted in the country, you can use VPN software to securely send and receive information over public Wi-Fi.
• Data backups: Perform regular cloud backups using the 3-2-1 rule to safeguard against lost, stolen, or corrupted devices.

Tools and platforms to stay productive while remote

The top digital nomad tools for staying productive are those you use for daily work, along with Wi-Fi and connectivity solutions, budget apps, and day-count tracking platforms.

Keep these tools and platforms in mind:

• Cell phone networks: Mobile services differ internationally. Ask your phone carrier to unlock your phone so that you can add a SIM card for global carriers.
• Business administration and management: Look for cloud-based software and task outsourcing solutions for tracking accounts, people, and progress from anywhere.
• Internet service: Connectivity is spotty in many parts of the world. Review broadband speeds on the Digital Nomad Index before heading to your destination.
• Collaboration apps: Find free or low-cost video meeting tools to stay connected and celebrate wins together, reducing the risk of imposter syndrome while working remotely.

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