The New Digital Nomad Cities Tech Workers Are Flocking To

At one point, you could have argued that Lisbon had firmly established itself as the digital nomad capital of the world.

In the post-pandemic haze of newly created remote working policies, 16,000 extra people decided to call its hilly cobbled streets, adorned with the distinctly decorative ceramic tiles, home.

However, it’s looking like the digital nomad sun has finally set on the Portuguese capital as remote workers are packing up their laptops and dispersing to different digital nomad hotspots around Europe instead.

The reasons for this are manifold: although the Portuguese digital nomad visa was originally designed to lure tech talent from around the globe, its conditions which include earning at least €3,280 per month started to drive rent prices, in an already stretched housing market, through the roof.

For example, the average monthly rent for a one bedroom apartment now stands at €1,200, an increase of 17% from December 2022 to December 2023. Additionally, house prices in Portugal have doubled since 2018.

And with one of the lowest minimum wages in Europe (coming in at €957 per month, compared to Ireland’s €2,146, Luxembourg’s €2,571, and neighbouring Spain’s €1,323), locals who earn €1,000 per month on average have been understandably struggling to cope with the subsequent increased cost of living.

However Portuguese officials are now cracking down some of the schemes and initiatives that encouraged digital nomads in the first place, including the non-habitual tax residency (NHR), which facilitated a flat income tax rate of 20%, in January 2024.

Italy

Italy has been attracting newcomers thanks to its rich culture, history, and affordable lifestyle. The average monthly expenses for a single person are around €856.20, with rent for a one-bedroom apartment in the city averaging €749.65.

EU citizens can stay in Italy for up to three months without any conditions, though longer stays require registration with the local municipality. For non-EU citizens, a new remote worker visa introduced in April 2024 allows digital nomads to legally live and work in Italy.

The Remote Worker Visa is valid for one year and is available to freelancers, self-employed individuals, and those employed with permission to work remotely. To qualify, applicants need to prove employment or freelance work with a non-Italian client, hold comprehensive health insurance, and earn at least €28,000 per year. Additional requirements include proof of accommodation and a clean criminal record.

Budapest

Despite Hungary’s socially conservative stance, Budapest has become a popular destination for digital nomads thanks to its renowned thermal baths, impressive architecture, and hearty cuisine.

The Hungarian Digital Nomad Visa and White Card Residency Permit offer remote workers a one-year stay, with a possible extension for another year.

Monthly costs for a single person are around €662.80 before rent, which averages at €614.08 for a one-bedroom city apartment.

Bucarest

Romania’s capital, Bucharest, is rapidly becoming a hotspot for digital nomads due to its lively, walkable city centre full of parks, historic buildings, and many coworking spaces. The city also offers some of the fastest internet speeds in Europe, making it appealing for tech professionals.

Bucharest is very budget-friendly, with a single person’s monthly expenses averaging €664.40 and rent for a one-bedroom apartment in the city centre at €553.93.

Non-EU citizens can apply for the Romanian digital nomad visa either at a Romanian embassy or via the Ministry of Foreign Affairs website. Approval typically takes 10 to 14 days, requiring proof of accommodation, valid health insurance, employment, and income that’s at least three times the Romanian average of €1,100 per month.

Tallinn

Tallinn, known as the Pearl of the Baltic, attracts tech enthusiasts with its mediaeval architecture, cobbled streets, and city-wide open Wi-Fi networks providing stable connectivity.

The cost of living is low, with rent for a one-bedroom apartment averaging €688.33 per month, while other expenses total around €900.40 monthly.

Estonia was the first country to launch a digital nomad visa for non-EU nationals in 2020, setting the trend in Europe. Applicants must earn a minimum of €3,504 gross income, hold an active employment contract with a non-Estonian company, or work as a freelancer with clients outside of Estonia.