Digital Nomad Visa in Portugal

On 30 October 2022, a new digital nomad visa in Portugal has been announced. We have covered all the information you require regarding this in-demand visa here.

What is Portugal’s Digital Nomad Visa?

The Portugal digital nomad visa allows non-EU citizens who work remotely and earn at least 3,040 Euro per month to live in the country as of 30 October 2022. You can relocate to Portugal and apply for a 1- or 2-year residency after receiving the visa.

There are two types of this visa: a short-term temporary stay visa and a long-term residency visa. The short-term visa permits you to stay in the country for up to a year and cannot be renewed or used to get residency.

If you want to live in Portugal permanently, a long-term visa is your best option. It permits 2 entries into the country and is valid for 4 months. You can obtain a 2-year residency as soon as you arrive in Portugal. It can be renewed for up to 5 years.

Moreover, the long-term residency visa gives you the chance to apply for Portuguese citizenship after these 5 years. You have the right to live, work, and study in any European Union (EU) member country after getting Portuguese citizenship.

Requirements for Portugal’s Digital Nomad Visa Application

The first requirement is to be over the age of 18 and be from a non-EU and non-EEA country.

You must be a remote worker with an employment contract, a partnership agreement, or a services contract. The total monthly income must be at least four times the Portuguese minimum wage, which is 3,040 euros in 2023.

It is also essential to have pre-arranged accommodation in Portugal with a minimum one-year lease. You can apply for the visa together with your spouse, financially dependent parents, and financially dependent children under the age of 30.

When applying for a visa for family members, applicants must provide an extra 254 euros for each kid under the age of 18 and an extra 380 euros for each adult family member above the minimum requirement.

Documents for Portugal’s Digital Nomad Visa

All required documents must be apostilled, be translated into Portuguese, and authenticated by the Portuguese Embassy. Here are the standard documents:

• Your valid passport
• Visa application form
• Two photos
• A work contract proving that the applicant works remotely
• A bank statement proving that the applicant monthly receives at least 3,040 euros.
• Tax return statements or tax receipt
• Proof of sufficient funds to live in Portugal
• A cover letter explaining the application’s purpose
• Proof of accommodation in Portugal for at least a year
• Criminal record
• Health insurance
• Visa fee payment

For family members, a marriage certificate and dependents’ birth certificate are required.

Warning: The required conditions and documentation may change. It is advisable to confirm the information with the Portuguese Consulate.

How to Apply for Digital Nomad Visa in Portugal?

Including the preparation of the previously mentioned required documents, the entire process is carried out by Tekce Visa legal experts in accordance with the procedure. By providing our legal professionals with a power of attorney, you can complete the process in the comfort of your home.

The application process takes 3-4 months. You receive a confirmation email once it has been accepted. Your passport and visa are delivered to the address you provide.

The initially granted visa will then allow you to go to Portugal. You are permitted to stay in the country for 120 days. You must register as a resident at SEF during this time. SEF stands for Serviço de Estrangeiros e Fronteiras. It is the immigration and border service agency of Portugal.

At SEF, you provide the same paperwork as you did for the visa application at the consulate. The residency application fee is 320 euros. Within 2 to 12 weeks, SEF complete and post your residency card to your home address in Portugal.

Tax Implications on Portugal Digital Nomad Visa

A tax rate of about 20% or less will be applied if you hold a temporary digital nomad visa. Your income, the amount of salary tax you pay in other countries, and whether or not you are self-employed all affect your actual tax rate.

If you have a residency digital nomad visa, you become tax residents of the country and will be subject to income taxes. In Portugal, the personal income tax can reach up to %48.

But, you can apply for the Non-Habitual Resident Tax Regime (NHR) as a resident. In addition to taxing high-value activities at a 20% rate and foreign-sourced pensions at a 10% rate, NHR can exempt you from paying taxes on foreign-sourced income.

Why Portugal is Perfect for Digital Nomads?

