Strategies for attracting talent - How can cities attract digital nomads and skilled professionals to boost local economies

Edited on 23/12/2025

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This entry is part of the Remote-IT Playbook series, developed within the URBACT Remote-IT Action Planning Network (Entry 6 of 16).

 

Why talent attraction now sits at the heart of city strategies

Across Europe, competition for talent has moved from a specialist policy niche to a central concern of economic development, demographic resilience and innovation policy. Many EU member states face structural skills shortages and ageing populations, and struggle to compete for skilled workers. At the same time, remote work and digital nomadism have fundamentally changed how mobile professionals choose where to live.

By 2023, around 22 percent of employed people in the EU aged 15–64 worked from home at least occasionally, up from roughly 14 percent in 2019. Globally, the number of people identifying as digital nomads is estimated at more than 35 million, with some analyses suggesting that the figure could exceed 50 million by 2025. One recent study estimates their annual economic contribution at around EUR 787 billion worldwide. 

Since Estonia introduced the first dedicated digital nomad visa in 2020, a growing number of countries, including Croatia, Malta, Spain, Portugal, Greece, Italy, Hungary, Czechia, Germany and Romania, have launched specific schemes or adapted existing visas to attract remote workers. In 2025, there are more than 50 countries worldwide offering some kind of digital nomad visa or remote-worker permit, around 15 of them in Europe.[1]

However, visas and national programmes are only part of the story. Cities, from large metropolitan areas to intermediate cities and rural towns, are the places where remote workers actually live, work, pay taxes and contribute to community life. As the Remote-IT network has observed across its eight partner cities, the question for local governments is no longer whether they should engage with digital nomads and remote professionals, but how to do so strategically.

Earlier entries in this playbook explored who remote workers are and how cities can position themselves through destination branding. This entry focuses on the next layer: concrete strategies that cities can use to attract and integrate mobile talent in ways that genuinely strengthen local economies, rather than simply chasing a short-lived trend.

 

From opportunistic campaigns to strategic talent attraction

In the early years of the remote-work boom, many territories experimented with eye-catching campaigns: cash incentives for people moving to rural towns, social-media contests for “workation” stays, or designed schemes promising “live in paradise while working online”. The OECD’s analysis for the Autonomous Province of Trento shows that some of these initiatives created visibility but were disconnected from broader development strategies, raising concerns that they functioned more as marketing exercises than as durable policy tools.[2]

The lesson for cities is clear: talent attraction must be anchored in long-term objectives. In the Trentino study and in Ireland’s Our Rural Future plan[3], remote worker attraction is explicitly linked to revitalising low-density areas, reducing commuting emissions, supporting local SMEs and strengthening public services in smaller towns.

For Remote-IT cities, the same logic applies. Attracting digital nomads and skilled professionals is not an end in itself. It should support existing sectoral strengths (for example, tourism, ICT, creative industries, education), address labour-market gaps and reinforce city strategies on sustainability, inclusion and innovation.

A strategic approach to talent attraction therefore has three characteristics:

  • it is grounded in a clear understanding of the city’s economic structure, demographic trends and labour-market needs;
  • it recognises that visas, branding, infrastructure and incentives must work together;
  • it treats mobile talent as part of a broader ecosystem that includes local businesses, universities, co-working operators and residents.

 

Knowing which talent your city needs

Cities often speak about “attracting digital nomads” as if they were a homogeneous group. Yet the global digital nomad population is diverse in age, income, sector, family situation and travel patterns. For policy design, it is more useful to think in terms of several overlapping segments:

  • short-stay lifestyle nomads, who stay for a few weeks or months;
  • mid-term remote professionals, often employed full-time by foreign companies and staying for six to 12 months;
  • long-stay remote workers and founders who may eventually settle, hire locally or start businesses;
  • returning diaspora and “boomerang” professionals who grew up in the city or region and are now able to return thanks to remote work;
  • domestic teleworkers relocating from national capitals or high-cost regions to smaller cities.

The OECD’s work on talent attractiveness emphasises that cities gain most when they attract people whose skills match specific shortages and innovation needs, rather than pursuing generic “high talent” in the abstract.[4] 

Remote-IT’s baseline study and city workshops confirm that mid-sized cities such as Dubrovnik, Brindisi, Tartu or Tirana are particularly interested in three types of mobile talent: mid- to long-term remote professionals in knowledge-intensive sectors; entrepreneurs and creatives who can embed in local ecosystems; and members of the diaspora who can bring back skills and networks.

