Nino Trentinella has been living in Tbilisi, Georgia for two years, employing a housekeeper and a cook, taking a taxi almost every day, and regularly dining out. This lifestyle, which her five-figure salary would not allow her to afford back home in Baltimore, was noted by The New York Times.
Since 2020 and the Covid-19 pandemic, digital nomadism has become more popular among young Americans. According to the Association of Americans Residents Overseas (AARO), about 5.5 million of them are living abroad. “They were attracted by a less expensive lifestyle, and now returning to the United States seems too costly for them,” the newspaper explained.
Moreover, those earning less than $130,000 per year overseas are exempt from U.S. taxes, and many countries have very favorable tax regimes for digital nomads. For instance, in Tbilisi, Nino Trentinella is only taxed 1% of her income.
Corey O’Flanagan, a video editor from Denver, has managed to save money by engaging in what is known as “geographical arbitrage”: he works remotely for American or Australian companies while living in countries where the cost of living is very low.
In Kuala Lumpur, Malaysia, he and his wife were able to get a complete health check-up for $400 each – in the U.S., they would have had to pay thousands of dollars. “The American healthcare system really scares both of us,” confided Corey O’Flanagan. “My wife is British and she is very concerned about this.”
Context: The article discusses the growing trend of Americans living as digital nomads abroad due to various financial and lifestyle advantages.
Fact Check: The mention of Nino Trentinella’s specific tax rate in Tbilisi of 1% may need verification for accuracy.
