We’ve talked before about retiring abroad, and the best places to retire to stretch that ex-pat pension, but it’s also possible to stretch your current salary by living somewhere completely different, as long as you can work remotely.
In 2021 Bali announced a plan to offer a remote work scheme allowing those working internet-based jobs within the country to stay for up to five years.
Income earned outside the country (via remote work) won’t be taxed in Bali.
This one was on our list of places to stretch those pension dollars as the cost of living is pretty reasonable compared to many places in the US. The Costa Rican government has now announced that a new permit will allow remote workers to stay in the country for up to a year (with the option to extend to another year) while working remotely.
One reason that ex-pats find living in the Caribbean expensive is that the cost of things like electronic goods and clothing is pretty high. If you’re just there for a year, that might not impact you much, if at all.
Croatia is well known in the north of Europe for being a sunny, cheap, southern European vacation destination. The cost of living is very reasonable, and now there’s a short-term residence permit available for digital nomads, for up to a year.
Portugal is another southern European destination known as a fun and affordable vacation spot by those in Northern Europe, and, much like Bali, has been attracting ‘unofficial’ digital nomads for many years partially due to a low cost of living.
While you’ll save money by not paying local income tax, you’ll need to consult your own tax professional about tax implications of living abroad for a while. You may or may not still be liable for tax in your own country, depending on your circumstances.