Move to Portugal as a Digital Nomad

Being a Digital Nomad in Portugal is easier than you think. Our immigration and tax lawyers are here with comfortable and safe relocation assistance.

Whether you are a expat already in Portugal or are looking to work remotely from Portugal, we have the playbook to guide you through this process.

Why Portugal is the best place for Digital Nomads?

Portugal is a great destiny for those who love nature, great food, peace and fun. Remote workers from across the world are moving to Portugal and enjoying the freedom and experience of living in a very diverse country. Aside from being a Digital Nomad, you can register as a non-habitual resident and enjoy the range of tax benefits on offer to those who choose Portugal as their fiscal residence.

How to relocate to Portugal?

The best options are usually the Passive Income Visa, the Business Visa and the Independent Professional Visa as they simplify the journey towards a residency permit and working remotely in Portugal. Depending on personal circumstances, profession and financial situation, you can choose the type of immigration opportunity that suits you best.

How can a lawyer help you?

Our English-speaking lawyers offer full legal assistance for Digital Nomads who are planning to work as a freelancer or for their employer in Portugal. We provide exclusive support for your relocation including visas, residence permits, taxes, corporate issues and real estate.

Immigration process

For Digital Nomads, it is essential to account for your job circumstances as it’ll helps you understand, which residence permit option is best for you. Choose from the Passive Income Visa, the Business Visa and Independent Professional Visa.

1. Apply for Passive Income Visa:

If you have any passive income, like investments, savings, rental agreements incomes or pensions, you can apply for the passive income visa. The main requirement is to prove that you have means of subsistence to cover your expenses in Portugal. Once your passive income proof is approved and you obtain the visa, you can apply for the residency permit in Portugal. Once in Portugal as a resident, you can work as a freelancer or for a worldwide company. Also, you can register as a non-habitual resident to enjoy fiscal benefits.

2. Apply for Business Activity Visa:

You can also establish a company in Portugal as an expat. For a Business Activity Visa application, you must present a business plan as motivation for opening the business and the register the company. This visa allows you to apply for a Portuguese residency permit as a manager of your own business. However, requirements for Social Security as well as working with an accountant. The holder of this residency permit enjoys the same rights as a Portuguese citizen.

3. Apply for Independent Professional Visa:

Lexidy can support and guide your registration as an independent professional with the local tax authorities and social security. In addition to being registered as an independent professional, applicants must show a service agreement to apply for the independent professional visa.

TAX PROCESS

A Digital Nomad in Portugal could be subject to Portuguese Personal Income Tax. This occurs when any remote worker (i) spends more than 183 days physically in Portugal within a 12-month period, whether these days are consecutive or not (ii) for shorter stays where the person has a dwelling in Portugal and there’s the presumption of holding and occupying it as a place of habitual residence. If one of these situations occurs, the person is considered a Portuguese Tax Resident and must declare their worldwide income, which includes remote work income.

Furthermore, Digital Nomads are subject to tax on Portuguese sourced income even if they are not a local tax resident.

How to minimise Portuguese taxes?

To avoid double taxation, Digital Nomads must prove that they are a tax resident in another country, according to the rules of the relevant Tax Treaty. They must provide the Portuguese Tax Authority a tax residency certificate.

Non-Habitual Tax Resident Regime

Individuals who become tax residents in Portugal may benefit from the NHR Regime. Under this regime, foreign-sourced income may be exempt from Personal Income Tax in Portugal, depending on the type and the source of the income. The tax burden in the source country may also be reduced. Taxation on Portuguese-sourced income derived from the exercise of high value-added activities may also be minimised. The Regime applies for up to a ten year period.

COMPANY FORMATION PROCESS

Incorporating a company in Portugal is a smart strategy for accessing the European Market. With reduced costs compared to other EU countries and a rising technology cluster, Portugal is becoming a hub of innovation on the global market.

An expat is free to buy or to open a company in Portugal and, unlike other countries, there is no need for any special authorisation or restrictions on foreign capital. You can incorporate a company without a national partner and there are any limitations on distributing profits or dividends abroad.

The Portuguese regulatory framework is driven by the principle of non-discrimination of investment on the grounds of nationality or residence. Although, for tax purposes, there should be a valid reason for establishing the company in Portugal.

An expat investor should have a Schengen Visa to allow him to visit and direct the Company. Also, forming a company could be a path for issuing a business residence visa.