Portugal has been one of the most popular locations for digital nomads since it is a safe and expat-friendly country. It provides all the necessities a person would need while working abroad. Good internet access, proximity to nature, delicious and diverse food, great weather, vibrant culture, and affordable real estate prices are all here.

With a bustling marketplace and an increasing number of co-working spaces, this country has a strong digital nomad population. For individuals looking for a change of scenery from their home office, the cities of Portugal offer a variety of co-working alternatives. They offer rewarding working conditions and a welcoming environment, making Portugal a desirable place to do business and network.

Portugal also has a very effective transportation infrastructure, which makes getting about the country simple for digital nomads. It is very easy to get around the country, whether you like to use a railway, bus, or minibus.

All of the necessary foods can be purchased without breaking the budget. You can find a lot of discount offers, sometimes even up to 50% off while shopping at the supermarkets. Discount cards are also offered to devoted customers by almost all supermarket chains.

For those who enjoy spending time outdoors, this lively country has a lot more to offer. You can effortlessly plan your short-term or abroad trips because living here is not costly.

In comparison to other European countries, renting in this country is fairly reasonable. Let’s compare Lisbon, which, according to Numbeo figures, might be considered the most costly city in Portugal, with other well-known European cities.

• Housing in Lisbon is 22.1% lower than in Paris.
• Housing in Lisbon is 26.5% lower than in Amsterdam.
• Housing in Lisbon is 8.2% lower than in Berlin.
• Housing in Lisbon is 14.9% lower than in Milan.
• Housing in Lisbon is 3.1% lower than in Oslo.

As can be seen, Portugal paints a favorable picture regarding both daily living and accommodation standards and pricing.

The Cost of Living in Portugal for Digital Nomads

Portugal’s rising popularity as an ideal destination for expats and digital nomads can be primarily thanks to its relatively low cost of living, which is among the lowest in Western Europe. At a fraction of the price of other European countries, Portugal provides a great standard of living.

You may be able to live quite comfortably on the minimum income you declare on your visa application, which is 3,040 Euros. It, of course, depends on where you live in, but this amount has been calculated based on the comfortable standard of living you can maintain.

The Best Cities in Portugal for Digital Nomads

Portugal offers you the amazing harmony of sea, sand, and sun, so every area is undoubtedly worth living in, but if we were to pick three of our favorite locations, we would pick the following cities.

Lisbon

Lisbon, the capital of Portugal, is a great place for digital nomads to set up residence and business. It is a charming city with a booming digital nomad environment, so networking with other remote workers is very easy here.

As a digital nomad, the capital provides everything you could ever need. It provides a wide range of long-term accommodations, ranging from luxurious villas to modest flats. The real estate in Portugal is usually equipped with every modern amenity you need for a workplace, including internet and a desk.

There are many co-working places, such as several excellent cafes where you may work while enjoying good coffee and fast internet. During your free time, you may also explore several lovely attractions and wander around its historic neighborhoods.

Porto

Another great city in Portugal for digital nomads is Porto. It is a beautiful city with lots to offer, including a rich history, thriving nightlife, and interesting tourist sites. Porto is known for its Port wine, and it offers a fantastic atmosphere for those who love partying and trying good cuisine and wine.

In addition, it is reasonably priced when compared to Lisbon. You can find several cost-effective places to buy or rent for a long-term period. Like most of Portugal, Porto has also good internet access, so operating as a digital nomad there will not be a problem.

Lagos

Lagos is a small coastal town, making getting around even without a car rather simple. Studios cost less per month in Lagos than they do in Porto and Lisbon, making it more economical for digital nomads to live there.

Here when you get bored in your flat, just take your laptop to a beachside cafe so you may work while admiring the beautiful Mediterranean Sea.

Additionally, if you enjoy outdoor sports, Lagos is the perfect place. There are several activities available, including surfing, sailing, kayaking, windsurfing, cycling, and mountain biking.