portugal taxes for remote workers portugal taxes for remote workers

The form asks for detailed personal information and information about your trip and finances. Here are some of the main details of Portuguese taxes at a glance: Under the Schengen agreement, US passport holders can stay in Portugal for up to 90 days in a 180-day period with no need for an additional visa. Youll be able to travel without a visa within Schengen countries. 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If you are a remote worker: an employment contract that details your income and bank statements from the previous three months. Portugals location lends itself well to traveling throughout Europe (including visa-free travel to the Schengen area) or Northern Africa, and the relaxed Southern European business culture present in Portugal might be appealing for remote workers. You can expect it to take 3-4 months for your visa to be processed. This visa is targeted at digital nomads specifically. Income from high value-added activities in Portugal will be taxed at 20%. The initial visa is for 120 days, and during that period, you must apply for a residency permit that will allow you to live in the country for up to 5 years. But an affordable cost of living means that Portugal still feels affluent. Around 20% of the population of the Algarve are expatriates, while the national average is 5%. All rights reserved. Internet connections are excellent, coworking facilities are plentiful, and there are many other digital nomads to share your experience. And if youre moving from one primary home to another, you may qualify for an exemption. Digital nomads wishing to stay in Portugal should look to the Temporary-Stay Visa. The Temporary-Stay Visa is best for digital nomads looking to work remotely from Portugal. We can help analyze your current remote workforce approachesincluding those implemented rapidly in response to COVID-19. You will only be eligible for Portuguese public healthcare if you are a resident for tax purposes and contribute to Portugals social security system. Many people think of the Algarve as just beaches for tourists and dont really realize that it contains several ideal places for remote work. There are five visa types available for digital nomads wanting to live and work in Portugal. A Productive Rant About Working Remotely From Coffee Shops, The Best Freelancing Tips And Tricks Build A Business You Love. Keep copies of all your visa application documents, as you will need them again to make your residency application. You will also find an internet connection in almost all accommodation types and hosts usually indicate their free internet connection in their listing. The remote work visa program is open to the same nationals as the visa-free visit. Most people who choose to work remotely in Portugal start their accommodation search on Airbnb, its more common and offers more spaces. Remote workers making at least four times its minimum wage can apply. Guidelines for how to do this are provided below. The Polish government is actively working on adapting existing laws to provide more tax relief to remote employees. . Try our free visa wizard to figure out which visas you qualify for! When you receive a Temporary-Stay visa for two years, you are expected to stay in Portugal for a minimum of 183 consecutive days (6 months) at some point during your visa period. The standard tax rate for the Temporary-Stay visa is 15% which is quite generous compared to the countries typical 25% rate. So, if your job's office is in state A, but because of the pandemic you're living and working . You can arrange short and long-term accommodation through this service. Regarding the language, the Portuguese language is the official one in Portugal, but no need to worry, your English will do. If you make your property investment in a low-density or rehabilitation area, you may be able to make a lower investment. In more remote areas, the speeds may drop down some, but you still should be able to connect. A standard tourist visa will only let you stay for a maximum of 90 days and does not permit you to complete certain activities, such as opening a bank account. The Portuguese government introduced the Portugal Passive Income Visa (D7 Visa) and the Non-Habitual . Although ending the Golden Visa will cost the Portuguese government money, the move is designed to neutralize public angst, and will likely be received favorably throughout the EU as well. In this case, you will only pay these taxes in your country of origin. You can also consider co-living spaces, which are hostels for freelancers and remote workers who can live and work together. The visa and the residency permit also grant you full access to the Schengen area as though you were an EU citizen. All Portugal-based employees receive . Why Not Move to Portugal (or just visit)? ANTIGUA AND BARBUDA Citizenship by Investment, ST KITTS AND NEVIS Citizenship by Investment, Malta Citizenship by Naturalization for Exceptional Services by Direct Investment (CES). To apply, you must provide a completed visa application form, a valid passport, two