The easiest way to assess the feasibility of getting a residence visa for Portugal

Portugal has a visa for digital nomads (D8). The main requirement is to have an average monthly income of 3,280 euros.

Remote workers are welcome in Portugal and can plan a stay in the country. Portugal has had a Digital Nomad Visa (Remote Work Visa) in force since October 2022. The visa allows the digital nomad to live in the country while carrying out their professional activities remotely for companies abroad.

Before its creation, many Portuguese consulates around the world were assigning the D7 Visa for those wishing to work remotely from Portugal. However, the D7 Visa is a type of visa originally intended for passive income earners, which is not the case for digital nomads. Therefore, in order to attract income from abroad, the Portuguese government has created a specific visa for this public. Find out here how it works, how to apply for it and what the requirements are.

What are Digital Nomads?

Digital nomads are professionals who work online. In other words, they don't need to go to a physical office to carry out their activities. In this way, they can have an employment contract in their country of origin, but carry out their work activities from anywhere on the planet.

It is estimated that 35 million professionals are adept at the nomadic lifestyle worldwide, according to the Global Global Migration Trends Report 2022. In addition, it is expected that one billion people will adopt this way of working by 2035.

Portugal is considered one of the best destinations in the world for remote workers and some regions of the country are already investing in this public, such as Ponta do Sol, on Madeira Island, where Europe's first digital nomad village, Digital Nomad Village, is based. Also according to the research carried out by real estate brokerage Global Savillis, the Portuguese capital Lisbon was voted the best city to work in this model, followed by Miami in the USA.

Who can apply for the Digital Nomad Visa?

The remote work visa can be applied for by non-EU professionals who wish to migrate to Portugal to perform subordinate work or independent professional activity for companies located abroad. You must meet the minimum requirements described below.

What is the minimum income required for remote workers?

The main requirement to apply for this visa is to have an average monthly income of four times the current Portuguese minimum wage:

4 x 820 euros= 3.280€

In other words, a monthly salary of at least 3280 euros (in 2024).

Documents to prove remote working

You need to provide proof of your average monthly income for the last three months of work.

For subordinate work:

• Employment contract;
  or
• Promise of employment contract;
  or
• Statement from employer proving employment;

For independent professional activity:

• Articles of association;
  or
• Service contract;
  or
• Written proposal for a service contract;
  or
• Document showing services rendered to one or more entities;

Does the Digital Nomad visa allow family reunification?

Yes, the following family members can be reunited:

• spouses or partners (with a stable union proven for more than 2 years)
• minor children
• adult children who are dependent and studying
• parents and parents-in-law, over 65 or economically dependent

Financial requirements for family members

With regard to the values to be proven for family reunification, two different values come into play:

1. Monthly salary amount

This is the salary amount to be proven according to the income tax return. In the case of the Digital Nomad Visa, the minimum monthly salary required for the main applicant already covers dependents/relatives.

Applicant: 4 x Minimum Wage (MW) = €3,280.

2. Value of proof of means of subsistence

To prove that the applicant will be able to stay in Portugal, they must also make a deposit in a current account with a Portuguese bank. It should be noted that this amount does not have to remain in the investor's account for the entire year. It can be used as the applicant wishes once they have obtained their residence permit. The amount to be calculated is as follows:

Number of Applicants: Amount:

- Single applicant. - 9.840 €

- Couple. - 14.760 €

- Couple with 1 child. - 17.712 €

- Couple with 2 children. - 20.664 €

Additional requirements to apply for the Digital Nomad Visa in Portugal

• Medical insurance for international travel. Valid for at least one year. Minimum cover of 30,000 euros.
• Proof of criminal record, with no convictions for crimes that in Portugal would be punishable by a custodial sentence of more than one year, regardless of whether or not the sentence has been served.
• Proof of accommodation in Portugal

WANT TO LIVE AS A DIGITAL NOMAD IN PORTUGAL? TALK TO AN EXPERT >

How long is the visa valid for?

There are two visa categories in Portugalin terms of duration:

The Temporary Stay Visa (VET) will entitle you to reside in the country for a period of up to 12 months. It is therefore perfect for nomads who are used to spending shorter periods of time in different countries, moving around the world in search of new scenery and experiences.

The Residence Visa, on the other hand, grants the right to a temporary residence permit for two years, renewable for a further three years. After these 5 years, the worker can apply for a permanent residence permit and live in Portugal for as long as they wish.

How much does the Digital Nomad Visa cost?

O consular for a Temporary Stay Visa (VET) is 75€.

For the Residence Visa, which lasts more than a year, the amount to be paid is 90€.

