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

Author

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  • Gundert, Hannah
  • Spix, Julia

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.

Suggested Citation

  • Gundert, Hannah & Spix, Julia, 2026. "Free to roam, hard to tax? The tax implications of digital nomad visas in the EU," ZEW Discussion Papers 26-042, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:344103
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    References listed on IDEAS

    as
    1. Wei Cui, 2019. "The Superiority of the Digital Services Tax over Significant Digital Presence Proposals," National Tax Journal, National Tax Association;National Tax Journal, vol. 72(4), pages 839-856, December.
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    More about this item

    Keywords

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    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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