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:

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).

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.