This article covers five benefits and six drawbacks of the digital nomad lifestyle. Each one rests on a named survey, cost index, or tax source, with the year and a caveat. The final section shows which side may matter most for different types of workers.
How These Pros and Cons Were Chosen
The entries draw on four sources. These are the MBO Partners 2025 digital nomad report, a March 2023 survey of 946 US nomads by Passport Photo Online, Numbeo’s 2026 mid-year cost index, and IRS tax pages. Both surveys are self-reported and focus on US workers, so results may differ for nomads from other countries. Each entry ends with a caveat, and figures from different surveys are kept separate.
Pros
1. High Satisfaction With Work and Income
According to MBO Partners, digital nomads are more satisfied with their work, on average, than other types of workers.
- Work satisfaction: 82% of nomads said they were highly satisfied and 12% said they were satisfied. Only 3% were dissatisfied (MBO Partners, 2025).
- Income satisfaction: 81% were very satisfied (41%) or satisfied (40%) with what they earn.
- Career outlook: 81% said they are optimistic about the future of their career.
MBO notes that many nomads accept a modest income if it pays for their travel. The ratings are self-reported, and MBO found that between 19% and 22% of nomads eventually return to a more traditional lifestyle.
Who this affects most: Workers who value flexibility and experiences over a high salary.
2. Lower Living Costs in Many Countries
Many nomads work for employers in higher-wage countries while living somewhere cheaper, according to MBO. Numbeo’s 2026 mid-year index shows how large the price difference can be. The index sets New York City at 100.
- Rent index: The United States scores 37.1. Portugal scores 23.5, Thailand 12.8, Colombia 11.5, and Vietnam 9.6.
- Cost of living plus rent index: The United States scores 54.8. Portugal scores 37.1, Mexico 31.9, Thailand 25.8, Colombia 24.6, and Vietnam 19.0.
- Difference from the United States: By the combined index, prices are about 32% lower in Portugal and 42% lower in Mexico. They are 53% lower in Thailand, 55% lower in Colombia, and 65% lower in Vietnam.
Numbeo builds its indexes from prices that users submit, and each score is a national average. Popular nomad neighborhoods often cost more than the average. Flights, health insurance, and visa fees come on top of these indexes. The list of the cheapest digital nomad cities under $1,500 a month shows what budgets look like in practice.
Who this affects most: Workers who earn in a stronger currency than the one they spend.
3. Freedom to Choose Where You Live
Many countries now offer a visa made for remote workers. MBO counts 64 of them. Other counts range from about 50 to more than 66, so the exact total depends on the source.
- Visa programs: MBO counts 64 countries with a digital nomad visa (2025).
- Choice of base: MBO says nomads are satisfied in part because they can travel when and where they want.
Terms differ by country in stay length, income requirements, and renewal rules. The guide to the top countries with official digital nomad visa programs compares them. The difference between a digital nomad visa and a tourist visa matters for anyone planning to work from abroad.
Who this affects most: People whose employer or clients allow remote work from abroad and whose passport meets a program’s rules.
4. More Ways to Earn a Remote Income
Before 2020, most digital nomads were independent workers such as freelancers. Today most have traditional jobs, according to MBO Partners.
- Nomads with traditional jobs: 11.2 million in 2025, up from 10.2 million in 2024.
- Independent nomads: 7.3 million in 2025, down from 7.9 million in 2024.
- Creator economy: 49% of nomads said they earn money in the creator economy.
A nomad can now keep a regular employer instead of building a client base. Many companies have also tightened return-to-office rules, and MBO found that only 28% of remote-capable employees can work fully remote. Independent workers can look at how to build a portfolio career as a digital nomad.
Who this affects most: Employees with a remote-friendly employer and independent workers with portable skills.
5. Most Nomads Plan to Keep Going
Two surveys asked nomads about their plans, and both found strong interest in continuing.
- Current nomads (MBO, 2025): 93% said they definitely (58%) or maybe (35%) will continue.
- Former nomads (MBO, 2025): 83% said they will return (25%) or may return (59%).
- Passport Photo Online (2023): 94% of 946 US nomads said they intend to continue in 2023 and beyond.
Most surveyed nomads want to continue, yet MBO also found that only 11% have lived this way for more than five years. 73% have done it for three years or less. The post on signs it might be time to stop being a digital nomad covers the exit side.
Who this affects most: Anyone deciding between a trial period and a long-term move.
Cons
1. Loneliness and Distance From Family
Two surveys measure loneliness in different ways, so their numbers differ.
- MBO Partners (2025): 26% named being away from family and friends as a difficulty, and 19% named loneliness.
- Passport Photo Online (2023): 40% of 946 US nomads said they feel lonely often or all the time.
- Relationships: 41% reported trouble keeping romantic relationships because of the lifestyle.
MBO asked nomads to pick difficulties from a list, while Passport Photo Online asked how often people feel lonely. The Passport Photo Online sample volunteered online, so it may not match all nomads. That survey also found that the longer people live as nomads, the more likely they are to find people to connect with. Guides on building community as a solo digital nomad and dating as a digital nomad cover the practical side.
