Free to roam, hard to tax? The tax implications of digital nomad visas in the EU

Hannah Gundert and Julia Spix

No 26-042, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: A growing number of countries have introduced Digital Nomad Visas (DNVs) to accommodate the rise of location-independent remote work, often paired with tax incentives. Using simulation analysis, this paper examines the effective tax burden of digital nomads under DNVs in the EU. Results show that tax burdens are sensitive to host country choice, double tax treaty provisions, and duration of stay, with the 183-day threshold proving critical. Tax planning can generate substantial tax savings for digital nomads who relocate strategically. This raises tax fairness concerns, as host countries may bear costs associated with digital nomads without proportionate income tax revenue.

Keywords: Digital nomad visas; Digital nomads; Personal income tax; Effective tax rates (search for similar items in EconPapers)
JEL-codes: H24 H26 J61 (search for similar items in EconPapers)
Date: 2026
New Economics Papers: this item is included in nep-mig
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:344103

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