recent passport photos, evidence of your reservations and itinerary, evidence of travel health insurance with a minimum coverage of 30,000, proof of financial means to pay for your trip, and proof that you have paid the visa fee. In Portugal, the standard voltage in Portugal is 230 V. The standard frequency is 50 Hz. Paying Taxes on a Portugal Temporary-Stay Visa, Best Cities for Digital Nomads in Portugal, FAQs about the Portugal Digital Nomad Visa, to track the progress of your visa application online. At this stage, you will need to pay the visa application fee, which is currently around 180 per person, depending on the country you are applying from. One of the most affordable programs of its kind, the D7 visa requires applicants make only 7,200 euros or about $7,011 a year to qualify. 10+ Things You Should Know About Living in Silves, People that want to spend a few months working somewhere sunny, but dont want to move there. If your profession is not in high value added profession list, you will have the tax rates . We are pleased with Horizons expertise and the fact that they are flexible, responsive, and easily accessible from Belgium. Summer is the most popular time for tourists to visit the country. If you dont want to apply for a D7 Visa and Resident Permit, you have the option of applying for a Portugal Self-Employment or Entrepreneur Visa. Usually, you will receive a letter stating why your visa was denied. Spring and Fall are the best times to visit Portugal. COVID-19 tests and medical certificates are not currently required to enter Portugal. The Non-Habitual Residence tax regime grants new Portuguese tax residents 10 years of lower taxes (talk about a nice housewarming gift!). There you can enjoy having a desk to work on, a good internet connection, and some fresh food and drinks included in the price. In the past, many remote workers and freelancers did this by applying for the D7 visa (and sometimes the D2) but, as of 2022, Portugal has introduced a digital nomad visa aimed at remote workers and freelancers. Any US citizen or Green Card holder who meets the minimum reporting thresholds must file a federal US tax return, regardless of where in the world they live or where their income originates. You can use Booking.com for this category of accommodation search. At least 2,800 per month for an individual. Even if youre in some place where no one can speak English, people are friendly, and they will try to help you as much possible as they can. You can find Portugal's complete COVID-19 guidelines and protocols here. For non-EU citizens, the path to live and work in Portugal was less clear before October 2022. This visa and permit are geared toward non-European Union citizens who are earning income. A NIF is easy to obtain by visiting the closest Tax Office or Citizen Bureau (Financas or Loja do Cidadao) you can find a list of locations here. Processing periods depend on the country you are applying from, but you can usually expect your initial visa application to take 3-4 months to be processed and approved. English is widely spoken in Portugal, so you wont necessarily have to learn Portuguese to communicate. The D7 visa offers the same benefits as the other two in terms of being able to bring family members, open local bank accounts, and travel freely within the Schengen area. Its a perfect destination for remote workers and offers many cafes and co-working spaces. Gas for a car, on the other hand, is quite a bit more expensive. Remote workers will either be able to apply for a temporary stay visa for up to one year or a residency permit that can then be renewed for up to five years. Shield GEO manages all aspects of payroll for workers in Portugal, including taxes, withholding, social security payments and other statutory requirements. Often a SEF appointment will have been made on your behalf when you applied for your visa. Accessibility and security of the internet, If youre reading this too late and you already left your country, dont worry, youll find different tech shops in Portugal where you can find the proper plugs and adapters to be able to use the Portuguese ones. If you live in an urban property worth no more than 125,000, however, you can get a three-year exemption from the IMI. The process for proof that you do not have a criminal record depends on your country of origin, but the certificate verifying your status must have been issued within the last three months. Hire in 180+ countries in 24 hours, without a subsidiary. Why you are requesting temporary residence in Portugal. That's about $2,750 a month. A co-working space is a kind of shared office where you pay to use the facilities. Several European countries offer visas for digital nomads, including Croatia, the Czech Republic, Estonia, Germany, Greece, Hungary, Iceland, Italy, Malta, Romania, and Norway. Remote work has never been more attractive and possible. Get a free consultation and live platform demo with our local HR expert. The citys infrastructure is continuously growing, and this will reflect on your quality of life there and make your day-to-day life easier. This