How Much Do Digital Nomads Make?

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Interested in becoming a digital nomad? We don’t blame you! Working remotely while exploring the world would appeal to anyone. But before you dive in headfirst, it’s important to understand exactly what a digital nomad is, how much a digital nomad can make, and how to become a digital nomad. Read on as we discuss.

What is a Digital Nomad?

A digital nomad is someone who uses technology, particularly the internet, to earn a living and support a location-independent lifestyle. Digital nomads leverage their ability to work remotely to travel and explore different parts of the world while continuing to maintain employment to fund their lifestyle.

Digital nomads typically use a laptop for work. Think of that image we all have in our heads of a young, hip person working on a MacBook in a trendy coffee shop. Chances are, that’s a digital nomad. A digital nomad generally works in a role that can be done online, such as software development, writing, graphic design, marketing, consulting, and online teaching.

A key advantage of the digital nomad lifestyle is the flexibility it offers. As long as there’s an internet connection available, digital nomads can work from anywhere they choose, be it coffee shops, co-working spaces, or even while traveling to different countries. This lifestyle allows individuals to experience new cultures, meet people from various backgrounds, and explore different parts of the world without being tied down to a specific location.

It’s important to note that being a digital nomad isn’t just about travel; it’s a deliberate choice to have a location-independent career while embracing a nomadic lifestyle. Digital nomads often prioritize experiences, personal growth, and a work-life balance that aligns with their values and aspirations.

While it does sound very appealing, living the life of a digital nomad isn’t for everyone. Many people report feeling quite lonely, especially if they’re living in a huge city where it can be hard to meet people. It takes a certain type of person in order to put yourself out there and meet new people, so this can be a challenge for the more introverted.

Thankfully, with the rise in the number of digital nomads, there are plenty of online communities and groups where you can meet like minded people.

How Much Do Digital Nomads Make? 

How long is a piece of string? Due to the multitude of jobs that a digital nomad can work at, it’s quite difficult to give an exact figure of how much digital nomads make. There are so many variables at play, such as a person’s specific role and its earning potential, level of experience, industry, and location. 

Certain professions are in exceptionally high demand across the world, and thus they can command higher incomes. Examples of these jobs include software developers, digital marketers and content creators. Whilst other roles earn a more modest income and still be classed as a digital nomad. Examples include virtual assistants or language tutors. 

Having said all of that, a 2023 survey conducted by Statista asked a total of 2,615 digital nomads across the world about their income. According to this piece of research, 36% (941 people) of those surveyed said that they earn between 100 and 250 thousand dollars a year, while 34% said that they earned between 50 and 100 thousand dollars a year. 

In the same study, just 6% (156 people) reported that they earn less than 25 thousand dollars a year.

Do Digital Nomads Pay Tax?

Answering the question as to whether digital nomads pay tax is not quite as simple as saying yes or no. The tax obligations of digital nomads vary greatly depending on their individual circumstances, including their country of citizenship, residence, and the specific tax laws in those jurisdictions. 

It is essential for digital nomads to understand and comply with the tax regulations that apply to their situation in order to avoid any legal and monetary complications.

There are some important factors for digital nomads to consider when thinking about tax implications:

Residency: Tax liability often depends on the concept of residency. Different countries have different rules regarding residency determination. For example, some countries may consider you a tax resident if you spend a certain number of days within their borders, while others focus on factors like your permanent home. In Ireland for example, you’re considered a tax resident if you spend more than 183 days per year here.

Citizenship: As a citizen of a particular country, you may have tax obligations to that country regardless of your residency status elsewhere. Many countries impose taxes on worldwide income, which means you may need to report your income regardless of where you earned it. The United States is one such country where this is the case.

Double Taxation: To prevent double taxation, where the same income is taxed by multiple countries, many nations have tax treaties in place. These treaties aim to allocate taxing rights and provide mechanisms for credits or exemptions to avoid or reduce double taxation. Understanding the tax treaties between your country of residence and the countries where you generate income is important.

* Recruit Ireland are not financial advisors and none of the above should be considered as financial advice. We strongly recommend that you contact qualified tax advisors to understand your own specific situation.

How to Work as a Digital Nomad?

So, you’re interested in working as a digital nomad? Here are some helpful tips to get you started:

Determine your skill set and niche – First, you need to set out what it is you’re skilled at and what services you can offer as you travel.

Build your online presence – Establish and grow your personal brand by building a professional portfolio or website that showcases your expertise. Ensure that your LinkedIn profile is top-notch and will appeal to potential employers.

Find remote work opportunities – Check our job listing websites to find roles that allow you to work remotely.

Network – As we mentioned earlier, the digital nomad world offers great opportunities for meeting new people and sparking new friendships. These friendships can also help you to secure work.

Set up your remote work infrastructure – Make sure you have a reliable internet connection, a laptop or device suitable for your work, and any necessary software or tools. Explore coworking spaces or cafes with good Wi-Fi when you need a dedicated work environment.

If you’re strongly considering working as a digital nomad, get your journey started and check out our job listings here at Recruit Ireland: 


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