A study highlighting the destinations that are most attractive to digital nomads in search of a new home,
according to legislation as well as livability factors such as weather, cost of living and equality.
At Nestpick, we encounter millions of users on our accommodation platform seeking a change of location that better matches their work and lifestyle needs. Even before the pandemic, advances in technology and digital connectivity prompted many companies to adopt a work-from-anywhere policy, allowing employees to choose a living/working arrangement that suits them best.
The pandemic has accelerated this trend rapidly over the last 12 months, however, very few countries have enacted legislation designed to attract foreign-employed workers. Instead, they only offer visas to those who take jobs on location, therefore missing the opportunity to bring high-wage earners to their cities without the need to generate new jobs. To find out more about this phenomenon, we decided to investigate which cities are not only the most attractive and welcoming to foreigners, but also have the infrastructure and legislation in place to make it easy for remote employees to live and work there.
“The last year has really proved to many companies that remote-working is not only a possibility, but actually something that can be beneficial to everyone involved. The technology has been available for a while now, but it’s taken seeing it in practice for the idea to really take hold,” comments Omer Kucukdere, Founder and CEO at Nestpick.
We began the study by selecting a list of 75 major global cities often cited as ‘most livable destinations. We then analyzed these cities according to three broad categories - Costs & Infrastructure, Legislation & Freedoms, Livability - that combined make them a good place to both relocate and work remotely from.
For the first category, we looked into the basic costs and set-up requirements needed to work comfortably with minimal extra expense, such as the price and availability of adequate home office space and the speed and capacity of the internet in each location.
For the second category, we appraised the ease to which a foreigner was able to work remotely in each location, investigating whether countries offered a special visa for these employees, as well as specific remote-working infrastructure such as tax deductions and regulation. Being able to live safely and freely is often a deciding factor for potential migrants, so we analyzed the extent of basic human rights and freedoms in each location, as well as the levels of safety and support for gender equality and inclusivity of minorities and the LGBT+ community.
After evaluating these structural and legislative elements, we turned our attention to the factors which make a city a great place to live, such as access to culture and leisure events both before and during the pandemic, as well as the general weather and levels of air, noise and light pollution.
Finally, since the Covid-19 pandemic continues to impact the livability of many metropolises, we took note of the percentage of the populations that are fully vaccinated in each location, as well as those that had low infection rates.
The resulting ranking offers an overview of the best cities worldwide for those seeking the perfect home base from which to live and work remotely from, as well as those with the potential to attract this new breed of workers in the future.
The index is default ranked by the final column, ordered from highest to lowest. Each individual column can be filtered, and the full methodology explaining how each factor was evaluated can be found underneath the table.
| Costs & Infrastructure | Legislation & Freedoms | Livability | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| # | City | Country | TOTAL | ||||||||||||||||
The Work-from-Anywhere Index uses data to determine the global cities with the best legislation, infrastructure, and livability in place to relocate to and work remotely from. The study compares and analyzes 75 cities according to 16 diverse factors to create a final ranking based on a total score.
The cities were selected from a list of global locations renowned as popular destinations for relocation and livability, including those who have demonstrated willingness to encourage foreign-employed workers to move there.
FACTORS AND SCORING
The study was divided into three categories - Costs & Infrastructure, Legislation & Freedoms, Livability - comprising the below factors:
Costs & Infrastructure
Legislation & Freedoms
Livability
Scored factors consist of one or more indicators that were scored and averaged. The equation for scoring is as follows:
$$\text{z-Score} = \frac{x-mean(X)}{Standart\text{ }deviation(X)} \text{ in short } \frac{x-μ}{σ} $$
For columns where a low value is better, the score is inverted such that a high score is always better:
$$\text{z-Score}_{inverted} = -1 * \frac{x-mean(X)}{Standart\text{ }deviation(X)} \text{ in short } -1 * \frac{x-μ}{σ} $$
Data is normalized to a [50-100] scale, with 100 being the best score. Therefore, the higher the score, the better the city ranks for that factor in comparison to the other cities in the index. The formula used is min-max normalization:
$$score = (100 - 50) * \frac{x-min(X)}{max(X) - min(X)} + 50$$
The final score was determined by calculating the sum of the weighted average score of all of the indicators. Below you can find a detailed description of each factor within the study, and the source used.
