Remote working in Portugal

Remote working in Portugal has been a trend for several years now, offering a new paradigm for how people approach their profession and how companies organize their business.

Portugal’s connectivity, quality infrastructure, and friendly environment make it an obvious hotspot for remote workers and digital nomads, but remote working in Portugal can have important tax and social security implications.

Why choose remote working in Portugal?

There are several reasons why Portugal is one of the best countries in the world to opt for remote working:

  • Perfect balance between work and leisure
    Working remotely in Portugal allows you to enjoy the country's beautiful landscapes, historical sites, and culinary delights. Exploring the country can provide the perfect work-life balance, boosting creativity and productivity.
     
  • Sunshine
    Portugal offers a pleasant climate all year round, which makes it an ideal place for those looking to escape harsh winters or sweltering summers.
     
  • Remote worker community
    Portugal has a very active community of remote workers and digital nomads, especially in Lisbon, Porto, and Madeira. This makes it easier for newcomers to integrate and find support networks for remote working.
     
  • Good connectivity
    With high-speed internet and excellent 5G network coverage widely available, Portugal is well-equipped to meet your technological needs associated with remote working.
     
  • Family-friendly and welcoming
    With excellent public healthcare and education systems, Portugal is the perfect country to settle in as a family and bring up your children, or even to enjoy your retirement.

Best places in Portugal for remote working?

What Portugal lacks in size, it makes up for in its huge diversity of landscapes, cultures, and customs.

These are some of the most sought-after regions for remote working in Portugal:

Lisbon and the surrounding area

Lisbon and the surrounding area

The Portuguese capital is the cultural, economic, and political center of the country, offering countless co-working spaces, renowned restaurants, eclectic bars, and other cultural experiences.
The country's biggest companies are also based in Lisbon, which is also home to Portugal's largest tech hub.

Porto and the surrounding area

Porto and the surrounding area

Known for its stunning riverside views and port wine, Portugal's second-largest city provides a picturesque setting for remote working. Porto is also an important industrial, cultural, and economic center.

The Algarve

The Algarve

For beach lovers, nothing can match the Algarve. With its beautiful beaches, friendly communities, and leisure activities such as golf and water sports, the region is perfect for those looking for a more relaxing environment for remote working in Portugal.

Madeira

Madeira

Madeira is a well-known destination for the remote working community, as it was a pioneering region in welcoming and attracting digital nomads and remote workers. 
This autonomous region of Portugal combines a dynamic and technological social and business environment with a peaceful and healthy lifestyle, close to nature.

Azores

Azores

For a more secluded experience, the Azores islands offer breathtaking natural landscapes, from lush forests to volcanic mountains. For remote working, this could be the ideal place if you're looking for peace, quiet, and inspiration.

Is remote working possible from Portugal?

Yes; remote working is possible from Portugal, but there are different rules for European Union (EU) citizens and nationals of countries outside the EU.

If you are a citizen of a European Union country or an equivalent country (Norway, Liechtenstein, Iceland, or Switzerland), you can live and work in Portugal by exercising your right to free movement. All you have to do is register with your local municipal council.

Citizens of third countries (i.e. outside the EU) must apply for a residence visa to work remotely in Portugal.

Visas for Remote Work in Portugal

If you want to stay in Portugal for more than a year and you are a citizen of a country outside the European Union, you will need to obtain a residence visa.

The residence visa for remote workers (D8) is a visa created especially for remote working in Portugal.

In order to obtain this visa, you must prove that you have an employment relationship or service provision contract with an entity domiciled outside Portugal and that you earn a monthly income equal to or greater than four times the minimum wage in Portugal (i.e. equal to or greater than €3,400 per month in 2024).

Learn more about residence visas in Portugal

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Tax framework for remote working in Portugal

Remote working in Portugal can be carried out through a dependent employment contract or a service provider contract.

The tax framework for remote working in Portugal applies to both dependent and self-employed workers, especially in terms of taxation and reporting obligations.

This framework is affected by international tax agreements and specific legislation applicable to each case, so it is advisable to consult a tax specialist for detailed and personalized clarification.

Dependent Labor in Portugal

Dependent Labor in Portugal

For a dependent worker who carries out their activity remotely, the tax framework is not very different from that of a worker who carries out their activity at their employer's workplace. 
Their income is subject to IRS (Personal Income Tax) at the progressive rates in force (or the fixed rate for Non-Habitual Residents - NHRs, if they fulfil the requirements of the special tax regime), and the employer is responsible for paying social security contributions. 
This type of worker must submit an annual personal income tax return, which will include the income earned and the withholdings made by the employer, as well as any other deductions and tax benefits to which they are entitled.

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Self-employment in Portugal

Self-employment in Portugal

Self-employed remote work, on the other hand, has a different tax and contributory framework.
Self-employed remote workers must register their activity with both the Tax Office and Social Security and issue their invoices (known as "green receipts") on the Tax Office portal or using a certified invoicing programme.
Social Security contributions are calculated on the basis of the income declared quarterly by the worker.
Self-employed workers can deduct specific professional expenses related to their activity (e.g. computer equipment, office supplies, communication expenses and others) when determining their taxable income.
These workers are also subject to VAT (Value Added Tax) and must collect and pay it to the state if they exceed the applicable exemption limit or choose to be taxed.

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Do you have any questions about working remotely from Portugal?

NEWCO has an experienced team that can help you with any questions related to moving to Portugal.

Contact us

Learn more about:

Dependent Work in Portugal

Self-employment in Portugal

How to move to Portugal
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