For example, the full profit of shares, securities, and bonds are subject to taxation at a flat rate of 28% (35% for assets based in tax havens like Gibraltar). In the past, many remote workers and freelancers did this by applying for the D7 visa (and sometimes the D2) but, as of 2022, Portugal has introduced a digital nomad visa aimed at remote workers and freelancers. Horizons has been very effective in providing our company support in all the administrative procedures, sometimes complex, required by the Singaporean administration. First of all, Portugal does not offer a specific remote work visa yet, like many other countries. However, urban properties are usually taxed at a rate between .3% and .45% while rural properties tend to be taxed at .8%. Recently, the internet services in Portugal gained much solid ground and they keep improving quickly. For instance, in Spain if you spend 183 days, you're tax resident and must pay all your taxes there. Lison and Porto are experiencing an acute housing crisis brought on by skyrocketing prices caused by foreign investment in real estate and stagnant workers wages, resulting in locals getting pushed out of the market. You may find that you can walk or bike, saving more money on transportation. However, if you have lived in another country within the last five years, you will also need to provide a certificate from the country. You (and your dependents) must have a clean criminal record. Yes. Applying for a D7 Visa and Resident Permit is highly recommended if you intend to work remotely from Portugal for longer than six months. You must demonstrate that you have sufficient income from outside the country to sustain yourself and any family members. The process for opening an account varies between banks and depends on the type of account that you wish to open. [More Info]. If you are employed by a Portuguese employer, you will only have 11% withheld from your check, with the other 23.75% coming from your employer. Citizen Remote has a broad range of resources to assist with the exciting process of relocating to another country! Lisbon is like a big city with a small colonial town feel; if that small town was packed with cultural venues and lively night spots. As well as being able to bring your family with you, this visa gives you access to the Schengen area as if you were an EU citizen. In order to apply, you will need to visit the Portuguese Consulate in your home country, or at SEF(. Yes. Citizens of these countries should apply for the Portugal Temporary-Stay Visa the same way as US citizens so long as they meet the income requirements of 2,800 per month. Taking on the potential talent and tax implications of remote work. Several European countries offer visas for digital nomads, including Croatia, the Czech Republic, Estonia, Germany, Greece, Hungary, Iceland, Italy, Malta, Romania, and Norway. For short-term stints, you dont necessarily have to apply for a work visa. Aside from getting employer approval, the biggest challenge is typically finding affordable accommodation. But if you see yourself establishing roots in Portugal and starting an original business from scratch, an Entrepreneur Visa can serve you well until you gain citizenship. Lets have a quick look over some of the famous cities in Portugal, maybe this will help you decide which one to pick as your destination for remote work. This option is a great option for you to socialize and expand your network in the country. At Bright!Tax, we specialize in filing US taxes for expats, but our clients also get access to a network of vetted foreign filing partners in other countries (including Portugal)! It doesn't matter if you travel frequently, as long as you spend the minimum amount of days. Portugals governing tax body is the Autoridade Tributria e Aduaneira, or Portuguese Tributary & Customs Authority. A one-bedroom apartment will run between 400 and 670 Euros per month. One significant advantage of the Portugal Digital Nomad Visa is that recipients are able to travel throughout the Schengen Area visa-free without having to deal with border control. Its also worth noting that there are other accommodation sites as well, for example Flatio, Spotahome, HousingAnywhere and Booking.com. Read about our commitment to our clients here. This initial visa lets you stay for 120 days, before which time you must visit the SEF (Servico de Estangeiros e Fronteiras) to register as a resident. Portugals location lends itself well to traveling throughout Europe (including visa-free travel to the Schengen area) or Northern Africa, and the relaxed Southern European business culture present in Portugal might be appealing for remote workers. You will find a lot of remote workers like you in Portugal, hence there are many meetups and community groups there. Its even home to the UNESCO World Heritage Site Ribeira riverside. As such, you must show that you either have a company operating in Portugal (you can invest in an existing company) or that you have the resources to set up such a company. You dont need to be a citizen to work remotely from Portugal. Remote workers making at least . If qualifying for NHR is important, its a good idea to speak to an advisor and check how your income will be taxed in Portugal. The weather tends to be warm to