The consent submitted will only be used for data processing originating from this website. Citizens of EU nations have the right to live and work in Portugal. Find the perfect home for your new adventure. Portugal Employer of Record (EOR) | Boundless The D7 visa is for individuals who can financially support themselves entirely through recurring passive income, such as payments from retirement plans or trust funds. 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"Those who work remotely do not necessarily look for the large urban centers that are the most problematic in terms of rental prices," she said. . Additionally, there are ongoing discussions about lowering the tax rate to 5%! We use cookies to ensure that we give you the best experience on our website. Usually, there are between five and six hours of sunshine each day. In this article, well provide you with everything that youll need to know about working remotely in Portugal that we deem to be crucial information for you to soak up, including: The Digital Nomad Visa will launch on 30 October 2022 and will allow remote workers to live and work in Portugal. for this category of accommodation search. An example of data being processed may be a unique identifier stored in a cookie. Portugal Digital Nomad Visa - Requirements for Application For non-EU citizens, the path to live and work in Portugal was less clear before October 2022. Post-covid many companies are allowing their employees to do this, although it does vary from company to company. The Physical Presence Test requires expats to prove that they were physically present in another country than the US for at least 330 of 365 days. declare that your previous failure to file taxes was due to a lack of awareness. If you are self-employed, you will need to demonstrate proof of this. You can collect your passport and visa from the location where you applied, or you may have opted to have your passport and visa sent to you via secure post at the time of your application. After you have lived in Portugal for at least five years, you can apply for citizenship. This is a good option to limit risk and hire employees compliantly; however, it is an extremely resource-intensive option that would require local knowledge of relevant employment laws. If you are a Citizen from Canada, Australia, or New Zealand, Portugal Temporary-Stay Visa Requirements, Documents Required for Paying Taxes in Portugal, How to Apply for the Portugal Temporary-Stay Visa - Step-By-Step Instructions, Step 2 Complete the Application Form and Cover Letter, Step 5 Enter Portugal and Register as a Resident, Timeline for Applying for a Portugal Digital Nomad Visa. Hire in 180+ countries in 24 hours, without a subsidiary. , its more common and offers more spaces. Your application form will also ask you to specify how you would like your passport to be returned to you following the application process. A Productive Rant About Working Remotely From Coffee Shops, The Best Freelancing Tips And Tricks Build A Business You Love. Our, Working Remotely in Portugal: The Ultimate Guide, Remote work has never been more attractive and possible. Accommodation and food are affordable, and the internet speeds are excellent. This program is mainly targeting startup owners who have a business plan and are willing to move and establish their business in Portugal. The top places to work remotely in Portugal. You must submit your application, supporting documentation, and visa fee at your local Portuguese Embassy. Insurance for digital nomads and remote workers. Remote work has never been more attractive and possible. But once you go past 183 days, you're legally a tax . If your pension income is taxed in Portugal, you will pay a flat rate of 10%, including retirement savings and insurance. Stay up to date with what you want to know. The date of your appointment will be provided as part of your visa documentation. EU citizens have all the right to live and work in Portugal, as the country is part of the EU, and if they intend to migrate their residency to Portugal, they will just need to apply for a residence permit and register to get their tax number. This letter should include: Each applicant will need their own cover letter, but cover letters for dependents are likely to be shorter and refer to the documentation of the principal applicant. After these five years, you can apply for a residency permit based on your time in the country. Where you plan to stay while in Portugal and the type of accommodation you will use. There is no need to make an appointment; just show up during opening hours. Gas for a car, on the other hand, is quite a bit more expensive. All rights reserved. new visa for digital nomads and remote workers. The low cost of living, low cost of amenities, and mild climate mean that employees earning income from foreign companies can afford a good lifestyle in the country. Its a perfect destination for remote workers and offers many cafes and co-working spaces. Any ties you may have to the country, including family and friends, owning property, business investments, etc. If you are applying via a VFS Global visa partner, you will be able to pay online. The Temporary-Stay Visa is best for digital nomads looking to work remotely from Portugal. It will also cost you more to purchase a vehicle in Portugal than in the United States. The second-largest city in Portugal, Porto offers cheerful vibes and welcoming people. Momondo ranked Portugal #1 worldwide for living and working remotely, Contact us if you want to hire remote workers in Portugal. You can expect it to take 3-4 months for your visa to be processed. In Portugal, you will try the salt cod, tomato stews packed with prawns and mussels, tasty salmon, and grilled sardines. to test your internet connection speed in your accommodation. For SIM cards, the main three mobile companies in Portugal are. Your business idea also has to be 100% original. 