This Insurance Company Lists the Top 10 Digital Nomad Cities

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Travel insurance company InsureMyTrip is the latest business to release its list of the best cities in the world for digital nomads. The list may surprise you. While some of the usual suspects are on there, some of their cities are currently flying below the radar but are likely to increase in popularity in 2025.

Let’s look at their top 10 and see if we agree, plus the methodology used to determine the list!

What Makes a Great Digital Nomad City?

So, what does InsureMyTrip think makes a great digital nomad city? They chose the following as their core criteria:

These are good criteria, but we might have added a few more.

First, access to nature, whether that be beaches or mountain trails. This may be wrapped up in sunshine and things to see and do, but we think this is sufficiently important to be a separate criterion.

Second, the strength of the digital nomad community and access to facilities such as coworking spaces. It is becoming increasingly clear that access to a community of like-minded people contributes significantly to happiness.

The List

So, what countries made the list and how did they score based on InsureMyTrip’s criteria?

1. Brasília, Brazil – 7.26 overall

It was surprising to see Brasilia at the top of the list, ahead of some of the world’s most popular digital nomad cities. It was also a bit surprising that it was the only Brazilian city to make the list, especially considering it is inland and doesn’t have any of Brazil’s famous beaches. But Brasilia is a new and modern city purpose-built to serve as the nation’s capital, so it has all the facilities most foreigners could need. It is also well connected to travel to other parts of the country.

The report highlighted the affordable cost of living in the city, estimated at US$819 per month for a single person, and the quality of life, with the city hosting many cultural venues. Combined with good with good weather and a high happiness score, this is an interesting choice, but certainly a good one. However, it is hard to imagine Brasilia truly overtaking any of Brazil’s popular coastal digital nomad hotspots such as Florianopolis, Recife, and Curitiba.

2. Budapest, Hungary – 7.06 overall

It was less of a surprise to see Budapest, the capital of Hungary, on the list. It has been a popular European destination that mixes an affordable cost of living with a rich cultural history since they released their White Card for digital nomads. The list notes the number of tourist sites and excellent cafes, plus the high safety score, making it one of the top cities on the list for tourism.

3. Montevideo, Uruguay – 6.87 overall

Uruguay launched its digital nomad visa in 2023, attracting nomads to the city of Montevideo, just a short boat ride from Buenos Aries in neighboring Argentina. Like many South American destinations, Montevideo offers an affordable cost of living accompanied by a high level of happiness. In addition, while it is not “overrun” by foreigners, there are plenty of coworking spaces that support both a digital nomad community and a local entrepreneurial vibe. With tree-lined streets, sandy beaches, and wide avenues, this city ticks a lot of boxes.

4. Lisbon, Portugal – 6.75 overall

It is certainly no surprise to see Lisbon on the list, as it has been one of the most popular digital nomad destinations in the world since Portugal launched its digital nomad visa. Located within the Schengen area, Portugal has one of the most affordable costs of living in Western Europe, plus long coastlines and a gorgeous mountainous interior. It scores high on the tourist index with lots to do, and also lots to eat and drink. The biggest challenge with Lisbon is that it has become so popular that there has been some pushback from locals against the digital nomad “invasion.”

5. Kuala Lumpur, Malaysia – 6.74 overall

Kuala Lumpur has also been a popular digital nomad city since its pass for digital nomads was announced in 2022. The government has also done more than just release a visa, also engaging in projects to support digital nomads, such as a partnership with Airbnb to ensure that sufficient, quality housing is available. While Kuala Lumpur is more big city than an island paradise, it is the gateway to the rest of the country, which is home to some of the world’s most spectacular beaches and jungle landscapes. Combined with an affordable cost of living and a welcoming and friendly culture, it is no wonder that digital nomads have been flocking there.

6. Madrid, Spain – 6.70 overall

With Spain offering one of the world’s most accessible digital nomad visas, there was always going to be a Spanish city on the list, it was just a matter of which one. While Madrid does not have any of Spain’s famous beaches, it is the cultural capital, so expect museums, art galleries, theaters, and a thriving digital nomad and entrepreneurial community. Madrid is another gateway to exploring the rest of the dazzling country with its gorgeous beaches, mountainous interior, and enviable wine country.

7. Nicosia, Cyprus – 6.51 overall

Cyprus launched a limited digital nomad visa program back in 2022, enabling 100 non-EU digital nomads to enjoy the island nation at a time. Their cautious approach seems to have paid off for the small but popular tourist destination. The InsureMyTrip report notes how much there is to do in Nicosia with its many sacred temples and ornate dwellings, plus the Cypriot café culture. It also scores high in terms of happiness, cost of living, estimated as US$1,280 per month for a single person, and radiant sunshine. Nevertheless, we still think that Cyprus is still seen as more of a tourist stop than a home base for many digital nomads.

8. Buenos Aires, Argentina – 6.45 overall

Buenos Aires is probably South America’s most dynamic city. While it may not have the beaches of Rio in neighboring Brazil, it has the vibrant culture and entrepreneurial spirit that many digital nomads are looking for when choosing a new home base. From Buenos Aires, you can easily travel to Brazil’s most popular cities, catch a boat over to Montevideo, and explore an incredible countryside including Patagonia. The cost of living is affordable, but also volatile, with the local currency losing value almost daily, but it feels like you are living in one of Europe’s most vibrant cities.

9. Podgorica, Montenegro – 6.42 overall

Montenegro is a tiny nation along the Aegean coast in the Balkans and it has taken advantage of its idyllic location to attract digital nomads to visit and spend. It currently offers a visa for up to four years in a country that is not part of the EU or Schengen, so it can be a great escape when Schengen visa deadlines loom. As well as an affordable cost of living, Montenegro has nice beaches, a mountainous green interior perfect for hiking, and lots of historic towns with deep roots.

10. San José, Costa Rica – 6.41 overall

Costa Rica has been a popular digital nomad hotspot since it released its visa because it is just an incredibly beautiful country that is home to some of the most stunning landscapes in the world. The small size also means you can explore from coast to coast with relative ease. Combine this with an affordable cost of living and a lifestyle that prioritizes leisure and happiness, and we aren’t surprised to see it rounding off this list. San Jose, as the capital, has the best infrastructure for digital nomads, making it the perfect base for exploring the rest of the country.

Finding Your Digital Nomad Destination

What matters when choosing a destination as a digital nomad is highly personal, so there is no such thing as a one-size-fits-all answer when it comes to the best digital nomad cities. But we still think that these lists are useful, as they can help travelers consider new destinations that may not otherwise have been on their radar.

We think that InsureMyTrip’s list is based on interesting criteria, and we agree that most of the cities they suggest would make wonderful destinations for digital nomads. The only real surprise was seeing Brasilia at the top of the list. While we agree it is a great place to visit, it is hard to believe it will ever overtake Brazil’s more coastal destinations when attracting digital nomads. As for Podgorica, while it’s an interesting option, there are certainly better rural or coastal destinations in Montenegro that might be more appealing to digital nomads seeking a blend of work and nature.