Miami, Lisbon, Bali, and Barcelona: Are These the New Cities for Digital Nomads in 2025 or Just Overhyped Tourist Traps?

In 2025, the world of digital nomadism is experiencing a shift as countries and U.S. states continue to introduce new benefits and policies to attract remote workers. With the increasing popularity of remote work, more people are exploring the possibility of living and working abroad, all while continuing to contribute to the global economy. To cater to this growing workforce, many nations and even certain U.S. states are offering a variety of incentives, including digital nomad visas, tax benefits, and long-term stay options.

What Are Digital Nomad Visas?

A digital nomad visa is a special visa designed for remote workers, freelancers, and entrepreneurs who wish to live in a country for an extended period while continuing to work online for clients or companies outside of that country. These visas often offer a number of advantages, including tax incentives, the ability to live and work legally in the country for extended periods, and easier access to local services. As the world adjusts to the post-pandemic era, the demand for such programs has skyrocketed.

U.S. States Offering Digital Nomad Benefits

Although the United States does not yet have a federal digital nomad visa program, several states have embraced the remote work trend by introducing policies and benefits that appeal to digital nomads. These states offer advantages such as no state income tax, flexible residency requirements, and favorable conditions for remote workers to settle in.

Florida

Florida has long been a popular destination for digital nomads due to its warm climate, no state income tax, and strong infrastructure. As of 2025, Florida continues to be a key player in the digital nomad landscape. The state offers remote workers a favorable tax environment, which is a significant draw for those looking to maximize their income without the burden of state-level taxation. Additionally, Florida’s proximity to major international airports, along with its network of coworking spaces and communities, makes it an ideal base for digital nomads.

Florida also boasts minimal residency requirements, making it easy for digital nomads to establish themselves in the state. Its robust healthcare system and the general ease of doing business in the state further add to its appeal. Whether you’re working from the beaches of Miami or the more relaxed atmosphere of smaller towns, Florida provides digital nomads with a solid foundation for both work and lifestyle.

Nevada

Nevada, known for its no-income tax policy and business-friendly environment, has also become an attractive destination for digital nomads. Nevada’s ability to attract remote workers is due, in part, to its low cost of living and the ease of establishing residency. The state’s lack of state income tax is one of its most appealing features, and it is a major draw for digital nomads who wish to retain more of their earnings. Furthermore, Nevada’s access to major international airports and a broad array of services for remote workers has made it an increasingly popular choice for those looking to live and work in the United States.

Although Nevada’s infrastructure is not as developed as some of the larger metropolitan areas, the state’s growing coworking spaces and online business networks make it a viable option for digital nomads looking to work in a low-tax environment.

Wyoming

Wyoming is another U.S. state that offers a great deal of appeal for digital nomads. With no state income tax, Wyoming provides a tax-friendly environment that is particularly attractive to remote workers. Additionally, the state offers one of the lowest costs of living in the U.S., along with affordable housing and low vehicle registration fees. While Wyoming may not have the same bustling urban centers as some other states, its small-town charm and wide open spaces attract remote workers seeking peace, natural beauty, and a low-stress lifestyle.

Like Nevada, Wyoming’s key advantage lies in its tax policies, particularly for those looking for a more laid-back environment while enjoying the benefits of being part of a larger economic network. Despite its more rural setting, Wyoming continues to rise in popularity as a state for digital nomads due to its favorable tax policies and low living costs.

Washington

Washington is another state that offers benefits to digital nomads, with its lack of state income tax being a primary draw. Additionally, Washington offers extensive healthcare options and access to coworking spaces, making it an ideal choice for remote workers seeking to live on the West Coast. The state is home to several major international airports, and its proximity to global trade hubs further makes it an attractive place for those who need to travel frequently.

However, Washington’s residency requirements and vehicle inspection protocols are slightly more stringent than in some other states. Despite this, digital nomads will find a wealth of resources and infrastructure to support their remote work lifestyle, particularly in urban centers such as Seattle.