village supports a close-knit community of digital nomads that fosters creative connections (and an island-wide Slack). Our expat tax experts will make sure your tax returns are accurate, on time, and optimized for minimal liability. The recently-launched D8 digital nomad visa allows remote workers to legally work and live in Portugal. Your application form will also ask you to specify how you would like your passport to be returned to you following the application process. You will also find an internet connection in almost all accommodation types and hosts usually indicate their free internet connection in their listing. Since many tourists in the Algarve hail from the UK, English is widely spoken among the local population, so you wont need to worry about the language barrier. ", "I truly appreciated the thoroughness and the professionalism of Horizons personnel while we hired internationally with them. This option is a great option for you to socialize and expand your network in the country. You must submit your application, supporting documentation, and visa fee at your local Portuguese Embassy. Remote working in Portugal is a great choice for freelancers and remote workers, considering the low cost of living, internet connectivity, and wide range of activities. Learn about remote work in Portugal thanks to Horizons up-to-date guide. Portugal has had an influx of foreign residents since the pandemic started, many of whom have used the D7 visa, or "passive-income visa," to set up shop in the country. After this, if you still meet the requirements, you can apply to extend your visa for another four years. In a survey from FlexJobs, the remote job search site, 60 percent of women and 52 percent of men said they would consider looking for a new job if they could no longer work remotely; 62 percent of . And depending on how long you stay in Portugal and the visa you have, you may need to pay taxes to the Portuguese government as well. Accommodation; Whether you rent an Airbnb, a hostel, apartment, or home, you should be able to hook up to a good internet connection. Our, Working Remotely in Portugal: The Ultimate Guide, Remote work has never been more attractive and possible. Additionally, there are ongoing discussions about lowering the tax rate to 5%! Working from anywhere in the world is ideal for people to work independently on their own time schedules, enjoy greater travel freedoms, improve their life quality, and even be more productive and creative. Once you have received your visa, you are free to enter Portugal. If this describes you, plan on working remotely during the fall, spring, or winter. This is aimed at the two types of remote workers and freelancers Portugal attracts: Both have slightly different implications. Stay up to date with what you want to know. In the Azores, the VAT rate is either 5%, 10%, or 18%. ), Criminal record certificate (certified by Apostille), Proof of valid health insurance (for the first four months of your trip). The locals are accustomed to foreigners and tend to be welcoming. It doesn't matter if you travel frequently, as long as you spend the minimum amount of days. If the climate is part of your decision to work from Portugal, youll be pleasantly surprised if you like warm weather and sunshine. By engaging an employer of record like Horizons, you mitigate the risks of employee misclassification and human error, placing all employment responsibility on Horizons. The Algarve is the perfect setting for remote workers that are looking for year-round pleasant weather. From a tax perspective such employees would likely be able to apply for a special non habitual tax resident status that could grant them a flat 20% tax on their income received in Portugal, while, as a rule, tax from foreign origin would not be taxable. AC plugs and sockets in Portugal include Type C and Type F like in almost all Continental European countries. Remote work is becoming an increasingly popular option for many people who prefer to work independently and enjoy the freedom of life and Portugal is constantly coming out on top as one of the best countries to work remotely from. This letter should include: Each applicant will need their own cover letter, but cover letters for dependents are likely to be shorter and refer to the documentation of the principal applicant. That calculates to about $2,750 a month. Before making your Temporary-Stay Visa application, you should ensure that you are eligible and have all your documentation in hand. The rapid advance of remote work has led many states to update their TC&I programs to reflect the changing nature of work. Type C is similar but without the contacts. The weather is good, and there is plenty going on, but it is not as expensive or crowded as during the Summer. To work remotely, you need fast and reliable internet service. Below is a list of the documents required for a Temporary-Stay Visa: If you wish to attach family members to your visa, you will require further documentation, specifically: Complete the APPLICATION FOR NATIONAL VISA. You don't have to apply in advance for a visa or anything special.