Portugal’s Golden Visa program has not been dismantled but it has lost its most attractive and most popular element. Namely, you cannot qualify for a residence permit (which is a Golden Visa essentially is) if you buy real estate in Portugal: this option is unavailable any longer.
At the same time, acquiring a Golden Visa is still possible. You can put money in an investment or venture fund in Portugal or, alternatively, you can sponsor a scientific or a cultural project. However, you have to realize that there are several alternative ways to acquiring legal residence in Portugal and many of them do not require as substantial investments as a Golden Visa does.
Alternatives to Golden Visa to Portugal
How can you legalize your stay in Portugal? You can sign a job contract with a Portuguese employer, register a business company in the country, demonstrate your financial independence (a passive income), demonstrate some outstanding talent or skills, enter a Portuguese university, apply for a digital nomad visa, provide volunteering services, and so on. There are multiple ways of establishing legal residence in Portugal besides the Golden Visa and many people make full use of them.
For instance, many retirees from Iceland and Norway choose to spend their golden years in a warmer country and they apply for residence permits for financially independent individuals. Their pensions are high enough to make them qualified for this program. We have to note at this point that Iceland and Norway are not members of the EU. Citizens of EU countries do not need any visas or residence permits if they want to relocate to Portugal when they retire, for example. Anyway, you will find a rather large number of expats from Northern European countries in Portugal. This is not surprising at all because the weather is much nicer there than it is in Northern Europe.
How to apply for a residence permit in Portugal
Whatever path to legal residence in Portugal you choose, you will have to supply your passport and a police clearance, provide your Portuguese taxpayer’s number (NIF), prove having a place to stay in the country, demonstrate your solvency (bring a bank statement), and supply a medical insurance policy when applying for a residence permit.
You can file an application for a residence permit at the Portuguese consulate in your home country or go directly to the SEF (Serviço de Estrangeiros e Fronteiras), the Portuguese Foreigners and Frontiers Service. You can enter Portugal on a tourist visa in the second case.
We have to note, however, that filing an application for a permit directly to the SEF is not possible for those using the ‘financially independent individual’ and ‘digital nomad’ visas. They have to contact the Portuguese consulates in their home countries.
As far as the NIF is concerned, it is possible to acquire it from home: it can be done online. Moreover, you can buy a medical insurance policy, rent residential accommodations in Portugal, and enter a Portuguese university without leaving the comfort of your home. This is a very attractive thing about applying for legal residence in Portugal: many tasks can be solved via the Internet prior to traveling to the country.
Depending on the program that you choose, some additional documents are going to be required. If you are applying for a student visa, you have to bring a letter from the university that confirms your enrollment. If you are applying for a digital nomad visa, a certificate of legal income from remote work is required. Your employer will have to issue the certificate to you. You have to be able to show that your income has been not less than €3,280 per month over the last 3 months. You cannot qualify for a digital nomad visa to Portugal if your income is lower.
Minimal income requirements for financially independent individuals and digital nomads
Since November 1, 2022, only individuals with a passive income can apply for visas for financially independent individuals. If you rent your property out or if you are a pensioner, you can qualify.
You have to set up a bank account in Portugal to be able to apply for this sort of visa. You will need your passport, your Portuguese NIF, and proof of your residential address in Portugal. Why do you need a bank account? You have to deposit € 9,840 to show that you have a financial cushion to the Portuguese immigration authorities. The sum equals 12 minimum monthly salaries in Portugal in 2024 (€820). Besides, you have to have an additional 50% of the sum if you are moving to Portugal with your spouse and an additional 30% of the sum per child that you are bringing with you.
Taxes for digital nomads in Portugal
The Portuguese Digital Nomad visa program is relatively new but it has already become highly popular with those looking for easy ways of legalizing themselves in Europe. The program is attractive indeed but certain tax-related aspects have to be taken into consideration.
In accordance with the Portuguese Tax Code, a legal resident of Portugal becomes a tax resident of the country if:
- He/ she has spent more than 183 days in Portugal consecutively or on aggregate during any 12-month period;
- He/ she has spent less than 183 days in Portugal but he/ she has residential accommodations in Portugal that can be used for permanent residence.
Article 15 of the Tax Code says that fiscal residents of Portugal shall declare their income from both local and global sources. Tax declarations shall be submitted between April 1 and June 30 of the year following the reporting year.
Portugal has a progressive tax scale and the rates are between 14.5% and 48%. Dividends, royalties, capital gains, and rental income are taxed at a fixed rate of 28%.
Certain categories of workers pay the income tax at a reduced rate of not more than 20%. These include farmers, hunters, anglers, doctors, artists, linguists, university professors, and members of the creative industries who produce ‘high added value of a scientific, artistic or technical nature’.
To conclude, we have to note that two types of digital nomad visas are issued in Portugal. The first type (Estada temporária) is valid for 1 year and it cannot be extended or converted into a residence permit. You have to apply for a visa again if you want to extend your stay in Portugal after 1 year. The second type (Visto de residência) can be converted into a residence permit. It is important to realize what type of visa you would like to get because the lists of application documents are a bit different. In any case, however, you have to earn at least 4 minimal monthly salaries per month (€3,280) to qualify for a digital nomad visa to Portugal.
