Tokyo has been ranked the world’s best city for a “workation” – a working vacation – thanks to its fast broadband, strong transport links, safety, rich culture, and a new digital nomad visa.
The International Workplace Group’s third annual “Work from Anywhere Barometer” ranked 40 cities, with Tokyo beating last year’s winner, Budapest, as well as the likes of Barcelona, Paris and Beijing.
This was the first year Tokyo was included.
“The city also benefits from proximity to mountains, coastal regions, and national parks – ideal for hybrid workers seeking an exciting urban atmosphere alongside natural escapes,” the report said.
Japan’s new visa, launched in April 2024, allows high-earning foreign workers from 51 countries to stay up to six months, also covering spouses and children. Last year, Japan issued 257 digital nomad visas.
Tourism is already booming in Japan, helped by the weak yen. Tokyo earned top marks for its “cultural quality”, praised for its abundance of Michelin-starred restaurants and vibrant calendar of cultural events, while also standing out for the relative affordability of its food.
According to the new report from IWG, 78 per cent of workers consider a “work from anywhere” (WFA) policy a key factor in choosing a new job. Among hybrid workers, 87 per cent say this flexibility boosts productivity, while 85 per cent report lower burnout and 87 per cent cite improved work-life balance.
IWG’s rankings put Rio de Janeiro second, followed by Budapest in third, with Seoul and Barcelona completing the top five.
The Brazilian city secured its silver medal spot thanks to a citywide 5G rollout, an ever-expanding network of coworking spaces, and a relatively low cost of living, the report said. Hybrid workers can tap into a vibrant digital nomad community, strengthened by government initiatives to attract remote talent – all set against the backdrop of Rio’s iconic Copacabana and Ipanema beaches and the lush rainforest trails of Tijuca National Park.
Other cities in the top 10 include Beijing, Paris and Rome.
Top 10 ‘workation’ cities ranked
- Tokyo
- Rio de Janeiro
- Budapest
- Seoul
- Barcelona
- Beijing
- Lisbon
- Rome
- Paris
- Valletta
A number of Asian megacities make the global top 40, with Singapore coming 15th overall, Jakarta and Manila 17th and 18 respectively, and Mumbai (36th) ranking ahead of Hong Kong (38th).
Workations surged during the pandemic, and Japan has also adopted the trend domestically, installing Wi-Fi in national parks to allow workers to combine nature with remote work.
In 2025, the list of new cities in the survey expanded to include Seoul, Cairo, Cape Town, Melbourne, Rome, Mexico City, Orlando, Prague, and Reykjavik. Tokyo is the only Japanese city to be included.
The study says that each of these cities performed strongly under new criteria measuring the availability and affordability of digital nomad visas, as well as proximity to beaches, mountains, and national parks – highlighting hybrid workers’ increasing desire for outdoor access, with 75 per cent saying natural surroundings are a key factor in choosing a destination.
Mark Dixon, Founder and CEO of IWG, said: “We’re seeing more workers than ever extending their trips to work remotely or choosing to spend longer periods abroad as digital nomads. Thanks to hybrid working and cloud technology, employees now have the freedom to work wherever and whenever suits them best – whether that’s a local flexible workspace or a co-working centre on the other side of the world. For many, the days of long daily commutes are over, and there is more freedom to work in new locations.”
He added: “This trend is here to stay with many companies adopting flexible working and WFA policies, particularly over the summer months for the long-term, which not only improves work-life balance and reduces burnout but also delivers significant productivity gains.”
“With so many jobs now relying on heavy computer use, it’s more important than ever to take regular screen breaks,” the Japan National Tourism Organisation website says. “Leaving your desk to get a cup of coffee is great. Drinking that coffee while sitting on the lake shore, or watching birds flit through the foliage, is even better.”
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