The pandemic accelerated a dramatic shift in where and how people work. One of the most visible outcomes was the rise of the digital nomading: employees and independent workers traveling the world while performing their jobs remotely.
Five years on, is the digital nomad trend still going strong—or fading? What are the legal and compliance implications? How are countries responding, and what does all of this mean for HR and mobility leaders who want to attract and retain top talent without unnecessary risk?
At TRC Global Mobility, we partner with companies navigating complex employee relocation questions like these every day. Below is a comprehensive look at the state of digital nomadism in 2025 and some practical guidance for managing this new workforce reality.
Key Takeaways for HR and Mobility Leaders
- Digital nomadism is evolving, not fading. The number of nomads continues to grow, but the mix is shifting—fewer traditional employees are going abroad due to RTO mandates, while independent workers and freelancers are driving most of the growth.
- Employer-sponsored nomadism is narrowing. Large companies often impose stricter limits or require approvals, while smaller and tech-driven firms remain more flexible. Independent professionals remain largely unaffected by these constraints.
- Countries remain interested but are recalibrating. Many destinations still welcome digital nomads with dedicated visas, but new tax reforms, housing policies, and administrative challenges mean requirements vary widely. Staying current on host-country rules is essential.
- Compliance risks are significant. Immigration status, tax residency, permanent establishment exposure, payroll obligations, and duty-of-care requirements can all be triggered by a single employee working abroad without proper oversight.
- Formal policies are now best practice. Leading organizations are moving away from ad hoc approvals toward structured digital nomad frameworks that set clear guardrails, protect employers from liability, and clarify employee expectations.
- Technology and expert partnerships are critical. Day-count tracking tools, relocation management companies, tax advisors, and immigration counsel help companies minimize compliance risks while supporting employee flexibility.
- The future is “slowmading.” Expect fewer, longer stays in vetted countries, more employer maturity around policy, and ongoing hybrid work models that still allow limited location flexibility
Is the Digital Nomading Trend Growing or Fading?
The data shows that digital nomading is not a passing fad—but it is evolving.
- In the U.S., 18.1 million workers identified as digital nomads in 2024, up 4.7% from 2023 and 147% since 2019 (MBO Partners, State of Independence).
- However, the composition of that group is shifting:
- Employee-nomads (traditional employees working for a company) declined 5% in 2024, largely due to return-to-office (RTO) mandates.
- Independent workers (freelancers, contractors, entrepreneurs) grew 20%.
This shift suggests the trend is “normalizing.” Companies are more cautious about employees working abroad without formal arrangements, while independent professionals, who control their own work structure, continue to embrace global flexibility.
Outside the U.S., estimates vary (data is spottier), but several analyses point to tens of millions of nomads worldwide and continued interest fueled by mainstream remote/hybrid work and dedicated visas. Treat global counts as directional, not definitive.
Where Do Digital Nomads Come From, and Who Employs Them?
In terms of nationality, Americans are the single largest group of digital nomads worldwide.
- Among U.S. nomads, a slim majority (56%) are employees, while 44% are independent workers.
- Outside the U.S., the split is harder to measure, but freelancers and business owners likely represent a larger proportion.
Many employee-nomads work for U.S.-based companies on U.S. payrolls. This might satisfy the requirements for countries with more liberal digital nomad visas, but it creates tax and legal requirements in most jurisdictions that must be worked out before the employee leaves the U.S. Freelancers, on the other hand, may set up global payment structures or use employer-of-record (EOR) solutions.
How Are Return-to-Office Mandates Affecting Digital Nomads?
RTO has clearly dampened employer-sponsored nomadism, especially at large firms. As offices reopened, many employers implemented some form of RTO policy. Surveys in 2025 show roughly 90% of companies have some in-office requirement, though hybrid remains the most common model.
ZipRecruiter’s 2024 employer survey shows a mixed direction—some firms cutting remote options, others expanding them—which supports the “normalization” thesis rather than a return to 2019.
What Does this Mean for Digital Nomading?
- Employees at large, structured organizations often face stricter limits on where and how long they can work abroad, if this is permitted at all.
- Smaller companies and tech firms are more likely to allow fully remote arrangements, though they often require pre-approval and day-count tracking.
- Independents, by contrast, are largely unaffected by RTO and continue to work from anywhere.
Bottom line, the pure “work from anywhere, anytime” pandemic-era phase has narrowed for many employees. Still, overall nomadism hasn’t reversed—it is shifting from employee-led travel to an independent/contractor-led phenomenon.
For HR and mobility professionals, there is still good reason to codify digital nomad policies, rather than handling requests on an ad hoc basis.
TRC Insight: Clear policy guardrails protect your organization from tax, immigration, and compliance risks. They also set expectations for employees who want location flexibility.
Are Countries Still Welcoming Digital Nomads?
