Is the ‘digital nomad’ phenomenon real? If so, how many Brits are living and working abroad in this way, what are their lives like, and does any of this truly matter? 

Digital nomadism is a distinct form of emigration where workers are not reliant on the economy of their host country for employment. Instead, they remain economically connected to their home country, using digital technology to work remotely while living abroad.

To research the digital nomad trend Public First combined polling, modelling, and a new approach to opinion research – ‘immersive’ research. This involved sending researchers to Bali to meet and interview digital nomads in their natural environment.  

Key findings 

• We estimate that 165,000 British citizens live and work abroad as digital nomads, spend an average of seven months a year overseas, and collectively earn £5.2 billion whilst away.
• This means the economy loses £3.1 billion in consumer spending along with £320 million in lost VAT revenue. These digital nomads contributed £1.6 billion in income tax and national insurance last year – revenue that could be at risk if they choose to relocate permanently.
• There are approximately 85,000 employed and 80,000 self-employed digital nomads living and working abroad. 
• Many digital nomads leave the UK due to the high cost of living and expensive rents, and the higher standard of living they can afford in places like Bali. Financial advantage is a key reason why many choose to work abroad, and why many will decide to stay.
• The digital nomads we spoke to were often very critical of their home countries, comparing the negative culture and high levels of crime unfavourably to the safety and strong sense of community they experienced in Bali. 
• Self-employed digital nomads described Bali as an ideal place to build a business. The low cost of living allows them to experiment, while the convenient living and working conditions enable them to focus fully on their enterprises. The opportunity to network with likeminded and ambitious individuals was also seen as a real plus.
• The experience of employed digital nomads was more mixed. Many reported feeling isolated from their colleagues and struggled to stay motivated while working full-time in this environment. Businesses are increasingly offering employees the opportunity to work temporarily abroad, with longer stays limited by legal restrictions and administrative complexities. But if digital nomadism isn’t compatible with employed work, this could hinder take-up. 
• Our polling suggests that as much as 7% of the adult population consider themselves very likely to work as a digital nomad over the next three years. Were 50% of them to follow through on this plan this would mean 1.4 million digital nomads and a loss of £26 billion in consumer spending and £2.7 billion in VAT whilst they are away. £5 billion of additional tax would also be put at risk were self-employed digital nomads to change their tax residency status or incorporate a business abroad.
• The rapid improvement in healthcare, schooling and infrastructure, combined with lower taxation, mean older digital nomads could settle down permanently. 

Methodology

To explore the digital nomad trend we employ three complementary research methods: Polling, modelling, and immersive research. 

Polling and modelling

We use a nationally representative poll of British adults to assess the scale of digital nomadism. First, we ask respondents how many digital nomads they personally know, providing insight into how widely recognized the trend has become. We then follow up with a more detailed sequence of questions and combine with statistical modelling to estimate the number of British digital nomads. We outline the full methodology in Appendix A3.

We also examine the extent to which the British public is considering adopting this lifestyle and their overall attitudes toward digital nomadism. Finally, we combine the results of our polling with government data and third-party evidence to estimate the economic and fiscal consequences of this growing trend.

Immersive Research

Polling is valuable for capturing broad opinions, but to truly understand this trend, we needed to hear directly from digital nomads. To do this, we traveled to Bali, a major hub for digital nomadism, and conducted nearly 40 in-depth interviews with digital nomads from the UK, Europe, the USA, and other developed nations. These interviews took place in co-working spaces across the island, allowing us to engage with a diverse range of individuals.

None of the interviews were pre-arranged, enabling us to connect with digital nomads we would never have reached through traditional research methods. Through these conversations, we gained insights into their motivations for choosing this lifestyle, the type of work they do, their experiences of working remotely, and whether they see themselves continuing as digital nomads in the long term.

Read the full report here