As of December 2023, Portugal ranks sixth among the best countries for freelancers to live and work.
The Digital Nomad Visa program in Portugal, operational since October 2022, allows digital nomads to apply for a residence permit in the country. Residents of non-EU countries can apply for the freelancer residence permit.
The Portuguese Digital Nomad Visa is a type D state visa. After obtaining such a visa, a freelancer receives a residence permit valid for up to two years, with the possibility of further extension.
Specifics of Portugal’s Freelance Visa
Remote workers can apply for one of the forms of Digital Nomad Visa:
- Long-term. Valid for 4 months. Allows for a two-year residence permit with the requirement of continuous residence.
- Temporary. Valid for 1 year. Allows for multiple exits from the country. Does not grant the right to a residence permit.
Obtaining a freelancer visa involves confirming a monthly income of at least 3280 euros, as well as owning or renting property in the country. The applicant must be of legal age and have a contract for remote or freelance work with a local employer.
Relatives of remote workers (children under 18 and parents over 65) can also apply for a visa for temporary stay or residence. It is permissible to include children aged 18-30, if they are unmarried and financially dependent on the applicant parent.
Taxes for Freelancers
The type of Digital Nomad Visa obtained is not a criterion for forming tax obligations. Taxes depend on the tax residency status. A foreigner is assigned the status of a “tax resident of Portugal” if they reside in the country for more than 183 days a year. Depending on the freelancer’s status (self-employed or sole proprietor), the tax rate varies between 14-48%.
Additionally, conditions existed that allowed for reducing the tax burden during the first 10 years of residence. To do this, one needed to obtain non-habitual resident status in the country. In this case, the freelancer paid a tax of 20% on income earned within the country. Importantly, from 2024, the possibility is no longer available for new applicants (including Russians).
Cost of the Visa
The cost of the Digital Nomad Visa in Portugal is determined by the number of applicants and the type of property (rental or ownership). If owning property, additional payment for the stamp duty (0.8% of the value) and annual tax (0.3-0.8% of the value) is required.
Other expenses accompanying the visa application process include payment for life and health insurance (ranging from 20 to 100 euros per month, depending on the package).
Understanding all the bureaucratic intricacies on your own is sometimes not easy, but our experts are always ready to review your case and help on the path to a comfortable life.
Necessary Documents and Requirements
The requirements for documents to obtain a digital nomad visa include:
- Valid passport.
- Two photographs (size 4.5×3.5).
- Bank statement confirming a minimum monthly income and balance of no less than 36,480 euros.
- Proof of remote work – employment contract or partnership agreement.
- Letter explaining the reasons for coming.
- Valid medical insurance.
- Translated police clearance certificate to confirm no criminal record.
- Rental contract or property ownership certificate in Portugal.
- Documents proving family relationships (if relocating with family members).
Recent Changes in Visa Matters in Portugal
A major change in civil legislation, significantly affecting remote workers residing in the country, was the cancellation of tax incentives effective from 01.01.2024. The Portuguese government has excluded freelancers from the NHR program. The program has ended, and remote workers no longer have the right to tax benefits (0% on foreign income and 20% on local income for 10 years).
However, individuals already participating in the NHR program will not lose their tax benefits. Additionally, applicants who can prove that they began planning their move (for example, by applying for a freelancer visa) before 01.01.2024 can still receive these favorable tax rates.
Popularity statistics for Digital Nomad Visa to Portugal
Freelancers planning to move to Portugal now will not have the benefit of the NHR program and will be subject to standard tax rates. Because of this, demand for the program sank by June 2024, according to Google Trends. However, despite the lack of tax advantages, by the beginning of July interest in a visa to Portugal began to grow again.