Please note: These figures are constantly being updated, so be sure to check the current rate.

What are the advantages of being a Digital Nomad in Portugal?

It's no wonder that Portugal is a popular destination for Digital Nomads. The advantages are many and include not only the low cost of living and the mild climate.

Portugal is also known for its safety, excellent cuisine and high-speed internet. A large number of Portuguese speak English well, as well as languages such as Spanish and French. The country is also easily connected to the main European cities. It has 10 airports: Porto, Lisbon, Faro (the main ones), Beja, Madeira, Porto Santo, Ponta Delgada, Santa Maria, Horta and Flores.

Not to mention that, by living legally in Portugal, the digital nomad will be allowed to travel without a visa throughout the "Schengen Area", an area created by a convention between 26 European countries in which there are no border or customs controls.

Finally, after 5 years of legal residence in Portugal, the remote worker can apply for a permanent residence visa or for Portuguese citizenship and enjoy all its advantages.

If you are interested in working remotely in Portugal, talk to our consultants now and apply for your visa!

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Setting Up Your New Life: Fundamentals of Banking and Housing

Person opening a bank account in Portugal

Moving to a new country involves more than just packing your bags and getting on a plane. Establishing your new life in Portugal requires opening a local bank account and securing suitable living arrangements.

Opening a Portuguese Bank Account

To open a Portuguese bank account, you will need to have a NIF number number and provide proof of address. A NIF number in Portugal serves as a tax identification number. Foreign individuals can acquire it by visiting the nearest Finanças (Portuguese tax office) and submitting an application in person.

For proof of address, acceptable documents include a valid driver's license or a Portuguese residence permit (Título de Residencia). If you are not already in Portugal, it is possible to open a Portuguese bank account online abroad. Some online banks that provide this service include Atlantico, ActivoBank, Banco N26 and Novo Banco.

Finding accommodation

Securing a comfortable living space is an exciting aspect of moving to a new country. There are several reliable online platforms for locating accommodation in Portugal, such as:

• Idealist
• Imovirtual
• Uniplaces
• Airbnb
• OLX
• Saporo House
• Fair Cost
• Expatriates

Average monthly rental costs can be around €1,100 (1,200 USD). Whether renting a house or an apartment, there are pros and cons to consider. Apartments are usually more space-efficient and have better insulation, but may not have private outdoor areas. Houses offer more space, but incur higher maintenance costs. However, renting involves a lower initial financial obligation than buying, as it doesn't require substantial down payments. To secure a rental property in Portugal, you should check whether you need a visa to stay in the country and acquire a personal tax identification number (NIF) to establish a Portuguese bank account for rent and bill payments. It is customary to make an advance payment of at least three months' rent, plus a security deposit.

Tax Considerations for D8 Visa Holders

Tax obligations are of significant importance for D8 visa holders. If your stay exceeds 6 months, you will be considered a Portuguese tax resident and may have the obligation to pay Portuguese taxes on your overall income.

However, if your length of stay in Portugal is less than 6 months and no income is derived from within Portugal, you are not subject to tax obligations. Portugal offers two attractive tax regimes for D8 visa holders: the Non-Habitual Residence (NHR) status, offering advantageous tax rates for a period of 10 years, and a simplified tax regime for individuals who become tax residents.

To qualify for NHR tax status, D8 visa holders are required to fulfill the residency requirements of living in Portugal for a minimum of 183 days within a 12-month period, and also maintain a residence in Portugal, which can be owned or rented.

Renewal and the Road to Permanent Residence

The D8 residence visa offers more than just a temporary opportunity to live in Portugal. In fact, it can be renewed up to 4 times after the initial 1-year period, allowing a cumulative stay of up to 5 years. The renewal process is relatively uncomplicated and must be initiated from your country of residence.

In addition, the D8 visa could be your path to permanent residence or even citizenship in Portugal. To qualify for permanent residenceyou need to demonstrate the ability to support yourself financially during your stay by having a monthly income of at least €3,040 in the 3 months prior to applying or earning at least four times the Portuguese minimum wage (approximately €3,280 net). In addition, it is crucial to hold a residence permit valid for three years.

After a minimum period of residence of 5 years, you can obtain Portuguese citizenship by seeking permanent residence and fulfilling the necessary eligibility criteria in Portugal.

Embracing the Digital Nomad Lifestyle in Portugal

Digital nomads network in a coworking space in Portugal

The digital nomad lifestyle in Portugal involves more than just securing a visa and residency. It's about embracing a lifestyle that combines work, travel and personal growth. Portugal's thriving digital nomad community, pleasant climate, stunning coastal areas and high standard of living make it an attractive destination.