COSTS & INFRASTRUCTURE
Home Office Room Rent (Euro)
The average rent for an apartment per bedroom in Euro. The factor is based on the premise that in the absence of a fixed office space, a remote-working employee moving to a new city will require an adequate number of rooms in their apartment to be able to work comfortably. The rental price was found as follows:
- The median price for a 1-bedroom flat per city; the median price for a 2-bedroom flat per city; and the median of a 3-bedroom flat per city. The average was found using the following formula: $$Average = (\frac{\text{Median rent 1 bedroom}}{1} + \frac{\text{Median rent 2 bedroom}}{2} + \frac{\text{Median rent 3 bedroom}}{3})/3$$ - A bedroom is defined as an extra room that is not equivalent to a kitchen, hallway, bath, or living room. In cities with a different room-counting system, the search criteria were adjusted to meet this profile (e.g. in some countries, two rooms equal one bedroom) - Up to two samples were taken from different websites for each city - The data collection was carried out between May and June 2021
Source: Local rental websites (detailed sources available upon request).
Accommodation Availability (Score)
The share of available apartments in each city that is the appropriate size to work from home in. The factor is based on the premise that in the absence of a fixed office space, a remote-working employee moving to a new city will require an adequately-sized apartment to be able to work comfortably. The share of availability was found as follows:
- Share of 2 bedroom apartments out of the total share of available 1-2 bedroom apartments: $$\frac{\text{Number of available 2 bedroom apartments}}{\text{Number of available 1-2 bedroom apartments}} $$
- Share of 4 or more bedroom apartments out of the total share 3 or more bedroom apartments: $$\frac{\text{Number of available apartments with 4 or more bedrooms}}{\text{Number of available apartments with 3 or more bedrooms}} $$
Source: Local rental websites (detailed sources available upon request).
Income Tax, incl. Social Contributions (%)
The estimated amount of tax imposed on income as well as mandatory social security contributions that a high-earning employee would have to pay, profile as follows:
- Single person, 25 years old, no children
- Assumed gross wage: 100,000 USD
- All nation, state, and municipal taxes on income as a share of gross wage
Source: iCalculator, talent.com, PriceWaterhouseCoopers, local tax calculators.
Internet Speed & Capacity (Score)
The speed and capacity of the internet in each city, comprising of the following:
- Download speed (Mbps)
- Upload speed (Mbps)
Sources: Measurement Lab (2020), Testmy (2021).
LEGISLATION & FREEDOMS
Remote Worker Immigration
The legal allowance of foreign-employed immigrants to work remotely within each country. The factor consists of the following categories, which were given value in order from top to bottom:
- Digital nomad visa: The country provides a specific visa or something similar which allows self-employed and remote workers to enter the country and work remotely for foreign customers or employers.
- Freelancer visa: The country provides a specific visa for self-employed persons who work remotely for foreign customers.
- Announced legislation: The country has announced intentions of creating a specific visa.
-None: The country has no specific visa for remote workers or self-employed persons.
Sources: Local authorities, local newspaper reports.
Remote Working Infrastructure (Score)
The legal framework for remote work combined with an estimate of jobs that are teleworkable as a share of all jobs in each location. The factor comprises of the following indicators:
- Legal framework: the analysis focuses on the question of the flexibility of the respective legal system. The following three questions were explored and scored as follows:
1) Is the employer (legally) required to provide equipment or allowances for remote workers? Score: Yes = 1, No = 0
2) Are there specific tax allowances for remote workers? Yes = 1, No = 0
3) Is the remote worker obliged to work from home? Yes = 0, No = 1
- % Teleworkable jobs: the percentage of workforce capable of home-based work, according to an analysis of job classification data and employment counts. US cities employ data at a Metropolitan Statistical Area level, while country-level data was taken for all other cities. Where data was unavailable, values for some countries were modeled using GDP per capita and percentage of the population with university degrees.
