BY FRIEDERIKE RUCH,
BY FRIEDERIKE RUCH, CONVINUSMonthly Special - Case study: What Is the Current Status of the “Digital NomadVisa”?In our current practice, we deal with this topic on a daily basis, which has prompted us to provide abrief overview.What Do We Mean by a Digital Nomad Visa?A Digital Nomad Visa is a specific type of residence permit that allows individuals who workremotely (e.g. freelancers, remote employees or entrepreneurs) to legally reside in another countryfor a set period, while continuing to work for their company abroad.More and more countries are introducing Digital Nomad Visas to promote tourism-related income(e.g. through longer stays, higher spending) and to attract economically qualified visitors withoutburdening the local labour market. In addition, innovation and cultural exchange are to be fostered.Demand has also increased, as many people are looking for a temporary change of workenvironment – ideally one that combines lower living costs with a high quality of life (e.g. seaside,sunshine, culture) in a legally secure framework.There are several – not only legal – aspects to consider in this context:1. Immigration LawThe Digital Nomad Visa generally permits legal residence and living in the host country. In mostcountries, the visa is temporary, though extensions may be possible. Each country issuing such avisa has its own specific eligibility criteria.In Switzerland, no such visa currently exists, nor is it expected to be introduced in the foreseeablefuture.2. Work Authorisation & ActivityIn principle, Digital Nomad Visas only allow for remote work. Typically, gainful employment withlocal companies or clients is prohibited.14convinus.com
BY FRIEDERIKE RUCH, CONVINUSApplicants must prove that they are employed by a foreign company or are self-employed.Countries issuing these visas aim to attract skilled professionals while protecting the local jobmarket from foreign competition.3. TaxationGenerally, there is no tax liability in the host country as long as the visa holder stays for less than183 days. However, some countries impose tax liability from day one. It is essential to clarify this inadvance based on the individual case.To be exempt from local taxation, countries often require proof that taxes are being paid in thecountry of origin or home country. If a double taxation agreement (DTA) exists between thecountries, double taxation should not occur. In the absence of such an agreement, it may still arise.To avoid unpleasant surprises, it is advisable to seek tax advice in both countries beforehand.4. Social SecurityHolders of a Digital Nomad Visa are typically not integrated into the local social security system. Aninternational health and accident insurance policy is usually required. Regarding health insuranceobligations, almost all countries demand international cover, including repatriation.Pension or unemployment insurance is usually not required for visa issuance. However, due to thelack of local integration, visa holders must ensure they are adequately insured. If the person isemployed, the employer is also responsible for ensuring appropriate insurance cover.5. Registration & ResidenceMany countries require registration with the local authorities (similar to registering a residence). Anaddress in the host country must often be provided, even if staying in a hotel or Airbnb.6. Data Protection & Reporting ObligationsThe visa holder’s data is stored in national databases, primarily for visa monitoring. Accordingly,data exchange with other countries (e.g. for tax purposes) is generally possible.15convinus.com
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