Free to Roam, Hard to Tax? Assessing the Tax Implications of Digital Nomad Visas in the EU
Free to Roam, Hard to Tax? Assessing the Tax Implications of Digital Nomad Visas in the EU
Digitalization and the rise of remote work are increasing the mobility of workers worldwide, with far-reaching consequences for labour markets, businesses, and the allocation of taxing rights. In response to this growing digital mobility, an increasing number of countries are introducing digital nomad visas that allow individuals to live and work temporarily within their borders, but often fail to clearly regulate the resulting tax implications. The project therefore examines the tax implications of digital nomad visas in the EU. It focuses on how these visas influence cross-border mobility and the effective tax burden of digital nomads, what tax planning opportunities arise for employees, employers, and the self-employed, and whether the visas generate additional tax revenues for EU countries or instead contribute to the emergence of a new group of individuals who are difficult to tax. Methodologically, the project combines tax burden simulations based on the Human Resource Tax Analyzer with empirical analyses of anonymized mobility data from digital nomads. The aim is to systematically assess the fiscal relevance, risks, and potential of digital nomad visas and thereby provide an evidence-based foundation for economic and tax policy decisions.