Exactly one year ago, on October 30, 2022, Portugal implemented a law allowing the issuance of visas for remote work. In the past year, the country issued 2,600 visas to digital nomads, as reported by SchengenVisaInfo.com.
According to information from Portugal News, citizens of the United States, Brazil, and the United Kingdom received the most of these visas.
Portugal is in demand because it offers many advantages, including a mild climate, relatively low cost of living, and a diverse culture that encompasses history, architecture, gastronomy, and music. All of this provides digital nomads with the opportunity to immerse themselves in a new culture and establish connections with people from around the world.
As of today, Portugal ranks sixth in the Global Remote Work Index (GRWI) in the category of “Top 10 Places for Remote Work.”
Starting from the next year, Portugal will no longer have a law on the simplified tax regime (NHR) for digital nomads. Currently, visa holders enjoy a simplified tax regime for the next 10 years, characterized by lower income tax rates.
Introducing the new solution, Portuguese Prime Minister Antonio Costa stated that this regime is a measure against tax injustice, and its continuation is no longer justified after achieving its goal. It may only contribute to an increase in housing prices, as reported by Portugal News.
For those who have already taken advantage of the special tax regime, nothing will change. The law will only apply to new digital nomads starting from 2024.
What is a digital nomad visa?
The Digital Nomad Visa allows a foreigner to live in a specific country and work remotely for a company located outside the territory of that country.
Visa programs for digital nomads exist in many European Union countries, including Croatia, Cyprus, Estonia, Greece, Hungary, Iceland, Latvia, Malta, Romania, the Netherlands, and Norway.