Joining coworking spaces is a great way to immerse yourself in the digital nomad community. Worktugal is an excellent resource offering a plethora of popular coworking spaces in Portugal. Cities such as Braga and Lagos offer a unique environment that caters to the diverse preferences of digital nomads, with:

• vibrant cafés
• modern art venues
• technology centers
• a distinctive mix of work and recreational prospects.

With such a rich cultural experience and a plethora of opportunities, embracing the digital nomad lifestyle in Portugal is a journey worth embarking on.

Health Insurance Requirements

To ensure a safe and legally compliant stay in Portugal, obtaining health insurance is mandatory for all D8 visa applicants. The insurance must meet certain criteria, including a minimum amount of cover and validity for the duration of the stay in Portugal. This section will delve into the specifics of these requirements and offer guidance on how to comply with them.

Criminal Record Requirement

When applying for the D8 Visa Portugal, one of the essential documents you will need to provide is a criminal record certificate. This document serves as a background check and must be obtained from your country of residence. For United States citizens, this means requesting a Criminal History Certificate from the FBI.

The criminal record certificate is proof of your good reputation and lack of significant legal issues that might concern the Portuguese authorities. It is a critical step in demonstrating your eligibility and reliability as a future resident of Portugal.

It is important to note that if the criminal record certificate is issued in a language other than English or Portuguese, it must be translated by a certified translator. The Portuguese embassy or consulate must recognize the translator. The translated document must then be legalized in order to be accepted as part of your visa application process.

The requirement for a clean criminal record underscores the importance of safety within Portuguese society. By providing this document, you align yourself with the values of the community you wish to join and ensure a smooth process for obtaining your visa.

Tax benefits for Digital Nomads in Portugal

Yes. With the digital nomad visa for temporary stays, the tax rate is 20% or less. In other words, tax rates depend on a person's income and how much salary tax you pay in other countries. As a freelancer in Portugal, you are eligible to obtain the NHR visa for non-resident status, with all these advantages: After the NHR program ends in 2024, there is another program that provides:

The Non-Habitual Resident (NHR) tax regime is particularly beneficial for digital nomads and remote workers who decide to become tax residents in Portugal. Under the NHR, qualifying individuals can enjoy reduced tax rates for a period of ten years. This regime covers various types of income, including foreign-sourced income, which can be exempt from taxation or taxed at a flat rate of 20% if it arises from high value-added activities of a scientific, artistic or technical nature. NHR status is a compelling incentive for digital nomads considering Portugal as their base, as it not only optimizes their tax situation, but also improves their financial planning and possible savings.

In addition, Portugal is known for its tax treaties with several countries, which can avoid double taxation for individuals who earn income internationally. This means that digital nomads can potentially avoid being taxed in two countries on the same income, which is a common concern for those who work remotely for clients or companies based in different parts of the world.

It's important to note that the tax landscape for digital nomads in Portugal is subject to change, and keeping abreast of the latest developments is crucial. For example, another advantageous tax program will come after the NHR program, ensuring that Portugal remains a popular destination for digital nomads.

What happens to my tax residence at home?

This depends on where you live in the world. In the absence of longer absences, you may qualify for a home income tax deduction. If you're based in the US, this is a little more difficult, but you can still claim the Foreign Income exemption. You can find more information on our website; we're sure we'll be writing more about this topic next.

Navigating the intricacies of tax residency can be complex, especially when you're living the life of a digital nomad. Your tax residency status at home depends on several factors, including the length of your stay abroad, the source of your income and tax treaties between countries. Generally, if you spend more than half the year outside your home country, you may no longer be considered a tax resident there.

However, the rules vary significantly from country to country. For example, the United States follows a citizenship-based taxation system, which means that US citizens and green card holders are taxed on their global income, regardless of where they live or how long they stay abroad. But there are mechanisms in place, such as the Foreign Earned Income Exclusion (FEIE) and the Foreign Tax Credit (FTC), which can help mitigate double taxation.

It's also worth noting that establishing tax residency in Portugal can affect your tax obligations at home. Becoming a tax resident in Portugal can potentially expose you to taxation on your worldwide income there, but thanks to the Non-Habitual Resident (NHR) regime, you can benefit from reduced tax rates or exemptions on certain types of foreign income.

We recommend consulting a tax professional who is well versed in international tax law to ensure that you are making the most of the tax benefits available to you and complying with all the necessary regulations. Stay tuned as we plan to delve deeper into this subject, providing more detailed insights and guidance on how to manage your tax residency status as a digital nomad.

