Digital Nomads + Populating Deserted Areas = $$$
Last year was a difficult one and not just for me. We got hit by an invisible enemy that not only took a lot of lives but had a devastating effect economically. Governments are in trouble worldwide and this year doesn't look much better either.
The pandemic caused lockdown has forced us to work online, shop online and live our social life online. Good thing digitalization is at a phase where we can do most of the things online nowadays, including banking as well.
Lockdowns are still in place in most countries and those countries relying on tourism are really struggling. Last year was already clear that some smart solutions are needed in order to survive and I see some countries coming up with new solutions.
Digital Nomad Visa
Now that many companies are allowing employees to work remotely, with a good internet connection you can move to your dream location or even become a digital nomad.
Digital nomads are people who use telecommunications technologies to earn a living and, more generally, conduct their life in a nomadic manner. source
Photo by Partha Narasimhan on Unsplash
Croatia is one of the countries that are welcoming digital nomads, starting from this year. Looks like they have recognized the advantages of hosting digital nomads and want to profit from attracting them.
On January 1st, Croatia became one of a small handful of European countries welcoming digital nomads through the introduction of a long-stay visa. New legislation covering the residence of this category of foreign remote workers was introduced in December 2020 as part of reforms to the foreigners' law. source
The new law says the person applying to a digital nomad visa has to be from outside the European Union, working in communication technology either as a remote employee or through their own company registered abroad. Once you enter the country you can apply for the one-year residence permit but you're not allowed to provide services to Croatian businesses.
There are advantages in this for both sides. As a digital nomad, you don't pay taxes in Croatia and you most likely enjoy the benefits of living in a country where life is cheaper than in your home country. This is not guaranteed but usually those who can't afford to live there, won't make the move. However, there are plenty of well paid jobs that permits you to live the desired lifestyle in a beautiful country like Croatia.
Hosting well paid digital nomads is profitable to any country as they pay for healthcare, spend a part of their income locally, to cover their living expenses and most likely travel around the country as well, when restrictions are eased or lifted.
Hotels in Croatia have been capitalising on the digital nomad trend by offering discounts for extended stays over the winter season when many hotels usually close. Meanwhile, locals who rent out private tourist accommodation have found long-term tenants. source
Turns out the introduction of this new digital nomad visa has been a good decision as many foreigners living in Croatia before the law came into force already opted for the visa.
I don't understand why EU citizens don't qualify, must be some EU regulation that forced them to exclude us. Too bad as I bet many would have moved to Croatia. UK citizens are happy now as they are not EU members anymore.
Populating Deserted Areas
The other solution I see fit is repopulating deserted villages by selling vacant properties for almost nothing. This trick has been used before the pandemic already, it's not new.
Industrialization has driven people out of villages, gathering them in bigger, industrialized cities. Those who have remained home are still struggling to make ends meet. Some villages have been lucky to attract tourists by organizing creative workshops for artists and amateurs or building something crazy and unique that drives people to the village, but permanent residents are still missing.
If you run a search using houses for 1 euro as keyword, Google is already giving you a few suggestions, which indicates the program has been already running in Spain, France, Italy etc.
This solution however is not as plain and simple as the first one. There are conditions you have to respect in order to be eligible. I remember in Italy one of the condition in 2018 was renovating the house and keeping it in good condition, in order to get 8 years of tax exemption. Renovation is needed anyway as these houses are not in a good shape.
This is a documentary about this 1 euro project, which gives you an idea about what to expect.
https://www.youtube.com/watch?v=nP2vtDLTAgM
So this is a double edge sword, it could be good for some and bad for others, depending on your financial situation. Those moving in from a country where the housing market is only for the wealthy, this offer can be a good one. Buying a house with a few euros and spending a fraction of what you would pay for a house in your home town for renovation is still a good deal. Those who think you can get a house in perfect, move in condition have to wake up as there's no such thing.
I still believe it's the best solution to attract buyers and repopulate these small cities, villages and help the local economy grow. Due to the pandemic, living in big cities can become expensive, especially for those who have lost their jobs. Moving to a cheaper area can be a solution. As for these cities, villages, every house renovation can boost supply sales, help construction companies survive or even do well.
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