The Portugal Digital Nomad Visa: What You Need to Know

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Ever since the post-pandemic explosion in remote work, more and more countries have been establishing digital nomad visas in hopes of bolstering their economies. But while many of those countries are still hammering out the details of their program, Portugal’s digital nomad visa is up and running. Combine that with Portugal’s great weather, affordable cost of living, and rich culture, and it’s no wonder that people are moving to Portugal in droves.

Thinking about moving to Portugal yourself, or just want to learn more about their digital nomad visa? Read on to learn what Portugal’s digital nomad visa offers, who is eligible for it, how to apply, and more.

The Details

Portugal’s digital nomad visa, which falls under their D7 visa category, allows those who can make a living remotely to live and work in the country legally. There are two different versions of the visa: a temporary stay visa for stays up to one year and a residence visa for stays over one year. Upon expiration, the resident visa can be renewed for up to five years in total. Applicants can also secure visas for their spouse and dependents, as long as they file the corresponding paperwork.

Additional Benefits

Beyond the obvious benefit of being able to live and work in Portugal legally, the new digital nomad visa offers some additional perks. Perhaps the most notable benefit for digital nomads is the preferential tax rate they receive. Income generated from foreign sources is not taxed at all, while domestic income is taxed at just 20%. And considering that income taxes in Portugal can be taxed up to 48%, this is a significantly lower rate than usual.

The digital nomad visa also offers a clear stepping stone to permanent residency, which can be acquired after five years of lawful residence in the country. So if you apply for a digital nomad residence visa and renew it to the maximum, you’ll be eligible by the end of your stay.

Visa Requirements

In order to apply for Portugal’s digital nomad visa, applicants must:

  • Prove that they are able to work remotely: You must provide a work contract and notarized statement confirming that you are indeed able to work as a digital nomad
  • Demonstrate proof of income: You must provide income statements from the previous three months, which must be equal to or greater than four times the monthly minimum wage of 705€ (2820€ total)
  • Disclose their tax residency: You must provide documents that confirm where you currently reside and pay taxes

How to Apply

The application process for Portugal’s digital nomad visa is fairly straightforward — the hard part is just gathering all of the initial documents. This includes:

  • A national visa application
  • A valid passport + copy
  • Two recent passport-sized photos in good condition
  • Travel insurance that covers medical expenses for the duration of your stay
  • A criminal record certificate, along with a form granting the Immigration and Border Services (SEF) permission to investigate your criminal history
  • Proof of lodging/housing

You may need to include additional documentation depending on your specific circumstances, so make sure to double-check with the embassy.

After gathering all of the required documents, it’s time to submit them to your designated Portuguese embassy, consulate, or visa application center. Most of the time, you’ll need to deliver these in person, but some locales might accept applications by mail.

If you properly submit everything, you’ll receive your visa in an average of 15 business days — although it may take longer if there’s a high volume of outstanding applications to process. With your visa in hand, the process of moving to Portugal can begin in earnest.

Ensure a Smooth Transition

Moving to Portugal (or any new country, for that matter!) is exciting, but between finding housing, meeting new people, and of course, exploring your new surroundings, it does take some effort. And in the midst of such a busy time, taxes are probably the last thing you want to be worrying about.

Fortunately, the team at Bright!Tax specializes in helping expats, like you, file their taxes and minimize their tax liability as much as possible. Partnering with Bright!Tax means that we’ll do the heavy lifting so you can spend less time bogged down in paperwork and more time settling in.

Reach out today to speak with one of our experts to learn how we can help you plan your move abroad!

Register now, and your Bright!Tax CPA will be in touch right away to guide you through the next steps.

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