The digital nomad lifestyle promises freedom, flexibility, and adventure — but success takes more than a good internet connection. In the Alumni Network Hungary webinar, Orsolya Éva Tóth, Professor at the Budapest University of Economics and Business, explored how conscious planning and legal awareness can turn the dream of working from anywhere into a sustainable reality.
From your perspective, what are the biggest challenges digital nomads face beyond taxation, such as legal status, healthcare, or long-term financial planning?
The digital nomad lifestyle often turns out to be far more complex than it appears at first glance – the gap between expectations and reality can be wide, and disappointment comes easily. Conscious preparation and an intentional approach to the digital nomad lifestyle can help reduce this uncertainty. It is therefore worth carefully reviewing the rules around residence and visa options, as well as the regulations for running a business. Equally important is ensuring reliable healthcare coverage and making informed decisions about long-term financial security. Finally, even if it may feel distant for many, clarifying questions of pension entitlements is also an essential issue.
In your view, what are the key motivating factors behind choosing the digital nomad lifestyle, and which profiles or professional backgrounds do you believe are best suited for this career path?
From what I’ve seen in the research and real-life stories, motivations for choosing the digital nomad lifestyle are quite diverse, but freedom and flexibility really stand out as the strongest drivers. Travel opportunities and the chance to balance costs with quality of life also play a big role. Typically, digital nomads tend to come from digital-intensive fields like IT, design, marketing, writing, or consulting.
Do you think this employment form can be a threat to employers in the future?
Employees who want to experience the benefits of the digital nomad lifestyle within a traditional employer–employee relationship are already creating challenges for companies: they bring complex immigration, tax and permanent establishment risk, as well as data-security issues. That is why many companies are now developing specific policies and controls to manage these risks. Over time, businesses are likely to become more prepared, which should reduce the associated risks. Of course, some organizations may set limits on such arrangements, but the overall trend seems to be towards finding balanced solutions that allow flexibility while keeping compliance under control.
Many remote workers assume that working from anywhere means freedom from bureaucracy. Are there any hidden tax traps that most digital nomads overlook?
I believe that moving and working across different countries can lead to a wide range of administrative and often costly problems. For classic digital nomads, the key issue is tax residence: depending on how long you stay in a given country, you may become liable to pay taxes there, which brings administrative burdens and sometimes even a higher tax bill than expected. In a traditional employment relationship taxation can be tricky both for employers and employees, and in some cases the company may even face the risk of being regarded as having a permanent establishment abroad.
All of this means that what looks like simple freedom of movement can quickly turn into a complex legal and financial puzzle. Many remote workers and digital nomads only realize these challenges once they are already abroad, while employers often become aware of the risks only when such situations have already arisen.
What advice would you give to someone considering the digital nomad path but unsure how to start legally and sustainably?
From this point of view, it makes sense to separate two cases: starting the journey on your own, or working as a digital nomad while staying in your current job. In the independent scenario, it’s crucial to research visa and residency rules on official government websites, review double taxation treaties, and in more complex cases seek professional advice. If someone wants to do it within an existing employment contract, all of that still applies — but it’s just as important to carefully check the company’s own policies, because such an arrangement may actually conflict with the terms of the current contract. Open communication with the employer is essential, as it can prevent serious legal, tax, and compliance problems later on.
If you’re interested in exploring more inspiring topics like this, don’t miss the upcoming Alumni Network Hungary webinars — where experts, alumni, and professionals share insights on global innovation, science and education. 🌍
👉 To join the conversation and take part in future events, become a member of the Alumni Network Hungary!