Navigating the Portugal Digital Nomad Visa: What You Should Know in 2024

The introduction of Portugal's new digital nomad visa in late 2022 has made it easier than ever for remote workers to live and work there, fulfilling a dream for many of them.

While digital nomads have long been living and working overseas in coworking spaces and Airbnbs, it has only been more lately that certain nations have institutionalized the practice by providing these location-independent workers with specially designed visas. With its beautiful beaches, laid-back and amiable culture, somewhat inexpensive cost of living in major cities, and growing community of digital nomads, it's understandable why so many people are moving to Portugal. It's the ideal location to experience this contemporary way of living.

However, this does not negate the fact that there is a good deal of intricacy. To ensure that the life of a digital nomad is smooth and compliant with the law, there are several obstacles to overcome, including the job contract, the visa application procedure, tax residency, and having a dependant kid. Portugal's digital nomads must also choose between looking to move abroad permanently and just visiting for a set period.

Read on to learn everything there is to know about Portugal's digital nomad visa, whether you're a travel or mobility manager looking to make sure the best is happening for your staff or a remote worker hoping to roam freely.

What is a visa for digital nomads?

To put it simply, a digital nomad visa enables a traveler to lawfully reside and work remotely for a firm for a predetermined period of time outside of their home country. When their tourist visas were set to expire, some foreign visitors would leave the country and return to extend their stay—a practice known as "visa running." In those years, some foreign tourists would work remotely on tourist visas that did not truly provide them the authorization to do so. With today's digital nomad visa, applicants are granted greater rights and alternatives compared to those of a standard tourist visa, therefore eliminating the necessity for that quasi-legal practice. Everyone who is involved benefits from it.

In Europe, these visas are becoming more and more common due to the growth of remote work and the increasing acceptance of geographical freedom by both businesses and workers. (In addition to Portugal, Spain and Greece have already announced similar visas.) When it comes to things like income requirements, local bank accounts, and income taxes, the requirements differ each nation. Therefore, it's crucial to carefully review these prerequisites and submit a full application before packing your bags and eagerly starting your nomadic lifestyle.

Which visa categories are available for Portugal for digital nomads?

For those wishing to work or settle in Portugal, digital nomads can choose from a variety of beneficial visas. The kind of visa a visitor may require may depend on their intended purpose and duration of stay, as well as whether or not they plan to become permanent residents of Portugal. The temporary stay visa and the passive income visa are the two primary types of visas for digital nomads.

Visa for a short-term visit

The Portuguese digital nomad visa is typically used to refer to this option, which was introduced in 2022. It was designed especially for travelers seeking a salaried remote work with an employment contract that is not based in Portugal, however self-employed nomads are also welcome to apply. The applicant's occupation must yield a minimum monthly income of around €3,000 throughout their stay in Portugal, which is almost four times the minimum wage in Portugal.

The visa can be renewed annually for a maximum of five years, however it can only be used for a year. Visa holders are free to enter and exit Portugal as long as they follow the immigration regulations for the Schengen Area. They can utilize their bank account in their home country and are not required to have a Portuguese bank account.

For digital nomads who wish to extend their stay in Portugal beyond what a 90-day tourist visa would allow but do not intend to apply for permanent residency in the future, the Portugal temporary stay visa is the ideal option. For nomads who wish to use Portugal as a base to travel the rest of Europe, it's a fantastic alternative.

Visa for passive income

The passive income visa, often known as the D7 visa, was first designed with retirees in mind. It is suitable for independent contractors, pensioners, retirees, and business owners with passive income from online ventures, rentals, royalties, or other sources.

Candidates seeking this visa need to have a passive income stream that brings in at least €9,000 annually. The applicant may also utilize this visa to enter Portugal with dependent spouses or dependent children, albeit the income requirement would increase for each dependent.

Passive income visa holders need to register with Portugal's Immigration and Border Services (also known as the Serviço de Estrangeiros e Fronteiras, or SEF) after a four-month initial period in order to receive a resident permit. The original residency permit is renewable after the first two years of validity.

Since the passive income visa is regarded as a pathway to residency, digital nomads who aspire to eventually acquire Portuguese citizenship or permanent residency in Portugal may consider applying for it. Additionally, it mandates that applicants take action to establish themselves in the nation, such opening a bank account in Portugal.

It's important to remember that Portugal once provided a Golden Visa Program for people looking to invest money in the nation. The Portuguese government is, however, gradually discontinuing the Portugal Golden Visa scheme, which allowed for residency by investment.

