Features
TYPE
LENGTH
FEE
MIN AN. INCOME
LOCAL TAX
INTERNET
COST OF LIVING
RECOMMENDED Digital Nomad Visa
PORTUGAL Temporary Stay Visa (D8)
1-year stay in a Schengen country that can lead to a longer stay
For a long time, Portugal has offered D7: Passive Income Visa which although not Digital Nomad Visa, was a good existing alternative. That has recently changed with the introduction of the two digital nomad visas: the D8 Temporary Stay and Temporary Residency Visa.
The Temporary Stay Visa allows you to stay in Portugal for up to one year, and it’s perfect for digital nomads who want to experience the Portuguese lifestyle for a short period of time. While the Temporary Residency Visa allows you to stay for up to five years and is great for remote workers who want to explore Portugal for a bit longer.
PROS
- Various Tax Exemption under the NHR for up to 10 years
- Affordable living costs
- Good internet connection
- Strong digital nomad community & infrastructure
- Warm weather and stunning landscapes
CONS
- The NHR tax advantages don't necessarily mean 0% income
- Process for getting the visa might take longer then it should
- Things like getting a bank account, tax number etc might take a while
Specification: PORTUGAL Temporary Stay Visa (D8)
Taxes
Local Taxes
The Temporary Stay Visa doesn’t offer a specific tax exemption, however, Portugal offers two attractive tax regimes: the Non-Habitual Residence and the Simplified Tax Regime to anyone who is going to become a tax resident of Portugal. Unless, If you planning to only stay for under 183 days in which case, you will probably not become tax resident of Portugal but because ideally you need to have accommodation available to you for at least a year (not just 4 months).
Here is just a quick summary of each regime, you can read more about it here.
- Non-Habitual Resident (NHR) Program: This is a Portuguese tax incentive to attract high-value professionals and individuals. It offers reduced or even zero taxation on certain types of income from foreign sources for ten years. Eligibility is for new tax residents who haven’t been Portuguese residents in the previous five years.
- Simplified Tax Regime: This is a tax system for freelancers and small businesses in Portugal. Taxable profits are calculated based on specific coefficients applied to the taxpayer’s invoiced income, not actual profit. The scheme allows for simplified calculations and certain deductions.
Home Country Taxes
Holders of the Digital Nomad Visa are expected to pay taxes back home unless you formally inform your home country about your absence and become tax non-resident back home.
For most of the remote workers, the fact that you going to spend over 1 year in Portugal and therefore become a tax resident there, might mean that you qualify for a tax break back home, due to prolonged absence. This depends on your residency and the existence of Double Tax Agreements between Portugal and your home country.
Certain types of income might be exempt from tax in Portugal even if your home country doesn’t want to tax you because they consider you a non-resident. This however means you might enter the digital nomad grey zone and discussing this setup with your accountant is essential.
If you are from the US, however, that becomes a bit more complicated but you should be able to use the FEIE: Foreign Earned Income Exclusion. You can learn more about it on the IRS website and we will be sure to write about it more in the future.
Requirements
To be approved for the 1-year visa, remote workers need the following:
- Submit a cover letter stating the reason behind your stay
- Visa Application form, filled out for each applicant;
- 2 recent photos (1 for the visa form);
- Passport or other travel document, valid for 3 months after the estimated date of return. Photocopy of passport (biographical data);
- Proof of accommodation – for min 4 months, but various sources recommend a 1 year contract. Try Airbnb, Flatio or Idealista (you can book for a few months in advance with a flexible cancelation policy so you can cancel if you don’t get visa);
- Proof of residency status, if you are applying for a visa from a country where you reside but which is not your home country (e.g. if you are a resident of the UK but Canadian nationality), you need to show confirmation that you can be a UK resident that is valid for more than the date of expiry of the visa you are applying for;
- Travel Insurance – ideally one that covers you for at least 1 year;
- Criminal record certificate, issued by the competent authority of the country of the applicant’s nationality or of the country where the applicant has resided for over a year (except for applicants under sixteen),
- Request for criminal record inquiry by the Immigration and Border Services (SEF) [pdf]
- Proof of financial resources:
- In case of employment work, one of the following documents:
- Work contract or Declaration by employer confirming you are working for them;
- In case of independent professional activity, one of the following documents:
- Company registration or a contract confirming the services you provide e.g. from an accountant or a contract with a supplier.
- In case of employment work, one of the following documents:
- Proof of average monthly income for the last three months with a minimum value equivalent to 4x min monthly salaries in Portugal. As of 2023, that amount was €760, so at least €3,040 a month, which comes to about €36,480 or about US$ 41,000 per year. If you want to bring dependents, 50% of the salary is added for a partner and 30% for each child.
- You will need to show evidence of this over at least 3 previous months.
