It is widely accepted that senior executives are required to travel frequently outside of their home country to undertake work related activities, sometimes for extended periods of time. For this reason, global mobility compliance is a critical issue for senior executives who may fall foul of local immigration rules, especially when traveling as visitors for business or leisure purposes. As a rule, entering a country as a visitor does not permit a senior executive to spend extended periods of time in a country and, generally, does not allow an individual to work there either. An enduring anxiety for senior executives has persisted that restrictive immigration options remained unsuitable for their lifestyle and their business’ needs- with no feasible solution for the modern business traveller.
Following a combination of post-pandemic factors, and the desire of many countries to attract long term flexible tourism to benefit local economies, more and more countries have been introducing a new visa route for the post-pandemic era - collectively known as the ‘digital nomad visa’. Starting with Estonia, many other countries around the world have followed suit, with the latest being Namibia, who launched their own version on 14 October 2022. To date, just over 50 countries have introduced their own version of the nomad visa route and this number continues to grow on a monthly basis.
The option of a digital nomad visa appears very attractive, being mostly designed for high level executives, with some countries extending this option to self-sufficient individuals and entrepreneurs amongst others. The visa offers several immigration benefits such as the benefit of long term stay in a specific country, with the right to undertake remote work activities whilst away from their home. One particular advantage of interest is that of the European digital nomad permit which allows recipients to travel visa-free throughout the 26 countries of the Schengen Area.
Whilst appealing, there are certain immigration criteria that senior executives must meet to qualify for a nomad visa, these criteria will vary from country to country, but, in broader terms, the recipients will need to be high earners and demonstrate a sizable monthly income relative to their chosen country of destination. Additionally, they must also show sufficient financial means to live off during their stay in their chosen country, hold comprehensive private medical insurance and, and for some countries, satisfy a criminal record requirement.
The nomad visa itself is a fixed-term permission and generally issued with a validity not exceeding one year, allowing senior executives to apply either before traveling or as soon as they arrive in a country.
Yet, in increasing competition with one another, many countries have become creative, allowing this permission to be extended for longer periods of time, with some offering up to three years of validity. However, other countries have gone as far as to allow this permission to lead to settlement, for example in Portugal. Although this example is an outlier to the existing global offering (as most countries' nomad offerings do not lead to settlement or citizenship) it provides an interesting insight into potential shifts to the global trend and offers an insight into the future of the permission.
There are other wider considerations on the suitability of this visa type, such as local tax liabilities; however, the good news is that in the majority of cases, short periods of residence do not usually attract local tax considerations - but this must be carefully planned from the outset prior to any projected travel.
The demand for senior executive roles in the post-pandemic era and beyond is such that senior executives often need strategic, practical, solutions to the modern age and the digital nomad visa options offered are a welcome change in the world of immigration needs.
Should you wish to discuss the options available to you or your senior executive population, feel free to get in touch with our team to understand what solutions are available.