To enter Portugal, who requires a visa for digital nomads?

Particularly well-liked by US individuals looking to live and work overseas is the Portugal digital nomad visa. They can use their US passport to apply as long as they meet the minimum income requirement set forth in the visa requirements. Japanese, Canadian, Australian, New Zealand, Brazilian, and other nationals are also big fans of it.

It is not necessary to get a digital nomad visa in order to live and work in Portugal if you are traveling with an EU or EEA passport. They have the right to do so under EU freedom of movement regulations, just like in other European countries. But, EU passport holders must register with Portugal's immigration office (SEF) in order to obtain a residence permit if they want to work and live in Portugal, just like with the passive income visa.

What paperwork is needed to obtain a digital nomad visa for Portugal?

Various documents are needed depending on the kind of visa the applicant is seeking. All visa applications, however, need the following standard paperwork:

1. A valid passport, valid for at least three months after the estimated date of return;
2. A completed and signed National Visa Application;
3. Two passport photos;
4. Valid travel insurance, proving health insurance required to cover any urgent or emergency medical expenses, including repatriation
5. Evidence of financial resources, which varies according on the type of visa (see below);
6. Proof of a clean criminal record, which must be provided by the appropriate authority in your home country.

Extra paperwork for the visa for a brief stay

The following paperwork is also needed if you're seeking for a Portugal digital nomad visa, commonly known as a temporary stay visa:

1. Documentation showing that the minimum salary criterion has been met for the last three months based on the average monthly income
2. Fiscal residence document (i.e., tax residency documentation)
3. If you work for yourself or run an internet business, you should have documentation of your freelance income, such as recurring contracts or service agreements with clients, or an employment contract, a promise of a contract, or a letter from your employer verifying your employment status.

Extra paperwork for the visa on passive income

You must also provide proof of "passive income," such as retirement accounts, financial assets, rental income, and revenue from intellectual property, if you're seeking for Portugal's passive income visa. This ought to satisfy the application's basic requirements.

These are the first set of paperwork needed for the application for a passive income visa as well as a temporary stay visa. Keep in mind that the Portuguese government might need further evidence, so be sure to follow up on any correspondence with the consulate. Evidence of income from freelancing, such as recurring customer contracts or service agreements

Do remote workers pay taxes?

The quick response to this frequently asked question is "yes." One's tax duties do not disappear just because they become a digital nomad. If anything, it's likely going to complicate their tax situation.

To guarantee compliance in Portugal as well as in the nomad's home country, a tax advisor is helpful. Because individual circumstances differ, it's also advisable to consult a specialist regarding one's specific tax duties on a digital nomad visa. An individual's domestic and international tax duties are influenced by various factors such as the duration of their stay, the number of days they spend in their home country throughout the tax year, the kind of visa they have, and their income.

It is noteworthy that compared to other digital nomads, American residents may find these requirements to be more burdensome. The US is the only country that requires all of its residents, even those who no longer reside or work there, to disclose their income and often pay taxes.

Businesses that permit their employees to work abroad must make sure they are in a financially and legally sound position to do so.

The Portugal digital nomad visa's advantages

The Portugal digital nomad visa has a lot to offer. Certainly, one of them is the chance to travel to another nation and experience it in a way that goes beyond the usual tourist or vacation experience. People wishing to meet new people and explore other perspectives or lifestyles can find a kind of digital nomad village in the numerous co-working spaces found in cities like Porto and Lisbon. Nomads who live and work abroad often experience increased creativity, inspiration, and productivity, which is advantageous to both their employer and themselves. The opportunity to explore living a nomadic digital lifestyle has never been greater, and Portugal's digital nomad visa makes it simpler than ever to do so.

Conclusion:

In conclusion, Portugal's new digital nomad visa, introduced in 2022, has opened doors for remote workers seeking to live and work in this picturesque country. With its beautiful landscapes, welcoming culture, and a thriving community of digital nomads, Portugal has become an ideal destination for those embracing a location-independent lifestyle.

How Pelican Migration Can Help:

Pelican Migration stands as your reliable migration consultant, providing expert guidance for individuals looking to migrate to Portugal. Whether you're navigating the intricacies of the digital nomad visa, D2 Visa, or exploring opportunities through D7 Visa, our experienced consultants in Dubai, Abu Dhabi, UAE will ensure a seamless migration process. Trust Pelican Migration, the best migration consultant in Dubai, to facilitate your journey to Portugal, offering unparalleled assistance in Portugal migration and visa consultation.