Portugal has become an increasingly attractive destination for remote workers, drawing individuals from around the world due to its pleasant climate, quality of life, and relatively lower cost of living compared to other Western European countries.
The Portuguese government has recognized this trend and has implemented initiatives to welcome remote workers. These initiatives include attractive visas for digital nomads and freelancers, multiple co-working spaces, attractive tax regimes, and amazing connectivity services, to name a few.
Lisbon, by the way, ranked as the number one destination in the world for Digital Nomads, with the Algarve ranking fourth according to the Savills Executive Nomad Index report, published in 2022.
Working remotely in Portugal requires planning and a preliminary understanding of the country’s legislation. If you're an EU citizen or a national of an EEA country, for instance, then you don't need a visa to live and work in Portugal. If you're not, then you'll need a visa to start your journey as a remote worker in Portugal, and there is a range of visa types that you can apply for.
To help you plan your move to Portugal, we’ve created this comprehensive guide with everything you need to know about working remotely in the country. Keep reading to discover:
- Who can work remotely in Portugal
- Visas for remote workers in Portugal
- The best places to live in the country
- The tax implications, and more.
Moving To Portugal As A Remote Worker
Moving to Portugal as a remote worker involves several steps, and it's important to consider both the legal and practical aspects of the relocation.
EU-EEA Nationals
Citizens of European Union (EU) and European Economic Area (EEA) countries have the advantage of freedom of movement within the EU. This means they can live and work in Portugal without the need for a specific work visa.
Non-EU Nationals
Non-EU nationals interested in working remotely in Portugal typically need to obtain a visa or residency permit. There are several permits available, and the choice depends on factors such as the nature of remote work, duration of stay, and individual circumstances.
Visas For Remote Workers in Portugal
Portugal Digital Nomad Visa (D8 Visa)
The Digital Nomad Visa was launched on 30 October 2022 and allows remote workers to live and work in Portugal on a special visa scheme. An added benefit of this is that it allows you to travel visa free throughout the Schengen Area, providing you with the same level of travel access as a Schengen Visa.
Portugal's Digital Nomad Visa offers two categories allowing you to work remotely in Portugal. Under the Portuguese residence permit program, remote workers can apply for a temporary stay visa to live and work in Portugal on a temporary residency permit for up to one year. Alternatively, they can apply for a longer-term residency permit that can be renewed for up to five years.
To be eligible to apply, applicants must make at least four times the Portuguese minimum wage from their remote job or from freelance clients, amounting to around €2,836 ($2,750) per month. You'll also need to prove that you have a valid work contract with a company based outside of Portugal.
You need to prove this by showing proof of income, such as bank statements or payslips for the past three months, a contract of employment or proof you are self-employed, and tax residency documents.
If you successfully obtain the Portugal Digital Nomad Visa, you can apply for permanent residence after five years. Once you have permanent residence, you can visit, live, and work in the European Union and even apply for Portuguese citizenship.
The new Digital Nomad Visa is a great option for remote workers looking to live and work in Portugal for an extended period. It's a testament to the country's commitment to supporting this growing community.
See: Portugal Freelance Visa: A Guide for Digital Nomads and Freelancers.
Portugal D2 Visa
Often called the Portugal Startup Visa or the Portugal Self Employed Visa, the D2 Visa also allows you to start online work in Portugal.
However, this is a business visa tailored towards people setting up their own businesses in Portugal. The D2 Visa aims to encourage entrepreneurs from non-EU countries to invest in either existing businesses in Portugal or establish a new one. The D2 Visa is also known as the Portugal Entrepreneur Visa.
This visa requires you to prove you have sufficient resources to support yourself and any dependents and establish a business.
You should also have a solid business plan presenting how your investment will improve the local economy and positively impact the local community. You must also state why you've chosen Portugal as the base for your business affairs. The D2 Visa grants a temporary stay visa which can also be renewed every two years.
See: The Portugal D2 Visa: A Residency Visa for Entrepreneurs.
Portugal Golden Visa Program
Portugal's Golden Visa program is a golden ticket for digital nomads who are non-EU citizens, dreaming of living and working in Europe. By investing in Portugal, you can get a residency permit.
The Portugal Golden Visa program is quite flexible. Portugal lets you stay as a temporary resident for up to two years, and you can renew your temporary stay visa for another two years.
Once you've had this five-year temporary residency permit, you can trade it in for a permanent one and get permanent residency. After this, you can apply to become a citizen.
