Digital Nomads continue to thrive in Portugal under the D8 Visa programme

Digital nomad Portugal: How to become one and how it can save you money

As more of us than ever now find ourselves working remotely, the attraction of being a ‘digital nomad’ has grown.

In short, it allows you to work from anywhere you can get a reliable high-speed internet connection (assuming you need one), opening up the ability to enjoy a better quality of life abroad while still fulfilling your work commitments.

Little wonder, then, that Portugal has proved an increasingly popular destination.

From hiking in Madeira to surfing in the Algarve, digital nomads can easily meld work and play. This, partnered with a welcoming Portuguese culture, a cheaper cost of living and lively social scene, makes it easy to integrate into the local community allowing you to live life to the fullest.

And the good news is that obtaining a Portugal digital nomad visa can be more straight forward than you’d think.

Courtesy of a number of tax breaks designed to specifically attract such workers - it can prove hugely financially beneficial too.

We'll go through the work visa options, including income requirement, to obtaining a Portugal digital nomad visa and how it differs from a residency permit, tourist visa or residence visa shortly.

Some options can see a zero-tax rate for money earned outside Portugal and dramatically reduced rates for income generated in the country.

All of which can put you within touching distance of swapping your workplace for the glorious countryside, dramatic coastline or vibrant cities of Portugal, all while boosting your bank account.

The good news is that high-speed internet is widely available across the country – especially in cities and major towns. Over four in five households in Portugal have fixed high-speed internet, with the average speeds in cities such as Lisbon and Porto averaging 110mbps.

Before you start tucking into your pastel de natas and downing cervejas, you’ll need to meet the application requirements. These are the nomad visa - and other stay visa options, which include how to attain a residency permit - open to you if you've fallen under Portugal's spell.

D8 Digital Nomad Visa

The tax benefits of a D8 visa mean 0% tax on foreign income and just 20% tax on income earned in Portugal. The D8 also offers the opportunity of either a temporary or residence visa, offering flexibility depending on your needs as long as you earn over are €3000 per month you should be eligible. Those taking the residence option will also have the opportunity to take a five-year path to Portuguese citizenship as well as the chance to apply for the generous Non-Habitual-Residency (NHR) programme.

To complete a D8 Digital Nomad visa application, you must be able to prove that you can work remotely, have proof of average earnings over four times the monthly minimum wage in Portugal, as well as employment contracts for your time in Portugal and have valid health insurance coverage.

D7 Visa

The benefits of the D7 visa include the ability to live and work in Portugal, travel freely within the Schengen area (thus avoiding the border service every time you move from country to country), apply for permanent residency or citizenship after five years, and access to Portugal’s healthcare and education systems. D7 visa holders can take advantage of the flat 20% tax rate for 10 years.

It is often referred to as a retirement visa or passive income visa.

To obtain a D7 visa, in your visa application you must provide proof of passive income into your bank account to sustain yourself during your time in Portugal. The current minimum requirements are €705 per month or €8,460 per year. It is possible to apply without passive income, provided the individual has adequate savings. It is also worth keeping in mind that you will need to provide a higher minimum income when applying with dependants such a spouse or children, with an additional €4,230 per year for each adult dependent applicant, €2,538 per child.

Non-Habitual Resident (NHR) Program

The NHR program offers a flat tax rate of 20% on eligible income, such as foreign-source income, professional income, and pension income. Individuals will benefit from a 0% tax on certain types of income, such as dividends, interest, and capital gains over the 10-year period.

To take advantage of the NHR program, you must have the right to be a resident in Portugal by being an EU/EEA/Swiss citizen or via the Portugal Golden Visa Programme, and you should not have been a Portuguese tax resident in the preceding five years.

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Visa Expert Author & Bio: Maria Santos

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Meet Maria Santos, a seasoned writer with a profound expertise in Portugal's multifaceted visa ecosystem. Maria specializes in unraveling the intricacies of visa options, such as the Golden Visa, D7, and Digital Nomad visas. Her insightful articles provide readers with invaluable guidance on the diverse pathways to securing a visa for individuals and families seeking to make Portugal their new home. Maria's expertise ensures that your journey to Portugal starts on the right foot, allowing you to embrace the vibrant life and stunning landscapes of this beautiful country.

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