hot in the spring and summer. You may be eligible for significant tax advantages under, Step-By-Step Guide as a Freelancer in Portugal, Another possible visa option is the D7 Visa also called the Passive Income Visa, which is open to non-EU citizens, as long as they can prove that they have sufficient funds to sustain themselves in Portugal. Luckily, Portugal is 24th in the world for broadband internet speeds. If you are bringing a spouse, you must show another 50% on top of that (4,230 per year) and another 30% on top of that for a dependent child (2,538 per year). Digital nomads wishing to stay in Portugal should look to the Temporary-Stay Visa. Acceptable evidence includes a rental agreement, Airbnb or hotel booking, or a letter from someone who will provide you with accommodation in Portugal. In addition, you can transfer your tax residency to Portugal if you wish, but you will not face Portuguese tax responsibility unless you spend more than 183 days a year in the country. It is then down to the discretion of the Embassy to decide whether to accept your application. They are responsible for: Youll manage your tax dealings through their online tax office portal, Portal das Finanas. Over the past few years, Portugal has started to attract thousands of remote workers, freelancers, and digital nomads who want to move to Portugal, but continue earning from their remote jobs abroad. ), Criminal record certificate (certified by Apostille), Proof of valid health insurance (for the first four months of your trip). Andy has been running a fully remote digital marketing agency over the past nine years while traveling to more than 50 destinations. The pins are 19 mm long and 19 mm apart. If you are self-employed, you will need to demonstrate proof of this. Insurance for digital nomads and remote workers. The D2 visa is for entrepreneurs and business owners who want to either start a business in, purchase a business in, or move their business to Portugal. The amendments brought to light a much more detailed regulation for remote working options (teleworking) which includes more options and, to that extent, flexibility, whilst setting, nevertheless, mandatory provisions on certain subject matters. It would take months and tens of thousands of dollars to get set up properly in Portugal. Its even home to the UNESCO World Heritage Site, Since many tourists in the Algarve hail from the UK, English is widely spoken among the local population, so you wont need to worry about the language barrier. There are five visa types available for digital nomads wanting to live and work in Portugal. We love working remotely and drinking coffee. After this five-year period, you can apply for permanent residency and eventually citizenship. Portugal is rated among the safest countries in the world by the Global Peace Index. For non-EU citizens who wanted to live and work remotely in Portugal the following options are possible: Your business can easily hire employees in Portugal without opening a local entity. You (and your dependents) must have a clean criminal record. However, you can appeal the decision if it is something like insufficient justification for the application or insufficient proof of income. One significant advantage of the Portugal Digital Nomad Visa is that recipients are able to travel throughout the Schengen Area visa-free without having to deal with border control. If you prefer a slower pace of life but dont want to sacrifice creature comforts or work essentials, Porto is a great option. The VAT is the tax levied on goods and services. released by Kayak, the worlds leading travel search engine, Portugal ranked #1 as the best country in the world for remote work, ahead of countries like Spain and Japan, thanks to its accessibility for remote workers, great weather, safety, and high English proficiency. The D7 Passive Income Visa is best for those wishing to stay up to two years. Tax benefits for "digital nomads". You will need to personally visit the embassy or application center to have your fingerprints and photo taken and submitted as biometric information. First, you can invest in property or an investment fund. It lasts for two years and can be renewed for an additional three years, at which point holders can apply for permanent residency. This river valley is a popular winemaking region that still uses historical methods for processing its grapes. It is focused more on areas like Lisbon and Porto, as well as some surf and beach towns between these cities. They will pay 15 per cent tax during the first four years of their stay instead of the usual 24 per cent . It lasts for two year, and can be renewed for an additional three years, at which point holders can apply for permanent residency. There is another alternative to Airbnb, which is. Citizens of EU nations have the right to live and work in Portugal. The rapid advance of remote work has led many states to update their TC&I programs to reflect the changing nature of work. Currently, the decision to reimburse work from home is still up to each individual employer and is not obligatory. Portuguese property tax rates vary from municipality to municipality. According to Ricardo Reis from the consultancy Deloitte . The process for proof that you do not have a criminal record depends on your country of origin, but the certificate verifying your status must have been issued within the last three months. A Temporary-Stay Visa for Portugal allows digital nomads to stay in Portugal for one year, after which time you can renew it up to a total of five years. Register now, and your Bright!Tax CPA will be in touch right away to guide you through the next steps. But if you like to be in the middle of the action, you can work in Portugal during tourist season or live in one of the major cities like Porto, Lisbon, or Peniche. There are several advantages: no taxes on foreign income; 20% tax on income earned in Portugal compared to standard Portuguese income tax rates of up to 48%; social contributions 10% which is considerably less than . 