A practical starting point for any city is to map:

  • which sectors already have remote-friendly jobs;
  • where local employers struggle to recruit;
  • which types of remote workers are already present informally (e.g., seasonal digital nomads, foreign founders, second-home owners working remotely);
  • what diaspora connections exist, especially among younger cohorts.

 

Navigating multi-level governance- visas, taxation and the city role

Many of the most visible parts for attracting international talent -residence permits, taxation, social-security rules- sit at national level. OECD and EU migration analyses show that countries are increasingly tailoring labour-migration pathways to attract specific categories of skilled workers, including remote workers, entrepreneurs and researchers.

Digital nomad visas are a clear example. Estonia, Croatia, Malta, Portugal, Spain, Greece, Italy, Hungary, Romania, Czechia and others offer schemes that typically require proof of remote employment or freelance contracts, minimum income thresholds and health insurance, often combined with some tax advantages.

Cities do not control these tools, but they can:

  • align their messaging with national schemes, making it easy for potential applicants to understand pathways;
  • lobby national authorities to adapt visa conditions to the profiles most relevant for their local economies;
  • complement national visas with city-level measures such as welcome services, local tax rebates within municipal competence, or access to co-working and incubator programmes.

For many European cities, a realistic strategy focuses less on designing new visa categories and more on:

  • becoming the most attractive place within their country for existing digital nomad visa holders;
  • leveraging intra-EU mobility of EU citizens and long-term residents;
  • designing targeted measures for domestic remote workers and diaspora, where administrative barriers are lower.

 

Strategic pillars for city-level talent attraction

Within that broader context, cities have significant room to act. Building on Remote-IT discussions and international research, several strategic pillars emerge.

1 - Align talent attraction with local development goals

The Trentino study underlines that remote worker-attraction initiatives are most effective when embedded in comprehensive regional development strategies that address transport, housing, digital infrastructure, environmental sustainability and social cohesion together.

For cities, this means positioning remote workers and digital nomads as part of:

  • innovation and entrepreneurship strategies (for example, by linking them to creative industries clusters, tech parks or university spin-offs);
  • tourism and culture strategies, particularly when shifting from mass, seasonal tourism to year-round, higher-value offers;
  • demographic and rural- or neighbourhood-revitalisation plans, where mobile talent can help maintain local services and support local businesses.

Remote-IT partner cities have approached this in different ways: Dubrovnik connects nomads to its cultural and creative industries; Câmara de Lobos positions itself as a liveable, small-scale alternative to mainland urban centres; Tirana frames remote work within its broader narrative of a dynamic, youthful capital.

2 - Offer a clear, credible value proposition

The earlier playbook entry on “Destination branding for the future of work” explored in detail how cities can craft narratives and visual identities. In strategic terms, what matters is that the value proposition is:

  • based on real assets (such as reliable connectivity, safety, nature, cultural vibrancy, affordability);
  • honest about constraints (for example, limited public transport or seasonal tourism pressures);
  • explicitly connected to remote workers’ everyday needs: not only “sun and sea”, but also quiet places to work, stable internet, child-friendly services, and a feeling of belonging.

European experience shows that mobile professionals increasingly prioritise quality of life, safety and community over pure tax optimisation when choosing locations.[5] 

3 - Build “soft landing” and integration pathways

Digital nomads and remote professionals are more likely to choose and stay in cities that make their first weeks easy. Based on Remote-IT testing actions and wider practice, soft-landing strategies include:

  • clear online information in multiple languages on visas, local services, health insurance and co-working options;
  • one-stop “welcome desks” or online services that help newcomers navigate bureaucracy, housing and schooling;
  • orientation sessions and neighbourhood tours organised with local partners;
  • structured introductions to local business networks, meetups and community groups.

Ireland’s Our Rural Future strategy, for example, pairs investment in rural teleworking hubs with funding for local authorities to run marketing campaigns targeted at teleworkers and mobile talent, explicitly linking physical infrastructure with promotion and soft landing.

4 - Connect mobile talent with the local economy

Digital nomads are often portrayed as self-contained consumers of accommodation and cafes. Yet their potential economic contribution is broader: they can provide specialist skills to local SMEs, mentor startups, collaborate with universities or co-create cultural projects.