Countries Offering Digital Nomad Visas in 2025

While U.S. states are beginning to create benefits for digital nomads, many countries have fully embraced the digital nomad visa concept and are offering comprehensive visa programs that make it easier for remote workers to live and work abroad. These countries provide long-term visa options that allow digital nomads to stay for extended periods while maintaining the flexibility to work remotely. Below are some of the best digital nomad visa programs introduced or expanded in 2025.

Spain

Spain’s digital nomad visa, launched under the country’s Startup Law, offers remote workers the opportunity to live in Spain for up to 12 months, with the possibility of extending it for up to five years. To qualify for the visa, applicants must demonstrate a monthly income of at least €2,592. Spain’s program is appealing due to its access to the Schengen Area, allowing nomads to travel freely across much of Europe while enjoying the vibrant culture and climate of Spain. Furthermore, the digital nomad visa program offers potential tax benefits for remote workers, making Spain a top destination for digital professionals seeking work-life balance in Europe.

Portugal

Portugal’s D8 visa program enables digital nomads to reside in the country for up to two years with the option to renew. To qualify, applicants must prove that they have a reliable source of income and are employed remotely. Portugal has long been a popular destination for remote workers due to its affordable cost of living, pleasant climate, and thriving tech scene. The country’s focus on attracting digital nomads and entrepreneurs has resulted in a program that is particularly favorable to those in the creative industries and the tech sector.

Costa Rica

Costa Rica’s digital nomad visa allows remote workers to stay for up to two years without incurring local tax liability. The country’s relaxed visa requirements, along with tax incentives, make it an attractive destination for nomads looking to experience life in one of the world’s most biodiverse countries. Costa Rica’s digital nomad visa also allows applicants to import their work-related equipment and vehicles tax-free, which further increases its appeal to remote workers.

Croatia

Croatia introduced a digital nomad visa that permits remote workers to stay for up to a year without being subject to local income taxes. The program is designed to attract digital professionals who can contribute to the local economy while enjoying Croatia’s stunning coastlines and rich cultural heritage. Croatia’s relatively low cost of living, coupled with its welcoming visa policies, makes it an appealing option for those looking to live and work in Europe.

Estonia

Estonia’s e-Residency program allows remote workers to establish and run their businesses online. While the e-Residency program does not provide physical residency in Estonia, it offers digital nomads the ability to manage an EU-based company and access the country’s extensive digital infrastructure. This program is particularly attractive for entrepreneurs and freelancers who need to establish an EU business presence without the need for physical relocation.

Tax Implications for Digital Nomads

For digital nomads, understanding tax obligations is essential when living abroad. While digital nomad visas often offer tax exemptions or favorable conditions, it’s important to consider the implications of both the home and host country’s tax laws.

U.S. Tax Obligations

For U.S. citizens, the IRS requires that they pay taxes on their worldwide income, even when residing abroad. However, there are programs like the Foreign Earned Income Exclusion (FEIE), which allows U.S. citizens to exclude up to $130,000 of foreign income for 2025. The Foreign Tax Credit also provides dollar-for-dollar reductions for taxes paid to foreign governments. Digital nomads should take advantage of these programs to reduce their tax burden while living abroad.

Host Country Tax Considerations

Each country with a digital nomad visa program has its own tax regulations. Some countries, such as Costa Rica, offer a 0% local tax liability for digital nomads, making them highly attractive to remote workers. On the other hand, countries like Spain and Portugal have progressive tax systems, but they offer incentives that make the tax situation more favorable for digital nomads.

The growing number of digital nomad visa programs and the benefits offered by various U.S. states and countries in 2025 are transforming how remote workers approach their work and lifestyle. Whether it’s tax incentives, long-term residency options, or access to a global community of like-minded professionals, these programs are reshaping the way people live and work. As more countries and states continue to adapt to the digital nomad lifestyle, remote workers have an increasing number of choices to make their work-life balance a reality. For digital nomads, the future has never been more exciting, as new opportunities and destinations continue to emerge.