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.
