A recent study by Public First reveals that the UK loses over £3 billion in consumer spending and £320 million in VAT due to the rise of 'digital nomad' schemes, which have attracted around 165,000 UK citizens to work abroad in countries like Bali and Lisbon. The allure of lower living costs and quality of life are driving these individuals to stay longer and contemplate permanent relocation, posing significant risks to the UK economy and public finances, despite continued tax contributions from these workers.
According to a fresh study from Public First, the modish regimes - which promise professionals long-term work visas without having to become fully-fledged tax residents - have lured an estimated 165,000 UK citizens abroad.
Ben Savours, senior economist at Public First, told City AM, 'You're going to get to a tipping point where people start to go, 'If I can do my job there, earn the same amount of money... why wouldn't I go to Bali?"
Digital nomads tended initially to take up the schemes because of their promise for a lower cost of living, cheaper rents and a better quality of life.
The schemes' popularity is acting to the detriment of the UK's economy and public finances, the study said, with its authors warning that a growing number of 'nomads' are considering laying down permanent roots in their destination country.
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