Working As a Digital Nomad
Working from the beach in Bali, your vacation home in Portugal, or while road-tripping across the U.S. in a camper. For many employees, this sounds like the ultimate dream – and it can definitely come true. But before you book a flight in search of sunshine and adventure as a "digital nomad," this article highlights the key legal and practical considerations you should keep in mind. That way, you can make a well-informed decision before you go.
What is a digital nomad?
A digital nomad is someone who works from a location abroad, often while traveling. Since the job is entirely digital, all that’s required is a laptop and a stable internet connection. This makes it possible for digital nomads to work from nearly anywhere in the world.
Many digital nomads work for a permanent employer in their home country, but there are also self-employed nomads who work completely independently.
Benefits of working as a digital nomad
It’s not hard to come up with a few benefits of the digital nomad lifestyle. Consider the following:
1 – Discover new worlds
Because you can go wherever you like, you get to discover entirely new places while still working and earning an income. It’s different from a holiday where you’re just passing through. You can stay longer in one place and truly immerse yourself in the culture.
2 – Ultimate freedom
Tired of a country or continent? Just pack up and move somewhere else. You decide where you work. Even within your location, you choose your ideal workspace – your apartment, a cute coffee shop, or right on the beach. You also choose when to work, especially if you’re not tied to strict deadlines or meetings.
3 – Lower cost of living
In many countries, the cost of living is much lower than in the Netherlands – especially with recent inflation and rising housing prices back home. If you’re paid according to Dutch standards while working for a Dutch employer or clients, you’ll get more value out of your salary.
4 – Personal growth
An adventure in a completely different environment also leads to personal development. You’ll face new surroundings and cultures and won’t be able to rely on your usual comforts. This pushes you out of your comfort zone and leads to valuable life lessons.
5 – An international network
You’ll meet more people on the road than you would during a typical commute. You’ll often need to connect with others to get things done and will likely meet many fellow digital nomads. This expands your network and makes it more international – always a valuable asset.
Downsides of working as a digital nomad
Is it all sunshine and roses? Not quite. There are downsides too, which may not be deal-breakers, but you should definitely be aware of them.
1 – Uncertainty
If you’re self-employed, there’s the uncertainty of finding enough assignments. That’s true in the Netherlands too, but it’s harder to network and acquire clients remotely. Even with a steady remote job, you might face uncertainties like finding suitable accommodation or dealing with foreign tax laws (see below).
2 – Loneliness
Working alone on a beach sounds idyllic – but will you still feel that way after a month? Not everyone is outgoing enough to make friends quickly, and digital nomads often come and go. Being far from family and friends can feel lonely.
3 – Living standards
Living standards in many countries may be lower than what you're used to in the Netherlands. That’s part of the adventure, of course, but you should be aware that things like healthcare and internet quality might be very different – and as a digital nomad, you’ll depend heavily on both.
4 – Discipline
Freedom and discipline often clash. It’s amazing to choose when and where to work, but that sunny beach can be very tempting. If your client isn’t awake yet due to a time difference, staying motivated can be hard. If discipline is already a challenge for you, be cautious. On the flip side, this can also be a great learning opportunity (see: personal growth).
Legal and administrative consequences
Then there are the legal and administrative implications of working as a digital nomad – things not everyone is aware of. Key issues to consider:
1 – Visa issues
Most digital nomads traveling outside the EU use a tourist visa or visa waiver (e.g., a 90-day stay). However, many don’t realize that working under these conditions is often not allowed – even for an online Dutch employer.
It may not always be strictly enforced, but working in public spaces can draw attention. Some countries do conduct checks.
Officially, you need a work or residence visa to work in most places as a digital nomad, though more countries are now offering dedicated digital nomad visas (check here for a list of 25 countries and their conditions).
2 – Tax obligations
Keep an eye on where you're supposed to pay taxes if you stay somewhere for an extended period. If you remain registered in the Netherlands, you'll generally pay Dutch taxes.
However, if you stay in another country for more than 183 days a year, that country may classify you as a tax resident, meaning you may need to pay taxes there. Fortunately, double taxation is usually avoided – the Netherlands has tax treaties with various countries to determine which has priority or to offset taxes.
If you take it a step further and deregister from the Netherlands, your tax obligations shift to your new country of residence. You’ll then only owe Dutch taxes on Dutch income (e.g., rental income from a Dutch property).
If you’re self-employed, you may also become liable for taxes abroad, especially if you stay long-term and perform ongoing work there. Some countries may require local registration or VAT payment, even if you serve Dutch clients. This could apply even if you stay less than 183 days.
It’s wise to research your tax situation in advance. Check the Dutch Tax Authority’s site for expats or consult a tax expert.
3 – Social security
If you spend more than eight months per year abroad, you are legally required to deregister from the Dutch Personal Records Database (BRP). This affects things like your state pension (AOW), disability benefits, and eligibility for various allowances. Your Dutch health insurance will also usually end, so you’ll need to arrange coverage locally. However, you can continue building your AOW pension via the SVB by taking out voluntary insurance.
Note: This only applies to digital nomads living outside the EU. Within the EU, you can use an A1 certificate to retain Dutch social security benefits.
Be aware: the eight-month rule includes all time spent abroad cumulatively – short return visits to the Netherlands don’t reset the clock.
So, avoid overstaying in one country unless you’re well-informed about the implications.
4 – Insurance
Besides health insurance, other policies may lapse or offer limited coverage during long stays abroad. For example:
- Travel insurance – typically only covers vacations up to 60–180 consecutive days, and only if you’re still registered in the Netherlands. A digital nomad-specific travel policy is a good alternative.
- Home contents insurance – only covers possessions in your Dutch home, not your belongings abroad. Consider asking your insurer about international coverage.
- Liability insurance – usually only covers incidents within the EU or during vacations. For longer stays, it often won’t apply. Consider international liability insurance.
Best practice: contact your insurer beforehand to confirm what is and isn’t covered – and avoid unpleasant surprises.
Ready for your adventure?
We hope this article has helped you better understand the pros and cons of working as a digital nomad. The most important thing is to be aware of all the consequences before you board that plane. Already feeling the travel itch and ready to go? Then above all – enjoy the journey! And upload your resume on Monster and find the best match between your career and your lifestyle.