Long -Term Digital Nomad Visa in Portugal
In this article, you will learn about the long-term options for digital nomads in Portugal:
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There are plenty of benefits of relocating to Portugal.
- Different visa options for digital nomads: Portugal offers options for digital nomads who want to stay for a short period as well as for those who want to become permanent residents of the country. The application process is relatively quick and allows you to bring the whole family with you.
- Affordable prices: The cost of living in Portugal is one of the lowest in Europe. However, the quality of life is still high. Learn more about living in Portugal in our article.
- Developed infrastructure: Infrastructure in Portugal is about what one would expect from a Western European nation—good and getting better all the time. According to the OECD report, Portugal is the 15th best country in the world for infrastructure, 4th best for the quality of its roads!
- Developed digital nomad community: Portugal has one of the most developed digital nomad communities in the world. The first digital nomad village in Europe was opened on the tiny Portuguese island of Madeira. It is a paradise for digital nomads that offers everything you can need!
- Tax incentives: You can get special tax status (NHR) in Portugal that allows you to significantly reduce your tax expenses.
- High-speed Internet access: Portugal has reliable Internet connections all over the country. At the beginning of 2022, Portugal ranked 37th in the world for mobile speeds and 18th for fixed broadband speeds.
- Rich history and culture: Better to see something once than to hear about it a thousand times!
- Warm weather conditions: Continental Portugal has a Mediterranean climate as a whole, but there is some variation between regions. You can enjoy sunny weather almost throughout the year.
- Easy access to other EU countries: You will get free entry to the Schengen Area up to 90 days out of every 180 days within the whole validity period of your D7 residence permit.
There is no specific visa for digital nomads in Portugal. However, there are 2 immigration programs for which you can apply to live as a digital nomad in Portugal. Both programs enable the visa holder to live in the country for a certain time and work independently from within Portugal:
- The Temporary Stay Visa: If you want to stay in Portugal as a digital nomad for up to one year, this visa is for you. It grants multiple entries into Portugal and can be renewed twice for additional periods of one year.
- The Portugal D7 Visa: If you wish to stay in Portugal as a digital nomad for more than one year, you should apply for the Portugal D7 Visa. Another name for this visa is the Passive Income Visa or Retirement Visa, because its initial purpose was to create a path to residency for non-EEA pensioners seeking to settle in Portugal. However, this program has recently become the most popular among digital nomads from all over the world. Another perk of this program is that you can stay in Portugal for up to five years if you want, and later even apply for Portuguese citizenship.
What is the EEA?
EEA stands for European Economic Area. The EEA includes the EU member states plus Iceland, Liechtenstein, and Norway.
Key facts
- The long-term digital nomad program in Portugal is called the Portugal D7 Visa.
- The D7 Visa is a temporary residency permit used as a transitional tool to obtain a D7 Residence Permit, which allows you to stay in Portugal for up to five years.
- This program is mainly designed for digital nomads who have stable passive income, mainly from the following sources:
- Pensions;
- Long-term rental income;
- Dividends;
- Royalties;
- Intellectual property;
- Interest from adequate savings;
- Etc.
However, in practice, the Portuguese immigration authorities have favored digital nomads who have significant salary earnings as well. The main philosophy of this program is to attract to Portugal people who have their own source of stable income – including salary from a job in another country – which allows the person to live in Portugal and contribute to the Portuguese economy. If your income from a remote job is considered unlikely to dry up, it means you will not need assistance from the Portuguese state. Thus, your application can be approved!
- The D7 program allows digital nomads to work remotely in Portugal for a maximum of 5 years (initially four months, then an additional two years, renewable for a further three years).
- The application process for the D7 Visa costs €75 for individuals. If you want to stay in Portugal for up to two years, you must pay additional fees for the D7 Residence Permit - €90.
- The decision on your D7 visa application is usually made within 60 days. However, after your arrival in Portugal, you must get a Residency Permit allowing you to stay in Portugal longer than four months, and that will take additional time. Obtaining a D7 Residence Permit can take up to four months.
- There are no limits on the number of persons admitted under this visa category.
Eligibility requirements
You must meet the following requirements to be eligible for the D7 Visa:
- Be at least 18 years old;
- Be a non-EU citizen;
- Clean criminal record: You must obtain a clear criminal record before you start the application process.
