The dream of being a digital nomad has its downside.

      Sophie Rucker had been living and working in London for five years when a journey to a yoga training school in Bali offered her an alternative to the usual grind. Although she appreciated her life in London, seeing digital nomads juggle work with the sun, sea, and relaxed atmosphere of the Indonesian island compelled her to seek more freelance opportunities.

      At the beginning of 2020, Sophie established herself as a communications strategist for NGOs and social impact organizations, quit her permanent job, and relocated to Bali. Despite the uncertainties surrounding the pandemic, she found the space to mourn the loss of her mother, who had passed away recently. To her delight, the digital nomad lifestyle met many of her expectations.

      However, she soon noticed a bias against her choice of residence; some potential clients wouldn't even consider engaging with her because she was based in Bali. “I couldn’t wrap my head around it — it seemed so ridiculous,” she shares. “I’m collaborating with organizations like Greenpeace and the UNDP to promote positive global change and also work as a somatic trauma counselor. When people assume I'm not doing ‘serious work’ here, it frustrates me.”

      Now, with more control over the projects she takes on, Sophie informs employers that she resides in Indonesia and is open about her location once she has secured a contract. Many of her remote work friends in Bali follow a similar approach, choosing not to disclose their location to avoid jeopardizing their jobs.

      Facing rejection from projects, depleting savings on basic living expenses, and grappling with burnout are common struggles for those engaged in full-time remote work in major cities like London, New York, or Amsterdam.

      Despite the idealized portrayal in the media—imagining working on the beach, indulging in endless cocktails, and having a perpetual tan—the reality of balancing travel with remote work has always been challenging. This situation is becoming increasingly difficult due to rising costs, political unrest, and unstable visa regulations, which are steering digital nomads in new directions.

      New findings from the Dutch neobank Bunq unveil the underlying financial, emotional, and mental burdens, drawn from a survey of 5,000 workers in Europe who identify as digital nomads or live internationally. In fact, only one in five believes that working abroad has positively influenced their careers, with a notable 25% of Britons stating their careers have actually suffered due to their digital nomad status.

      This is certainly not the idyllic scenario imagined by wistful salaried workers at their desks. Experts, however, are well aware of the tough reality. “Many experimenting with the lifestyle struggle to sustain it,” states David Cook, an anthropologist and researcher at University College London specializing in remote work. “Maintaining self-discipline, staying productive, and creating an environment for focus deteriorates over time, compounded by external factors.”

      Financial management is a particular concern, as Bunq found that 17% of respondents feel less financially secure, while 14% are spending more than they anticipated. Despite not having the burden of a mortgage or significant rental deposit, they must consider local taxes, medical expenses, visa costs for nomads, insurance claims, legal help, and banking fees.

      The top unexpected expenses reported by Bunq include medical costs (16%) and local taxes (15%). Less frequently, but equally troubling, 5% of nomads in Europe have faced emergency evacuation expenses.

      This is all before accounting for the rise in everyday living costs, which have affected both home-based and remote workers. Many Europeans (67%) have noticed an increase in food and beverage prices over the past year, according to data from Dutch firm Innova Market Insights.

      Daily budgeting has become a greater concern than many other worries. In early 2025, McKinsey’s ConsumerWise research indicated that Europeans ranked rising prices and inflation as their top concern, surpassing issues such as job security, international conflicts, climate change, and political tensions.

      Geoarbitrage—the practice of separating life and work from a specific location to enhance income—has long been utilized by digital nomads. Coined by Tim Ferriss in his 2009 book The 4-Hour Workweek, this approach is now increasingly scrutinized due to rising expenses.

      “Accommodation has always been a significant challenge, but in recent years, particularly post-COVID-19 and following the war in Ukraine, costs have increased significantly, sometimes by €200 monthly for the same conditions,” explains Anna Maria Kochanska, a strategist advising governments on digital nomad policies, who has been nomadic since 2017.

      Although Anna Maria generally avoids Airbnb and negotiates directly with apartment owners for midterm rentals, her rental costs have still risen in 2025. “Currently, I’m in Barcelona, and while one solution is to explore new, less touristy destinations, my travel expenses are increasing too, leading me to move less often.”

      Well-known digital nomad