Although a small group of people in the 2010’s worked remotely around the world and were referred to as “digital nomads”, only in 2020 with the global pandemic did a majority of people really know what it was like to work remotely and also have permission to do it. Now that we have the ability to be where it is “conducive to live, not conducive to work” many are rethinking their current locations and seeking new horizons. Portugal has become a hotspot for Digital Nomads over the years because of its great weather, people, affordable cost of living, and fast internet. On October 31st of 2022 the government announced its first “Digital Nomad Visa”. Follow the article below for the “what is it and what do I need to apply” details.
Fun Fact
1983 – Steve Roberts becomes the first digital nomad by Computing Across America with a computerized recumbent bicycle.
What is the Digital Nomad Visa in Portugal?
For the last few years, most foreigners wishing to relocate to Portugal were applying under the D7 visa. However, this visa is used for those with “passive income” which qualifies at pensions/retirement, income from dividends, rental income, or any other immovable income. As many also had “active income” defined as a work contract or owning a company/self employment, the D7 visa was being accepted with a mix of the two. Now with the digital nomad visa, we have a D7 visa for those with only active income.
What are the types of Digital Nomad Visas?
Two types of Digital Nomad visas were created: A temporary stay visa and long stay visa. The temporary stay visa is as simple as extending your 90 days another 90 days, or extending your 90 days up to 1 year. It also requires less paperwork. However, for those that want to be on the track for citizenship, this is not the option for you. In addition, the temporary stay visa, if stayed more than 183 days of the year consecutively, qualifies you as a tax resident in Portugal. And without the correct paperwork, you will not have the NHR to shield you from Portuguese taxes.
The long stay visa is what we recommend to almost 100% of our clients. The paperwork is very similar to the D7 and currently SEF is granting residency for 2 years at a time. This gives you peace of mind, time to settle, and limited interaction with public institutions. It also provides the grounds for the NHR to be granted, giving you great tax benefits while you reside in Portugal. And lastly, it ensures that all of the time you spend in Portugal counts towards the required time to apply for nationality.
What do I need to apply?
The visa process is not very straight forward. In most countries you are submitting your application through VFS Global, a visa collection agency that works on behalf of the consuls. Many times there are few or no appointments available and manual appointments must be justified and requested, and this is part of our service.
There are many documents to be submitted depending on your circumstances. Are you married? Do you have children? Do you have a work contract or your own company? Is it explicitly stated that you can work remotely? Are all the consent forms in place? Do you have a clean criminal record?
These are all things that we review and confirm with you in our first consultation call. We perform due diligence by analyzing your specific circumstances and making you aware the deal breakers for a successful application. If you are thinking of relocating to Portugal and would like more information, you can email us at [email protected] or a book a free 30-minute consultation.
