Discover the best countries for digital nomads in Central America. Compare internet speeds, workspaces, cost of living, and more in this comprehensive guide.
You might be reading this at work. You’re sitting in some cubicle in some office in some northern city in some northern country. There are the month-end figures to do but you’re finding yourself unmotivated – hence the reason you’re sitting here reading this and… and… ugh.
Or you’re reading this on your phone. You’re on a bus or the subway commuting home from your cubicle in some northern city in some northern country and all you have in your immediate future is finishing those figures on your own time because you spent all day goofing off on sites like this. Ugh again.
We’ve all been there. Well, I have at least. (Actually, that’s a lie. I’ve never been there. I have no concept of what the grind is like. Just trying to make you feel better is all.)
The Digital Nomad Lifestyle
You keep hearing about this “digital nomad” thing. As you look around, you see more of these people, more often than not in Starbucks.
In Starbucks, you can’t escape digital nomads – and as you eavesdrop on those conversations your fellow latte lovers are having on Zoom, or as you sneak the side-eye at their laptop screens, you realize they’re not all watching the latest Netflix mini-series.
And they’re not all starving artists trying to write the next Great American Novel either. No. Some of these people are, like, working. Like in real, busywork.
The thing you do in your northern cubicle when you’re not so unmotivated.
So how come you have to clock in and out of an office and they don’t? What’s the difference here? Well – the difference is they are digital nomads and you’re not. Yet.
After asking why anyone would wish to be a digital nomad in your northern city, in your local Starbucks, you realize that’s not the point.
The point is they are in your local Starbucks because they want to be. Because they can be. But they could also be anywhere else if they wished, and that’s the most important thing. Your job keeps you chained to your city, and theirs doesn’t.
Fast-Forward to Now
There are many things you can do to unchain yourself from your city and become a digital nomad. This article is not about that.
This article assumes you’ve figured it out. You’ve either gone all out on your own, doing great things, creating AI systems or whatever… or you’re in IT freelancing for a company that provides AI systems or any number of magical things. Or you’re writing or marketing or, or… any number of things. Maybe your job went remote during the pandemic and never returned to the office. Hey, it happens.
So we’re fast-forwarding from your epiphany in Starbucks and assuming you’re now a bona fide digital nomad. It doesn’t matter how you did it – you did it and congratulations. You’re free!
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— Central America Living (@VidaAmerica) July 9, 2024
So Now What? Where Do You Go?
The fact you’re on this site suggests Central America might be on your mind.
And why not? One of the best things about being a digital nomad is being able to work in a place that suits your budget. If you’re paid in a strong currency (US dollar, euro, sterling, etc.), Central America is perfect for you as it’s (mostly) cheap. Your digital nomad lifestyle will still give you more bang for the buck in Central America than it will in, say, London or Tokyo. And the weather’s better, too.
What Is the Best Central American Country to Be a Digital Nomad In?
You can, of course, check them all out and decide for yourself. You’re a digital nomad and you’re no longer chained down.
But a handy guide is always, um… handy… and we hope this one will be useful, at least for your first port of call in this part of the world.
Below you’ll find the seven countries of Central America ranked in order, from best to worst, for digital nomads.
We’re not talking about physical beauty or nightlife or culture or the quality of the beaches. What we’re talking about is how easy it is for you to plug in your laptop and earn money. We rank each country with a mark out of ten for the following factors:
- Internet speed and stability
- Quality and quantity of decent workspaces
- Other digital nomads
- Cost of living
- Visa requirements
- Safety
Ranking Factors
The most important of these factors is the internet. A word of warning – Central America is not South Korea and the internet will be slower than you’re used to. Things are improving rapidly, of course, and you can pay for fast internet, but still.
Reliability is more important than speed here – how often does it go down? Or how often does the electricity go down? These are burning issues in Central America when you’re trying to work.
Other Factors
The second most important factor is where can you work? Is there a decent setup of workspaces if you don’t want to work from home or poolside?
Next is the question of your peers. Does your country attract digital nomads or are you the only one you know? This, of course, is subjective. You might not want to be around other digital nomads at all and that’s fine. Some of us (I mean them) are insufferable.
For our purposes though, we’re assuming the more digital nomads work in a country, the better it must be for digital nomads. I mean they’re there for a reason right?
The final three factors are more general – cost of living, visa requirements, and safety. They’re important in that they might affect your decision to be in a country in the first place. And you need to know what the chances are of having your brand new MacBook Pro stolen while you’re on your way to your favorite workspace.
