If you’re on the road to becoming a digital nomad, then you’re in for an exciting adventure. Being a nomad, and running your own business, will allow you to live wherever you want and work how you want. It will revolutionize the way you understand the entrepreneurial life, and create opportunities you never even dreamed. You’ll make friends and connections around the world, and you’ll become an expert in social media strategies that get your business’s name around the globe. Before you know it, you’ll know all the best Instagram hashtags by heart and have clients in numerous countries.
As a digital nomad, one of the upsides is that you can travel a lot. But if you’re looking for a base to work from, somewhere where you can be part of a larger digital nomad community and keep your things, then you need to choose a city. And here’s how.
1. Cost of living
Just like with business, a lot of your decisions when it comes to where you want to live come down to money. You may dream of living in Paris or London, but these are expensive cities and may not be in the cards for you. If you’re a blockchain entrepreneur like Brian Magierski or your tech-based startup is hugely successful, maybe you can eventually move to these cities. But in the meantime, you have to get creative with location.
Luckily, there are lots of cheap places out there. In Europe, there are cities like Madrid if you like the sun, and super-cheap prices in Budapest, where the cost of living index is 44.31 percent lower than in London. In addition to making your everyday life easier, if you need to hire an assistant or end up opening an office, then this modest lifestyle will pay off.
2. Match with the culture
The longer you spend traveling, the more you’ll get to learn more about a variety of cultures. And when it comes to where you finally choose to set up your business, it has to be a place where you’re comfortable spending a lot of time. For example, if you’re a writer, find a city with a rich literary history. You’re more likely to run into artists and poets there. If you’re a startup entrepreneur, then you want a tech-friendly city like Tallinn.
Additionally, you need to consider what languages you speak. If you’re fluent in Spanish, then Spain is a great place to go (not to mention the fact that the average cost for a pint of there is 2 euros). Since you’re a nomad, you can travel around a bit to find a place that feels right to you.
3. Business costs
Some digital nomad businesses are more costly than others. If you’re a blogger, or you run a consulting service, these are low-cost, and they can be run from virtually anywhere. But other businesses require more maintenance, and even legal, administrative, and tax fees that can be higher in some cities than others. For example, if you’re running a cryptocurrency business, it’s smart to start it in Estonia. In addition to being a business-friendly place where you can get an e-Residency, there’s also a legal framework available for cryptocurrency startups.
According to Comistar, you can apply for a provision of financial services easily: “As a foreigner, you have to be able to prove that you hold no criminal offenses by submitting your criminal record together with the application of the Financial Services activity license. Additionally, description of the KYC/AML procedures of the company has to be submitted together with the application. Comistar can help you with drafting the KYC/AML procedural rules. Once the application is submitted, you will receive an answer within 30 days. The state fee is 345€.”
Already, Bitcoin is unrestricted in 96 countries, but that’s not a guarantee that cryptocurrency-based and other modern financial businesses can be run freely. So if you suspect you’ll face red tape or other challenges, read up before moving somewhere.
4. The people
If you want to make business partners in the city you’re in, then you want to move somewhere where your industry is strong. If it’s an international industry like ecommerce or design, many people will speak English and can quickly join your team. But there’s also something else to think about: friendship.
Ultimately, it’s smart to base your digital nomad business in a city where there are other digital nomads. Unless you already have a family or groups of friends in many cities, it’s a good idea to move where people will understand not only the way you run your business but your entire lifestyle. Nomads understand you: 85 percent of them say that being location independent is important to them.
These are some of the most important factors to consider when choosing a base for your digital nomad business. What other factors do you think matter?