If you can make your money go further you can improve your quality of life. As a digital nomad you can do this by using a simple system called currency arbitrage. It sounds fancy, but it just means taking advantages of differences in living costs by using your ability to relocate anywhere in the world. For example, a small apartment in New York will cost you $1,000 a month, while you can get an apartment twice the size with free access to modern facilities for the same price in Bangkok. At the same time, the value of your salary will double, meaning you can have a better standard of living.
Excited by the prospect of doubling or even tripling your salary by changing your country code? Here is a list of three of the best destinations from around the world to reside in as a digital nomad (cost of living in each of the five cities will be compared against London. You can do your own comparisons on how far your salary would go using Expatistan.
Buenos Aires
Buenos Aires is one of the most European cities in Latin America. The weather is warm in the summer and cold in the winter, without the tropical heat that you get in Brazil. The people are cultured and open and the city is huge and always lively. Moreover, fans of football and tango will find themselves in some form of cultural heaven.
Housing
84% cheaper than London
Foreigners visitors to Buenos Aires are unable to rent local non furnished accommodation without a guarantee letter from an Argentinean national. This makes housing prices for foreigners slightly higher than they are for Argentinians. That said, rental prices are still very cheap, with the cost of a nice one bedroom apartment in the city centre starting at $700 per month.
Food and Drink
68% cheaper than London
Like Texas, Argentinean cuisine is centred around beef. Steaks and large BBQ involving any kind of meat are the meals of choice. This meat feast is mixed in with a love of wine, which can be bought cheaply on the bottle. The only problem with this diet is is that it is a) not vegetarian friendly b) as a carnivore, you are likely to over indulge.
Entertainment
67% cheaper than London
The population of Buenos Aires wakes up as the sun sets. Late night cafes line the main avenues of the city. The bars overflow with crowds and the nightclubs are heaving, with people dancing to the sounds of the latest Latin beats. It’s a liberating scene and one which should not be missed.
Visa
There are over 78 countries and jurisdictions – such as member states of the European Union – who can get a 90 day visa on arrival for Argentina. The visa renewal process is just a simple hop across the border to either Chile, Paraguay, Uruguay – there is a ferry service to Uruguay – or Brazil.
Taxes
Income tax in Argentina ranges from 9% through to 21%. As a digital nomad you will have to sort out your own income tax affairs with the Argentinian state. However, there is a fixed rate 21% rental income tax for nonresidents of the country.
Other Issues
Argentina suffers from a high rate of inflation, coupled with a Government imposed fixed exchange rate – which has little to do with the actual value of the Peso versus other foreign countries. This does unfortunately create problems for internationals looking to base themselves in Argentina.
Berlin
Berlin is one of the cheapest capital cities in western Europe. The nightlife is lively, the housing is cheap, the food is great and the Internet is fast. Berlin’s location in the centre of Europe also makes for interesting national and international travel opportunities.
Housing
60% cheaper than London
The reason for Berlin’s cheap house prices is a simple one; following the end of World War 2, the population of the city dropped from 4.5 million to 3.5 million as industry relocated and people moved West away from the wall which divided the East and West of the city. Though house prices – and with them rental prices – are rising, accommodation is still plentiful and prices are cheap.
Food and Drink
36% cheaper than London
Germany is rightfully famous for its high quality beer, which is both cheap and plentiful (you can buy a bottle of beer for less than €1, while a nice bottle of wine goes for less than €5). Berlin also has lots of great restaurants and thanks to its large Turkish community, plenty of fantastic and authentic Doner Kebab shops.
Entertainment
45% cheaper than London
Berlin is a fantastic spot for nightlife. The city has a large young professional and student population. The bars and nightclubs are numerous and varied, catering to most music genres. The price of entry to clubs hovers around €5 and is rarely more than €15.
Visa
Germany is part of Schengen, which means than citizens from EU states can move to Germany without having to apply for a work visa. Non European nationals will need to apply for a Schengen visa and if you apply for a short stay visa, you will only be allowed to stay in Schengen countries for 90 days within a six month period. However, you can also apply for a long stay visa.
Taxes
Income tax in Germany starts at 18.9% for any income over €8,130 and rises to a maximum of 45%. In addition to income tax, people residing in Germany also need to pay Solidarity Tax, which is capped at 5.5% of your income.This is a huge disincentive for digital nomads looking for a permanent home base, but less of a problem if you are just basing yourself in the city for part of the year.
Other Issues
None that we can think of. It’s just a great place to be based.
Medellin
Medellin is most famous as being the home of the once notorious drug kingpin, Pablo Escobar. However, this should no longer be the case. With warm weather all year round, beautiful people and lots of fun times.
Housing
77% cheaper than London
House prices in Medellin are competitive and affordable. A fully furnished luxury apartment costs just short of $2,000 a month, while more modest accomodation goes for less than half that price.
Food and Drink
59% cheaper than London
Compared to its neighbours, Colombian cuisine is not very exciting. The food is a blend of indigenous and European flavors. However, Medellin has plenty of restaurants serving food from around the world. It also the source of some of the best coffee in Latin America, which is the perfect cure for a heavy night out.
Entertainment
63% Cheaper than London
Colombia is renowned in Latin America for being the home of the most attractive people on the continent. Within Colombia, it is Medellin that takes this prize. Unsurprisingly, with so many beautiful people, Medellin is renowned for its fantastic nightlife.
Visa
There are 91 countries and jurisdictions that can receive a visa on arrival in Colombia, with the visa being valid for a period of 90 days. To renew the visa, you will have to leave the country and return again.
Taxes
Income tax in Colombia is calculated on a sliding scale and ranges from 19-33%. You have to have been living in Colombia for a period of five years before you are subjected to this form of income tax.
Other Issues
None that we can think of. It’s just a great place to be based.
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