Portugal Lures Digital Nomads With Favourable Taxes
According to Ricardo Reis from the consultancy Deloitte, Portugal has become a top destination to work and live in, pointing out the benefits the country brings for remote workers, AtoZSerwisplus.pt reports.
“Traditional differentiating factors associated with quality of life in general, the fiscal criterion also justifies this movement,” Reis noted, hinting at the context of the Non-Habitual Residents (NHR) regime.
More specifically, people with such professional activity are allowed to pay an IRS tax of 20 per cent in income from their work or professional activity instead of paying taxes that go up to 48 per cent.
In order to benefit from this NHR regime, the applicant must not have been a tax resident in Portugal in the last five years and to carry out one of the high added value activities determined by the Ministry of Finance. Those who fulfil these requirements can benefit from NHR for up to ten years.
In addition, Joana Cunha d’Almeida, a partner in charge of the Tax Law Department at Anta da Cunha Ecija, also lists the NHR as a factor in wanting to be a digital nomad in Portugal.
She notes that “many people” who want to know what the rules are if they come to work in Portugal and companies are also asking questions in this area, and the latter, despite being obliged to pay the 23.75 per cent Social Tax (TSU) for Social Security, ended up concluding that having workers working remotely and living in Portugal pays off.
Previously, the Iberic country launched a campaign called “It Works for You”, which aims at promoting remote work combined with leisure and lifestyle.
“Through this campaign, Cascais invites all digital nomads looking for an out-of-door destination to enjoy the ‘magical’ conditions for working and a lifestyle that balances work with a constant feeling of vacation,” Portugal’s Cascais Tourism Association notes.
The country is listed among the best destinations for digital nomads, especially known for its accommodation spots which can vary from €741 to €1,136 while the weather is good and the internet connection, essential for such activities, is strong. The best cities for digital nomads in Portugal are Lisbon, Porto, Braga, Madeira and Aveiro.
