New Digital Nomad Visas Overview

This April, Italy, Turkey, and South Africa have launched their digital nomad visa programs. In this article, I'd like to describe each nomad visa and its requirements. Each of these nations has its own crypto regulation framework for legal entities and individuals to provide operations with crypto. This information, I also included this in the article, and it may help crypto guys looking for a place to move in.

Digital Nomad Visa Italy

Italy is known for its nature and dates back to ancient Rome times. It is a popular destination for tourists and immigrants. However, Italian migration procedures remained relatively complex and confusing - it had no convenient type of visa for remote workers as in Spain or Portugal.

Local authorities try to meet this challenge and create a straightforward procedure for digital nomads. The visa is generally very similar to the Spanish "Digital Nomad Visa" and will undoubtedly become its competitor. Freelancers and employees of foreign companies working remotely can apply for a visa.

It is presented for one year with the possibility of extension and provides the opportunity to move your family members too. To get this visa, it's essential to confirm a regular income of €28,000 per year or about €2,300 per month.

Moreover, in Italy, the minimum income tax rate is 23% if the income for the year is less than €15,000. For digital nomad visa applicants, the rate will be lower - 5-15%. However, considering social payments, the tax rate is much higher - the same 23-28% - as in Spain, where, according to Beckham's law, you can pay 25% for the first five years of residence in the country.

In general, the appearance of such a visa is a big step forward for Italy, which has a complex and unclear migration system. Unfortunately, you can get this visa only in the country of residence - you need to make an appointment in the embassy of Italy in your country. Spanish digital nomad visa procedure is better - it has the option to come to Spain as a tourist and apply for a residence permit.

Also, while living in Italy, you must renew this residence annually. You can obtain Italian citizenship by naturalization after only 10 years.

Italy is very heterogeneous in terms of the development of the IT industry and crypto business. It has large cities such as Milan and Rome with a high standard of living and technological development, and there are southern regions such as Sicily with deficient technological and economic development.

The financial market regulator (Organismo Agenti e Mediatori (OAM)) provides a licensing framework for crypto businesses. It has already 146 registered legal entities on the list. There are also 89 crypto ATMs in Italy. The capital tax rate for income from cryptocurrency transactions in Italy is 26%.

Digital Nomad Residence Permit in Turkey

In Turkey, instead of an actually tourist residence permit for rent, the option of obtaining a residence permit for remote workers is now available. The minimum income to receive it is $3,000 monthly or $36,000 annually. You can apply for a visa on the website of the Tourism Promotion and Development Agency of Turkey.

Judging by the procedure (new visa), the very fact of obtaining preliminary approval remotely through the agency's website, even before traveling to Turkey, is a cool innovation. However, there are some concerns with this visa type.

First of all, it is available only to citizens of the USA, Canada, UK, EU, Russia, Ukraine, and Belarus. Citizens of other nations can't get it.

An absolute advantage of living in Turkey was the relatively low cost of goods and services, but due to high inflation, prices are constantly rising.

A high level of inflation makes crypto very popular and according to various sources, up to 40% of the Turkish population uses them to save wealth. Crypto exchanges operate legally in the country, but the government's policy towards them needs to be more transparent and predictable.

Also, recently, the policy of the Turkish authorities toward foreign residents has changed a lot, and many are leaving due to refusals to renew tourist residence permits for rent. This new visa is possible—just an attempt to return foreign residents to the country. The tourist residence permit was exempt from taxes, now most likely, digital nomads will become tax residents of the country.

The tax rate for individuals is progressive—from 15% to 40%. That's why the maximum tax rate is almost the same as in Western European countries famous for their high taxes.

So, Italian and Turkish visas may suit digital nomads interested in these countries. But in general, they don't offer any opportunities better than Spain and Portugal. The minimum basic income is approximately the same as well tax rates. Finally, Turkish citizenship by naturalization can be obtained by living in the country for more than five years.

Is It Worth Moving to South Africa?

South Africa has also introduced its digital nomad visa. Recipients of this visa will be able to live in an English-speaking country with a relatively low cost of living. The disadvantages of living in South Africa include a relatively low level of security. At the same time, it is an English-speaking country with a fairly rich economy; it is part of BRICS.

The minimum income to obtain a visa is about $53,000 per year or more than $4,400 monthly. This is much more than for a Spanish nomad visa despite South Africa also having a relatively high maximum personal tax rate - 45%.

However, South Africa is the most advanced African nation in crypto and fintech regulation. Crypto payments and crypto salaries are legalized by the decree of the local tax service (SARS). Also, South Africa has issued a record number of licenses for crypto entities - 74.

Capital tax rates are quite flexible for individuals - 18% and corporate tax - 27%.

Conclusion

All these visas can be a good option for you if you want to move to these countries (South Africa, Italy, Turkey). However, their undoubted disadvantages are the lack of tax benefits and migration procedures.

As for crypto regulation, all three countries are important in the global cryptocurrency market, as they have many crypto users. So if you are interested in relocation from this point of view, these countries may suit you.

If you are interested in getting more crypto regulation insights, you can watch the global crypto regulation rating here and get updates on my Telegram channel.