Living in Portugal - Visas & Tax

Living in Portugal — Visas & Tax

Portugal consistently ranks as one of Europe's most welcoming destinations for international residents, offering a high quality of life, excellent climate, and a range of pathways to residency. Whether you're relocating, working remotely, or planning long-term, here's an overview of the most relevant programmes.

Digital Nomad Visa

Portugal's Digital Nomad Visa is one of the most popular routes for remote workers relocating to the Algarve, and it remains fully active.

Available to non-EU and non-EEA nationals (making it particularly relevant for UK and US citizens), applicants must demonstrate a minimum monthly income of €3,680 from a non-Portuguese employer or as a self-employed individual, with that income evidenced over at least three months prior to applying.

There are two options: a Temporary Stay Visa valid for one year and fully renewable, or a longer-term Residence Visa for those committing to Portugal more permanently. The residence route requires proof of employment, a Portuguese NIF (tax number), proof of tax residence, and recent payslips.

On tax, Portugal taxes residents on their worldwide income at progressive rates of 14.5% to 48%. In practice, Portugal's double taxation treaties with over 70 countries mean that income already taxed at source in your home country is generally not taxed again in full here, but the outcome varies considerably depending on your nationality, how your income is structured, and which country your employer is based in. Professional tax advice before making the move is essential.

With its thriving expat community and exceptional quality of life, the Algarve has become one of Portugal's most sought-after destinations for digital nomads.

Golden Visa

Portugal's Golden Visa, officially the Residence Permit for Investment Activity (ARI) — remains active, though the programme has changed significantly since its property-investment heyday.

The residential real estate route was removed in October 2023 as part of housing policy reforms. Today, the main qualifying routes are:

• Investment funds - €500,000 minimum into CMVM-regulated Portuguese venture capital or private equity funds
• Cultural contribution - €250,000 (reduced to €200,000 in low-density areas) toward national heritage or arts projects
• Scientific research - €500,000 toward recognised research entities
• Job creation - establishing or expanding a business creating a minimum of 10 full-time positions

The programme continues to offer residency rights, visa-free Schengen travel, and family inclusion. The minimum stay requirement is just 7 days in the first year and 14 days per subsequent two-year renewal period.

Important note on citizenship: The pathway to Portuguese citizenship currently stands at five years, though the Portuguese government has proposed extending this to ten years. This legislation is still working through the parliamentary process, we recommend seeking up-to-date legal advice on the current position before making decisions based on the citizenship timeline.

For most buyers in the Algarve, the Golden Visa is less directly relevant than it once was given the removal of the property route. That said, some clients invest in qualifying funds alongside purchasing a home here, the two are separate decisions.

Tax Residency - NHR & IFICI

Portugal's original Non-Habitual Resident (NHR) tax regime — which offered generous tax exemptions and a 20% flat rate on qualifying income for ten years, closed to new applicants in January 2024. If you registered under the old NHR, your benefits continue until your ten-year period ends.

The replacement regime is IFICI (Tax Incentive for Scientific Research and Innovation), often referred to as NHR 2.0. The key difference is eligibility: where the old NHR was broadly open to new residents, IFICI is specifically aimed at qualified professionals working in science, technology, innovation, research, and education. It offers a 20% flat tax rate on eligible Portuguese income and exemptions on most foreign-sourced income (excluding pensions) for a ten-year period.

For retirees and passive income buyers, historically the largest category of Algarve purchasers attracted by NHR - IFICI is unlikely to apply. Portugal's standard income tax rates would apply instead, and individual tax planning advice is essential before making any residency decisions.

We always recommend buyers speak with a qualified Portuguese tax adviser or lawyer early in their purchasing process. We're happy to introduce you to trusted professionals we work with regularly.