The country comes in ahead of Canada, Hungary, and France, but falls behind Romania, according to a report by ECO.

The report assesses factors such as costs and quality of life, but also the economic environment and the conditions or special programs offered to these professionals. A total of 65 countries are assessed — and nine of the top ten are located in Europe.

This work was carried out by Global Citizen Solutions, a consultancy firm that helps professionals move to another country and that also provides support services for obtaining golden visas, with an office in Lisbon.

Spain

Spain takes first place in the ranking, largely thanks to the new legal framework that the country implemented last year.

“The time spent in the country under the Startups Act counts directly towards obtaining nationality,” explains the consultancy. Furthermore, these professionals pay a flat rate of 24% on income earned in the country and income earned abroad is exempt, according to the company.

The Netherlands and Norway occupy, respectively, the second and third positions. Portugal, a country that is a frequent and popular destination for digital nomads, appears a little further down, in seventh place on the list.

“Portugal also performs exceptionally well, particularly in the quality of life and economy sub-indices. It stands out as the cheapest country in Western Europe, with English being widely spoken throughout the country. The time spent in Portugal under the D7 and D8 visas counts towards access to permanent residence, paving the way for nationality,” says the consultancy.

The study, cited by Bloomberg, also praises the Madeira Digital Nomads Program, launched in 2021 by the Regional Government and Startup Madeira, which has already allowed “10,000 digital nomads” to be welcomed to the archipelago, “accelerating the local economy and positioning Madeira as a top destination for remote work”, argues the consultancy.

“This innovative initiative has established the first ‘Digital Nomad Village’ in Ponta do Sol, offering digital nomads a complete support environment with coworking spaces and community events”, the report reads. Fast internet and “modern infrastructure”, as well as the “stunning landscape” and mild climate, are other benefits highlighted for Madeira as a destination for digital nomads.

This new ranking joins others, such as that of the Nomadlist platform, which on July 30th placed Lisbon as the seventh best city for digital nomads and Porto in 19th place. Bangkok and Chiang Mai, both in Thailand, occupied the first and second positions, followed by Tbilisi, in Georgia. In addition, this month, Portugal came in 15th place in the Expat Insider 2024 ranking, which evaluates the best countries for people living abroad.

In a country like Portugal, which has been heavily impacted by a housing crisis, the effects of this phenomenon are controversial. Supporters believe that digital nomads boost the economy, promote innovation and help promote the country abroad. Critics accuse them of contributing to the sharp rise in house prices and of distorting cities.

According to Global Citizen Solutions, the term “digital nomad” describes “individuals who take advantage of digital technologies to work remotely while traveling or living in multiple locations”.

The 16 best destinations for digital nomads:

16 – Japan

15 – Malaysia

14 – Latvia

13 – Czech Republic

12 – Taiwan

11 – Germany

10 – France

9 – Hungary

8 – Canada

7 – Portugal

6 – Malta

5 – Romania

4 – Estonia

3 – Norway

2 – Netherlands

1 – Spain