Both scores were averaged.
Sources: DLA Piper - Global guide to remote working (2020); KPMG - working from home in selected countries, local authorities, other consultancy reports, Journal of Public Economies - How many jobs can be done at home? (2020); World Bank – GDP per capita, PPP (current international $), latest data; World Bank – Percentage of population age 15+ with tertiary schooling. Completed Tertiary, latest data.
Safety, Freedom & Rights (Score)
The levels of safety, as well as the extent of basic human rights and freedoms in each location. It consists of the following indicators:
- World Bank - Political Stability and Absence Violence/Terrorism: Estimate - Average (2012-2019); Rule of Law: Estimate - Average (2012-2019), Voice and Accountability: Estimate - Average (2012-2019; Control of Corruption: Estimate - Average (2012-2019), Government Effectiveness: Estimate - Average (2012-2019)
- World Press Freedom Index - Underlying situation score
- Economist Intelligence Unit - Personal Safety, Score
- Each of the indicators was scored according to the procedure in section “Scoring” and the scores were combined.
Sources: World Bank: Worldwide Governance Indicators (2019), Reporters without Borders: 2020 World Press Freedom Index (2020), Economist Intelligence Unit - Safe Cities Index (2019).
Gender Equality (Score)
The extent of gender equality in each location. The following indicators were taken into account:
- Economist - Glass Ceiling Index, Ranking
- World Economic Forum - Global Gender Gap Report, Economic Participation and Opportunity, Score
- Council on Foreign Relations - Women’s Workplace Equality Index, Score
- OECD/Social Institutions & Gender Index (SIGI) - Gender Index, Score
- Cities are represented by country-level data, except for the United States where the data is provided at state level.
- Each of the indicators was scored according to the procedure in section “Scoring”. The scores were combined.
Sources: Economist – Glass Ceiling Index (2020); World Economic Forum – Gender Gap Index (2021); Council on Foreign Relations – Women's Workplace Equality Index (2020); OECD/SIGI – Social Institutions & Gender Index (2019).
LGBT+ Equality (Score)
The extent of LGBT+ equality in each location, including hate crime incidence, legislation, rights, and safety. It consists of the following indicators:
- Gallup poll - Do you personally identify as lesbian, gay, bisexual or transgender?
- Spartakus Index - Scored Indicators: Anti-Discrimination Legislation, Marriage / Civil Partnership Adoption Allowed, Transgender Rights, Intersex / 3rd Option, Equal Age of Consent, "Conversion Therapy”, LGBT Marketing, Religious Influence, HIV Travel Restrictions, Anti-Gay Laws, Homosexuality Illegal, Pride Banned, Locals Hostile Prosecution, Murders, Death Sentences
- Cities are represented by country-level data, except for the United States where the data is provided at state level
- Each of the indicators was scored according to the procedure in section “Scoring”. The scores were combined.
Sources: SPARTACUS – Gay Travel Index (2020); Gallup – Daily Tracking polls (2015/2017); Out Leadership – State LGBT+ Business Climate Index (2019); Local statistics departments (latest available data).
Minority Equality (Score)
The extent of minority equality in each location in political, religious, and legal areas. The following indicators were taken into account:
- Freedom House - Minority Political Rights, Religious Freedom, Equal Work Protections, Minority Legal Equality, Scored
- Cities are represented by country-level data
Source: Freedom House - Freedom in the world report (2021).
LIVABILITY
Covid-19 Vaccination Rate (%)
The percentage of vaccinated population in each location, calculated as follows:
$$Average_\text{Share vaccinated} = \frac{Share[\text{at least one dose}] + Share[\text{fully vaccinated}]}{2} $$
The contribution of this factor to the final score was adjusted for countries that had exceptionally low infection rates, in order not to penalize countries that haven’t had an urgent need to accelerate vaccination.
Source: Ourworldindata.