Now, to the important bit - the investment. You have a few options for the Portuguese Golden Visa: put €350,000 into a venture capital fund, invest in cultural projects, or invest in scientific research.
The important thing to note is that you must maintain your investment for at least five years to qualify for the program.
One of the best things about the Portuguese Golden Visa program is that you don't have to live in Portugal all year round. You can use Portugal as a base and travel wherever your nomadic heart desires without worrying about meeting residency requirements.
Plus, if you're a business-minded digital nomad, there are even more perks. You can use Portugal as a springboard to reach other European markets and the Schengen Zone.
Ready to apply? It's not too complicated, but it requires some legwork. You'll need to show proof of your investment, bring a clean criminal record certificate from your home country, and have health insurance. You also have to get a Portuguese taxpayer number and register with the immigration authorities.
But act fast - Portugal has announced it's ending the Golden Visa program. You can still apply, but time is ticking, so it is best to get those applications in as soon as possible.
Portugal's D7 Visa
The D7 Visa, also known as the Portugal Passive Income Visa, is designed for individuals with consistent passive income, such as investment dividends.
In essence, if you secure around €760 per month via dividends, pension, rental proceeds, or royalties, the D7 Visa becomes a viable path to obtain a residency and work permit in Portugal.
However, it's important to note that this visa doesn't permit you to generate income by working remotely for an overseas company. The Digital Nomad Visa might be a better fit for remote workers.
The D7 Visa grants you the freedom to reside in Portugal for a span of two years, remote working on a residence permit and temporary stay visa, with an option to renew the residence permit for an additional two years. It also entitles you to work and pursue studies in Portugal. But remember that you can't work remotely for a foreign company to generate your income and you must demonstrate passive income.
How to Apply for a Portugal Remote Work Visa
To apply for the Portugal Digital Nomad Visa, you can book an appointment at your nearest Portuguese Consulate or Portuguese Embassy in your home country. If you're already in Portugal, you can book an appointment with the Portuguese Immigration and Border Services (SEF).
You'll need to have health insurance that covers the time you're in Portugal, and once you move, you will need to set up a Portuguese tax number called the NIF and open a bank account.
Need help setting up your NIF and opening a bank account? We can help you get sorted from anywhere in the world.
Things to Consider Before Working Remotely in Portugal
Working remotely in Portugal is generally straightforward, but there are a few legal issues you should be aware of. For example, if you're planning to work for a company based outside of Portugal, you'll need to ensure that your work contract complies with Portuguese and your home country's laws.
Below are some important things to consider when planning to live in Portugal as a remote worker.
Portuguese healthcare
As a resident of Portugal, you will have access to the nation's universal health care system, which is funded by the tax system. Public health care is generally free at the point of use, although there may be small co-payments for certain services such as prescriptions. However, keep in mind that wait times for non-emergency procedures can be longer than in the private sector. While some healthcare professionals may speak English, it can be helpful to have someone with Portuguese language skills with you as an interpreter.
As you will need to show proof of health insurance to apply for any of the visas that enable you to work in Portugal, you may benefit from shorter waiting times and more comprehensive coverage.
Remote work Portugal: Tax implications
Another important legal consideration is taxes. If you're working for a foreign company, it’s important to structure your taxes correctly.
See: Taxes in Portugal for Foreigners: Navigating the Tax System and Digital Nomad Tax: The Tax Benefits Available in Portugal.
Non-Habitual Residency tax regime
The Non-Habitual Residency (NHR) tax regime is perfect for people working remotely in Portugal, allowing tax residents in Portugal to receive significant tax benefits. Our article NHR for Digital Nomads provides an in-depth look at the tax regime.
You can sign up for the scheme if you haven't been a tax resident in Portugal for the five years preceding your relocation to Portugal. The scheme allows its beneficiaries to pay a flat rate of 20 percent on all taxes earned in self-employment and offers complete tax exemptions on some forms of foreign income.
There's no tax on wealth or inheritance (unlike other European countries) and fixed rates in place for foreign-sourced pension income.
EU Citizens and non-EU/EEA citizens are both able to apply for the scheme.
If you’re a remote worker for a foreign company, you should apply for NHR status and enjoy this Portuguese tax residency, safe in the knowledge that you comply with Portuguese tax law.
2024 NHR update: The Portuguese government submitted the State Budget Proposal for 2024, and it includes the changes that determine the end of the non-habitual resident regime.