- Meet the minimum financial requirements: You must prove that you are financially stable to provide for yourself during your whole stay in Portugal. You can use bank statements or any other relevant documents to prove your financial capacity. As of 1 January 2022, the minimum required passive income threshold is the following:
Type of Applicants | Minimum income requirements (€ per month) |
Individual | 705 |
Married couple | 1,057.50 |
For any dependant children | 211.50 |
Family of 4 (2 minor children) | 1,480.50 |
Please note that the higher your passive or recurring income earnings, the more likely it is that your visa application will be approved. People who meet only the minimum financial requirements usually have their visa applications rejected. Based on our experience, we recommend that you have regular income at least twice as large.
- Have comprehensive health insurance: You must have comprehensive health insurance that covers all EU countries for a minimum of €30,000. Insurance must be valid during your whole stay in Portugal, but at least for 12 months.
- Obtain a Portuguese tax number (NIF): You must obtain a Portuguese tax number or Número de Identificação Fiscal, in Portuguese, to become eligible for the D7 Visa. This can be done remotely.
- Provide proof of accommodation: You must have accommodation arranged before you move to Portugal. You need to have a long-term rental lease of at least 12 months.
- Open a Portuguese bank account: Though this requirement is not articulated in law, it is usually taken into account by immigrant officials. Our experience shows that it is better to have a deposit in a Portuguese bank of a sum equal to the minimum financial requirement (around €8,500, if you’re a single applicant; for married couples, the required deposit amount is around €12,700).
What documents are required to apply?
To apply for the Portugal digital nomad visa, you must provide the following documents and upload these documents for yourself and any family member who is accompanying you, where relevant:
- Valid passport;
- Two passport photographs, up-to-date and in good condition, allowing proper identification;
- Valid health travel insurance;
- Criminal record certificate;
- Proof of accommodation (e.g. property title deed, rental agreement, or property loan agreement);
- Proof of financial means of subsistence;
- A motivation letter describing your reasons for seeking residency in Portugal;
- A contract that indicates you are in a working relationship with your employer.
Please note that it is highly recommended to bring all documents and copies of them translated into Portuguese.
How to write a good motivation letter for the D7 Visa
A strong and well-grounded motivation letter is one of the keys to a successful application. Here are some points you should include in the motivation letter for the D7 visa:
- Start the letter describing who you are and where you are from. Write briefly about your educational background and family.
- Speak about your professional background and your current place of work. You should emphasize that your current company allows its employees to work remotely.
- Comprehensively describe your financial situation: indicate relevant figures and sources of your:
- Salary income from the remote job;
- Passive income, if you have one;
- Cash savings;
- Deposited money.
- We always recommend attaching bank statements to the motivation letter.
- Describe why you want to get residence in Portugal. Try to provide at least five to six reasons to support your application.
- Indicate where you intend to live and why.
- Do not forget to mention If you have friends or family in Portugal.
- Give a brief summary of your letter at the end.
Contact us, if you need assistance with this. In our company, we have created comprehensive templates that have proven their effectiveness and can provide those to you.
Application process and timeline
The Portugal D7 Visa is a two-stage application process. During the first step, you should apply for the D7 Visa itself, which is a residency visa. Once you obtain this visa, you need to travel to Portugal and schedule a meeting with SEF (Foreigners and Borders Service in Portugal). After completing the interview with the immigration official, you will get a Residency Permit that will allow you to stay in Portugal for two years.
Here is a step-by-step guide to applying for the D7 Visa program in Portugal as a digital nomad:
- Gather all required documents and book a consular appointment: You should prepare the necessary documents in advance and book a consular appointment in the Portuguese consulate in your country. Please note that you won't be able to apply from abroad.
- Complete and submit the application: The application must be submitted alongside all your supporting documents. You can submit your documents at the consulate in person or mail them. The application must be clear and accurate. Please note that no broker or other representative can sign the application on your behalf.
- Pay the application fee: You must pay the application fee for the visa application. It is €75.
- Wait for approval: The processing time is usually 50–60 days. Once your application is approved, you may go to the Embassy of Portugal in your country and collect your passport. Your passport will include your Residency Visa, which can be used to travel to Portugal.