Cost of Living (Score)
The cost of living in each of the cities, taking into account the following factors:
- Cost of dinner in a local restaurant
- Cost of food in supermarkets
- Cost of transportation (public transport and gas price)
- Cost of utilities (electricity, heating, internet)
- Cost of clothing and shoes
- Cost of rent per month
- The corresponding indicators were weighted and summed up in a basket
- The score is inverted: a high score means low costs and vice versa
Source: Numbeo (2021).
Healthcare (Score)
The measure of a city’s healthcare system based on access, quality, and satisfaction. The score consists of the following indicators and indexes:
- Institute for Health Metrics and Evaluation - Health Access and Quality Index Score
- WHO - Universal Health Coverage Index
- Numbeo – Healthcare Index
- The Lancet - UHC effective coverage Index
- European Commission - Access to healthcare
- Cities are represented by country-level data, except for the United States where the data is provided at state level
- Each of the indicators was scored according to the procedure in section “Scoring”. The scores were combined.
Sources: Institute for Health Metrics and Evaluation - Health Access and Quality Index HAQ (2016); WHO - Universal Health Coverage Index (2021); Numbeo – Healthcare System Index (2021); The Lancet -Measuring universal health coverage based on an index of effective coverage of health services in 204 countries and territories, 1990–2019: a systematic analysis for the Global Burden of Disease Study 2019 (2019); European Commission - INFORM Risk Index (2021).
Culture & Leisure (Score)
The vibrancy and variety of cultural and lifestyle offerings in a city, taking into account data from both post and current pandemic conditions. It consists of the following indicators:
- Open Street Map (OSM) - number of Bars, Clubs, Pubs, Restaurants, Cafés, Galleries and Museums
- TimeOut - 48 best cities in the world, Ranking
- World Stadiums - World Stadiums per city with more than 10,000 seat capacity
- Euromonitor, Mastercard - international visitors, Rank
- Each of the indicators was scored according to the procedure in section “Scoring”, and the scores were combined
Sources: OSM Overpass Turbo (2021); TimeOut (2019), World Stadiums (latest), Euromonitor - Top 100 City Destinations Ranking (2018); Mastercard - Global Destinations Cities Index (2016).
Weather (Score)
The 'pleasantness' of the local weather. It is consists of the following indicators:
- Average annual hours of sunshine
- Average annual precipitation
- Number of days with extreme weather conditions (below 0 and above 30 degrees Celsius). The score is inverted so that a high number of days with extreme weather receives a low score and vice versa
- Number of days with temperature between 20 and 30 degree Celsius
- Each of the indicators was scored according to the procedure in section “Scoring”, and the scores were combined
Source: Weatherbase (latest), Climatemps (latest), Meteoblue (latest), Currentresults (latest).
Pollution - Air, Light, Noise (Score)
The levels of air, light, and noise pollution in each city, combined as an overall score.
Air Pollution (Score)
The quality of air in terms of the absence of pollutants per city. It consists of the following indicators:
- Plumlabs - levels of PM2.5, PM10, NO2, O3
- Numbeo - Air pollution
- Each of the indicators was scored according to the procedure in section “Scoring”, and the scores were combined. The final score was inverted so that a high score indicates low levels of pollution.
Sources: Plumlabs (2019-2021), Numbeo (latest); World Health Organisation (latest).
Noise Pollution (Score)
The level of noise per city. It consists of the following indicators:
- Mimi - HL Index
- Numbeo - Noise and light pollution
- Each of the indicators was scored according to the procedure in section “Scoring”, and the scores were combined. The final score was inverted so that a high score indicates low levels of pollution.
Sources: Mimi - Mimi Hearing Loss Index (2017); Numbeo (latest).
Light Pollution (Score)
The level of light pollution per city. It consists of the following indicators:
- Science Advances - % population and area under the specified artificial sky brightness (μcd/m2).
- Lighttrends Light pollution map - Average annual radiance
- Numbeo - Numbeo - Noise and light pollution
Sources: Numbeo (latest), Science Advances (2016); Lighttrends Light pollution map (latest).