- You can provide payslips and/or bank statements.
- It is not the €2,800 p/month as suggested by some other websites, that info is outdated);
- It has to be a net amount so your take-home pay after all the taxes and social contributions;
- It is not a requirement but there is a preference for the income to be more or less the same amount every month.
- Proof of your tax residence – confirmation of where you pay your taxes.
- If you are one of the nomads who try the “tax nomad” lifestyle, you might have a big problem getting this visa as proving your tax residency is one of the application requirements.
Interestingly, there is no need to provide evidence of any savings but you might be asked to provide additional documents such as:
- NIF – Portuguese Tax Number (see options in Nomad Business Network)
- Portuguese Bank Account (as above, you will need NIF to open the account)
Although that is more likely if you are applying for the Temporary Residency Visa, not a Temporary Stay visa.
Visa applications should be submitted in advance as it can take up to 30 days to receive the response.
Apply
Process
So far, this is the expected process, but we are waiting for more details.
1
Prepare All the Documents
2
Setup an appointment with a Portugal Embassy
3
Attend the interview and submit the required documents
4
Travel to Portugal
5
Get your PT Tax Number (NIF) and Bank Account
6
Attend your pre-assigned SEF interview in Portugal within 4 months of visa approval.
7
Receive your Portuguese Residency Permit Card valid for 2 years
Application review is expected to take up to 30 days following receipt of all required documentation.
Fees
There is a $85 fee for the Temporary Stay visa (€75) but if you apply from abroad or don’t want to deal with the Portuguese bureaucracy yourself, you can hire a lawyer to apply on your behalf. You should also consider the cost of getting the:
- NIF – Portuguese Tax Number (check our few options in the Nomad Business Network)
- Portuguese Bank Account (as above)
- Fiscal Representation
- Lawyer
- Accommodation
How
The application can only be made in person. Once your application is approved, you have 4 months to pick up your residency permit.
All the details of the program, including How to Apply and Visa Application Form, are available on the government website:
Govermet Info Application Form [pdf]Facilities
Medical
Like other Digital Nomad Visas, visa holders are not entitled to free health care but can use the local health care system if they pay for it out of their pocket or with insurance. Health care coverage is required in order to apply for the Stay for Remote Workers.
Schools
Children of visa holders can attend the local private school for the duration of the visa or public ones, but they will have to cover the fees.
Traveling
There is no minimum stay requirement for the Temporary Stay Visa. This visa allows you to stay in Portugal for up to 1 year, with the possibility of renewal.
Assistance
For more details see:
Country Info
Internet
The average internet speed in Portugal is relatively high, clocking in at about 63Mbps. While there might be occasional inconsistencies, the robustness of the digital infrastructure ensures that coworking spaces, cafes, and other public places generally offer reliable connectivity.
Portugal has also taken note of the growing digital nomad community and is making dedicated efforts to enhance its digital infrastructure even further, making the country an attractive destination for remote workers globally.
Cost of Living
The cost of living in Portugal is generally more affordable compared to countries like the US, the UK, or other Western European nations, though it may be higher when compared to some countries in Eastern Europe or other regions globally. Nevertheless, it still offers a cost-effective lifestyle when compared to many popular destinations around the world.
In terms of our ☕ Cappuccino Index, which uses Numbeo’s average price for a regular cappuccino, the average cost in Portugal is US$ 1.62. This is significantly lower than the average price in the US, which stands at US$ 4.30, and in the UK, where the average cost is US$ 3.83. Therefore, living in Portugal can be a budget-friendly option, especially for coffee lovers.
FAQs
Am I going to become a Portuguese Tax Resident if I am approved for the visa?
Most likely, yes you will! Mainly due to the fact that you need to have accommodation available to you for at least a year (doesn’t apply if you only have it for 4 months) but also due to the fact that you will spend more than 183 days in Portugal.
What happens with my tax residency back home?
Well, it depends on where home is.
For most of the remote workers, the fact that you going to spend over 1 year in Portugal and therefore become a tax resident there, you might qualify for a tax break back home, due to prolonged absence but it depends on the existence of Double Tax Agreements between Portugal and your home country plus you should make sure that you formally inform your home country about your absence.
If you are from the US, however, that becomes a bit more complicated but you should be able to use the FEIE: Foreign Earned Income Exclusion. You can learn more about it on the IRS website and we will be sure to write about it more in the future.
Videos
Source: Scenic RelaxationDisclaimer: Our aim is to provide an overview of Digital Nomad Visas & Taxes that should not be considered as legal opinion or tax advice. You should always seek expert advice. If you want to receive a legal opinion or tax advice, please contact us, and we will refer you to a legal practitioner.
Learn about the data sources & how is the score calculated. Last updated July 30, 2023.
