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Nepal plans to introduce a digital nomad policy within a year that allows remote workers to obtain a digital nomad visa and additional facilities such as vehicle ownership.

As outlined in the Economic Reform Implementing Action Plan 2025, issued recently by the Office of the Prime Minister and Council of Ministers, a one-time five-year multiple-entry digital nomad visa will be provided.

A digital nomad is an individual who travels while working remotely, typically using the internet to perform his job. These workers often carry minimal possessions and work from various locations, including cafes, coworking spaces, or even recreational vehicles. Their ability to work from anywhere largely depends on reliable technology and internet access.

There are an estimated 40 million digital nomads worldwide, with 18.1 million of them from the United States, according to MBO Partners, a global platform that provides contingent workforce solutions. This represents a significant increase from previous years, with the number of digital nomads in the US rising to 18.1 million in 2024, an increase of 147 percent since 2019.

Eligibility for the visa requires a monthly income of more than $1,500 or a bank balance exceeding $20,000. Additionally, applicants must hold a health insurance policy worth at least $100,000, valid for treatment in Nepali hospitals.

The proposed policy also grants digital nomads residential approval for at least a year at a time. It allows them to open bank accounts in Nepal's commercial banks.

If the visa is not renewed after the five-year period, digital nomads will be permitted to withdraw the entire balance from their Nepali bank accounts.

The policy stipulates a 5 percent income tax on digital nomads who work while residing in Nepal for more than 186 days in a calendar year.

Furthermore, those who remain in Nepal under this visa category will be allowed to purchase and register a vehicle in their name, and their foreign driving licences will be accredited for use in the country.

Several ministries, including Tourism, Home Affairs, Information Technology and Finance, will implement and regulate this policy. The Office of the Prime Minister will oversee and facilitate its execution.

The digital nomad policy is expected to be implemented within a year. A formal policy document will be issued during this period. The government plans to encourage investment in physical infrastructure to support remote work and accommodate digital nomads.

The private sector will be invited to help develop robust internet connectivity, well-equipped coworking spaces, and other essential infrastructure to meet the needs of remote workers.

The Nepal Tourism Board and the Nepal Telecommunications Authority will oversee these infrastructure developments, while the Tourism and Information Technology ministries will play the roles of inspector and facilitator.

According to the draft of the Economic Reform Implementing Action Plan 2025, all necessary coworking spaces and internet facilities are expected to be in place within the year.