Digital nomad

What it means

A digital nomad is a person who works remotely over the internet while travelling or living in different countries for long periods. They may be an employee, a freelancer or a business owner, and their work depends on a laptop, cloud tools and a stable connection.

The lifestyle raises legal questions that are often overlooked: where the person is tax resident, where they should be covered by social and health insurance, whether they need a residence or work permit, and whether their employer creates a permanent establishment abroad.

Residence is assessed by permanent home, centre of vital interests and length of stay, often using the 183-day rule. Someone who keeps moving may end up claimed as a resident by two countries or, conversely, by none.

How it works in practice

Within the EU, insurance is governed by the social security coordination rules. For temporary work from another country, an employee can remain insured in Slovakia on the basis of an A1 form, which must be arranged in advance.

Taxation is resolved under double tax treaties. A nomad who wants to remain Slovak resident should keep ties to Slovakia and, where residence abroad must be proven, request a certificate of tax residence.

Employers should have rules for remote work from abroad: from which countries and for how long it is allowed, who handles data security and who bears the costs. An ordinary home office in Slovakia and several months of work from another country have very different consequences.

What to watch out for

An employee's long stay abroad, especially if they conclude contracts there on the company's behalf, can create a permanent establishment and a tax liability for the company in that country. Seemingly harmless work from a beach can thus mean foreign registrations and returns for the employer.

For non-EU citizens, a tourist visa does not allow work. Several countries have introduced special digital nomad visas requiring a minimum income and health insurance, and their rules differ and change often.