test@mail.com

0 MIN READ

04 Dec 2024

test@mail.com

Topic:

Related Articles (03)

Portugal Golden Visa Tax Benefits: What Investors Need to Know
Golden visaPortugal Golden Visa Tax Benefits: What Investors Need to Know Portugal’s Golden Visa program provides investors with a real opportunity to enter Portugal, gain permanent residency in this beautiful country, and enjoy tax benefits that have attracted investors for years. In this blog post, we will go over how taxes work for Golden Visa holders, along with everything you need to know as an investor. What is the Portugal Golden Visa? Introduced in 2012, the Portugal Golden Visa, also known as the residence permit for investment activity (ARI), is a residency-by-investment scheme designed for non-EU, non-EEA, and non-Swiss nationals (we mention non-Swiss nationals because, while they are not part of the EU, they have similar rights to live and work in EU countries as EU nationals). It is, to put it simply, a way to obtain residency within the country by making a qualifying investment. It was created to attract international capital into the country. After the economic crisis in 2008, this program was introduced and became a rising success, having raised over €7.5 billion. The visa is valid for two years initially, but is renewable in two-year increments as long as you keep your investment and meet minimal stay requirements. After five years, you can apply for permanent residency or citizenship. Why Investors are Big Fans of the Program The Portugal Golden Visa program has been active for around 13 years and has been favored by investors for several reasons: Access to the Schengen Area: Residency lets you travel freely within most of Europe without additional visas. A Path to Citizenship: Unlike some residency visas, the Golden Visa allows you to apply for Portugal citizenship after 5 years. Low Physical Presence Requirement: You do not have to relocate or completely change your lifestyle, as only minimal physical presence is required. Family Inclusion: Your spouse, dependent children, and, in some cases, dependent parents can be included on the same application. Tax Planning Opportunities: When paired with the right tax status, it can help investors manage or reduce their global tax burden. Portugal is also known for being safe and offering a climate that appeals to many investors. The country has stable governance, a legal system aligned with EU standards, and a high quality of life, making it easy to see why the program is so attractive. How Taxes Work for Golden Visa Holders So, let’s get to the matter at hand. Do you pay taxes in Portugal? Whether you will pay taxes in Portugal as a Golden Visa holder depends on one thing: your tax residency status. As a Golden Visa holder, you are not automatically required to pay taxes in Portugal. If you invest and spend limited time in the country, you remain a non-resident and only pay tax in Portugal on the income you earn within its borders. If, however, you spend more than 183 days of the year in Portugal, you will become a tax resident of the nation and will have to pay taxes. The Portuguese taxation system is quite favorable for investors considering relocation. What Triggers Tax Residency? You will become a tax resident of Portugal if you spend more than 183 days in the country during a year, have a permanent home there (even if you spend less time there), or register as a resident with the local authorities. Once tax residency is triggered, Portugal expects you to report and pay tax on your worldwide income, not just local earnings. The Portuguese taxation system can still be advantageous for investors who plan to relocate. On the other hand, as a non-resident, you only need to pay tax on income sourced within Portugal, such as earnings from property or businesses in the country. Your foreign income stays outside Portuguese tax jurisdiction. Tax residents have broader tax obligations, but also may access beneficial tax regimes like IFICI. Non-residents have simpler tax filings but lose out on some benefits.  Portugal’s New IFICI Tax Regime Explained (Replaces NHR) The IFICI (Incentive for Scientific, Cultural, and International Investment) tax regime is Portugal’s new scheme that replaced the NHR (Non-Habitual Resident) regime in 2024, also referred to as NHR 2.0. The NHR offered broad tax incentives for up to 10 years, designed to attract foreign investors by providing generous exemptions and flat tax rates on certain foreign and Portuguese income. The IFICI regime is more focused on professionals in scientific research, innovation, technology, and similar fields. While it still offers a 10-year tax incentive period, it is more targeted and comes with stricter eligibility criteria. It provides a flat 20% tax rate on qualifying Portuguese-sourced employment or self-employment income and exemptions on many foreign income types. However, it excludes some benefits from the previous NHR, such as favorable treatment of foreign pensions. How to Apply & Why it Matters for Golden Visa Holders Applying for IFICI involves going through Portugal’s tax authority. Here’s how to apply: Provide evidence of your professional role, project, or business. Register officially with the Portuguese tax office. Complete the application and submit the required documentation before the annual deadline. For Golden Visa holders, IFICI can be highly advantageous as it lowers personal income tax, offers selective tax exemptions, and may provide better treatment on certain foreign income. This makes it particularly appealing for global investors and professionals earning income digitally. If you plan to invest in fields such as technology, research, or culture, you could benefit significantly from IFICI over the years. However, before basing your entire strategy on it, confirm your eligibility, as rules and interpretations may change. Portugal