The concept of working from home has become very popular in recent years. As a result, many countries are developing unique permits specifically for digital nomads.
With the help of these visas, some people can live in a single country and work remotely for foreign businesses.
Portugal is a country that adopted this trend.
Does Portugal offer a digital nomad visa?
Yes, a digital nomad-friendly visa is available from Portugal. The D7 Passive Income Visa is what it is called.
This visa, which was initially designed for retirees and those with passive income, is an excellent choice for digital nomads.
Requirements for the D7 Visa
To qualify for the D7 visa, applicants need to meet certain criteria,
1. Proof of Income
- You need to provide proof of your consistent income.
- This may come from other sources, like rental properties or remote employment.
- The required minimum monthly income is approximately Euro 665, which is the minimum wage in Portugal.
- Higher-income levels do, however, improve your chances of being accepted.
2. Accommodation
- In Portugal, you must have a place to stay.
- This could be evidence of property ownership or a rental agreement.
3. Health Insurance
- You must have health insurance that covers you in Portugal.
4. Clean Criminal Record
- A background check is necessary to ensure you have no serious criminal record.
5. Application Form and Fee
- Fill out the application form and pay the necessary fees.
Benefits of the D7 Visa
- Residency
You can live in Portugal for up to one year, with the possibility of renewal.
- Travel
With a D7 visa, you can travel freely within the Schengen Area for up to 90 days every 6 months.
- Path to Citizenship
After five years of residency, you can apply for permanent residency or citizenship.
How to Apply Digital Nomad Visa for Portugal?
1. Gather Documents
- Collect every necessary document, including evidence of income, health insurance, a valid driver’s license, and housing documentation.
2. Submit Application
- Submit your application to the nearest Portuguese consulate or embassy in your home country.
Portugal digital nomad visa official website – CLICK HERE
3. Interview
- Attend an interview if required.
- Some consulates might ask for an interview to verify your documents and intentions.
4. Wait for Approval
- Wait for your application to be processed.
- This can take a few weeks to a few months.
5. Move to Portugal
- Once approved, you can move to Portugal and start enjoying your life as a digital nomad.
Read: Can you bring a spouse on a digital nomad visa?
Portugal Nomad Visa Tax
The tax breakdown for Portugal’s Digital Nomad Visa (D8) is as explained below,
1. Tax Residency
How long you stay in Portugal is the most important factor.
You become a tax resident if you live there for more than 183 days in a year.
2. Non-Habitual Resident (NHR) Status (Important Update)
Previously, D8 visa holders with NHR status got tax benefits,
- Flat 20% tax on income earned in Portugal (compared to the regular rate of up to 48%).
- 0% tax on foreign-source income for 10 years.
Unfortunately, as of 2024, the NHR program is no longer available for new residents seeking the D8 visa.
3. Current Tax Situation for D8 Visa Holders
You will pay income tax on your worldwide earnings under Portugal’s tax brackets if you become a tax resident (more than 183 days in Portugal).
4. Alternatives to Consider
Portugal still provides a reasonably interesting tax environment when compared to certain countries, even though the NHR benefit is no longer available.
5. Consulting a Tax Professional
Considering the recent modifications, speaking with a Portuguese tax expert experienced with D8 visas is strongly advised.
Bottom Line
The D7 visa for Portugal is an excellent choice for digital nomads seeking a stunning, reasonably priced, and culturally diverse location to call home.
Applying for the D7 visa can help you begin your journey as a digital nomad in Portugal if you fit the requirements and are up for an exciting adventure.
Read: Estonia Digital Nomad Visa – Discover Remote Work Freedom
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