Digital nomadism has been a growing trend since the reopening of borders. The whole world envies them for their free-spirited, avant-garde lifestyle. Digital nomads, a new generation of adventurers, are reinventing life abroad and work organization. Overall, it's a new way of life. But does digital nomadism also have a legal status? How does it differ from self-employed, and how do you choose between the two?
Self-employment: Paving your independent career path
From a legal perspective, self-employment is when you undertake an economic endeavor on your own. You stand apart from traditional employees who work for a company or organization. As a self-employed individual, you can engage in business wherever you choose. However, it's essential to research the process of establishing a business in your host country well in advance. Keep in mind that specific economic activities, like self-employment, might be subject to stringent regulations.
To embark on the self-employed journey, you'll need to establish a sole proprietorship (EI), which is the preferred legal structure for self-employed professionals. Depending on the nature of your activity, the presence of partners, and adherence to prevailing laws in your host country, other legal structures might be suitable.
Remember, "freelance" isn't a recognized legal status. English-speaking nations commonly use the term "self-employed." The term "freelance" mostly refers to self-employed individuals, primarily encompassing fields such as journalism, IT, and the arts.
Digital nomadism: A hybrid identity?
The wave of digital nomadism is captivating an increasing number of potential expatriates. However, it's essential to recognize that akin to "freelance," "digital nomad" isn't a legal status either. Instead, it represents individuals who can work from any location without a fixed workspace (nomadism), thanks to their computer and internet connection (digital). If you're interested in the digital nomadism lifestyle, you have the choice between two primary legal statuses: self-employed or remote working.
How to choose between the two
Currently, employees embracing the digital nomad lifestyle are still relatively rare. Digital nomad visas typically last a few months to one or more years, with potential renewal. However, locating a company willing to support full-time remote workers across international borders presents significant legal and logistical complexities.
Digital nomads often opt for self-employment, establishing their businesses. This type of structure provides maximum flexibility for starting a business abroad with minimal financial commitment and risk. It aligns perfectly with the essence of digital nomadism. Your business doesn't require physical premises or equipment; your office is embodied in your portable devices - your PC, tablet, charger - enabling you to work seamlessly from anywhere across the globe. Nonetheless, if your business demands physical premises or substantial investment, digital nomadism might not be ideal (yet you'd still operate as a sole trader).
Understanding the differences between digital nomadism and self-employment
Most digital nomads are essentially independent entrepreneurs. Legally, they fall under the broader umbrella of self-employed professionals. They've established their businesses and bear similar legal responsibilities in their host country and country of origin. However, there is a subtle distinction. It's not a legal differentiation; rather, it pertains to the perception of digital nomadism.
Freedom of movement is the essence of digital nomadism. It means the ability to alternate between countries, staying for months or even a year, roaming across continents. This transient nature underpins the core of digital nomadism. In reality, this isn't a matter of choosing between two legal statuses (as they both mean self-employment), but rather deciding between two lifestyles.
You can start a business abroad without necessarily traveling the world. While you remain autonomous, you're not necessarily a digital nomad. For instance, relocating every six months might be quite challenging if you establish a language school. Similarly, you might prefer stability over frequent visa renewals, even as a freelancer, web editor, photographer, or illustrator (professions harmonious with digital nomadism). In such cases, you're an expatriate freelancer, not a digital nomad.
Ultimately, digital nomadism embodies a profound yearning for freedom. Yes, it entails responsibilities, including visa applications, renewals, and eligibility criteria. However, for digital nomads, these responsibilities pale compared to their lifestyle's myriad benefits. Before embarking on this journey, you must consider all these aspects carefully. Your pursuit of freedom should align with the responsibilities you're willing to embrace when working from a different country.
