The Portuguese Government announced the introduction of a new visa for digital nomads, which came into force on the 30th October 2022, allowing remote workers and/or self-employees to pursue their profession in Portugal.
Portugal is one of the oldest countries in Europe with striking historical and cultural attractions, an idyllic climate, superb cuisine, a low cost of living, low taxes and is regarded as one of the safest countries in the word to live and work. Portugal is destined to become a new oasis for digital nomads.
Overview
In October 2022, the Portuguese Government implemented, article 61.ºB, the Digital Nomad Visa which allows, foreign professionals to provide their services remotely, either as a subordinate worker (employee), or as an independent worker, in Portugal, for the maximum period of one year.
Each individual needs to provide; a work contract from a company based outside of Portugal, or a company incorporation contract, or proof of being self-employed and a commitment to register as an independent worker.
The most important requirement to obtain the Portuguese Digital Nomad visa is the salary. Each applicant needs to demonstrate that they earn the equivalent of four times Portugal's minimum monthly wage, which is €705, therefore making the monthly income required a total of €2,820. Portugal's minimum monthly wage is expected to increase to €760 euros in 2023.
Individuals also need to be a citizen of a non-European country, in order to apply for the Digital Nomad Visa.
What is the difference between a D7 Visa and the Digital Nomad Visa?
The Digital Nomad Visa is an alternative to the D7 Visa. In order to apply for the D7 Visa, revenue must come from passive income, such as real estate investment or a pension.
To obtain the Digital Nomad Visa, passive income is not required – the salary is the important factor, as detailed above.
Step 1: Portuguese Tax Number and Opening a Portuguese Bank Account
To apply for the visa, individuals need to prove that they have sufficient means of subsistence in Portugal for the period of their stay. That means a Portuguese bank account, and consequently a Portuguese tax number, are both required.
A deposit of the minimum wage, multiplied by the number of months the individual is staying in Portugal, is then mandatory as evidence to the Portuguese Immigration Authorities.
Step 2: Collect Documentation
Gather all of the documents necessary to be submitted at the appointment at the Portuguese Consulate:
General documentation to request a visa
- Proof of legal residency on the country where you are applying
- Travel insurance covering necessary medical expenses
- Return airline ticket
- Criminal clearance record
- Proof of accommodation in Portugal for the period of your stay
- Proof of means of subsistence in Portugal
Specific documentation for the Digital Nomad Visa
- In the situation of subordinate work, i.e., as an employee, one of the following documents is required:
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- Work contract; or,
- Promise of work contract; or,
- Declaration by employer confirming the labour link.
- In the situation of independent professional activity, one of the following documents is required:
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- Contract of incorporation of company; or,
- Contract of provision of services; or,
- Written proposal of provision of services contract; or,
- Document confirming the services to be provided to one or more entities.
- Proof of average monthly income for each of the last three months, with a minimum monthly value, equivalent to four Portuguese monthly minimum wages.
- Document confirming your tax residence.
Step 3: Legal Formalities
The next step is to make an appointment at the Portuguese Consulate, where a meeting will be organised to submit the documentation and collect biometric data for the Visa.
Step 4: Final Steps
After analysis of the application is complete, the Digital Nomad visa is issued for the period of the work contract, up to a maximum period of one year.
Advantages
Apart from tax benefits and other advantages, Portugal has 3 cities in the Nomad List of top 10 best cities in which to work remotely.
Lisbon is rated as the best city, whilst the island of Madeira also rates highly. Important factors include internet speed and entertainment, specific communities with a social structure, co-workspaces, and medium-term accommodation, each of which are important to Digital Nomads.
Madeira established the first Digital Nomad Village in Ponta do Sol, where Digital Nomads enjoy free workspaces, with high-speed broadband internet, spectacular scenery, and a vast array of activities.
Why Should You Reach out To Dixcart?
Taken into account that the Digital Nomad Visa is a very recent option as a visa in Portugal, it requires guidance from experts with sufficient experience and knowledge of immigration law.
Information is available on the internet that may assist you in obtaining the Digital Nomad Visa on your own, but this may come with many hurdles that our team are familiar with and that can easily be avoided with the help of a professional.
In addition, Dixcart can provide tax planning, among other services, that can assist when relocating. Tax planning is considered necessary before your actual move to Portugal, as arriving unprepared may result in unfavourable tax consequences that could have easily been avoided.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
