Many remote workers and aspiring digital nomads believe that being a digital nomad is expensive. However, this isn’t always the case. Many nomad hotspots around the world are popular due to their relatively low living costs. Other factors that characterise a nomad hotspot include a reliable digital infrastructure, vibrant communities, tourist attractions, and cultural diversity. Hence, being a digital nomad requires more than having money and hopping around the globe. It takes strategic planning and budgeting.

The cost of living in these nomad hotspots is influenced by factors such as housing markets, local economies, and seasonal fluctuations. This article examines the cost of living in six nomad hotspots around the world, as well as the factors that influence living expenses.

Also read: Digital nomad jobs with no experience: how to get started in remote work

Factors influencing living costs in nomad hotspots

Various factors contribute to the living costs of nomads in different cities.

1. Housing demand and tourism: Cities with frequent international visitors and digital nomads often experience a surge in accommodation costs, especially during seasons when the influxes happen.
2. Local economic conditions: Countries with weak currencies and developing nations tend to be less expensive compared to stronger economies.
3. Infrastructure and utilities: The quality of internet, electricity, and transportation may vary across hotspots, impacting living costs. Developing regions have cheaper but less reliable utilities.
4. Lifestyle choices: A digital nomad’s lifestyle choices are another important factor. For instance, feeding would be more affordable if you opt for local dishes compared to someone who prefers fine dining with Western food. Other choices that can influence the living cost are: co-working spaces versus cafes, public transport versus taxis, and shared living versus luxury hotels.
5. Visa and regulatory environment: Visa fees, extensions, or tax incentives influence long-term costs.
6. Inflation and global trends: Local and global inflation contribute to many cities' costs.

What it costs to live in 6 nomad hotspots around the world

As the population of digital nomads continues to grow globally, it is expected that more hotspots will emerge over the years. Here are six digital nomads’ favourite destinations and the cost of living in each of them, considering the factors we already discussed.

Chiang Mai, Thailand

Chiang Mai is one of the top destinations in Southeast Asia, thanks to its low-cost, culturally rich environment. There is a wide range of accommodation options to suit your needs and budget. On average, a one-bedroom apartment in the city centre can be rented for approximately $400 TO $700 per month. Local street food offers delicious meals for just $2-$5, while Western-style cafes and restaurants cost around $5-$10 per meal. There are workspaces available, as well as many cafes where you can work from.

Lisbon, Portugal

Lisbon is the European hub for digital nomads. It is relatively more expensive than most other locations on this list. However, it offers a modern city life with access to beaches and outdoor activities. Popular activities include exploring the historic streets of Alfama, visiting the Jerónimos Monastery and Belém Tower, and enjoying the trendy LX Factory. Accommodation in Lisbon varies widely. While a one-bedroom apartment in the city centre can average around $1100-$1,500 per month, the prices are lower in smaller towns or suburbs. Food costs are somewhat higher; local meals are about $5-$15, while dining at mid-range restaurants costs approximately $15-$25.

Also read: How to apply for a digital nomad visa in Portugal

Medellín, Colombia

The city boasts of a thriving ecosystem for remote work, featuring reliable internet, numerous coworking spaces, and a vibrant social scene. While the influx of digital nomads has contributed to rising rental costs in some areas, Medellín remains an attractive destination due to its affordability, pleasant climate ("City of Eternal Spring"), and thriving community. The city offers nomads a vibrant nightlife, beautiful parks, and memorable cultural experiences. The overall cost of living in Medellín remains relatively low compared to many Western cities, making it an attractive option for those seeking affordability. Accommodation in the El Poblado district can be rented for about $400-$700 per month for a one-bedroom apartment. Food is affordable; local markets offer meals for around $3-$5, while dining at international or tourist-focused restaurants costs about $10-$20.

Barcelona, Spain

The aerial view of Barcelona is breathtaking, welcoming you into an amazing city. Barcelona offers a variety of coworking spaces, work-friendly cafes, and a strong community of remote workers. Its digital nomad visa also makes it easier for non-EU citizens to live and work in Spain. Barcelona offers a great balance of work and leisure, with its rich culture, beautiful architecture, access to beaches, and proximity to mountains. Accommodation in the city centre can range from $1,500 to $2,000 per month for a one-bedroom apartment. The cost of eating local tapas and meals is about $10-$20, with higher prices for international cuisine.

Ho Chi Minh City, Vietnam

The major selling points of Ho Chi Minh City are low living costs, friendly locals, and reliable internet accessibility. Beyond work, the city offers a wealth of attractions and activities, from exploring historical sites like the War Remnants Museum and the Cu Chi Tunnels to immersing oneself in the bustling atmosphere of Ben Thanh Market. Accommodation can be found for roughly $500-$900 per month in central districts. Food is incredibly inexpensive; street food meals often cost around $2-$5, and Western restaurants charge about $7-$12. Transport, such as motorbike rentals, costs about $60-$100 per month. Utilities are generally between $60 and $90, and internet services are reliable, costing around $20-$35 per month. Living well in HCMC can typically be achieved for around $700-$1,300 per month.

Bali, Indonesia

Bali has long been a favourite among digital nomads and tourists, thanks to its beautiful beaches, friendly climate, and affordable cost of living. Bali boasts a large and active digital nomad community, offering opportunities to connect with like-minded individuals through co-working spaces, local events, and online groups. Accommodation costs are quite reasonable; travellers can rent a one-bedroom apartment in popular areas like Canggu or Ubud for approximately $500 to $900 per month. Food is inexpensive, with local meals costing around $3-$5, while dining at restaurants catering to tourists or expats may cost around $5-$15 per meal.

Also read: Top 8 digital nomad cities for remote workers in Southeast Asia

Managing your finances efficiently

The costs of living in these nomad hotspots vary widely and largely depend on your budget, preferences, and lifestyles. Now that you know how much it costs to live in these cities, what is your payment plan? Digital nomads frequently encounter concerns related to currency exchange. Grey makes it easy to get paid, no matter your favourite work location. With a multi-currency account supporting USD, EUR, GBP, and USDC transactions, a virtual USD debit card, swift payment processing, and competitive conversion rates to local currencies, Grey ensures digital nomads travel with no financial restrictions.

Get started on Grey today to manage your finances without hassles and travel without worries.

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