Rio de Janeiro, April 2, 2024 --  

Lisbon has enjoyed runaway success attracting digital nomads. Why not Rio?

The lilting Portuguese heard in the Rio-Lisboa cafe in this tropical metropolis is in stark contrast of the gravelly-sounding tongue across the Atlantic.  Neighborhood regulars at sidewalk tables in the Leblon neighborhood enjoy coffee and toast while bantering in musical tones about the latest soccer match as small children and pampered dogs  look on.

The sound of Portuguese is not the only difference between cafes in Rio and Lisbon.  Unlike Lisbon, where large numbers of young American workers have taken up residence with remote jobs, cafe tables in Rio are not studded with laptops logged on to Slack and Zoom connecting to North American coworkers.  English-speaking tourists are easy to find on the beach, but few will be doing much work until back stateside.

No Remote Workers Here Photo by David G. Young

Both Brazil and Portugal sought a piece  of  the spending power of remote workers during and after the pandemic, passing laws to create "Digital Nomad" visas in 2022.    Portugal offers a five year visa for non-EU citizens with proof of at least  $3000 in annual remote income.¹ Brazil offers a one year visa with proof of remote income of at least $18,000 annually or the same amount in savings.²  (Of course, the whole concept of offering "nomads" a visa of a year or more is a bit of an oxymoron, but that's another topic.)

By all accounts, Portugal's experiment with attracting remote workers was a runaway success, jump started by its pre-pandemic  status as a trendy vacation destination for Americans.

During three weeks in the country last spring, I was stunned by the number of twenty-somethings with American accents in Lisbon.  They dominated sunset lookouts and trendy bars.   

So successful was the remote work movement in Lisbon that it received a backlash from locals angry about the rising cost of living.  This was especially true for rents in central Lisbon and Porto, which folks blamed (rightfully or wrongfully) on Airbnb conversions.  The government responded by halting new Airbnb licenses in cities and ending a visa program for big money investors (but not for  digital nomads.)³ 

And in Rio de Janeiro?  Not so much.  In three weeks working in the city this year, I have bumped into just one American remote worker -- a 22-year-old  guy managing email subscriptions.

The dichotomy is striking given all that Rio has to offer.  Prices for rent and food are similarly affordable in US Dollars in Rio as in Lisbon.  Internet connectivity in both cities is fast and reliable.  And while Lisbon is five hours ahead of the US East Coast, Rio is only one hour ahead.  By choosing to set up shop in Rio, remote workers face fewer evening  meetings yet get a jump on bosses and colleagues by waking up one hour earlier.

While Lisbon has ample hills with gorgeous  views of the water, its nearest beaches are an hour away by commuter train.  Rio beats its European counterpart on both fronts.  Its stunning white sand beaches are warm year-round, walkable from most affluent neighborhoods, and decidedly the best urban beaches in the world.  Likewise, its mountain viewpoints of Pão de Açúcar and Corcovado are probably the two most famous urban vistas anywhere.

So why do so few remote workers set up shop in this topical urban gem?

To be sure, Rio has disadvantages.  The lack of laptops in sidewalk cafes is partly because  of high crime and large numbers of vagrants.   Locals never display flashy electronics in public.  Just pull  your phone out of your pocket on the street and locals will rightly warn you to be careful.  

In Downtown Rio, you do see folks with laptops indoors at two Starbucks locations and a Banco Santander cowork cafe.  These three spots have guards to keep Rio's ubiquitous  shirtless vagrants  on the outside of the door.

Both Rio and Lisbon have historic architecture and quaint but often crumbling homes from centuries past.   In Lisbon, hipster Americans congregate in cafes and bars in these buildings night and day to swig pour over coffee and craft IPAs.

Rio's architectural gems, by contrast, are mostly near its central business district, which empties out at night and weekends and resigns the shuttered streets to the shirtless ruffians.  Fortunately,  the upscale "Zona Sul"  (southern  neighborhoods)  from Flamingo down to Leblon have stunning beaches and  remain vibrant after hours,  even if they have few buildings from before the 1920s.

If there is one thing keeping Rio from becoming the next Lisbon it's simply a lack of momentum.  Twenty-somethings dominate the remote work scene, and they seek to be around a social scene of other like-minded young people.  That scene simply does not exist in Rio today.

So there you have it:  Rio is great for remote workers but not so great for expat twenty-somethings.  If there any other old folk digital nomads out there, now you know where to come.

Notes:

1. Business Insider, Portugal is Shutting Down its Popular 'Golden Visa' Program., February 21, 2023

2. BBC, Rio de Janeiro: The "Marvellous City" Welcomes Digital Nomads, April 25, 2023

3. Reuters, Portugal Ends Golden Visas, Curtails Airbnb Rentals to Address Housing Crisis, March 13, 2023