If you are a freelancer or seriously contemplating becoming one, where you live can have a huge impact on your earning power, access to quality clients and quality of life.
Where can you find the optimal balance of affordability, client quality, and lifestyle? This article carries out a cost-benefit analysis of locales across the globe, examining factors crucial for freelancers and digital nomads.
According to WFH Research, 12.7% of Americans employed in full-time roles worked remotely as of 2023 – a statistic that is expected to increase to 22% by 2025, according to Upwork.
With that in mind, digital nomad publication Freaking Nomads created an index of the best cities for digital nomads according to relevant criteria, such as broadband and mobile speed, cost of living, rent, and other expenses, proximity to co-working spaces and accessibility to remote working visas.
Each city was scored on each factor and an appropriate weighting was applied to create a total index score out of 100.
If you’re up to moving to Asia, you’re in luck. However, we expanded our research to offer more options from different sources, too. Here’s what we found.
Coming out on top according to Freaking Nomads was Hoi An, Vietnam, with a score of 73.94 out of 100. A hidden gem on Vietnam’s coast, Hoi An ranked 3rd for cost of living with a score of 85.48 out of 100, and joint 34th for visa accessibility with 77.78 out of 100. As a UNESCO World Heritage Site, the ancient city is home to well-preserved old buildings, colourful lanterns and winding streets that create a magical atmosphere. Hoi An’s quaint historic charm will appeal to digital nomads wanting to start afresh in a unique corner of the world.
In second place was Delhi, India, with 73.77. India’s capital placed 1st for cost of living with 89.03 out of 100, and joint 34th for visa accessibility with 77.78. Delhi is a dynamic melting pot of culture that has something for everyone – from its vast historic attractions, such as the majestic Red Fort, to markets offering local artisan products and diverse food from all over India.
Ranking third was Kuala Lumpur, Malaysia, with 72.02 out of 100. Malaysia’s capital city ranked joint 19th for visa accessibility with 83.33 and 21st for cost of living with 76.06. Known for its instantly recognizable skyline and the iconic Petronas Twin Towers, Kuala Lumpur will appeal to digital nomads seeking a friendly and invigorating atmosphere that features traditional monuments, international schools and an impressive shopping scene.
Da Nang, Vietnam, followed in fourth with an index score of 71.32. The busy metropolis ranked 10th for cost of living with 80.72 and 34th for visa accessibility with 77.84. Da Nang is popular for its dazzling coastlines and striking natural beauty, with landmarks such as the Marble Mountains providing breathtaking views for digital nomads to enjoy.
Rounding out the top five was Mumbai, India, with a score of 69.81. The financial hub placed 18th for cost of living with 77.21 and 24th for coworking spaces with 61.15. As India’s most populous city, Mumbai is beloved for its expansive beaches, bustling street markets and delicious cuisine, cementing it as the perfect choice for digital nomads wanting to immerse themselves in a different environment.
Placing sixth was Buenos Aires, Argentina, with a score of 69.40 out of 100. The capital city is known for its lively neighbourhoods and its delicious food, offering a haven of passion and excitement for residents and tourists alike. The city will appeal particularly to those looking for somewhere with a distinctive Latin American flair. The cost of living is much lower than in the US, which makes it attractive for those looking to live in a vibrant city less the expensive housing and food costs.
Following in seventh place was Bangkok, Thailand, with a score of 68.15. The capital of Thailand is home to ornate temples, delectable cuisine, and energetic street life. Bangkok’s dynamic atmosphere makes it a coveted hotspot for any digital nomad looking to embrace a heritage-rich city that uniquely blends modernity and tradition.
In eighth was Santa Cruz de Tenerife, Spain, with an index score of 68.14. Tenerife’s cultural centre boasts a warm climate and relaxed island vibe ideal for any digital nomad wanting to indulge in sub-tropical surroundings. Santa Cruz is particularly notable for its annual carnival, which showcases colourful parades, music, dancing and costumes. But Tenerife has experienced anti-tourist and digital nomad protests due to over-tourism, which could knock this location further down the charts for some.
Ranking ninth was Bucharest, Romania, with a score of 67.99. An artistic hub, Romania’s capital has plenty for digital nomads to explore, such as its elaborate and diverse architecture, an arts scene featuring some of the world’s best galleries, museums and theatres, and tranquil parks ideal for nature lovers.
Completing the top ten was Las Palmas, Spain, which had an overall index rating of 67.89. Located on the island of Gran Canaria, Las Palmas boasts vibrant beaches, beautiful weather and stunning cultural attractions, such as the historic district of Vegueta, making it the perfect place for someone hoping to experience new surroundings while they work.
Commenting on the findings, Irene Wang, co-founder of Freaking Nomads, said:
“Some people are put off by expenses and accessibility, but there are plenty of places with a lot to offer working professionals. Many of these will welcome remote workers with open arms and a sense of community.
“Cities such as Hoi An, Delhi and Kuala Lumpur are ideal spots that have an ease of access and won’t break the bank. Their internet connection and co-working spaces also provide an infrastructure that allows digital nomads to flourish.
“The monotony of day-to-day life can leave people feeling stagnant and uninspired, but travelling more, exploring curiosities or expanding our horizons doesn’t have to be limited to a vacation. Being a digital nomad provides endless possibilities, and these cities are sure to make anyone feel at home, no matter where they’re from.”
Quality of life: how much will it cost you?