In effect, the change has the following consequences from 01/01/2024:
- Anyone who already has the NHR at the time of entry into force maintains the regime under the same terms until completing 10 years of benefiting from the status.
- Anyone who meets the conditions for registration as non-habitual residents on December 31, 2023, as well as holders of a residence visa valid on that date, will be able to register within the deadline normally available (until 31 March 2024) and benefit from the scheme in full for 10 years.
- For everyone else, the scheme will no longer be available.
Registering as a Portuguese tax resident
Regardless of what tax regime you're subscribed to, legally, you need to have some of the following documents in order to have your affairs in order:
Getting a NIF Number in Portugal
The NIF number is also known as your tax identification number, Número do Contribuinte or the Número de Identificação Fiscal. You need a NIF to perform any economic activity in Portugal, and every person has a unique nine-digit number.
The tax authorities, Finanças, issue the NIF number. You need it to sign any contract, open a bank account, sign a lease, or carry out any financial activity in Portugal. Getting a NIF should be your number one priority as it’s vital for paying taxes.
If you’re an EU citizen, you can request a NIF at a local tax office of the Portuguese tax authority, at a local branch of a Citizen Shop, or at a counter that provides the Citizen Card.
If you’re a non-EU/EEA/Swiss national, you must appoint a NIF tax representative registered with the Tax Department. We can be your tax representative and help you get a NIF without hassle. Order online, and you’ll receive your NIF directly in your mailbox.
Once you have your NIF, you can access Finanças’ online internet services and schedule appointments or update information directly through the website.
Opening a bank account in Portugal
Once you have your NIF, you should also open a Portuguese bank account. This will make it easier for you to receive payments or pay bills. We can also help you open up a Portuguese bank account from anywhere in the world.
Read our guide to opening a bank account in Portugal.
Getting a NISS Number in Portugal
A NISS (Número de Identificação da Segurança Social) is your Social Security Identification Number. Your NISS is essential as you use it to pay social security contributions to the Portuguese government, according to your employment type in Portugal.
All employees, business owners, and self-employed people are required by law to pay taxes to the government depending on their monthly income. Employees, business owners, and self-employed individuals must pay government taxes depending on their monthly income.
Self-employment registration
If you plan on freelancing, you'll need to register as self-employed with the Portuguese tax authorities. This is so that you can pay income tax on your earnings.
You can find out more in our article: Self-Employment Registration for Freelancers in Portugal.
Legal Issues for Remote Workers
For remote workers and digital nomads, Portugal offers some good options for different cases that might interest you. Regarding the residency procedures, once you complete a 183 stay in Portugal, you will become a taxpayer and have the right of filing a tax return in Portugal.
Unlike most European countries, Portugal grants you the possibility of getting citizenship after five years of residency, which is a great option for you if you are a non-EU national, as you will be granted easy access to the EU area.
If you’re an EU citizen who is willing to move to Portugal, then you’ll be pleased to know that the process is much easier for you. 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.
Life in Portugal for Remote Workers
Portugal is known for its mild climate, friendly people, and affordable low cost of living when compared to other Western European countries. From the bustling streets of Lisbon to the charming villages of the Algarve and the UNESCO World Heritage site Ribeira riverside, there's something for everyone in this beautiful country. You can explore the local markets, enjoy delicious seafood, or simply relax on the beach during your downtime as a remote worker.
But it's not just the relaxed lifestyle that makes Portugal a great place to live. The country has a rich history and culture, with influences from its former colonies and a long heritage of explorers. This is reflected in its architecture, food, festivals, and UNESCO World Heritage Sites, making Portugal a fascinating and unique place to call home.
The cost of living in Portugal is relatively low compared to other countries in Western Europe, meaning that you could potentially save money and enjoy a high quality of life at a low cost. Consumer prices in Portugal are around 27 percent lower than in Germany and 34 percent lower than in France.
If you’re coming from the US, you will seriously feel the difference. Grocery prices in Portugal are 49.2 percent lower than in the United States, eating out is 43.9 percent lower than in the US, and rent in Portugal is 53 percent lower – according to the latest figures from Numbeo.
Portugal also ranks 12th in the Global Citizen Solutions Quality of Life Index, which factors in the cost of living, Sustainable Development Goals, levels of freedom, happiness, and migrant acceptance.
If you like to party, there is a thriving electronic dance music and party scene in cities like Lisbon or Porto. If you enjoy culture, there are also world-famous art galleries such as the MAAT and the Casa das Histórias Paula Rego at your disposal.
