Remote Working in Paradise: Forget what you know and let me start right from the basics of why Portugal is quickly rising to be the number one country for people to work remotely.
Portugal has now been established as one of the most ideal countries for working from home and being a digital nomad. The cost of living in Portugal is relatively low, the infrastructure is good, and the people are friendly and receptive to remote workers, which is why professionals who wish to work from Portugal are clearly in luck. This blog will give you an idea to the current state of remote work in Portugal, the pros it offers the important things you need to know about visas, taxes, housing, and many more to ensure you thrive working remote in this beautiful European country.
The pandemic has brought more significant changes and pushed forward the remote working culture. It has become possible for many working professionals to do their work from any location that they choose to work from and which has a network connection. Not surprisingly, Portugal was quick to tap into this trend and came up with a digital nomad visa and a remote work tax incentive program. The more word spreads about the opportunity to live in Portugal as a digital nomad, the stronger the country’s position as the global powerhouse of remote work becomes.
Portugal boasts a favorable work culture, climate, and environment that makes it easy to take time out and balance work with leisure. It helps remote salaries to go further towards a high standard of living, as the country is even cheaper compared to most other Western European countries. Good flight connectivity is as it is not hard to reach a majority of the European and North American cities. Well, let’s read some more to discover other advantages that contribute to Portugal’s becoming one of the must-visit destinations for digital nomads and other foreign remote workers.
This blog would look into the climatic conditions, culture and culinary practices of the area.
Portugal has more than 300 sunny days per year, and it boasts a Mediterranean climate, so when you need a little break, you’ll have opportunities for outdoor grilling, walking along the coast, playing golf, and visiting museums and historic landmarks. The Portuguese are hospitable, friendly, and place a high value on family; they are less stressed than their European counterparts. This means that friends can easily be made in the local area due to the strong connections that are already in place. And when it comes to fresh seafood, wine, cheese, bread and pastry as constituents of its cuisine, Portuguese food alone can be good enough to give a valid reason to linger on.
Overall, Portugal is considered to be relatively cheaper than other comparable Western European and North American cities. Lisbon and Porto being the cities with the highest relative prices are still significantly cheaper than Madrid, Paris, London, or New York, for instance. They should look forward to paying between 30-40% less of the amount they used to spend for rents, foods, eating out, and other necessities. This means the cost of living is pretty cheap and your money lasts longer than you imagine, meaning Portugal is a wise financial choice.
Since Portugal is on the same time zone as the United Kingdom, convenient overlapping of working hours when communicating with British and European partners and counterparts can also be a significant advantage. It can also be located strategically in line with the North American-Asian time zone overlap, where the difference ranges from 1-5 hours when dealing with these zones.
For the same, each major city offers its own reasons for being an ideal location for remote work. Here are some of the top destinations to consider basing yourself in Portugal:
This is absolutely true, as Lisbon is considered to be the cosmopolitan capital of Portugal and it’s the location where expats who arrive in the country tend to settle. It states that it has the largest startup and tech environment of any city in the country with numerous open co-working spaces, meetups, and events. The setting in Lisbon, with its yellow trams, pastel houses, handsome vistas (miradouros), and lovely beaches can become an office for an Instagram.
This interesting property has a lot of character and is in a historic neighborhood while offering all the conveniences of a new construction home.
Porto, famous for port wine is a large city offering shopping malls theaters and international airport that surround the postcard picturesque old town. Porto is located on the estuary of the Douro river facing the sea, and it is less crowded than Lisbon and has a more leisurely pace.
Considering the fact that it is the region in Europe that boasts the highest levels of sunshine, it is no wonder that the Algarve is popular with those interested in sun, sea and sand and/or water sports. That is between working in colorful cities like Lagos or relaxing surfing towns, you will have beautiful beaches, golf courses, restaurants, and night clubs to keep you occupied.
Join us on the beautiful and isolated island of Madeira or be surrounded by the ocean if it’s the Atlantic one. Due to technological improvement, Madeira has internet connectivity island-wide – an aspect crucial for working from home. Madeira is one of those destinations where it is possible to actively enjoy pristine nature while not losing the conveniences of the developed world.
Portugal started accepting digital nomad visas from the start of the year 2022 with the permits allowing location independent workers to reside in Portugal for one year. Firstly, in order to be granted the status of a non-habitual resident, a person must be employed with a company that is not established in Portugal or be a businessman. Meeting a minimum income level is also mandatory, but the amount of income is less stringent and can be flexible depending on how much a person wants to earn. For longer stays, there are other types of visas that can accommodate individuals who are operating a business remotely or freelancers working for Portuguese companies.
