The privileged status of the so-called digital nomads in Croatia

18.02.2021.

The privileged status of the so-called digital nomads in Croatia

By 2035, almost a billion people in the world will work from home, and each of them is a potential traveler, or digital nomad, who stays longer than classic tourists.

According to the strict definition from the new law on foreigners that came into force at the beginning of 2021, a digital nomad is a third-country national who is employed or performs business on the territory of the Republic of Croatia.

The situation with the current pandemic has only accelerated the trend that connects the desire to travel and get to know other cultures with the possibility of working from a remote place with the help of technology. There is a whole range of interests of digital nomads who find their jobs in different parts of the world, some travel in campers or with backpacks on their backs with a mandatory laptop in hand, others sail on their boats and connect to the Internet in marina's hot spots while others run their companies, stay in a rented apartments and spend days in co-working spaces. All of them have in common freedom of choice and independence of location.

This year, Croatia was among the first countries in the world to legally regulate the status of the so-called digital nomads,amendments to the Foreigners Act and the Income Tax Act. By issuing visas (which are actually residence permits), it is possible to achieve the legal status of a digital nomad in Croatia, with a temporary residence visa for up to one year, as well as preferential tax treatment. It seems that these amendments to the Law are far from ideal, but they should help the development of Croatia as one ofthe most desirable locations for digital nomads, precisely because of its location,security, fast Internet infrastructure, natural beauty, activities and much more. There are many benefits that the country and its economy can have from the greater arrival of these modern travelers and nomads, with a positive impact on the local economy in terms of improving creativity, innovation and transfer of ideas to a generally positive image of the country. Dutch entrepreneur Jan de Jong, who has been living and working in Split for more than ten years has significant impact on changing the legal framework that accepts the so-called digital nomads as a significant source of indirect income for the country.Thanks to his initiative also, as from 1.1.2021, the new package of laws will allow digital nomads a temporary stay in Croatia for up to a one year.