Coworking spaces for digital nomads

Portugal's landscape is dotted with countless coworking spaces, each offering a unique environment for creativity and productivity. These spaces are designed to meet the needs of digital nomads, who thrive on the flexibility and synergy of shared working environments. From the bustling urban vibe of Lisbon to the serene coastal towns, coworking spaces in Portugal are as diverse as the country itself.

Embracing the coworking culture, digital nomads in Portugal find themselves surrounded by like-minded individuals from various professional backgrounds. These spaces often provide not just a desk or an office, but also a community that promotes networking, collaboration and innovation. Events, workshops and social gatherings are common, adding value to the nomadic work experience.

Coworking spaces in Portugal are equipped with high-speed internet, comfortable workstations and often include amenities such as cafés, communal kitchens and sometimes even relaxation areas. Some popular coworking spaces that have become favorites among the digital nomad community include Second Home Lisboa, Cowork Central and LACS, to name a few.

What's more, these coworking spaces aren't just in the capital. Places like Porto, Coimbra and Faro also offer fantastic options that provide a balance between work and the laid-back Portuguese lifestyle. Whether you're looking for an artistic hub in the heart of the city or a quiet spot overlooking the sea, Portugal's coworking spaces have something to offer every digital nomad.

In short, Portugal's coworking spaces are more than just places to work; they are centers for cultural exchange, learning and professional growth, making them an integral part of the digital nomad experience in this beautiful country.

Personalized advice for different candidate scenarios

The D8 visa does not cater for all situations equally. Each applicant's situation is unique, and it is important to consider these differences when navigating the application process. For example, couples seeking the D8 visa for Portugal are eligible for temporary residence in the country for a period of up to one year. However, they must meet the financial criteria of a minimum monthly income of €3,040 and be engaged in employment with a non-Portuguese company or be self-employed.

Families, on the other hand, follow a similar registration process to individuals. This involves:

• Holding a valid passport
• Providing evidence of health insurance cover
• Demonstrating income or savings
• Showing proof of employment or remote work

Understanding these different scenarios and their specific requirements can help you navigate the D8 visa application process more effectively.

Navigating Challenges: Common Pitfalls and Solutions

The path to securing a D8 visa and establishing a life in Portugal can present some obstacles. Some common pitfalls in the visa application process include:

• Inadequately completed application forms
• Submission of incorrect or insufficient documentation
• Inaccuracies in personal details
• Failure to provide adequate photo size or quality for identification purposes

To avoid these mistakes, consider:

• Seeking advice from an immigration lawyer
• Meticulously checking information about the application with official documents
• Adhering to the country-specific checklist
• Ensuring that all bank statements are certified
• Allocating enough time before the shipping date
• Refrain from rushing the process

In addition, navigating local requirements in Portugal can be challenging. Some key steps to consider include:

• Getting a local bank account
• Providing a comprehensive cover letter
• Demonstrating sufficient passive income
• Ensuring a clean criminal record

Being aware of these potential challenges and preparing for them in advance can help ensure a smoother transition to life in Portugal.

Summary

In short, the D8 Visa Portugal offers a unique opportunity for digital nomads and remote workers to live and work in one of the most vibrant and culturally rich countries in the world. From understanding the essentials of the visa and navigating the application process to embracing the digital nomad lifestyle and overcoming potential challenges, the journey to obtaining your D8 visa is an exciting one. So, are you ready to take the leap and embark on an unforgettable journey in Portugal?

About Via Portugal

Via Portugal is a leading immigration law firm that specializes in helping individuals and families navigate the complex process of moving to Portugal. With a team of experienced lawyers and immigration experts, Via Portugal provides customized solutions to meet each client's unique needs.

Why Choose VP Via Portugal?

• Knowledge and Experience: Our lawyers have extensive knowledge of Portuguese immigration law and years of experience assisting clients with various visa applications, including the D7 visa, Golden Visa, Startup Visa and Family Reunion Visa.
• Personalized Approach: We understand that each client's situation is unique. Our lawyers take the time to listen to your goals and offer personalized advice and guidance throughout the process.
• Comprehensive Support: Via Portugal offers a wide range of services in addition to legal advice, including help with document preparation, property searches and relocation planning.
• Competitive Fees: We offer competitive fees and transparent pricing so you know exactly what to expect.
• Exceptional Customer Service: Our team is committed to providing exceptional customer service. We are responsive, attentive and always available to answer your questions.

Whether you're an entrepreneur looking to set up a business in Portugal, a retiree looking to enjoy the country's favorable tax regime, or a family looking to get together in Portugal, the Via Portugal is here to guide you every step of the way.

We offer all long-term visas in Portugal to suit your needs. Take a look.