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A Visa for the 21st Century: The Digital Nomad Visa

Nov 04, 2022

It is official: Portugal has a Digital Nomad Visa! Foreign citizens can now enjoy the sun, the beaches, and the amazing historical and natural vistas of Portugal while working remotely, running a business, or simply staying to appreciate and travel around this beautiful country.

While the concept of working remotely was not completely unknown before the recent COVID-19 pandemic, it is also true that there was a paradigm shift due to the mandatory confinements. The more traditional way of looking at work as something to be conducted in an office has given way, in many cases, to entirely or partially remote workplaces. A Digital Nomad is an individual with a job that is 100% remote and, due to the greater flexibility of this format, can move frequently from country to country and live in different places while working.

Portugal is considered an excellent choice for Digital Nomads because it is one the safest countries in the world, has beautiful landscapes, and one of the cheapest living costs in Western Europe. The Portuguese Digital Nomad Visa, which came into effect on October 30, 2022, allows individuals to live and work in the country.

There are two different types of Digital Nomad Visas, depending on how long you wish to stay in Portugal.

1. Temporary Stay Visa for Digital Nomads

If a Digital Nomad intends to stay for a brief period in Portugal, the Temporary Stay Visa is ideal as it is valid until one year and allows an individual to work as a self-employed freelancer or online business owner. This Temporary Stay Visa for Digital Nomads must be applied for at the Portuguese Consulate that serves the applicant´s current region of legal residence.

2. Residence Visa + Residence Permit for Digital Nomads

In case the Digital Nomad intends to live in Portugal for a longer period (more than one year), the Residence Permit for Digital Nomads would be the perfect solution. The application for this Residence Permit must be preceded by a special Residence Visa for Digital Nomads, applied for by the main applicant at a Portuguese Consulate serving the applicant’s current region of legal residence. This visa allows for a maximum of two entries and a stay of up to 4 months in the country. The visa also allows for the issue of residence permits for the applicant’s immediate family members under "family reunification" rules, with no need to apply for the special visa that is usually required (i.e. they may enter Portugal as tourists). Once in Portugal, the applicant will have to apply for the Residence Permit for Digital Nomads.

For both Visas (Temporary Stay Visa and Residence Visa), the applicant must submit documents attesting their average monthly income over the last three months, to a minimum amount equal to four minimum wages, a contract of employment or, for freelancers, a document that proves that they are self-employed service providers, plus a document detailing the applicant’s tax residence.

One of the most attractive aspects of moving to Portugal with these Visas is that, after 5 years living in the country, one can apply for Portuguese Citizenship. Once a resident in Portugal, Digital Nomads can benefit from the Non-Habitual Resident Tax Regime.

If you have further questions regarding this matter, get in touch with u s and she will be delighted to assist you.

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Benefits of Personal Income Tax for Young Professionals

by Diogo Pedro • 07 May, 2024

Over the past four years, young workers who earned their first income as employees or self-employed individuals have been eligible for a tax benefit in their personal income tax, known as 'IRS Jovem”. This benefit is intended to offer young workers the possibility of minimising their tax obligations, allowing for a higher amount of disposable income. To enjoy this benefit, taxpayers are required to comply with the following requirements: Have a complete course of level 4 or higher studies on the National Qualifications Framework (high school level acquired through double certification and aimed at pursuing higher education such as a bachelor’s degree, a master’s degree, or a PhD). Age between 18 and 26 years old. Considered independent, i.e., no longer included in the parent’s household for tax purposes. The specified age limit includes individuals up to 26 years old, inclusive. However, this limit is extended to 30 years old for taxpayers who have completed a degree at level 8 of the National Qualifications Framework (PhD). In 2024, this tax benefit has been improved, with increased tax exemption rates and an expanded range of applications over time. In this sense, upon completing the course of studies required, the individual may qualify for an exemption from personal income taxes for a duration of 5 years, as explained in the following details: 100% of the income in the first year with a cap of 40 times the Social Support Index – “IAS” value (€20.370,40). 75% of the income in the second year with a cap of 30 times the IAS value (€15.277,80). 50% of the income in the third and fourth year with a cap of 20 times the IAS value (€10.185,20). 25% of the income in the fifth year with a cap of 10 times the IAS value (5€.092,60). Moreover, the exemption can only be used once by the same taxpayer and should be requested when preparing and filing the personal income tax return. It is also important to acknowledge that this benefit has implications for withholding tax, allowing adjustments to the value subject to withholding tax. However, be aware that, while the withholding tax rate applied corresponds to the total amount of income earned, it is only applicable to the portion that is not exempt. If you have any questions or need assistance with this or related matters, feel free to reach out . We would be delighted to help you.

Being an urgent process, this legal action has priority over legal actions not deemed to be urgent.

My application has been pending for months with the Immigration Office - AIMA. What can be done?

by Sara Ferreira • 29 Apr, 2024

It is known to the general public that the Portuguese Immigration Office (AIMA) has not been able to timely approve residency authorisation requests within the legal timeframe defined to do so, thus resulting in residency applicants having their applications on hold for months, in some cases even years. One way to tackle this inaction from the Immigration Office is to file a legal action, namely the Subpoena for rights, freedoms and guarantees of the citizens.