Because Portugal is a popular spot for many digital nomads and expats, the country also has a thriving expat community. There are regular meet-ups and networking events organized in major cities. You can also take to Facebook groups to meet other expats. This is an excellent opportunity to explore Portugal with a like-minded new group of friends.
It may sound cliche, but there truly is something for everyone in Portugal.
Best Locations for Remote Workers in Portugal
So, you're sold on the idea of living and working in Portugal, but where should you go? Here are some of the best places for working in the country:
Lisbon
Portugal’s capital is a vibrant and bustling city with a lively cultural scene and plenty of coffee shops, libraries, and coworking spaces.
Lisbon is a great location for digital nomads due to its Mediterranean climate, proximity to the beach, and fast internet speed. Lisbon is a city rich in history, architecture, and culture. From its iconic yellow trams to its historic neighborhoods, there is always something to explore and experience.
This vibrant atmosphere provides digital nomads with a more lively environment, plenty of inspiration and opportunities to stay engaged and connected with the local community. Lisbon also boasts a high-speed internet infrastructure.
Co-working spaces
With a growing number of digital nomads, Lisbon has seen a rise in the number of co-working spaces. These spaces provide remote workers with a place to work, collaborate, and network with like-minded individuals. Some of the most popular co-working spaces include LACS and Second Home Lisboa.
Porto
Porto, located in the northwest of Portugal, is a charming and historic city famous for its port wine and stunning architecture. It's also a great place for remote workers, with a growing startup scene, great internet connection, and plenty of co-working space, making it a digital nomad hotspot.
Porto is famous for its historic architecture, including the iconic Ribeira neighborhood and the towering Clérigos Tower. The city's mix of medieval and baroque architecture provides digital nomads with plenty of stunning views and photo opportunities.
Porto is situated on the Douro River and is surrounded by rolling hills, making it a picturesque location for remote work. Whether you want to work from a café with a river view or take a break and walk in the hills, Porto provides plenty of outdoor activities.
Some of Porto's most popular co-working spaces include Porto i/o and Synergy.
The Algarve
The Algarve, located in the southern region of Portugal, is a stunning coastal area that has become a popular destination for remote workers and digital nomads. The Algarve is famous for its stunning beaches, with clear waters and golden sand.
If you fancy surfing on your days off, during lunch breaks, or after work – working from the Algarve, famous for its surf and beach towns, could be a dream come true.
Some spaces in the Algarve for co-working include CoCreate and Faro Avenida.
No matter where you choose to work in Portugal, you'll find a welcoming and supportive community of other remote workers and expats, a variety of accommodation options, a supportive legal environment, and a special visa for digital nomads.
Accommodation for Remote Workers in Portugal
One of the great things about remote working in Portugal is the variety of accommodation options available. Whether you're looking for a city apartment, a rural retreat, or a beachfront villa, there's something for everyone.
Lisbon and Porto both have a wide range of apartments and houses available for rent, with prices ranging from budget-friendly to luxury. In the Algarve and other coastal regions, many villas and holiday homes are available for rent, some of which come with private pools and breathtaking views – perfect for remote working.
Note that prices vary depending on location. Lisbon is significantly more expensive than the other major cities and regions.
Where to look for accommodation in Portugal
You can find accommodation in Portugal through websites like OLX and Idealista. In Portugal, a two-bed house or apartment is known as a T2, a three-bed is known as a T3, and so on.
If you're looking for a room in a shared apartment or a sublet, you can usually find these through Facebook groups. Do a little digging, and you'll find groups such as Accommodation for Digital Nomads Lisbon.
There are plenty of Airbnb options for those looking for a more flexible option, with everything from private rooms to apartments. You can also look into monthly rentals, as these tend to be better value and more flexible than longer-term leases. If you intend to move around the country, you might want to book hotels or hostels, and there are plenty of options available catering to a range of budgets and preferences.
Internet Connectivity and Mobile in Portugal
If you're planning on working remotely in Portugal, you will need access to reliable WiFi and internet connectivity, fast 4G and mobile networks, and tech shops if you want to repair or upgrade any work equipment.
Luckily, Portugal is a modern country with a well-developed infrastructure, making it an ideal destination for remote workers.
Wi-Fi, 4G, and mobile network
Let’s start with Wi-Fi. Portugal has a widespread Wi-Fi network, with many public places offering free Internet connection, including cafes, restaurants, and hotels. Many cafes also allow remote working from their premises.
