Digital Nomad Visa to Portugal

The Portuguese authorities provided for a relocation program for digital nomads back in the fall of 2022. Its participants can be self-employed, as well as employees of foreign companies working remotely.

Portugal holds a leading position in the ranking of countries with a high standard of living. The authorities of a European country have created the necessary conditions for remote work. In the regions, work continues on the development of a network of coworking spaces with high-speed Internet (1 Gbit/s).

The list of requirements for freelancers who plan to move to this country cannot be considered voluminous. But this is not a reason to take a formal approach to the issue of studying the visa legislation in force in a European country. Let's look at the specifics of obtaining a visa in more detail.

Features of the Digital Nomad Visa for Portugal

The relocation program provides for two categories of visas for digital nomads – short-term and long-term.

If a remote worker plans to look around in a European country, study the living conditions, culture, and mentality of Portuguese residents, he often requests an E visa with a validity period of no more than 1 year. The document is not subject to renewal.

In a situation where the self-employed is 100 % sure that Portugal is exactly the country they want to move to, they have the right to apply for a long-term "D" residence visa. It is issued for 4 months and allows you to obtain a residence permit ("Temporary Residence Permit"). The resident's card is valid for 2 years (then the residence permit can be extended). The issue of granting a Digital Nomad visa is regulated in Resolution No. 4/2022 of 30.09.22.

A long-term visa allows you to apply for permanent residence or obtain a Portuguese passport after 5 years.

What is the difference from a regular residence permit

As in many EU countries, Portugal has a rule: a digital nomad is prohibited from cooperating with local employers and receiving income from them. And the fact of having an employment relationship with foreign companies must be documented.

One of the preferences for a freelancer is the opportunity to move to Portugal with family members. After issuing a resident's card, there is a prospect of obtaining citizenship of a European state.

Taxes

Freelancers who stay in the Portuguese state for more than 6 months a year are required to pay income tax to the budget. The IRS rate varies from 13 to 48 % (depending on the amount of profit earned over the year). The declaration must be submitted no later than June 30, and income income must be paid by August 31.

Contributions to the social fund (11 %) are deducted from the salary of an employee. The employer additionally transfers fiscal fees to government programs aimed at reducing unemployment.

As for tax preferences for remote workers in Portugal, the special "NHR" regime should be noted. It allowed non–residents to deduct a fixed rate of 20 % from budget revenues. In 2023, the tax regime was abolished. In return, the authorities of the European state have provided an alternative preference. If an expat has transferred to the status of a tax resident in 2024, then the IRS rate is halved for him. But the tax benefit applies only to those whose annual income does not exceed 250,000 €.

Conditions for obtaining a freelancer visa

Applicants for a Nomad visa are subject to the following set of requirements:

  • age – from 18 years old; 
  • citizenship – outside the EU and the EEC; 
  • work experience in a remote format – at least 4 months; 
  • personal savings in the amount equivalent to 12 "SMN";
  • the minimum monthly income for the last quarter is 4 "SMN" (3,280 €).

The amount of the profit received by the remote operator must be documented by providing a bank statement or income statement. The salary amount must be fixed in an employment agreement with a foreign employer or a service agreement.

In some regions, differentiated minimum wage rates are provided in the country. So, on the island of Madeira, the value of SMN is 850 €, and in the Azores (archipelago) – 861 €.

The Nomad visa applicant must have rented or purchased accommodation in Portugal. He is also obliged to prove the absence of a criminal past (+ the absence of bans on visiting EU countries).

The Digital Nomad visa is just one of the options available in Portugal. There are various visa programs in the country that allow foreigners to legalize their residence and employment. Our comprehensive guide to Portuguese visa programs will help you make the right choice and, if necessary, get expert advice.

Moving with your family

The relocation program allows you to move to the Portuguese state together with family members. The list of relatives includes: spouse; minor children; children under 30 who are financially dependent on the applicant. A freelancer also has the right to travel to the country with parents of the age category "65+" who are dependent on him.

When planning a move with family members, the minimum income that a digital nomad should receive increases. If a Nomad visa is requested together with a spouse, then 50% is added to the 4 "SMN". Each additional relative participating in the relocation program increases the amount of income by another 25%.

Often, the main applicant includes family members in the visa application form and crosses the Portuguese border with them.

An alternative option is to move without relatives. After obtaining a residence permit, a digital nomad has the right to initiate a family reunification procedure.

Required documents

To obtain permission to enter the Portuguese state, a freelancer must submit:

  • visa application form; 
  • color photo – 2 copies;
  • passport;
  • return ticket (if a short-term visa is requested);
  • certificate certifying the absence of a criminal past;
  • medical insurance policy (minimum amount of coverage - 30,000 €);
  • employment agreement;
  • bank statement confirming a deposit of 9,840 €;
  • income statement;
  • lease agreement housing (the period for providing an apartment/ house cannot be less than 1 year); 
  • tax identification number ("NIF"); 
  • a letter explaining the reasons why the digital nomad moves to work in Portugal; 
  • a receipt for payment of state duty.   

