Introduction:
Portugal has emerged as a favored destination for digital nomads and professionals seeking flexibility in their work arrangements and freedom of movement. In this text, we will explore the reasons why Portugal serves as an interesting case study for understanding the interplay between mobility and remote work.
Firstly, it is important to highlight the unique combination of factors that make Portugal particularly attractive. The mild climate, extensive coastline, and diverse landscapes create an ideal environment for those pursuing a balanced lifestyle.
Additionally, the relatively low cost of living compared to other European countries positions Portugal as an appealing option for digital nomads and remote workers seeking economic opportunities. The cultural richness of the country, including its history, cuisine, and traditions, further enhances the experience of those who choose to live and work in Portugal.
While digital nomads contribute positively to Portugal's economy through their purchasing power and cultural diversity, the rising demand for temporary housing has also impacted the rental market in major urban centers, especially Lisbon and Porto.
In light of these considerations, this text will delve into key aspects of Portugal's role as a case study in the context of freedom of movement and remote working. It will cover immigration, labour, social security, and taxation issues in relation to digital nomads.
Digital nomads: from visas to residence permits in Portugal
At the onset of the digital nomad phenomenon, there was no specific visa category for this growing demographic. Individuals seeking to live in Portugal while working remotely for foreign entities had to apply for a residence permit intended for individuals with taxable income. This visa typically catered to those receiving passive income, such as pensions, dividends, or retirement benefits.
In response to this gap in the legal framework and the increasing demand for temporary residence in Portugal, the country introduced a dedicated visa category for digital nomads (D8) in 2022.
Visas for Digital Nomads in Portugal
Under Portuguese law, a digital nomad is a third-country national[1] who resides in Portugal to work remotely for an individual or entity domiciled outside Portugal, either as an employee or a self-employed professional.
The Portuguese Immigration Act outlines two types of visas for digital nomads: a temporary stay visa and a residence visa.
Both visa applications must be submitted at the Portuguese Consulate responsible for the applicant's place of residence. For instance, a Brazilian citizen residing in Espírito Santo would apply at the Consulate General of Portugal in Rio de Janeiro.
The temporary stay visa allows entry and residence in Portugal for up to one year, with the possibility of multiple entries. Digital nomads must provide the following additional documentation, in addition to the standard visa requirements:
For employees:
· Employment contract;
· Letter of employment offer;
· Statement from the employer confirming the employment relationship.
For self-employed individuals:
· Service agreement;
· Proposal for a service contract;
· Documentation evidencing services provided to one or more organizations.
Applicants must also demonstrate proof of an average monthly income over the last three months, equivalent to at least four Portuguese guaranteed minimum monthly salaries, along with documentation certifying their tax residency.
The residence visa, on the other hand, allows two entries into Portugal and enables the holder to stay for four months to apply for a residence permit. Similar documentation is required, with proof of employment or self-employment and income being key components.
Digital nomad visas also allow for family reunification, permitting spouses and dependent children to join the nomad while they live and work remotely in Portugal.
Residence Permit for digital nomads
Once in Portugal and holding a valid residence visa, digital nomads must apply to the Agency for Integration, Migration, and Asylum (AIMA, I.P.) for a residence permit. This permit is valid for two years and can be renewed in three-year increments. Applications are submitted in person at any AIMA office, with the following documents required[3]:
· Two passport-sized photographs;
· Valid passport;
· Residence visa for remote professional activities;
· Statement from the employer or client outside Portugal;
· Declaration of residence, indicating whether the applicant is a homeowner, tenant, etc.
Living in Portugal as a digital nomad offers access to public health, education, and business services.
The residence permit also facilitates family reunification, allowing immediate family members to join the nomad[4]. During this time, they can also travel freely within the Schengen Area for up to 90 days without needing additional visas.
After five years of residence, digital nomads may qualify for either a permanent residence visa or long-term resident status. Additionaly, digital nomads may apply for Portuguese citizenship after five years of legal residence in Portugal.
Final remarks:
Although the term "digital nomad" may not fully capture the essence of remote work legislation, Portugal's introduction of digital nomad visas represents a significant innovation in immigration law, offering new avenues for legal entry and residence. The dual visa structure allows Portugal to accommodate both short-term digital nomads and long-term remote workers.
Now that you are familiar with the options for living in Portugal with a visa or residence permit, stay tuned for the next article, which will focus on labor laws and conducting professional activities in Portugal.
