New digital nomad visa for Portugal

  • 24 October, 22

It is hoped that the new digital nomad visa for Portugal will encourage highly qualified, young professionals to the country.

According to a report by CNN Portugal, new legislation published in the Diário da República, will come into force at the end of this month and will create visas that allow so-called “digital nomads” to live and work in Portugal for a year. To be eligible, digital nomads must prove that they receive at least €2,820 a month, four times the current value of the national minimum wage, which is €705 (and which should rise to €760 in 2023).

“Although it is a little late, it is very positive to finally have a legal structure. It will boost the arrival of more nomads, who will now have a tool to stay in our country for up to a year”, Gonçalo Hall, creator of the Digital Nomad Association, told CNN Portugal.

Lower taxes

The visa requires these workers to receive an annual salary of at least $32,760, about half the average annual salary of a remote worker in the United States. And that, as well as the Non-Habitual Residents regime – which guarantees some tax benefits – has led Portugal to become “a favourite destination for Americans who want to move abroad”, according to Bloomberg.

The visa allows digital nomads to avoid double IRS taxation – abroad and in the country of origin. “With this regime, dependent or self-employed workers for high value-added professions have their income taxed at 20%, as opposed to the 50% that can be applied to Portuguese with the progressive rate”, explains Jaime Esteves, a lawyer specialising in Law.

Cre: Portugalnews

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