There are now many thousands of digital nomads. What they all have in common are two basic criteria: using digital media and working independently of location. So, if you want to become a digital nomad yourself, you need to find a job that doesn’t require a fixed workplace and earn your income using a laptop.
Beyond the work itself, digital nomadism raises a number of other questions: Do you still need a permanent residence? Do you have to register a business? And how do you get medical coverage when you’re constantly moving between countries? Because digital nomads are often highly flexible and travel without a fixed return date, their situation differs significantly from that of a traditionally planned trip.
This article explains what you need for your digital job, how to approach the topics of having a home base and registering a business, and finally, what you should look out for when choosing health insurance as a digital nomad.
Key facts at a glance
- Digital nomads are defined by two criteria: using digital media and working independently of location.
- A stable internet connection is important when choosing where to stay – reliable internet access cannot be taken for granted everywhere in the world.
- Many digital nomads keep their official residence in their home country; this has a direct impact on their tax liability.
- Whether you need to register a business depends on your specific occupation – many online jobs are considered freelance professions.
- Health insurance is essential because medical and hospital costs abroad can be very high – even in countries with a relatively low cost of living, such as Thailand.
- Official sources: National Association of Statutory Health Insurance Funds (GKV-Spitzenverband), Federal Central Tax Office (residence and tax liability), Federal Foreign Office.
What Do I Need for My Digital Job?
The basic requirement is a laptop. What it needs to be capable of depends on your job. If you professionally test demanding video games or work with image files, you need a particularly powerful computer. If you mainly use word-processing programs, a more affordable laptop will be sufficient.
When choosing where to stay, you should focus on one key question: Can I work there without any problems? In many beautiful places around the world, internet access is limited or unavailable. That’s fine for a short visit, but if you need to work, you’ll need a stable internet connection.
Will You Have a Home Base?
Many digital nomads continue to maintain their official residence in their home country or at the place where they lived most recently. They may still keep personal belongings there, and their mail is also sent to this address. This can be a good option. In this case, make sure that a reliable person takes care of your documents and belongings.
Another aspect to consider is taxes. For example, if you are registered as a resident in Germany, this has a direct impact on your tax liability. Check how you want to handle this aspect. It may be advisable to consult a tax advisor in advance about tax-related questions.
As an alternative to maintaining a residence in your home country, you can establish a home base in another country as a digital nomad. Be sure to take the relevant administrative requirements into account there as well.
Do I Need to Register a Business as a Digital Nomad?
Whether you operate a business as a digital nomad depends entirely on your occupation. A business registration is not required for many internet-based jobs. They are classified as freelance professions, which means you do not need to register a business. This can exempt you from certain taxes and save you a significant amount of administrative work.
Health Insurance for Digital Nomads
Another important aspect is having the right coverage. Depending on your job and your official residence, you can also benefit from a high degree of flexibility in this area. As a freelancer, you can make your own decisions about retirement planning.
In addition to retirement planning, you need health insurance. It covers medical and hospital costs abroad. This is particularly important because these costs can quickly become extremely high. Countries such as Thailand may have a relatively low cost of living, but medical expenses for more complex treatments can still be substantial.
According to the GKV-Spitzenverband, statutory health insurance from Germany or Austria generally does not cover or only partially covers treatment costs outside the EU. This is particularly relevant for digital nomads, as they often spend many months or even extended periods abroad.
Key Points That Are Especially Relevant to the Nomadic Lifestyle:
- No fixed end date: Many digital nomads travel without a fixed return date. Check whether your insurance is designed for long-term or indefinite stays.
- Frequent country changes: Digital nomads often change locations every few weeks or months. Check whether your insurance provides coverage in multiple countries at the same time.
- Spontaneous choice of location: Since your location may change spontaneously depending on internet quality and personal circumstances, it is helpful if insurance coverage can also be purchased or adjusted after the trip has already started.
- Home base considerations: Whether you keep your residence in your home country or establish a home base abroad, having separate international health insurance remains important, as your residency status alone does not automatically guarantee sufficient coverage.
Which International Health Insurance Fits Your Nomadic Lifestyle?
Digital nomadism is all about flexibility – when choosing where to stay, how long to travel, and often even when to return. Your health insurance coverage should offer that same flexibility. Many nomads who have chosen this lifestyle opt for Protrip World, which offers three products for different situations:
| Product | Target group | Key feature |
|---|---|---|
| Protrip German Traveler | Trip starts in Germany or Austria | Classic international health insurance designed for digital nomads who plan their stay abroad in advance from Germany or Austria |
| Protrip World Traveler | Travelers worldwide; trip can start anywhere | Can also be purchased after the trip has already started |
Decision Guide – Which Product Is Right for You?
- You are planning to start your digital nomad lifestyle from Germany or Austria and have not left yet → Protrip German Traveler.
- You are already traveling as a digital nomad, change locations spontaneously, or extend your stay without a fixed end date → Protrip World Traveler, as it can also be purchased after your trip has started.
Example: If you are planning to start your digital nomad lifestyle from Germany, it is best to arrange coverage with Protrip German Traveler before departure. If, on the other hand, you have already been traveling for months and do not yet have suitable international health insurance, you can choose Protrip World Traveler.
You can find more information about the plans on the Protrip World overview page.
FAQ – Frequently Asked Questions About Life as a Digital Nomad
Do I absolutely need international health insurance as a digital nomad? Yes. Statutory health insurance from Germany or Austria generally does not cover, or only partially covers, treatment costs outside the EU – especially in the case of more complex treatments, medical costs abroad can be very high.
Does my insurance cover multiple countries if I move frequently as a digital nomad? That depends on the plan you choose. Before purchasing, check whether your insurance covers all the countries where you expect to stay.
Can I purchase insurance after the fact if I am already traveling as a digital nomad? Yes. With Protrip World Traveler, this is possible even if your trip has already started. Protrip World Education, on the other hand, must be purchased before the trip begins.
Do I need to register a business as a digital nomad? That depends on your occupation. Many internet-based jobs are considered freelance professions and do not require business registration. If in doubt, check with the relevant tax office or a tax advisor.
Should I keep my residence in Germany or deregister? That depends on your individual circumstances, including tax considerations. Since maintaining a residence can affect your tax liability, it is advisable to consult a tax advisor in advance.
What happens if I get sick in a country with a low cost of living, such as Thailand? Even in countries with a low cost of living, medical expenses for complex treatments can be very high. International health insurance is therefore important regardless of your destination.
Key Takeaways
- Digital nomads are characterized by digital work and location independence – a laptop and a stable internet connection are essential requirements.
- The question of a home base concerns not only personal belongings and mail, but also your tax liability.
- Whether you need to register a business depends on your occupation – many internet-based jobs are considered freelance professions.
- International health insurance is essential because medical costs abroad can be very high, even in countries with a low cost of living.
- Protrip World Traveler is particularly suitable for spontaneous changes of location because it can be purchased after the trip has already started.
- Protrip German Traveler is suited to starting your nomadic lifestyle with a fixed plan from Germany or Austria.