All certificates and contracts are subject to translation into Portuguese through the services of professional bureaus. The document certifying the absence of a criminal record must be apostilled.

Step-by-step action plan

You can initiate the procedure for obtaining a Nomad while staying in Portugal under the Schengen agreement.

The algorithm of actions boils down to the following:

1
Getting a number from the tax service Portugal – "NIF"

It allows you to rent a house and open an account with a local bank. The tax number can be requested remotely.   

2
The lease or purchase of real estate 

Rental housing must be provided by the owner for a period of at least 1 year. You can search for suitable options online or while in Portugal.  

3
The preparation and submission of the documents

and the contract are transferred to the consulate or the BLS International RU LLC Business Center. 

4
Obtaining a visa

The period of consideration of the application at the consular institution varies from 45 to 60 calendar days. The applicant is recorded for an interview, according to the results of which the employees make the final decision.

Attention! 

Only short-term visas (up to 90 days) can be issued using the services of the BLS International RU LLC Business Center. A permit for a long period of stay in a European country is issued by the Portuguese diplomatic mission.

The fee for issuing a visa permit is 90 €. The fee is paid in cash in rubles at the cash desk of the consulate/ EC.

If a negative decision was made on the candidate, and he considers the refusal unjustified, then there is a possibility of appealing it. The appeal is filed within 1,5 months. It is being reviewed by representatives of the consulate, who previously rejected the applicant's application. The latter will be sent a second letter with the results of the appeal. In case of repeated refusal, the freelancer has the right to file a complaint in court.

What to do after getting a visa

After crossing the border of the Portuguese state, a freelancer has the right to apply to the immigration department for a residence permit. In 2024, the issue of issuing a resident card falls within the competence of AIMA (Agency for Migration, Integration and Asylum in Portugal). Those who apply for a visa in Moscow do not need to make an appointment with government officials in advance. Information about the date and time of the visit to the migration department is indicated in the insert, which is pasted into the passport.

Expats submit the necessary documents and are interviewed. A list of references and contracts can be found on the AIMA website. A state fee is provided for processing the application and issuing the resident's card (158 € and 73 €, respectively). The resident's card allows you to travel to the Schengen countries without following bureaucratic procedures, enroll children in kindergartens and schools, engage in professional development and receive free medical care.

Advantages and disadvantages of the program

The opportunity to live and work in a European country with a high standard of living, as well as the prospect of obtaining citizenship, are the main advantages of a "Portuguese" Nomad visa. Plus, the country's authorities continue to work on improving the infrastructure for digital nomads.

One of the disadvantages of the program is the fact that Portugal is a bureaucratic country. Despite active attempts to create a "digital environment", local officials still use conservative methods of work. In such circumstances, it is necessary to prepare carefully and in advance for moving to a European state.

If we compare the relocation program with others, it does not always stand up to competition. For example, in Germany, the self-employed are issued a residence permit for a period of 3 years, after which they can request permanent residence. But in Italy, the path to citizenship for digital nomads is longer (you need to live 5 years in the status of a temporary resident and 5 years after registration of permanent residence).

In the meantime, Portugal holds a leading position in the ranking of countries that are ready to offer remote employees the best relocation conditions.

Frequently Asked Questions

How much should a business contribute to the social fund?

The amount of contributions is determined by the percentage of employees' salaries. The following social contribution rates apply to employers. Commercial organizations 23.75% of the salary. Non-profit and government companies pay 22.3% of the salary. In addition, employees deduct 11% of their salary, which is automatically deducted from income by employers.

Thus, the total rate is 34.75%.

How much does it cost to open a sole proprietorship?

For Portugal, this is a relatively simple and affordable process. The registration fee ranges from 220€ to 360€. Additional costs may include brand registration (100€). The use of intermediaries will also entail additional costs. Thus, the actual registration of a business will require a maximum of 360€, excluding additional services. At the same time, the procedure is available online, which makes it convenient for foreign entrepreneurs.

What taxes does a resident of the country pay?

Portuguese residents are required to pay several types of taxes, which depend on their income and assets. Here are the main tax liabilities.

  • Income Tax (IRS). From 14.5% to 48%, depending on the income level. If you receive more than € 80.882, an additional 2.5% is charged, and with an income of more than € 250,000 you will have to pay another 5% more.
  • Capital gains tax. The rate is 28%.
  • Tax on dividends and royalties. The standard size for both residents and non–residents is 28%. It can increase up to 35%. +Property taxes. It varies from 0.3% to 0.8%. When buying a property, an additional stamp duty of 0.8% of the property value is charged.
  • Special tax regime NHR. For certain categories of non-residents (including freelancers), it allows paying a fixed 20% income tax on income within the country and exempts from taxation for income outside the country.
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