We also looked at Numbeo’s Quality of Life Index (higher is better) is an estimation of the overall quality of life by using an empirical formula that takes into account the following factors:
Purchasing Power Index (higher is better)
Pollution Index (lower is better)
House Price to Income Ratio (lower is better)
Cost of Living Index (lower is better)
Safety Index (higher is better)
Health Care Index (higher is better)
Traffic Commute Time Index (lower is better)
Climate Index (higher is better)
From the latest figures the top 14 places to live for quality of life are in Europe. The Netherlands had 6 cities ranked in the top ten places to live for quality of life. Multiple cities in Australia come next in the 14 and above ranking (Brisbane, Melbourne and Adelaide) with just one spot taken by the US in the top 20 which was Seattle, Washington.
If you already have a continent in mind, then it’s worth analysing the different factors that are most important to you: international schools, cost of living, traffic time, etc. Here we compare some of the most expensive and least expensive cities to see how they stack up for multiple factors.
United States
Most Expensive:
- Location: San Francisco, California
- Client Quality: Exceptional; hub for tech giants, startups, and venture capital. Expect high competition but also high-paying projects.
- Cost of Living: Astronomical. Housing is a major burden, groceries and transportation are pricey.
- Lifestyle: Vibrant cultural scene, world-class dining, abundant outdoor activities, excellent schools.
- Tax Policies: California has a progressive income tax system, potentially high for top earners.
- Alternative cities nearby: That is why people opt to live in other cities in the Bay Area, like Alameda, which is 14.3 miles from San Francisco. There you will find an average one-bedroom monthly rent of $2,095, which is still high. But the attraction is its mix of urban and suburban environments. Reports say it has highly rated public schools, a beautiful year-round climate, family-friendly parks, windsurfing destinations, and gourmet restaurants.
Least Expensive:
Location: Tulsa, Oklahoma
- Client Quality: Growing; strong in energy, aerospace, and healthcare sectors. Remote opportunities may require more active searching.
- Cost of Living: Significantly lower than in major cities. Housing is affordable, and everyday expenses are manageable.
- Lifestyle: It’s a small metropolis, yet family-friendly, with a developing arts and culture scene. Access to nature is good, but entertainment options may be more limited. Schools are generally well-regarded.
- Tax Policies: Oklahoma has a relatively low-income tax rate, making it attractive for freelancers.
Asia
Most Expensive:
Location: Singapore
- Client Quality: Excellent; a global business hub with opportunities in finance, technology, and trade. English proficiency is high.
- Cost of Living: High, particularly for housing and imported goods. Public transportation is efficient and affordable.
- Lifestyle: Modern and cosmopolitan, with diverse culinary experiences, shopping malls, and green spaces. Excellent schools, but international options can be costly.
- Tax Policies: Singapore has a territorial tax system and a low personal income tax rate, favourable for freelancers.
Least Expensive:
Location: Chiang Mai, Thailand
- Client Quality: Varies; strong in digital marketing, content creation, and online teaching. Competition can be high due to the large expat community.
- Cost of Living: Very low, especially for accommodation, food, and transportation.
- Lifestyle: Laid-back, with a rich cultural heritage, beautiful temples, and access to stunning natural landscapes. International schools are available.
- Tax Policies: Thailand has a progressive income tax system, but rates are moderate.
Europe
Most Expensive:
Location: Zurich, Switzerland
- Client Quality: High; a global finance and banking centre. Opportunities in pharmaceuticals and technology also exist.
- Cost of Living: Among the highest in the world. Housing, groceries, and transportation are all expensive.
- Lifestyle: High quality of life, with excellent infrastructure, a strong emphasis on sustainability, and access to the Swiss Alps. Excellent schools, including international options.
- Tax Policies: Switzerland has a complex tax system, but effective rates can be moderate due to deductions and allowances.
Least Expensive:
Location: Lisbon, Portugal
- Client Quality: Growing; strong in tourism, technology, and startups. English proficiency is improving.
- Cost of Living: Relatively affordable compared to other Western European capitals. Housing costs are rising but still manageable.
- Lifestyle: Rich history, vibrant culture, delicious cuisine, and beautiful beaches. International schools are available.
- Tax Policies: Portugal offers a Non-Habitual Resident regime with tax benefits for freelancers in certain professions.
Freelancer-Friendly Tax Policies:
- Estonia: Offers e-Residency, allowing freelancers to manage their businesses online and benefit from a low corporate tax rate.
- Georgia: Has a territorial tax system, meaning only income earned within Georgia is taxed.
- Dubai, UAE: No personal income tax, but you should keep on top of the new UAE corporate tax to impact freelancers – Freelance Informer
Important Considerations:
Visa requirements: Research visa regulations for your chosen country. Some offer freelance visas, while others may require a different type of permit. Always go to official government sites for accurate and the latest information. Do not rely solely on companies advertising for visa services.
Language barriers: Consider language proficiency when choosing a location, especially for client communication and daily life.
Healthcare: Investigate healthcare options and costs in your chosen country.
Community: Look for places with a supportive community of freelancers or expats.
Moving to a new city in your own country is no easy transition, so keep in mind that moving to another country will be even harder. That said, if you do your research, plan a look-see trip with all family members and get guidance from expats and locals before you make the move, you will be better informed and less likely to be disappointed.
Everything will take time, from getting your utility bills in your name to finding friends. Keep an open mind, and integrate with expats but equally with locals as soon as you can. Your experience will be more enriched when you are integrated into the local culture, plus you’ll get the best tips on where to go for local markets, medical concerns, restaurants, and holidays. Sign up for language classes within the first month of your arrival and supplement with online courses and apps.
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