Using a dummy account to sign up as a Trabalhador Independente
Freelancers who work remotely and would like to establish themselves as a Trabalhador Independente should acquire a tax number in Portugal. This freelancer tax status renders it easier to interact with Portugal’s tax regime that would otherwise be difficult to do under the home country’s tax system.
There are favorable taxation policies in Portugal which include non-residents not subjected to tax on foreign income and one is not compelled to declare income earned in other countries. This requires that you are not a resident in the country for over 183 days in the year as this will make you a tax resident. For those who come under the Non-Habitual Resident Scheme, the income from abroad and that derived from Portugal is taxed at a flat rate of only 20% for the first ten years only if it meets the following conditions.
Some of the best neighborhoods for people to live in Lisbon are Chiado, Principe Real, and Alfama within an easy walking distance to coworking spaces and services. Some of the main centres that Porto is defined by are downtown Baixa, the Seaside Foz do Douro or the artistic district of Miguel Bombarda. When there, search for an internet connection that can support high-speed browsing for better work productivity.
For those who are trying out the lifestyle, instead of moving to a new country, try out the Airbnb or rental services to get the right location. On the long-term durations of more than a few months, there is relatively a better rate and facilities offered by secured apartment rentals. Coworking spaces can also offer recommendations as to housing that may be ideal for those who work from home.
To find out the best accommodations, one needs to participate in the local digital nomad’s Facebook groups and search contracts through the listings sites like Uniplaces and Spotahome. Hotels and resorts provide off-season discounts for short holidays, which vice versa can be combined with the work in the office.
Where Lisbon and Porto have over 30 coworking spaces each, some of the notable ones include Second Home Lisbon and Porto i/o. The two are coworking spaces with Madeira Cowork and Faro Station being located in Madeira and the Algarve regions of Portugal. Whether you want the latest and hip co-working space, one stripped down to the essentials, or a place in between, there are a lot of very accommodating memberships for any remote worker out there.
From the meetups for surfers, language exchange, and entrepreneur meetings, you get plenty of networking in Portugal. Coworking spaces themselves help to meet with Like-Minded people in your surroundings. Digital nomads can find a sense of community in established Facebook groups such as Lisbon Digital Nomads and Porto Remote Workers.
Another key business etiquette of the Portuguese is that they are people oriented and do not shy off from getting to know their associates beyond the business. Never start with the business before making casual introductions. Likewise, the aspect of punctuality is relatively informal than, for instance, the German culture. Being late to meetings, whether individually or as a group, will be the norm and not considered rude.
English is well understood throughout Portugal, particularly in areas where people live and work remotely from their offices. Yet, as much as a person may lack extensive Portuguese vocabulary, mere knowledge of simple expressions is enough to demonstrate good intentions in engaging. As with a lot of things in life, ‘Por favor’ (please,), ‘obrigado’ (thank you,) and ‘desculpe’ (sorry) work wonders!
One of the most appropriate ways of arranging interactions with new Portuguese people and getting friendly with them is accepting their invitations to have meals at their homes. Another pastime enjoyed by the population of Portugal is cafe culture or more time being spent in cafes. It is just like sitting in the living room, grabbing one of the chairs and starting to talk to those near you.
Setting up as a remote employee in Portugal is accompanied by numerous administrative procedures; obtaining visas, registering for taxes, and freelancing. When it comes to procedures, they may be intricate, however, services like Get Golden Visa are always ready to help and consult individuals regarding the policies.
However, Portugal still ranks low in terms of Internet quality compared to other developed countries such as South Korea or Romania. Mainly upgrade, but brace for overall slower connections, even if it is still within non-urban zones. Make sure your accommodation has fast internet connectivity that supports video meetings and consider using Portugal’s best 5G service provider, which is Vodafone.
Feeling nostalgic about the individuals and location you used to know back at home? If you do not know any locals or fellow foreigners, join some expat groups or become friends with other nomads or tourists. Finally, it is advised to avoid the shock of transitioning by taking a schedule of video calls with friends and families. Let traditions such as having a long lunch break, or taking an afternoon siesta have some time – you may just find yourself starting to appreciate them.
The above facts are self-explanatory as to why Portugal has become the number one country of choice for many people who seek to work remotely and use their time for leisure while accumulating their wealth. As for the cities and villages where you can spread his wings in Portugal, they offer a great quality of life for the individual who wants to be location-independent while having ancient cities, beautiful beaches and charming countryside to wake up to modern infrastructure.
Portugal is among the countries that actively seek and encourage the arrival of digital nomads via specially introduced visas, attractive taxation policies and a developing network of co-working spaces. This is the correct place for the move to a coastal area where the cost of living is low but the benefits are high. It may be entirely possible that you find your best life here, exploring the option of digital nomadism and working from Portugal’s beautiful coasts.
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