A total of 2,600 visas have been issued to digital nomads by authorities in Portugal since October 30 last year, when the law that created visas for digital nomads in Portugal became effective.
According to the Portugal News, nationals from the United States, Brazil, and the United Kingdom have benefited the most from this kind of visa during this period, SchengenVisaInfo.com reports.
Lawyer Ricardo Nascimento recently cited the reasons why a large number of digital nomads chose Portugal as their favourite destination.
Portugal has become an increasingly sought-after destination for digital nomads. The country offers several advantages for these workers, such as a mild climate, a relatively low cost of living, and a rich and diverse culture encompassing history, architecture, gastronomy, and music.
According to him, this gives digital nomads the opportunity to experience a new culture and also connect with people from countries worldwide.
Portugal has been considered among the most favourite destinations for digital nomads, placing sixth in the Global Remote Work Index (GRWI) regarding the “Top ten remote work destinations”.
Recently, authorities in Portugal announced new tax changes and the closure of the Non-habitual Residence (NHR) tax regime for new entrants starting next year, which may also lead to an influx of digital nomads in this country who seek to benefit from the current regulations.
The NHR tax regime gives internationals the opportunity to benefit from reduced tax rates on income for a period of ten years.
Introducing the new decision, the Prime Minister of Portugal, Antonio Costa, said that the scheme is a measure of fiscal injustice and its maintenance is no longer justified after it has served its purpose and will only contribute to increasing housing prices, as reported by the Portugal News.
In 2024, special taxation for non-habitual residents will end. Whoever has it will keep it.
However, he emphasised that those already in the country with this tax advantage will be able to benefit from it for the duration of their ten-year term.
The Digital Nomad Visa allows foreigners to live in a specific country that offers such visas and work remotely for companies or businesses located outside the territory. Several EU countries are known for their Digital Nomad Visa Programs, among them the following ones: Croatia, Cyprus, Estonia, Greece, Hungary, Iceland, Latvia, Malta, Romania, the Netherlands, and Norway.