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. 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. Even after your NHR status expires, you can use the FTC to subtract any rental income taxes youve paid to the Portuguese government from what you owe in rental income taxes to the US government. To view the purposes they believe they have legitimate interest for, or to object to this data processing use the vendor list link below. There are also big Tech warehouse sellers and big Apple stores in the main cities and the shopping malls. Launched in January 2022, Brazil's new Digital Nomad Visa is enticing a new type of traveller to the South American country. As an NHR, you can be exempt from paying tax on pensions, rental income, real estate gains, and income from non-Portuguese sources if your country has a Double Taxation Agreement (DTA) with Portugal. The D2 Visa and the Golden Visa are targeted at those looking for permanent or semi-permanent residency and require that you transfer a lot of your assets into the Portuguese economy. Winters can involve more rain and wind. The requirements are that you will need to earn more than four times the national minimum national wage, which amounts to around $2,750 (2,836) per month. Income from high value-added activities in Portugal will be taxed at 20%. According to Ricardo Reis from the consultancy Deloitte . Overall, working from Portugal can be affordable and broaden your perspective. As of 2022, the minimum salary in Portugal is 9,870 euros per year, and the minimum monthly salary is 822.50. It can take more than four months for an appointment date to open up. The Portugal digital nomad visa regime is one of the most attractive in Europe, making the country a most suitable option for individuals who wish to set up their headquarters for remote work in a beautiful and vibrant country. How do taxes work for remote workers? It's complicated. - Vox If you are self-employed, you will need to demonstrate proof of this. ", "On deciding to begin commercial activities in Asia Pacific, we needed a provider to handle the employment and remuneration of our workforce. It is about 10% cheaper than in Spain, and around 25% cheaper than in France. Let's look at the residency procedure then. Once you have received your visa, you are free to enter Portugal. It is worth mentioning that Portugal ranked the world's best country for digital nomads in 2022. Whats more, as of 30 October 2022, Portugals new Digital Nomad Visa will launch, allowing remote workers to be granted a year-long visa to work in Portugal, so long as they meet the requirements. Remote Working in Portugal: The Ultimate Guide - GoVisaFree We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. Remote working in Portugal is a great choice for freelancers and remote workers, considering the low cost of living, internet connectivity, and wide range of activities. Tax Implications of Remote Work | Deloitte Take a break to tackle hiking trails and swim through waterfalls. This is the most affordable option that offers full compliance. Hungary's digital-nomad visa, formally called a "white card," has a slightly lower monthly income threshold of 2,000 euros and allows for visa-free travel through the Schengen Area. You must have proof of accommodation in Portugal for one year (rental agreement, hotel booking, etc.). Portugal is also more affordable than neighboring European countries. 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 Non-Habitual Residence tax regime grants new Portuguese tax residents 10 years of lower taxes (talk about a nice housewarming gift!). Portugal is rated among the safest countries in the world by the Global Peace Index. Employees cannot work for more than five hours without a rest period. Portugal ranked number 7 in the Global Ranking of English Proficiency, even above Sweden, Germany, and South Africa. GLOBAL CITIZEN SOLUTIONS UNIPESSOAL LIMITADA | NIPC 516027212 AMI 17987 | . Usually, you will receive a letter stating why your visa was denied. Check, Regarding the language, the Portuguese language is the official one in Portugal, but no need to worry, your English will do. For a more lively environment, think about Supertubos beach and Peniche town. If you set up shop and work remotely from Portugal for 183 days or less, you don't have to worry about income tax implications. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. The social security tax rate in Portugal is 34.75%. If this describes you, plan on working remotely during the fall, spring, or winter. A fixed place of business means a place of management, a branch, an office, a factory, a . You can find a list of Portuguese Embassies around the world here. Most people who choose to work remotely in Portugal start their accommodation search on Airbnb, its more common and offers more spaces. And if youre moving from one primary home to another, you may qualify for an exemption. Pickpocketing and bag snatching can be common in major cities. So, it wont be subject to Social Security or Medicare taxes, but you also wont be able to exclude it using the FEIE. There are also different types of visas and Residency Permits which you may find a suitable option for your case. This is why it is essential to gather, translate, and notarize relevant documentation carefully. Work Remotely From Portugal (And Do It Legally) - Job Latte A monthly pass for public transportation is around the same as it is in major U.S. cities. Many remote workers avoid getting a no from their employers by simply not telling them and not staying long enough in Portugal to create any problems. "You have tremendous talent going there, tremendous wealth going there.". Single-bedroom apartment in Lisbon per month: 800-1,000, Single-bedroom apartment in Braga per month: 400-600, Monthly electricity, water, and related bills: 120, Public transport: 1.70 per one-way ticket, 40 per month. The city centers around the Ribeiro riverside, where you can drink Port made just meters away. Major cities like Lisbon also tend to have sizeable ex-pat communities. In a survey from FlexJobs, the remote job search site, 60 percent of women and 52 percent of men said they would consider looking for a new job if they could no longer work remotely; 62 percent of . 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. It lasts for two years and can be renewed for an additional three years, at which point holders can apply for permanent residency. Hire in 180+ countries in 24 hours, without a subsidiary. 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. With the accommodation options from Airbnb, you can have your own place where you can cook, live and work independently. If you choose to do so, be aware that youll need to report any income and expenses associated with it to the IRS on Schedule E and Part I of Form 1040. The visa offers those with proof of a remote job the opportunity to live in Portugal while maintaining their remote work that generates at least 2,800 a month. If the climate is part of your decision to work from Portugal, youll be pleasantly surprised if you like warm weather and sunshine. Many employers and employees underestimate the tax implications of remote work. Find out more information about your application appointment here. The Baleal village in the north also offers sea-view cafs and fishing taverns. Many people choose this program to receive significant tax benefits on the same income. It is focused more on areas like Lisbon and Porto, as well as some surf and beach towns between these cities. At this stage, you will need to pay the visa application fee, which is currently around 180 per person, depending on the country you are applying from. Aside from getting employer approval, the biggest challenge is typically finding affordable accommodation. Tax Benefits: - Flat rate of 20% for income from dependent work (category A) and independent work (category B) obtained in Portugal, derived from high value added activities. ", "I truly appreciated the thoroughness and the professionalism of Horizons personnel while we hired internationally with them. Around 20% of the population of the Algarve are expatriates, while the national average is 5%. 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. The visa requirements vary based on nationality and type of income, according to the Netherlands' immigration agency. 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. However, Citizen Remote offers full-service visa help to get you from start to finish until your visa is in hand. As remote work becomes more and more of a possibility of people, more and more people are looking at Portugal as a remote working destination. In Portugal, employees get 14 months of salary payments each year: 12 months of work. You can provide evidence of your own existing resources or proof of a bank loan from a Portuguese bank. Often a SEF appointment will have been made on your behalf when you applied for your visa. There are five visa types available for digital nomads wanting to live and work in Portugal. You may also use fast.com to test your internet connection speed in your accommodation. Now lets move to where you will work. Remember that your application also needs to be supported by a cover letter. It is recommended to have proof of at least 5,000, but there is no minimum requirement. These countries include Austria, France, Greece, Hungary, Germany, Finland, Italy, Denmark, Belgium, the Czech Republic, Estonia, Luxembourg, the Netherlands, Poland, Norway, Malta, Slovakia, Spain, Slovenia, Switzerland, and Sweden. 