1 Christmas allowance. Permits take about two weeks to process and will be sent to your home address in Portugal. The region is known for its pleasant winter temperatures and stunning ocean view. The country is known for being one of the most economic places to live in Europe. ), Portugals Immigration and Border Service. It is actively running tourist campaigns to attract remote workers and digital nomads and, as of September 2022, it has introduced a new visa for digital nomads and remote workers. Portugal's popularity among remote workers is due, among other reasons, to the low cost of living, mild weather, abundant co-working spaces, connections to major European cities and the country . One of the most affordable programs of its kind, the D7 visa requires applicants make only 7,200 euros or about $7,011 a year to qualify. The Algarve is the perfect setting for remote workers that are looking for year-round pleasant weather. However, doing so can trigger expensive exit taxes and significantly complicate your ability to travel to or reside in the US in the future. In order to qualify, US expats moving to Portugal must a) have already been granted a visa that allows them to meet the tax resident requirements and b) not have resided in Portugal within the last five years. You can also consider co-living spaces, which are hostels for freelancers and remote workers who can live and work together. There are various reasons a visa application may be denied, and it usually relates to not meeting one of the specific requirements. Under Portuguese tax law, any fixed place of business in Portugal through which the business of an enterprise is wholly or partly carried on is deemed to constitute a PE in Portugal. new visa for digital nomads and remote workers. You can expect to pay: Currently (September 2022), the Euro and the U.S. Dollar have a 1:1 value. Lets start with what to watch out for. If you work as both an employee and a contractor for separate Portuguese companies, you may not have to pay social security taxes on contractor earnings if the withholdings from your work as an employee cover it. Take a break to tackle hiking trails and swim through waterfalls. Portugal is also more affordable than neighboring European countries. It is also necessary to have a NIF when making your residence permit application in Portugal. In that case, you must file a tax return and pay your taxes in Portugal. Each visa can be renewed after expiration until the holder has lived there for five years, at which point they can apply for permanent residency. That means you have to start filing income tax returns within Portugal and pay taxes to the Portuguese government. Both our local employee as well as our HQ in Germany are more than pleased with the support provided and the simplicity of the service. If you are applying at an Embassy, you must pay via money order at a local branch. This number is also required for most financial transactions, including opening a bank account and purchasing property, but also more basic financial transactions, such as obtaining an internet contract and making online purchases. Horizons team provided a superb service from start to finish, making a complex process a simple one. It is focused more on areas like Lisbon and Porto, as well as some surf and beach towns between these cities. He is a contributing writer for various organizations and media involved in the digital nomad industry (AllWork.Space, e-Residency Estonia). Find out more information about your application appointment here. You are required to provide proof of accommodation in Portugal for the first 12 months of your visit. Internet connections are excellent, coworking facilities are plentiful, and there are many other digital nomads to share your experience. The remote work visa program is open to the same nationals as the visa-free visit. . It also allows you to try multiple co-working spaces before deciding to settle on one. After this, if you still meet the requirements, you can apply to extend your visa for another four years. Continue reading for the full scoop. Covering letter explaining your visa request (must include your personal details, why you are requesting a visa, any personal ties you have to Portugal, where you plan to stay, and how you will finance your time in the country), Valid Passport (with at least six months of validity), Proof of regular income meeting the minimum requirements (bank statements, letter of employment showing income, investment statements, pension certificate, etc.