D8 – Digital Nomad Visa
The Digital Nomad Visa (D8) is aimed at people who can work from home while living in Portugal. The COVID-19 pandemic made this working model very popular and in 2022 the Portuguese government decide to take advantage of the fact. And, as expected, it worked, since many expats have chosen Portugal for its balance of affordability, safe environment, great weather, and good quality of life. Let’s find out more!
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What is the Digital Nomad Visa in Portugal
Since October of 2022, the Portugal Digital Nomad Visa is available to non-EU citizens who are employed by a company outside of Portugal or self-employed. This visa, which is officially known as the ‘residence visa for the exercise of professional activity provided remotely outside the national territory,’ allows holders to live and work in the country for up to one year. It’s a great alternative to the already existing D7 Visa, which was introduced to attract retirees and passive income earners.
How to get a Digital Nomad Visa in Portugal
Portugal offers two types of visas for people who work remotely or earn passive income. And it all depends on how long you intend to live in the country.
Digital Nomad Visa Option #1: Temporary Stay Visa
This temporary visa is suitable for the most nomad of digital nomads. It allows you to stay in Portugal for up to one year and freely leave and re-enter the country during this time. If you end up deciding to stay long-term, the visa can be renewed. The application process is very similar to that of the D7 Visa.
Conditions for the Portugal Digital Nomad Visa
- Non-EU or EEA citizenship
- A passport, valid for at least three months following the duration of your intended stay
- Two passport photos
- Health insurance
- Criminal record from your country of origin
- A form that authorises the SEF (Immigration and Border Services) to access to your criminal record
- Proof of means of subsistence through a statement of responsibility
- A salary of at least €3040 (four times the Portuguese minimum wage)
- A work contract or agreement for your independent or temporary work activity
If you’re unsure whether you want to live and work remotely in Portugal long-term, this visa is optimal for you. It gives you up to a year to think about it and the option to extend it up to four times for a maximum of five years.
Digital Nomad Visa Option #2: Residence Visa
For those sure about making Portugal their long-term home, the Digital Nomad Visa option #2 works best. This visa allows remote workers to stay in Portugal longer, get residency, and obtain Portuguese citizenship after 5 years.
For the application process, you are subject to the same conditions mentioned above, but to obtain the residence permit after moving to Portugal, you will also need:
- An interview with the SEF
- A NIF (Número de Identificação Fiscal), which is your personal tax number
- Portuguese bank account
- An employment contract from a foreign employer
- If you’re a freelancer, you’ll have to show a contract that proves you work with clients
- Bank statements and payslips/invoices to prove your monthly income
- Proof of personal tax residence in Portugal through a 12-month rental agreement registered with the tax authority
Portugal Digital Nomad Visa Process
To obtain the digital nomad residence visa, you’ll have to be granted a double-entry visa by the Portuguese consulate in your country. This visa will be valid for four months, during which you have to visit Portugal and apply for a residency permit at SEF.
Here’s a quick overview of the two phases involved in the process:
- Phase 1: Embassy – This is when you’ll submit your application for the digital nomad visa at the Portuguese consulate in your home country, with all the documentation mentioned above
- Phase 2: Residency Permit – Once you go to Portugal with your digital nomad visa, you’ll apply for the residency permit at the SEF. During this 4-month window you must find a home and meet all the conditions stated
Are there tax benefits for digital nomads in Portugal?
Yes. With the temporary stay Digital Nomad Visa, you will only be charged a 15% tax rate, as opposed to the standard Portuguese 25% for the whole duration of your stay, up to four years. Additionally, as a freelancer with a Portugal Digital Nomad Visa, you can obtain the NHR (non-habitual resident) status, which comes with the following benefits:
- No taxes to pay on foreign income
- 20% tax to pay on income earned in Portugal (compared to up to 48% income tax which is the standard in the country)
- 10% social contribution, which is less than the standard rate
However, keep in mind that only new tax residents can obtain NHR status in Portugal. While NHR status is issued for 10 years, it will have to be confirmed every year.
How Can You Get NHR Tax Status?
To be eligible for NHR tax status, you must have lived in the country for a total of at least 183 days within the last year and own or have a property where you pay rent in Portugal.
These are the steps to obtain NHR status:
- Register as a taxpayer in the NIF system
- Apply for NHR no later than 31 March of the year following the year that you change your residence
What About Private Health Insurance?
The prolonged Digital Nomad Visa warrants you access to the Portuguese public health care system; however, it’s wise to pay a bit extra for private health insurance. Not only does this give you access to a wider range of doctors and medical services, but you’re also more likely to come across personnel who speak English.
Depending on what country you come from, your age, and how extensive you want your coverage to be, there are different options for you. Check your country of origin or the internet for insurance that best suit your needs.
Let Pearls of Portugal Help You
The Portugal Digital Nomad Visa is one of the best ways for foreigners to live and work in the country. If you want to become a digital nomad through an easy and seamless process for obtaining the appropriate Portuguese visa, we can help! Learn more about what our beautiful country has to offer and how we can assist you by getting in touch with us today!
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