Cities can foster these links by:

  • supporting co-working and creative hubs that curate events, skill-sharing sessions and business clinics ;
  • designing “collaboration programmes” where remote professionals volunteer a limited number of hours to mentor local entrepreneurs, students or civil-society groups in exchange for visibility and community integration;
  • encouraging local SMEs to advertise remote roles or short-term project collaborations that may appeal to nomads wishing to anchor themselves locally.

The Trentino report notes that peripheral areas can benefit significantly when remote workers become regular customers of local services and collaborators of local firms, rather than transient visitors.

5 - Work with universities and training providers

Universities, colleges and training centres are crucial bridges between mobile talent and local economies. They can:

  • host visiting-lecturer programmes for remote professionals;
  • co-design hackathons or innovation challenges with co-working spaces and city authorities;
  • provide language and cultural-orientation courses for newcomers;
  • integrate remote-work skills into curricula, preparing local youth to participate in global labour markets without leaving their city.

For Remote-IT cities, this also opens a pathway to attract “talent in formation”: international students who may transition into remote roles while remaining in the city.

 

Managing risks and ensuring inclusive benefits

Talent-attraction strategies are not risk-free. The same characteristics that make remote workers attractive -relatively high incomes, mobility, preference for central neighbourhoods – can intensify existing pressures if not managed well.

The large inflows of high-income remote workers may fuel housing-price inflation, crowd out local residents from rental markets, and intensify tensions around overtourism. European media have also highlighted concerns about “nomadification” in certain neighbourhoods, where short-term rentals dominate and local services adjust to tourist rather than resident needs. 

Cities therefore need to balance attraction with governance. Key considerations include:

  • monitoring housing markets and, where necessary, regulating short-term rentals or linking incentives to longer stays;
  • ensuring that co-working spaces, public facilities and events are accessible to local residents and not only to foreign professionals;
  • foregrounding gender equality and safety in public spaces, as highlighted in Remote-IT’s cross-cutting themes and online forum on gender, digital nomads and remote workers;
  • engaging local communities early in strategy design, for example through URBACT-style local groups, to avoid perceptions that resources are diverted from residents.

 

A practical roadmap for cities

  1. Clarify your goals
    • Define why you want to attract mobile talent: to fill specific skill gaps, extend the tourist season, revitalise certain districts, diversify the economy, or support universities and cultural scenes.
    • Ensure alignment with existing strategies (economic development, tourism, climate, inclusion).
  2. Understand your starting point
    • Map existing remote workers, nomads and diaspora linkages using surveys, interviews and available data.
    • Assess strengths and gaps in connectivity, housing, services and community offers, drawing on tools from other modules of this playbook.
  3. Segment your target groups
    • Decide which types of mobile talent are most relevant: short-stay nomads, mid-term remote employees, founders, domestic remote workers, returning diaspora.
    • Tailor messages and offers to each, avoiding one-size-fits-all solutions.
  4. Coordinate with national and regional authorities
    • Understand the visa and tax options that apply to your targets.
    • Position your city as a natural landing place for those using national digital nomad visas or other schemes.
  5. Design your local offer
    • Combine a clear value proposition with practical soft-landing services.
    • Ensure that co-working options, community events and business networks are visible and accessible.
  6. Integrate with the local economy and community
    • Build partnerships with SMEs, universities, co-working operators and community organisations.
    • Create programmes where mobile talent can share skills, mentor locals and co-create projects.
  7. Manage risks and monitor impacts
    • Track indicators such as rental prices, business registrations, co-working occupancy and community feedback.
    • Adjust policies where unintended consequences emerge.
  8. Iterate and share lessons
    • Pilot initiatives on a small scale, evaluate and refine.
    • Contribute your experiences to networks such as URBACT and Remote-IT so that other cities can learn from your approach.

 


 


[2] OECD (2021), “The future of remote work: Opportunities and policy options for Trentino”, OECD Local Economic and Employment Development (LEED) Papers, No. 2021/07, OECD Publishing, Paris, https://doi.org/10.1787/35f78ced-en.

[4] Andersson, L. (2025), “Measuring and assessing talent attractiveness in OECD countries, second edition: Methodology paper”, OECD Social, Employment and Migration Working Papers, No. 318, OECD Publishing, Paris, https://doi.org/10.1787/133b6085-en.

[5] Maes, S., Digital Workforce Frontier – How can we leverage the free movement of labour in a difital single market?, 2024. 

Submitted by on 23/12/2025
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Alisa Aliti Vlasic

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