Digital nomading has become a current hit, as more and more remote workers opt for relocation to Portugal instead of living in the UK. Freelancers also take this opportunity to apply for the Portugal digital nomad visa and make the most of it. While both freelancers and hired workers apply for the same visa, their journey is slightly different. You can further explore the nuances each category of migrants faces.
Both Qualify, but Proof Varies
Both freelancers and remote employees can qualify for a digital nomad visa, but the documents required differ slightly. Self-employed applicants must have contracts with international clients signed, as well as consistent income over time. At the same time, employees need an active job contract with a non-Portuguese company.
Moreover, regardless of the employment type, the requirements of the monthly income of €3480+ and a bank statement with savings of €10,440 or more should be met. In addition to that, all the provided documentation, including a motivation letter, should clearly reflect your work model and financial stability to have the application approved.
Tax Implications: Where It Gets Tricky
Taxation is one of the most complex parts of relocating, and this sphere differentiates between freelancers and remote workers the most. Freelancers may need to register as a “trabalhador independente” in Portugal and file local taxes. Remote employees, on the contrary, often remain taxed in their home country (at least until they spend 183+ days in Portugal and trigger tax residency status).
Misunderstanding these rules can lead to double taxation or compliance issues. This is the aspect that is really worth raising when hiring a professional migration help service like Migrun. They are familiar with cross-border tax laws and can provide competent guidance on the matter. It is essential to avoid unnecessary hurdles or even penalties and fees.
Lifestyle & Flexibility: What Suits You Best?
The lifestyle and flexibility for both categories differ slightly. Thus, if you can select whether to relocate as a freelance or remote worker, you might like to take a closer look at the opportunities and challenges each category has.
If you’re self-employed, you’ll enjoy a lot more flexibility, so you get to decide what you do, when you do it, and where you work from. You can set your own hours, pick your clients, and shape your day around your lifestyle. But with that freedom comes a bit more administrative work, so you will need to handle:
- invoicing;
- registration as self-employed;
- management of social security contributions.
Remote employees, on the contrary, benefit from stability and fewer bureaucratic hurdles. However, they may have less control over work terms and schedules. Moreover, they still need to deal with taxation after 6 months of staying in Portugal.
Summary
Portugal’s digital nomad visa offers a solid foundation for building a life abroad, regardless of whether you are a freelancer or a hired worker. It is more about nuances, so the key to the right choice is to assess your work style and financial setup. At the same time, long-term migration goals are not impacted. Regardless of the chosen path, you can apply for permanent residency after five years and get a chance for a long-term settlement.