Country Rankings
So without further ado, here are the countries ranked from best to worst for digital nomads:
Costa Rica: 43/60 Total Score
- Overall internet speed: 8/10 (Fixed: 94.92 Mbps down / 53.75 Mbps up, Mobile: 35.08 Mbps down / 9.60 Mbps up)
- Workspaces: 9/10
- Other digital nomads: 9/10
- Cost of living: 2/10
- Visa requirements: 10/10 (Digital nomad visa: Yes)
- Safety: 5/10
Panama: 40/60 Total Score
- Overall internet speed: 10/10 (Fixed: 150.91 Mbps down / 14.94 Mbps up, Mobile: 20.52 Mbps down / 13.47 Mbps up)
- Workspaces: 8/10
- Other digital nomads: 8/10
- Cost of living: 4/10
- Visa requirements: 4/10 (Digital nomad visa: Yes)
- Safety: 6/10
Nicaragua: 40/60 Total Score
- Overall internet speed: 5/10 (Fixed: 58.29 Mbps down / 20.29 Mbps up, Mobile: 19.77 Mbps down / 10.70 Mbps up)
- Workspaces: 5/10
- Other digital nomads: 6/10
- Cost of living: 9/10
- Visa requirements: 8/10 (Digital nomad visa: No)
- Safety: 7/10
Guatemala: 37/60 Total Score
- Overall internet speed: 6/10 (Fixed: 52.04 Mbps down / 16.25 Mbps up, Mobile: 38.04 Mbps down / 18.23 Mbps up)
- Workspaces: 4/10
- Other digital nomads: 7/10
- Cost of living: 7/10
- Visa requirements: 7/10 (Digital nomad visa: No)
- Safety: 5/10
El Salvador: 33/60 Total Score
- Overall internet speed: 5/10 (Fixed: 54.21 Mbps down / 17.01 Mbps up, Mobile: 31.51 Mbps down / 12.12 Mbps up)
- Workspaces: 4/10
- Other digital nomads: 3/10
- Cost of living: 6/10
- Visa requirements: 7/10 (Digital nomad visa: No)
- Safety: 8/10
Belize: 32/60 Total Score
- Overall internet speed: 6/10 (Fixed: 47.00 Mbps down / 34.05 Mbps up, Mobile: N/A)
- Workspaces: 3/10
- Other digital nomads: 6/10
- Cost of living: 3/10
- Visa requirements: 9/10 (Digital nomad visa: No)
- Safety: 5/10
Honduras: 30/60 Total Score
- Overall internet speed: 5/10 (Fixed: 48.81 Mbps down / 11.25 Mbps up, Mobile: 31.70 Mbps down / 12.32 Mbps up)
- Workspaces: 3/10
- Other digital nomads: 4/10
- Cost of living: 8/10
- Visa requirements: 7/10 (Digital nomad visa: No)
- Safety: 3/10
Note: The internet speeds quoted above are for July 2024 and come from the Speedtest Global Index.
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— Central America Living (@VidaAmerica) June 25, 2024
Best Countries by Category
Let’s run through which country is best at what. The above list ranks each country based on the sum of all the different factors. But some factors might mean more to you than others, so you’ll find the best for each below:
Best for Internet Speed and Stability: Panama
Panama remains the top country in Central America for internet speed. With fixed broadband speeds of 150.91 Mbps download and 14.94 Mbps upload, it’s significantly ahead of the competition. The capital, Panama City, as an emerging global city, continues to offer excellent connectivity for digital nomads.
Best for Quantity and Quality of Decent Workspaces: Costa Rica
Costa Rica maintains its lead in this category with a 9/10 score. While Panama also scores high (8/10), Costa Rica likely offers a wider distribution of quality workspaces throughout the country, not just in the capital.
Best for Other Digital Nomads: Costa Rica
Costa Rica still tops this category with a 9/10 score. It continues to attract a high number of expats and tourists, providing ample opportunities to connect with like-minded individuals.
Best for Cost of Living: Nicaragua
Nicaragua is the most affordable country in Central America with a 9/10 score for cost of living. It remains an excellent option for budget-conscious digital nomads or those just starting out in their careers.
Best for Visa Requirements: Costa Rica and Belize
Costa Rica takes the lead in this category with a perfect 10/10 score. It’s worth noting that Costa Rica now offers a digital nomad visa alongside it’s 180 day-stay limit for tourists. Belize follows closely behind with a 9/10 score. While Belize doesn’t have a specific digital nomad visa, it offers straightforward visa extensions, making it a very attractive option for those seeking longer stays. The choice between the two might depend on individual preferences and travel plans.
Best for Safety: El Salvador
El Salvador leads in the safety category with a score of 8/10. It is currently considered the safest country in Central America, and importantly, it’s where people report feeling the safest.
Best Overall for Digital Nomads: Costa Rica
With high scores across multiple categories, Costa Rica is the top overall choice for digital nomads in Central America. It offers a balanced combination of good internet, quality workspaces, a thriving digital nomad community, and favorable visa conditions.
Remember, the best country for you will depend on your individual needs and preferences. Consider which factors are most important for your work and lifestyle when making your decision.
And a Few Words About Taxes
No-one quite knows who first said the thing about death and taxes. You know the one, “nothing is certain in this world except death and taxes.”
Some say Benjamin Franklin, some say someone else. It doesn’t really matter, they’re kind of spot on, whoever they were.
What matters is that as a digital nomad, you’re not exempt from paying taxes, particularly if you’re a US citizen. The United States is one of only two countries in the world (the other being Eritrea, fact fans) that uses a citizenship-based tax system. That means they’ll tax you on your income wherever you earn it, even if you’re not living in the States anymore.
That’s right, you could be down here in Central America working away and Uncle Sam will still require you to file an annual tax return to the IRS.
Conclusion
And so that’s a wrap. Costa Rica is officially the best country for digital nomads in Central America. When we say “officially” we mean it in the loosest terms.
You might live in Belize or El Salvador and think this whole piece is ridiculous. You wouldn’t be wrong – comparison pieces tend to be ridiculous because they’re subjective. Or you’re slaying every damn day as a digital nomad in Honduras or Guatemala. If you are, let us know.
In the meantime, if you’re still in your northern city cubicle reading this and dreaming, put Costa Rica into your plans.
And then maybe you can think about finishing off those month-end figures.
James Dyde is the editor of CentralAmerica.com. He lives in Escazu, Costa Rica.
