If you have the flexibility to work remotely, this applies to you. Those fortunate enough to travel while working appreciate feeling welcomed by the country that temporarily hosts them. This was a key factor behind the introduction of a new visa in Portugal targeting digital nomads. These new visas began to gain prominence in several countries even during the pandemic, to serve remote workers or slow travellers. In Portugal, while the initiative might have been implemented later than in other countries, it has been active since October 2022 and remains relevant as many workers continue to operate remotely.

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When did the new visa for digital nomads come into effect in Portugal?

The new visa aimed at digital nomads came into effect in Portugal on October 30, 2022. According to the Ministry of Foreign Affairs, in the first two and a half months after its implementation, Portugal recorded 200 registrations. One year after the launch of the Digital Nomad Visa (D8 Visa), the country granted 2600 visas. The main nationalities that applied for this visa were the United States of America, Brazil, and the United Kingdom.

Who is the digital nomad visa for?

This new visa is designed for individuals outside the European Union and the European Economic Area (Schengen Area) who desire to work remotely, while residing in Portugal. In other words, these workers must perform remote work outside the national territory and ensure an income four times higher than the Portuguese minimum wage, meaning they must earn at least 3,280 euros gross. If the applicant brings a partner, the required income increases by 410 euros (50% of the Portuguese minimum wage); if children are included, the income increases by 246 euros per child (30% of the Portuguese minimum wage).

The D8 visa, also known as the Digital Nomad visa, has two streams. The first is for temporary stays, with a maximum limit of 1 year (this stream does not allow family reunification). The second stream is the most popular and grants the applicant a longer stay, initially for 24 months and renewable for an additional 36 months, totalling 5 years. After this period, it is possible to apply for Portuguese citizenship.

Until October 2022, there was no straightforward way for these workers to enter Portugal and work remotely. It was common for digital nomads to rely on the Schengen visa (for stays of up to 90 days) or the D7 visa. The D7 visa lasts for four months, with the possibility of two entries into Portugal, and subsequently, the applicant must attend an appointment to request residence authorization from AIMA (former SEF).

Following this step, they will have the chance to remain in Portugal for up to two years, with the option to extend for an additional three years. This visa is intended for individuals who can demonstrate a regular income exceeding the Portuguese minimum wage (€820). This income may come from royalties, rents, interest, financial investments, etc.

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What is the purpose of creating the digital nomad visa?

As mentioned earlier, before the implementation of this new visa for remote workers, there was no clear alternative for this community. Digital nomads relied on visas that were not tailored to their needs. Now, they can stay for a limited time and are legally covered. In Portugal, digital nomads are not exempt from taxation, with rates ranging from 14.5% to 48%. Income tax is applied based on each person's earnings and marital status.

What are the requirements to obtain the digital nomad visa?

In the initial phase, the applicant for the digital nomad visa (D8 visa) must personally submit the residence visa application at the Portuguese Consulate or a consular section of the Portuguese Embassy in their country of origin or residence. Alternatively, they can utilize the E-Visa platform, subject to the availability of the consulate. The fee for the visa is 90 euros, and the consulate has a period of 60 days to issue it. After the visa is issued, the applicant must travel to Portugal to request the residence permit.

At this stage, the following documents must be submitted:

• Employment contract or service provision contract with the entity based outside of Portugal;
• Ability to work entirely remotely;
• Proof of income four times higher than the Portuguese minimum wage (minimum of €3,280 gross).

In the second phase, during the appointment for the issuance of the residence permit, biometric data including fingerprints, photographs, and signatures will be collected. The fee for this procedure is 170 euros, and the AIMA is expected to issue the residence card within 90 days. On the appointment date, the following documents should be submitted:

• Tax Identification Number (NIF);
• Proof of issuance of Social Security Number (NISS);
• Proof of accommodation;
• Proof of income.

In this category of residence permit, you can apply for family reunification. Additionally, it allows free movement within the Schengen Area for 90 days without needing a Schengen visa. In Portugal, you will have free access to the Portuguese National Health System, among other benefits. You must not be absent for a period exceeding 6 consecutive months or 8 non-consecutive months during the validity of the residence card.

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Why do digital nomads choose Portugal as their destination?

Remote workers have the freedom to decide where to work. One of the most appealing benefits for digital nomads is the freedom from being confined to an office for eight hours a day. The opportunity to travel to new destinations, have flexible schedules, and achieve a work-life balance also draws many people to this lifestyle. But what draws so many people to choose Portugal as their temporary second home?

The comfort, low cost of living, safety, gastronomy, and hospitality of the Portuguese people are reasons why many nomads select this country. However, other experiences attract these temporary residents.

Portugal's beaches and coastal towns boast unique beauty, making them a point of interest for digital nomads to explore during their breaks or time off. Portuguese cuisine is another draw for these remote workers. The fresh flavours and simple yet delicious recipes can inspire new experiences, such as cooking classes, tastings with friends, and visits to local markets.

Portugal has a rich history and culture, which is why there are various points of public interest, museums, and festivals throughout the year. Outdoor activities, such as surfing, hiking, and golf, are highly sought after, and the favourable climate allows for their enjoyment.

Additionally, Portugal has been gaining international recognition as one of the top destinations for digital nomads. In 2023, the country secured 6th place in the Digital Nomad Index, ranking among the top 10 countries with the best visa conditions for this group of workers. It also achieved 3rd place in the ranking of the best passports for digital nomads, according to the Nomad Passport Index. This recognition further strengthens Portugal’s position as an attractive destination for those seeking flexibility and quality of life while working remotely.

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What are the coworking spaces in the Algarve?

Coworking spaces are increasingly sought after by digital nomads. In the Algarve, more and more places dedicated to remote work have emerged to meet the needs of workers in the region. If these spaces are new to you, they're shared workspaces where individuals from various companies come together to collaborate in a shared environment. These spaces can offer shared desks or private rooms, dining areas, and access to high-speed internet. The aim of establishing these spaces is to unite individuals with similar interests in a single location, fostering a sense of community. Coworking spaces are mainly intended for freelancers, remote professionals, and startups. If you're thinking about spending time in the western Algarve, there are several coworking spaces in key cities, close to various amenities such as shops, restaurants, and the famous beaches of this region. In Lagos, you'll find some coworking spaces like CoLagos. In the city of Portimão, there are three collaborative workspaces around the city, namely HUB Ativo, The Wave, and Startup Portimão.

Do you need to rent a house in Lagos or Portimão?

Casas do Barlavento is here to help you even before you arrive in Portugal so you can enjoy your remote working stay. We have countless properties in our portfolio available for short-term rental in both cities, where you can join a coworking community. In each holiday rental property, you'll find everything you need for your daily life, providing the comfort of being in your own home.

Find holiday homes in Lagos: discover apartments or villas in the city centre or closer to Lagos' award-winning beaches.

Discover holiday homes in Portimão: also, in Portimão, you can find the perfect home to spend your remote working season in Portugal. Explore the available options in Portimão or Alvor to find the perfect house for temporary rental.

Portugal has launched a visa that allows entry to remote workers. Now, it's easier to enter the country for a year, benefit from the measures included in the digital nomad visa, and enjoy the low cost of living, safety, cuisine, and friendliness of the Portuguese. If you're looking for a temporary rental house in the Algarve, get in touch; we have the ideal one for you.