SINGAPORE -- The COVID-19 pandemic has proved that for many, it is possible to work just about anywhere with an internet connection. A new ranking, however, shows some places offer more advantages for "digital nomads" looking to do their jobs or freelance abroad -- whenever border restrictions permit.
Asian cities broadly lag behind on the list of the best spots to live and work remotely, released Thursday by European online housing platform Nestpick. Tokyo placed sixth and Singapore seventh, as the region's only destinations in the top 10.
The leading four cities -- Melbourne, Dubai, Sydney and Estonia's capital Tallinn -- are all in countries listed as offering digital nomad visas or similar permits that allow people to stay longer than tourists and work independently.
As coronavirus vaccinations progress and countries begin to open up, many see attracting digital nomads as a strategy to pump much-needed money into sputtering economies, either through taxation or consumption. So far, Asian countries have not jumped on this bandwagon, though Indonesia and Thailand are on the verge of doing so.
Omer Kucukdere, Nestpick's founder and CEO, told Nikkei Asia that countries with digital nomad visas offer "a far more attractive proposition" for those who are able to work from anywhere.
"Digital nomad visas remove a potential barrier for remote workers, allowing them to move to a country more freely and without encountering stressful legislation," he said. Japan and Singapore do have working holiday or entrepreneur visa programs, but their scope is relatively limited.
Visas are only one consideration in the rankings, which factor in 16 metrics including rents, safety, pollution, vaccination rates. Even without visas expressly targeted at digital nomads, Tokyo and Singapore made it into the top 10 by scoring well in areas like remote working infrastructure, health care, and culture and leisure, the CEO explained.
On the whole, Kucukdere said Asian destinations were held back by relatively high rents or low scores for pollution and safety. "For many people, the hassle and cost of moving abroad can be an obstacle that decreases the likelihood of them ever doing it," Kucukdere added.
But the spread of digital nomad visas could change the picture in Asia.
"If digital nomad visas are approved in Indonesia and Thailand, there is likely to be an influx of remote workers looking for a change of lifestyle," Kucukdere said. "Digital nomads are motivated by the desire to experience new cultures while working in a fulfilling job, and Indonesia and Thailand's strong cultural fabrics and beautiful landscapes make them highly attractive options for relocation."
The nomad visa concept has been gathering steam. Estonia adopted what is considered the first true "digital nomad visa" last year, followed by Dubai two months later. Nestpick's ranking treats Australia's existing working holiday visa programs as equivalent. Croatia introduced new legislation and 12-month visas for digital nomads this year.
Four Caribbean island nations -- Barbados, Bermuda, Anguilla and the Cayman Islands -- have also rolled out the welcome mat. Some other countries offer similar visas for nomads or freelancers.
A woman works on a laptop in Melbourne's Botanical Gardens. The Australian city topped Nestpick's Work from Anywhere Index. © AP Maybank Kim Eng, the brokerage arm of Malaysian lender Malayan Banking, noted at the end of April that Thailand in December had approved a proposal that would allow freelancers to work remotely for up to four years under an existing Smart Visa program.
It also observed that in Indonesia, Tourism Minister Sandiaga Uno proposed a new long-term visa that would allow foreigners to stay for up to five years, aiming to help revitalize Bali's battered tourism industry. Uno told the Bangkok Post this week that the nomads would not be taxed on income they earn outside the country.
Maybank Kim Eng's report explained, "The exit of expats and affluent foreigners in the region have prompted some countries to rethink their immigration rules and launch new schemes to leverage on tele-commuting, digitalization and more permanent work-from-home arrangements."