The End of the Digital Nomad Golden Age: Why the Model Is Slowing in 2025 and How Expats Can Adapt

During the pandemic, many employers accepted fully remote work from almost anywhere because there was no alternative. From 2023 onwards, tax administrations, social-security systems and HR departments started to reassert boundaries. In 2025, the dominant message is clear: you can still work remotely, but not from an undefined place.

Four forces explain the slowdown of the digital nomad golden age:

• Tax authorities want each worker to have a clear tax residence and may claim tax if you spend significant time in their country.
• Social-security institutions coordinate more closely within the EU and use the A1 form to decide which country must receive your contributions.
• Legal risk for employers increased: a fully remote worker can accidentally create a permanent establishment or payroll obligations in a country where the company has no legal entity.
• HR teams now favour hybrid or near-office models for collaboration, data security and time-zone stability.

Business media such as Business Insider describe this as a sharp decline in the viability of pure digital nomadism. For expats, the question is no longer “Can I work from anywhere?” but “From which country can I safely and sustainably work?”

Inside the European Union, cross-border workers are now more visible to administrations than five years ago. Several changes matter for remote employees and freelancers who move between EU and associated countries.

• Tax residence and 183-day rules: spending more than around half the year in one country, having your main home or family there, or earning most of your income there can make it your tax residence.
• Social-security coordination: the A1 form confirms which system covers you when you live and work between EU or EEA states. Rules are explained by the European Commission on ec.europa.eu.
• Place of work in the contract: many companies now specify an authorised country of work and refuse long-term stays elsewhere.
• Applicable labour law: as a rule of thumb, the law of the country where you actually perform most of your work can apply, even if your employer is based elsewhere.

If you want a deeper dive into the compliance angle, you can combine this article with our practical guide on remote work across borders in Europe: Working Remotely Across Borders in the EU: Compliance Basics.

Each company now takes a clearer stance on remote work. As an expat employee or contractor, you need to understand which model your employer is moving towards.

• Partial return to the office: many employers in France, Germany or the Netherlands impose one to three days per week on site, or at least regular visits. Long stretches from another country are no longer accepted.
• Hybrid with location fences: some firms allow full remote work but only from a short list of authorised countries where they already operate or know the rules. Your IP address or HR self-declarations are used to enforce this.
• No undeclared countries: if your contract says you are based in France, working from Croatia or Thailand for several months can breach internal policy and trigger disciplinary action.

For international and cross-border workers, these choices interact with housing, schooling and healthcare. You may need to align your work status with decisions about where to rent, which bank account to use and how to organise health coverage. Our general overview on choosing a country for remote work in Europe is a useful companion: Choosing an EU Country for Remote Work.

If you continue to work like it is still 2021, you may face several concrete risks.

• Tax corrections and penalties: if two countries consider you tax-resident, they can both ask for tax on the same income until you prove which one has priority.
• Loss of social-security coverage: if you work from a country where you are not insured, medical bills or sick leave may not be covered. This is especially sensitive for cross-border workers between France and Switzerland; see our guide Cross-Border Workers France–Switzerland.
• Contract problems: if you breach the location clause in your contract, your employer may block remote work, downgrade your role or, in extreme cases, terminate the relationship.
• Banking and compliance issues: banks may question large incoming transfers from countries that do not match your declared residence. Regular mismatches can lead to account reviews or blocks.

These risks do not mean you must give up mobility. They mean you need a documented, defensible set-up.

Rather than fighting the trend, it is more effective to design a compliant mobile life. Five pillars help you keep flexibility while protecting your income and legal status.

• Choose one main tax residence and align your housing, family and banking with it.
• Use official digital-nomad or remote-work visas where available (for example Spain, Portugal, Greece or Estonia) instead of relying on repeated tourist stays. For general visa strategy, see our article Never-Ending Visa? How to Renew Without Stress.
• Negotiate a written agreement with your employer specifying allowed countries, maximum duration abroad and who pays which social contributions.
• Keep evidence of your movements and work pattern: boarding passes, rental contracts, coworking invoices, and a simple log of where you work each month.
• Clarify social-security coverage: A1 for EU cross-border situations, CPAM and the French health-insurance system for residents in France, or LAMal for Switzerland. For non-working residents or retirees in France, combine this guide with our piece on the end of free access to French social security: End of "Free Social Security" for Foreigners in France.

These three cases illustrate how the same rules play out differently.

Case 1 – Tech employee based in Spain with a German employer

She moved to Valencia during the pandemic and never updated her situation. In 2025, HR asks for clarity: either she transfers her contract to a Spanish entity or comes back regularly to Germany. Spain may claim income tax and social contributions because she performs most of her work there. The solution is to align her contract and tax residence with Spain, possibly using the Spanish digital-nomad visa if she meets the conditions.

Case 2 – Freelance consultant living in France with UK and US clients

He invoices foreign companies from his home office in Lyon. If he spends most of the year in France, French tax rules and social contributions apply, even if all clients are abroad. Depending on how he structures his business, there can also be a risk that authorities see a permanent establishment abroad. Our guides on banking and invoicing for expats can help him organise his accounts, starting with Best Banks for Expats in Europe 2025.

Case 3 – Compliant digital nomad in Greece under a specific visa

She lives in Athens under an official digital-nomad visa, works for a foreign employer and pays tax in Greece. Her social security and immigration status are clear, and she keeps documents proving her days in and out of the country. She still travels, but always from a solid legal home base.

Use this checklist as a quick review every time you change country, job or residence.

• Do I have a clearly defined tax residence, with housing, banking and family life aligned?
• Does my employer or main client explicitly authorise the country where I currently work?
• Is my social-security coverage clear (A1, national system, private insurance) for where I live and work?
• Do I have a formal address and proof of residence (rental contract, utility bill, registration)?
• Could my activity trigger obligations in another country (tax, social contributions, permanent establishment)? If yes, do I have written advice or a plan?

• For a legal and HR overview of cross-border remote work in Europe, see Working Remotely Across Borders in the EU.
• If you are choosing where to base yourself, our country-comparison for remote workers details climate, taxation and cost of living: Which EU Country Works Best for Remote Work?.
• Cross-border workers in or near France can read our specialised guides, including France–Switzerland Cross-Border Workers and our healthcare articles around European coverage.
• To secure your long-term right to stay, pair this article with our visa and residence guides such as Visa Renewal Without Stress and Schengen Entry/Exit System for Non-EU Nationals.