What is a digital nomad visa? Japan to launch scheme in March

Japan is the latest country set to introduce a new “digital nomad” visa for foreign nationals visiting on a working holiday.

Japan's Immigration Services Agency (ISA) on Friday (February 2) announced six-month residency visas for workers with an annual income of ¥10 million, (£53,630).

The visas will be launched by the end of March, the Japan Times reported.

To be eligible, applicants must come from one of the 50 countries and regions that have a visa exemption agreement with Japan and private health insurance. Some of these countries include the United States, Australia, Singapore, and the United Kingdom.

The six-month residency was chosen after an overwhelming majority of digital nomads said in a survey they would prefer to stay for more than 90 days. This is the current length of time visitors can stay without a visa.

If successful, applicants will be able to stay and work remotely from anywhere within the country without being employed in Japan. They would also be allowed to bring their spouses and children.

However, once their visa expires after six months, applicants will have to reapply for another after leaving the country.

Here's what you need to know about the digital nomad visa worldwide.

What is a digital nomad visa?

A digital nomad visa is an authorisation to work remotely in a foreign country for an extended period.

It allows for longer stays than a tourist visa and sometimes offers incentives such as tax breaks.

A digital nomad visa allows its holders to work during their stay in a country — provided they do not enter the local job market. The idea is that they do not compete for jobs with residents, but rather work independently for local employers. The only exception is Estonia, which allows limited local work as long as the person’s main purpose continues to be remote working.

Countries offering digital nomad visas often see it as a way to boost their economy by attracting skilled workers and encouraging tourism.

Which countries have digital nomad visa schemes?

Estonia was the first country to implement a visa specifically for digital nomads on August 1, 2020 — and many have followed suit.

More than 60 countries offered the scheme at the time of writing, according to the Citizen Remote website. These include Croatia, Portugal, Cyprus, Italy, Thailand, Greece, Germany, Indonesia, Barbados, the UAE (Dubai), Saint Lucia, Mexico, the Bahamas, and Malta.

Within the EU, people with EU passports or arriving from Schengen countries can already work remotely in the country for less than six months of the year without needing to register.

The last country before Japan to have launched such a visa was South Korea on January 1, 2024.

Under the scheme, foreign residents will be allowed to stay in the country for up to two years while retaining employment in their home country

Before this, foreign nationals interested in working and travelling in Korea were required to have a tourist visa limited to stays of fewer than 90 days. The new workation visa will allow individuals to stay for up to one year from their entry date, with the option to extend for another year.

What are the requirements for obtaining a digital nomad visa?

Each country has its own set of eligibility conditions for digital nomads.

Most digital-nomad visas are open to foreign nationals who work for a company based overseas. Some also allow the self-employed, freelancers, or students to apply.

The main criterion is proof of income, with every country setting varying standards. In Greece, applicants must prove they have a monthly income of €3,500 (£3,025). In Croatia, the minimum is €2,300 (£1,988), in Estonia it is €3,500 (£3,025), in Iceland a whopping €7,100 (£6,136), and in Portugal only €700 (£605).

Some countries also require that you have savings — €5,500 (£4,754) in the case of the Czech Republic — as well as income. Others may also insist an applicant has private health insurance.

Are there tax incentives offered?

Digital nomad visas are one way for countries to recover lost tourism money due to the pandemic. For this reason, some countries have introduced incentives to attract remote workers to their schemes.

In Croatia, for example, digital nomads benefit from a total exemption from taxes in the country. To be eligible, you simply need to obtain a one-year digital nomad residence permit.

In Italy, self-employed workers who become Italian tax residents and commit to staying for at least two years benefit from a 70 per cent tax exemption on all income generated in the country. Greece has a similar offering, and in Spain, digital nomads will be taxed at 15 per cent for the first four years, compared with the standard 24 per cent base rate.