The global picture is mixed. Dozens of countries have introduced remote-work visas or tailored digital nomad programs, and many continue to promote them aggressively. Examples include:
- Spain: Telework visas require income of at least €2,368/month and provide a clear legal pathway to stay and work remotely.
- Portugal: Its D8 visa continues to attract nomads despite the phase-out of the older Non-Habitual Resident (NHR) tax regime.
- Thailand: The new Destination Thailand Visa (DTV), launched in mid-2024, allows stays of up to 180 days per entry, valid for five years.
- UAE (Dubai and Abu Dhabi): Both emirates offer virtual work visas for remote employees and business owners.
- Barbados: The “Welcome Stamp” continues to allow remote work stays for up to 12 months.
At the same time, some governments and cities are tightening rules:
- Portugal’s tax reforms reduce incentives for some foreign earners.
- Barcelona will eliminate short-term tourist rentals by 2028, a policy that may indirectly affect nomads seeking temporary housing.
TRC Insight: The macro signal is mixed, but net open: many countries still want location-independent earners’ spending and talent, even as they recalibrate taxes or housing policies to address local pressures. International risk and mobility experts also note that some places have pulled back or slowed nomad visa rollouts amid administrative capacity limits and cost-of-living debates, reinforcing the need to check current rules.
Which Compliance and Duty-of-Care Risks Do Employers Face?
Allowing employees to work as digital nomads can trigger significant corporate obligations if not appropriately managed. HR and mobility leaders should consider the following risks:
- Immigration and right-to-work: Tourist entry does not equal work authorization. Digital nomading/telework visas were designed as a rules-based solution.
- Tax residency: Employees can become tax residents of the host country after a certain number of days.
- Corporate tax & Permanent Establishment (PE): A single employee working abroad from a home or coworking space can, in some instances, create PE exposure for the employer, especially if client-facing revenue functions or authority to contract are involved.
- Payroll and social security: Companies may need to register for local payroll withholding.
- Data privacy & cybersecurity: Including country rules, cross-border transfers, and device security.
- Health, safety, and security (duty of care): Employers maintain a legal and moral obligation to take reasonable steps to safeguard employees working abroad—covering medical support, security intelligence, emergency response, and regular check-ins.
TRC Insight: Establishing a formal digital nomad policy can significantly reduce these risks. TRC helps clients design policies with clear guidelines on day limits, eligible countries, approvals, and employee obligations.
What Do Formal Digital Nomading Policies Look Like?
Leading organizations are shifting from ad hoc decisions to structured policies that:
- Define which countries are permissible and for how long.
- Require advance manager and HR approval before travel.
- Mandate that employees obtain the correct visa and assist them in doing so.
- Set expectations for tax and benefits implications.
- Outline data security, insurance, and reporting requirements.
In addition, companies use tracking tools to monitor employees’ locations, reducing the risk of accidental tax residency or duty-of-care failures.
TRC Insight: We have considerable experience in helping clients to develop effective digital nomad policies.
Practical Guidance for HR and Mobility Professionals
- Publish a policy: Clearly communicate eligibility, process, and obligations for employees seeking to work abroad.
- Run pre-travel checks: Immigration, tax, and benefits impacts must be assessed before departure.
- Leverage technology: Use tracking tools for day counts and country entry/exit data.
- Partner with experts: Work with your relocation management company (RMC), tax advisors, and immigration counsel.
- Prioritize duty of care: Ensure employees are reachable and supported, particularly in riskier destinations.
What’s Next for Digital Nomading?
TRC expects the digital nomading trend to remain a significant factor in global mobility, but with a few key shifts:
- “Slowmading”: Longer stays in fewer countries as employers and employees try to avoid immigration and tax complexity.
- Policy convergence: Countries will continue to tweak their digital nomad programs, while the EU and OECD push for more consistent tax and social security rules.
- Employer maturity: More companies will implement formal policies, rather than “look the other way” on location-flexible employees, as was sometimes the case during the pandemic.
- Continued hybrid work: Fully remote arrangements will shrink, but hybrid models can still allow some location flexibility.
Final Thoughts
Digital nomading has moved from a pandemic workaround to an enduring, if smaller, slice of global talent strategy. For employers, the next phase is less about saying yes or no and more about building the rails: clear policies, automated day counting, vetted destinations, and always-on duty of care. For workers, the best playbook is to slow down, stay legal, and choose destinations that publish transparent rules.
TRC has decades of experience guiding clients through complex global mobility challenges. Whether you’re crafting a digital nomad policy from scratch, integrating it into your existing mobility program, or seeking help with compliance and duty-of-care processes, we can help you design a solution that works for your organization.
Contact TRC Global Mobility today to discuss how we can help you safely support your employees’ desire for flexibility while protecting your company from risk.
This post is provided for general informational purposes and does not constitute tax or legal advice. Organizations should consult their advisors for guidance tailored to their specific circumstances.