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. Any expat who is still a US citizen or permanent resident must file a US tax return each year, even if they werent aware of their obligation. We are pleased with Horizons expertise and the fact that they are flexible, responsive, and easily accessible from Belgium. ANTIGUA AND BARBUDA Citizenship by Investment, ST KITTS AND NEVIS Citizenship by Investment, Malta Citizenship by Naturalization for Exceptional Services by Direct Investment (CES). Remote workers in Portugal have a variety of options to be able to live and work legally in the country, including the Portugal digital nomad visa (from October 2022). You dont need a co-working space, but they are useful for being productive and meeting other people. Independent contractors will not have social security contributions withheld from their earnings either, so they must make this payment separately as well. Meanwhile, you will pay the same income tax as a local resident, depending on your income level. Paying Taxes on a Portugal Temporary-Stay Visa, Best Cities for Digital Nomads in Portugal, FAQs about the Portugal Digital Nomad Visa, to track the progress of your visa application online. Canada's striking workers closer to resolving wage, remote work issues Digital nomads wishing to stay in Portugal should look to the Temporary-Stay Visa. He is a contributing writer for various organizations and media involved in the digital nomad industry (AllWork.Space, e-Residency Estonia). When you receive a Temporary-Stay visa for two years, you are expected to stay in Portugal for a minimum of 183 consecutive days (6 months) at some point during your visa period. Citizens from other countries must apply for a Schengen visa before arriving in Portugal. Everything was taken care of in an efficient and accurate manner, with quick communication whenever required. You will be required to provide proof of income for the previous three months, tax residency documents, and a contract of employment. It lasts for two year, and can be renewed for an additional three years, at which point holders can apply for permanent residency. If youre living in Portugal, contact us today to request additional information on filing Portuguese and US taxes. Portugal features a high-speed internet infrastructure with various WI-FI hotspots around the country. Can I legally work remotely from Portugal? You will need some proof of the services you do for Portuguese companies, and this will grant you the right to get a Schengen Visa. As one of the most affordable countries in western Europe, Portugal has a strong digital nomad community. This is aimed at those from outside the EU, and will be of particular interest to those interested in having a base in Europe and also obtaining an "EU passport."Many remote workers will also be able to take advantage of Portugal's NHR tax regime, which offers discounted tax rates for the first 10 years of residency, or Portugal's other . Ezzedeen Soleiman, a managing partner at Latitude Residency & Citizenship, told Insider in May that Portugal was one of the most in-demand "golden-visa" programs for wealthy American investors. Yes. Learn about remote work in Portugal thanks to Horizons up-to-date guide. The D2 Entrepreneur Visa and Portugal Golden Visa offer more permanent residence in return for investment. But once you go past 183 days, youre legally a tax resident in the eyes of Portuguese law. Starting October 30, remote workers can apply for either a temporary-stay visa of up to one year or a residency permit that can be renewed for up to five years. You can find more information in our article on the Portugal D7 Visa. Remote working in Portugal is a great choice for freelancers and remote workers, considering the low cost of living, internet connectivity, and wide range of activities. Access your favorite topics in a personalized feed while you're on the go. A Guide to Portugals Different Residence Permits (D1-D9). In more remote areas, the speeds may drop down some, but you still should be able to connect. Taxes & Working Remotely in Europe as a Freelancer or Business Owner You will be able to track the progress of your visa application online with a reference number provided to you. Hire Employees in Portugal: Employer of Record | Remote Regarding the language, the Portuguese language is the official one in Portugal, but no need to worry, your English will do. 1 Holiday allowance. Portugal may seem like a remote work paradise, but there are a few downsides to keep in mind. The D9 visa is aimed at investors and entrepreneurs who will be creating jobs, making large capital transfers, or purchasing real estate in Portugal. Culturally, Portugal is an excellent country for remote work. Keep copies of all your visa application documents, as you will need them again to make your residency application. 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. There are two contact areas at the top and bottom of the plug. Read More: Moving To Portugal: Visa Options Explained. Remote Work From Portugal - Opportunities And Challenges - Mondaq If you are keen to explore historic Portugal between conference calls and creative sessions, Braga is a nice city in the north. When they advised our international expansion, they spoke confidently and were knowledgable on all subject matters pertaining to international employment.