Minister suggests lowering Estonia's requirements for digital nomads
Salary requirements for so-called digital nomads could be lowered under new plans proposed by the Ministry of Economic Affairs to make the scheme more competitive.
Minister of Economic Affairs and IT Tiit Riisalo (Eesti 200) proposed to the Ministry of Interior to change the requirements for remote workers.
Under the current rules, employees with no fixed location can apply for a Digital Nomad Visa which requires a salary of €150 per day, or an average of €4,500 per month.
The limit rose at the beginning of the year, and was previously set at €3,500. Riisalo said even the previous salary level was high compared to other countries.
Similar schemes in Croatia (€2,232), Portugal (€3,040), Spain (€2,160) and Latvia (€3,432) have smaller salary expectations.
"It remains unclear what the rationale is for setting high-income requirements for digital nomads who come to Estonia to help stimulate the economy and bring in tax revenue without creating long-term liabilities for the state. This is especially so in the current situation, where the search is on for a way to cover the state budget deficit," the minister wrote.
There are other ways to set a rate, Riisalo said. For example, one option worth considering is 0.6 times the subsistence threshold for every day spent in Estonia, which would amount to around €3,600 per month. Additionally, having enough savings to stay 12 months could be another.
The Minister of Economic Affairs pointed out digital nomads contribute to the destination country's economy mainly through consumption, such as accommodation, catering, transport, and entertainment. Unlike the average tourist, they often spend more due to their long-term stay, which makes an additional contribution to the Estonian economy.
"Typically, digital nomads are highly educated and entrepreneurial people with a wide network of contacts, which gives them the potential to stimulate the local business environment and innovation. In addition, they act effectively as ambassadors of the destination, strengthening Estonia's image as a successful digital country. By sharing their experiences, digital nomads attract new foreign tourists and thus increase the revenues of local tourism businesses," Riisalo said, listing reasons why they successfully contribute to Estonia.
Estonia has issued 535 digital nomad visas since the scheme's launch in 2020.
The Ministry of Economic Affairs says the average digital nomad's budget in Estonia is €2,000 per month, which consists of expenses for housing, food, and entertainment.
They have added approximately €50 million to the Estonian economy.
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Editor: Karin Koppel, Helen Wright