- Complete the interview with an SEF immigration official in Portugal: Once you have your residency visa, you will need to book an appointment with SEF. Our tip is to visit an SEF office in a less crowded city, where more appointment slots may be available. The interview usually takes around 30 minutes. You should also prepare the same package of documents as for the initial D7 visa application, plus the Portuguese tax number (NIF).
- Wait for approval: If you successfully pass the interview, you will receive your D7 Residence Permit by mail within two weeks.
There are many benefits for digital nomads who choose to apply for the D7 Visa in Portugal:
- Permanent free entry into Portugal and circulation in the Schengen Area up to 90 days out of every 180 days within the whole validity period of your D7 residence permit;
- Ability to immigrate together with your whole family. Additionally, your spouse can legally work in Portugal;
- Access to Portugal’s national healthcare system as a resident of the country;
- Access to Portugal’s National Education Service, schools, vocational training, etc., for you and your family members;
- Right to work and do business within Portugal as an independent professional;
- Tax benefits under the Portuguese Non-Habitual Residency (NHR) Program;
- Portuguese citizenship for your children who were born in Portugal, after you hold a D7 Portuguese residence permit for more than one year.
Holders of the D7 Residence Permit are entitled to the Portuguese Non-Habitual Residency (NHR) Program. This is a Portugal tax program that offers foreigners who get residence permits many tax incentives. NHR status grants a 10-year tax exemption on most foreign-sourced types of income, whether or not they are taxed at source, and whether or not, under a double taxation agreement (DTA), tax at source is reduced or even eliminated. Let’s look closer at two situations:
- Tax regime for remote workers: All employment income is considered foreign-sourced income. Thus, it is considered tax-exempt if such foreign-sourced income is effectively taxed at the source, no matter at what rate and independently of whether or not the source country is a blacklisted tax haven.
- Tax regime for freelancers: Freelance income is subject to social security contributions, except if the taxpayer already pays into another social security system. Such freelance income will be taxed at the general progressive rates applicable to habitual residents (varying from 14.5% to 48% in 2021) unless it is derived from an eligible professional occupation. However, such income will be tax-exempt in Portugal, if it is both:
- Derived from an eligible professional occupation; and
- Foreign-sourced and may be taxed at source under a DTA or, in the latter's absence, under the OECD model tax convention (provided in this case that the source country is not a blacklisted tax haven).
Otherwise, such freelance income is taxed at the optional flat rate of 20%, but the freelancer may choose the normal progressive rates, which may make sense in the case of a very low level of income.
What are the general progressive rates in Portugal?
Annual Income | General Rate (%) |
Up to €7,112 | 15 |
€7,113 - €10,732 | 23 |
€10,733 - €20,322 | 29 |
€20,323 - €25,075 | 35 |
€25,076 - €39,967 | 37 |
€39,968 - €80,882 | 45 |
€80,883+ | 48 |
HI’s Digital Nomad Suitability Score (HI-DNS score)
Considering various factors, here’s our assessment of Portugal as a destination for digital nomads, based on the HI’s Digital Nomad Suitability Score (HI-DNS score).
CRITERIA | SCORE |
Ease of obtaining a visa | Average |
Cost of visa | Excellent |
Index of happiness | Good |
Duration of visa | Excellent |
Safety | Excellent |
Cost of living | Excellent |
Healthcare | Excellent |
Internet Infrastructure | Excellent |
Taxes | Good |
Infrastructure | Good |
Incentives from the government for digital nomads | Good |
If you are interested in relocating to Portugal, contact our team. We can make the process smooth and painless for you!
If you are interested in changing your surroundings and trying something different while working remotely, consider relocating to Portugal, an European country known for incredible beaches, warm weather, ornate architecture, rich culture, developed infrastructure as well as favorable visa requirements for digital nomads.
Contact our team, and we will be glad to match you with your dream country, prepare the required documents, and successfully file an application for the D7 digital nomad visa. We will make the application process convenient and easy for you! Our team can also assist you in other tasks such as looking for optimal healthcare insurance, translation of documents, preparation and validation of your documents, etc.
If you still have any questions that are not covered in our article, please feel free to contact us, and we will be happy to help!