Do keep in mind that if you want to move somewhere more rural or to older parts of big cities, like Lisbon or Porto, such as Bairro Alto, Wi-Fi can be slightly weaker, making the internet connection speed slower. We recommend researching the areas or neighborhoods ahead of time to ensure they have a good internet connection.
If you’re working on the go, you’ll be happy to know that Portugal has a strong 4G network, with most of the country covered by 4G services from the major operators.
You have plenty of options in Portugal for Wi-Fi and mobile network providers. Some leading telecom providers in Portugal are:
- MEO
- NOS
- Vodafone
Different telecom providers offer different deals and billing plans, so we’d recommend shopping around until you find an offer that suits your needs. Note that in order to set up WiFi or sign up for a mobile network, you’ll be required to share your NIF number.
Electricity voltage and plugs
When it comes to electricity, Portugal uses a voltage of 220-240 volts, with a frequency of 50Hz. You may need a plug adapter if you’re coming from a different voltage country. The standard plugs used in Portugal are type C and type F.
We’d recommend bringing an extension cord from your country that you can plug into a socket with an adaptor. This will mean you can use your regular chargers without needing individual adaptors for every item.
Internet security
Finally, internet security is an important concern for anyone working online. Portugal has a strong legal framework to protect personal data privacy, and the country has a low rate of cybercrime.
You can stay safe online by using a VPN, keeping your software and antivirus up to date, and being vigilant against phishing and malware.
Tech shops
Many shops sell new tech products or repair old or broken equipment.
If you're in a city like Lisbon or Porto, you can go to shops such as Worten, FNAC, or the GMS store, which specializes in Apple products. You can find shops such as these in large shopping malls or shopping districts.
Useful Resources
The following resources have useful information about working from Portugal:
- Your Complete Guide To Working In Portugal As An Expat in 2024
- Portugal Permanent Residence Permits: Requirements and More
- Portugal Immigration Guide – Your Visa Options
Frequently Asked Questions about Working Remotely in Portugal
Can I work remotely for a UK company in Portugal?
Yes, you can carry out remote work for a UK company in Portugal. Because the UK has left the EU, you must have a visa allowing you to work and live in Portugal before you can start working remotely from Portugal.
Can I work remotely for a US company in Portugal?
Yes, you can work remotely for a US company in Portugal, providing that you have the legal right to live and work in Portugal. This means that you need a visa such as the D7 Visa, the Digital Nomad Visa, or the D2 Visa.
Does Portugal have a remote work visa?
Portugal has the D7 Visa, the Digital Nomad Visa, and the D2 Visa, all allowing remote workers in Portugal to continue work. The Digital Nomad Visa will enable you to work remotely for a foreign company while living in Portugal.
Can I work remotely from Portugal?
If you're from a European Union or European Economic Area country, you can start working remotely from Portugal immediately. However, if you're a non-EU or EEA national, you will need a visa that includes a work permit allowing you to work remotely from Portugal, such as the Digital Nomad Visa.
Does Portugal tax remote workers?
Yes, Portugal does tax remote workers. Portugal has implemented a tax regime called the Non-Habitual Resident (NHR) program, which offers attractive tax benefits to qualifying individuals, including remote workers. Under this program, eligible individuals may benefit from a 10-year tax exemption on certain foreign income.
Can you work remotely in Portugal without a visa?
If you're a European Union (EU) or European Economic Area (EEA) citizen, you can work in Portugal remotely without needing a visa. EU/EEA citizens have the right to live and work in Portugal under the freedom of movement principle.
However, if you're a non-EU/EEA citizen, you may need to obtain a visa or a residence permit that allows you to remotely work in Portugal. It's advisable to check the specific visa requirements with the Portuguese embassy or consulate in your home country.
Can I live in Portugal and work remotely for a US company?
Yes, living in Portugal and working remotely for a company based in the US or any other country is possible, so long as you have legal permission to work in Portugal and the United States.
Individuals with remote jobs can work from anywhere as long as they have a stable internet connection. However, it's essential to consider the time zone difference and any tax implications that may arise from earning income in one country while residing in another.
Consulting with a tax professional can help ensure compliance with relevant tax laws and regulations.
Can I work remotely in Portugal for a month?
Yes, it's possible to work remotely in Portugal for a month, provided that you have the appropriate visa. A sensible option for this scenario would be to apply for the Short Stay Visa category of the Portugal Digital Nomad (D8) Visa.
