How to Work Remotely in Portugal

Portugal is a mecca for digital nomads.

It has majestic mountains, pristine coastlines, an affordable Western European lifestyle, and cities with innovative start-ups. In the last few years, the country has been putting its efforts into building up its digital infrastructure. 

Along with speeding up its internet, Portugal made space for creative start-ups. With this, remote workers have found Portugal to be a haven they can reside in.

Find out how you can work remotely in Portugal in this post. 

What Kind of Visa Does Portugal Offer to Non-EU Remote Workers

Currently, there is no specific remote work visa for Portugal.

However, Portugal does offer different visas to Non-EU nationals that are similar to a remote work visa, such as Portugal’s D7 Visa and Residence Permit. These visas are for non-EU citizens who want to stay in Portugal while earning (in some cases, passive) income. 

There are other visa options as well, like:

• Portugal Entrepreneur Visa/Portugal Start-up Visa

It’s for remote workers who want to establish a start-up in the country.

• Portugal Self-Employment Visa

You must be self-employed and prove that you will provide services and work for Portuguese companies. 

• Portugal Golden Visa

With this, you will have to make investments, such as capital transfers, property, or a business that creates 10 employment positions. Then, you will be given temporary residency after your investment. 

If you are already an EU citizen, working, living, and travelling in Portugal is much easier. All you need to do is apply for a Residence Permit and register for tax issues if you want to stay and do some remote work in Portugal for more than a few months. 

If you want to work remotely in Portugal for more than 183 days, you will need to be a tax resident. With this, you must file a tax return and pay your taxes in Portugal. As you’re shifting your tax residency, you can take advantage of Portugal’s NHR (Non-Habitual Residence) program or Simplified Regime.

What are Non-Habitual Residence (NHR) Program and Simplified Regime

The Non-Habitual Residence (NHR) Program allows for some tax exemptions and tax reductions on your foreign income for about 10 years. With this, you can pay fewer taxes on the same income when you move to Portugal. 

According to this program, provided that the source country of your income has the power to tax your income, Portugal won’t tax your foreign-sourced income. However, if you have Portugal-sourced income, you’ll be taxed with a flat rate of 20%. 

Meanwhile, Simplified Regime taxes you on a percentage of your income rather than all of your income. Some people prefer this regime more than NHR, as it may be the better choice for small independent businesses working remotely in Portugal. The businesses that qualify for this regime should not exceed an annual turnover of €200,000.

Looking for remote work with EU companies? Start your search with our remote jobs board

What Is Portugal’s D7 Visa and Residence Permit?

Portugal doesn’t have a specific Digital Nomad Visa yet, but they have the D7 Visa or Portugal Passive Income Visa. It is a residence visa for non-EU citizens with passive income to get a Residence Permit in the country. This visa usually targets retirees, but it’s also perfect for a digital nomad in Portugal. 

If you don’t want to set up a business presence or carry out investment activities in Portugal, the D7 Visa will suffice. It’s valid for two entries and entitles you to remain and do remote work in Portugal for about four months. 

With this visa, you’ll be able to travel visa-free throughout the Schengen Area of 26 European countries. This visa will also enable you to acquire a Residence Permit in Portugal for one year. It can be renewed for a successive period of two years. Additionally, you can convert it into a Permanent Residence Permit after five years. 

How to Apply for D7 Visa and Residence Permit?

To be able to be eligible for Portugal’s D7 Visa and Residence Permit, you must:

• Be a non-EU national.
• Have enough funds to support yourself during your stay in Portugal.
• Have a clean criminal record. 

If you find yourself eligible for this visa, here are the steps for application:

Step 1: Get a bank account and secure accommodation

To do any legal procedures in Portugal, you must have a NIF number. It’s a legal taxation number that will allow you to perform fiscal activities as a digital nomad in Portugal. When you have a NIF number, you can remotely open a bank account. 

After you open a bank account, you will need to secure long-term accommodation in Portugal. You can do this by either renting, buying or borrowing property. 

Step 2: Apply for a D7 Visa at a Portuguese consulate

You will need to apply online for your visa application and schedule an interview appointment at the Portuguese consulate in your current region. The exact requirements vary per consulate, but they will always ask you for the following:

• A valid passport of at least six months after your Portugal passive income visa expires. The visa will be valid for four months. 
• Two recent passport-sized photos.
• A declaration that outlines your reasons for obtaining Portuguese residency.
• A health insurance policy that provides coverage in Portugal or an affidavit stating that you will buy health insurance in Portugal within 90 days of arrival. 
• A criminal record certificate.
• Travel insurance. 
• Documentary evidence of your accommodation in Portugal (title deed, property loan agreement, or rental agreement).
• Documentary evidence that you have sufficient finances to live in Portugal. 
• Documentary evidence of your reasonable net regular passive income.

Here are the income requirements of D7 applicants. You will need to have the minimum income for a 12-month duration of:

• €7,200 for the first adult 
• €3,600 for second or more adults 
• €2,160 per child

The minimum income amount is based on the Portuguese minimum wage, which is €7,200. The amount increases every year and is set to increase this 2021.

Step 3: Apply for a Residence Permit in Portugal

The D7 Visa will allow you a maximum of two entries in Portugal and live there for up to four months. When you’re in Portugal, you must submit the following documents so that you can apply for the Residence Permit:

• A passport that contains a D7 Visa issued by the Portuguese consulate.
• The same proof of accommodation you submitted to the Portuguese consulate.
• The same proof of financial means you submitted it to the Portuguese consulate.
• A health insurance policy, in case you bought it in Portugal. 

More and more people are working remotely in Portugal as digital nomads are getting attracted to the country’s great quality of life and entrepreneurial environment. Even if Portugal doesn’t have a digital nomad visa yet, the D7 Visa and Residence Permit have great benefits that will still allow you to live that digital nomad lifestyle you’ve always dreamt of.