Who this affects most: Solo nomads who change location often and people far from close family.
2. Burnout and Blurred Work Hours
Passport Photo Online found high rates of burnout and long hours in its 2023 survey.
- Burnout: 77% reported burnout at some point in the last few years.
- Hours: 44% increased their work hours after becoming nomads, and 52% said they frequently work weekends.
- Guilt: 83% feel guilty about taking time off or disconnecting from work.
- Travel burnout (MBO, 2025): 23% named it as a difficulty.
The same survey found that 59% work 40 hours a week or less, so long hours are not the norm for most respondents. Summaries of the survey describe weekend work as flexible scheduling for most nomads. The post on avoiding burnout as a digital nomad explains how to set a sustainable pace. A consistent routine while traveling for work can also help.
Who this affects most: People who find it hard to stop working when home and office are the same room.
3. Tax Rules That Follow You Abroad
Moving across borders can create tax duties in more than one country.
- Tax problems: 84% of nomads in the Passport Photo Online survey (2023) had a tax problem at least once.
- US exclusion: The IRS foreign earned income exclusion is up to $132,900 per qualifying person for 2026 and $130,000 for 2025 (IRS Revenue Procedure 2025-32).
- Two tests: A US taxpayer qualifies through the bona fide residence test. The other route is being physically present abroad for at least 330 full days in 12 consecutive months.
- Limit: The exclusion lowers income tax but does not lower self-employment tax, according to the IRS.
A visa generally does not remove tax duties, according to Accounting Today. Tax residency depends on each country’s own law and on tax treaties. These figures apply to US citizens only, and rules differ by country and passport. Guides on how US citizens file taxes while working remotely abroad and EU tax residency rules for nomads moving between countries go deeper. This is general information and not tax advice, and a qualified tax professional can review your own situation.
Who this affects most: US citizens, who file US returns while abroad, and nomads who stay several months in one country.
4. Employer Rules and Compliance Risk
MBO found that many nomads with traditional jobs travel without a clear employer policy.
- Unaware employers: 13% of nomads with traditional jobs said their employer does not know they are nomadic.
- No policy: Another 18% said their company has no nomad policy, but their boss gave permission.
- Combined: MBO calls these workers “hidden nomad employees,” nearly one-third of nomads with traditional jobs.
Tax advisers quoted by Accounting Today say work from another country can create payroll tax or permanent establishment risk for an employer. A permanent establishment is a taxable business presence in a country. Employees can check what their employer allows before leaving, and the guide to how to negotiate a permanent remote work arrangement covers that conversation.
Who this affects most: Employees with traditional jobs, since employers carry payroll and tax duties that freelancers handle themselves.
5. Financial Stress and Hidden Costs
Income satisfaction and money worries can appear in the same group of people.
- Financial stress: 26% of nomads named it among their most cited difficulties (MBO Partners, 2025).
- Income satisfaction: 81% of nomads in the same report were satisfied with their income.
Both numbers can be true at once, since satisfaction with income and worry about money are different questions. Income can vary from month to month, especially for independent workers, and costs such as flights home and health insurance can add up. Guides on budgeting as a digital nomad with a variable income and how much to save in a digital nomad emergency fund cover both.
Who this affects most: Independent workers with uneven income and anyone without savings for an emergency flight home.
6. Travel Fatigue, Safety Worries, and Time Zones
Constant movement brings its own costs, and both surveys picked them up.
- Safety (MBO, 2025): 25% named personal safety as a difficulty.
- Time zones (MBO, 2025): 21% named working across different time zones.
- Road fatigue (Passport Photo Online, 2023): 51% reported it frequently.
Road fatigue is the tiredness that builds from constant moving, and longer stays in one place may ease it. The list of best digital nomad cities for long, slow stays is a starting point. For work across time zones, the post on managing client meetings across multiple time zones shows how to schedule them.
Who this affects most: Solo travelers and people who work with teams or clients far from their own time zone.
Who Should Weigh Each Side Most
The benefits and drawbacks fall on different people, and the same person can feel both.
- Employees with a remote-friendly employer: may gain steady pay and lower costs abroad, and they carry the employer risk in Con 4.
- Independent workers: may gain the most schedule freedom, and they face the income and tax questions in Cons 3 and 5.
- Solo travelers: may feel the loneliness, burnout, and fatigue in Cons 1, 2, and 6 more strongly.
- US citizens: need to plan for US tax filing while abroad, as described in Con 3.
Both surveys are based on US workers, and the Passport Photo Online data are from 2023. Nomads from other countries should check their own tax and visa rules before leaving.
Try a Trial Stay Before You Commit
A short stay abroad is one way to test these trade-offs before a longer move. Search flights for a trial month abroad on FlyBibe and filter by wifi reliability, visa rules, and cost of living before you book. A base with reliable wifi and a time zone that suits your work makes the test more useful. After a few weeks, check how your work hours, budget, and social life are holding up.