Golden Visa Tax Benefits for Investors While not directly designed for tax benefits, the Golden Visa is primarily about residency. When paired with the right tax setup, it can make a notable difference to your finances. Here are the five biggest advantages for investors: No Tax on Foreign Income for Non-residents: Golden Visa holders who do not wish to become tax residents are only taxed on income generated within Portugal. Any income earned outside Portugal is not subject to Portuguese tax. No Wealth Tax: Portugal does not impose a wealth tax on Golden Visa investors, meaning you do not face additional taxation on your global net worth or assets held outside the country. No Inheritance Tax for Close Relatives: There is no inheritance tax on transfers between spouses, descendants, or ascendants. For distant relatives or parties unrelated by birth, only a 10% stamp duty applies. Reduced Property Taxes and Exemptions: Although Portugal closed its real estate investment route for the Golden Visa in October 2024, property taxes (IMI) remain relatively low, generally between 0.3% and 0.8% annually. There are also exemptions based on usage and property location. 20% Flat Tax Rate: For those who qualify under the new IFICI regime, a flat 20% tax rate is applied to qualifying Portuguese-sourced employment or self-employment income for up to 10 years. Also, thanks to Double Tax Treaties, residents from countries like the UK, the US, and more can avoid double taxation. Do You Pay Taxes on Your Investment? Naturally, different types of investments fall under different Portuguese tax rules, and your tax bill will be heavily dependent upon which kind of investments you choose to make for your Golden Visa. Real estate investments were the way to go for many investors, but since October 2023, they no longer qualify for the Golden Visa. So, while foreigners may still buy property in Portugal, doing so doesn’t provide any special tax treatment or migration privileges connected to the Golden Visa. However, for reference, had you invested in property before that date, your taxes would include a property transfer tax when buying, an annual property tax called IMI (usually between 0.3% and 0.8%), and rental income taxed at a flat 28%. Some exemptions may reduce this if you become a resident or hold the property long-term. The main route now is via fund investments taken by Golden Visa applicants. You can avoid direct property-related taxes such as the transfer tax and IMI. The payouts from these funds are also often exempted or taxed lightly for non-residents, which makes it a more tax-efficient route. Wealth Tax and Inheritance Tax in Portugal Some good news: Portugal does not have a general wealth tax. Now, with that said, there is an additional tax known as AIMI that applies only to high-value residential properties above €600,000 per individual. This, however, doesn’t affect funds or global assets. As for inheritance tax, Portugal keeps things simple with no inheritance tax between close relatives (spouses, children, and parents), and others might be subject to a 10% stamp duty, but only on Portuguese assets. To put it in a nutshell, real estate and fund investment affect tax exposure significantly and differently, but the former does not get you any Golden Visa benefits. But funds provide more favorable tax treatment today anyway and are relevant for the Golden Visa. Crypto Taxation in Portugal: What Investors Need to Know in 2025 Major changes have occurred since 2023 in the cryptocurrency taxation system of Portugal. With crypto trading and assets now fairly mainstream, it is best to know the rules and understand your tax liabilities. Crypto is Now Taxable Portugal used to be quite popular for being a crypto-friendly country, with limited taxation on digital assets up until 2023. Now, Portuguese tax authorities have clarified that crypto transactions are indeed subject to income tax, bringing Portugal in line with many other countries. If you perform short-term trading, any profits earned are treated as taxable income. All your gains will be subject to Portugal’s progressive income tax rates, which can reach up to 48% for high earners. Benefit for Long-Term Holders If you are a long-term trader of crypto, holding for 365 days unlocks a major tax advantage: making gains exempt from being taxed. This applies no matter the amount of profit earned from selling crypto held for over a year. Strategic Planning Can Minimize Taxes Even with these rules in place, crypto investors can plan smartly and still gain from their crypto profits: Aim for long-term holdings to benefit from the no-tax advantage Maintain all transaction records to avoid penalties Use Portugal’s tax treaties to avoid double taxation if you have income from other countries Structure your crypto activity to separate personal investments from business operations Reporting & Compliance: What You Need to Know It is important to know your obligations as a Golden Visa investor. Portugal sets clear rules that you need to adhere to. Every year, residents and certain non-residents with Portuguese income must file a tax return, commonly known as IRS. Filing can be done through the official Portal das Finanças. Even if much of your income comes from abroad, you might need to report worldwide earnings if you qualify as a Portuguese tax resident. Non-residents only declare income sourced from Portugal itself. Returns typically cover the previous calendar year, with deadlines falling in the spring (usually between April and June). Mandatory Reporting for Foreign Bank Accounts (Modelo 720) Portugal has introduced Modelo 720, a special declaration for disclosing foreign bank accounts, securities, and properties if their combined value exceeds €50,000. Residents must submit this annually. Awareness, honesty, and transparency are the keys to avoiding tax avoidance penalties for non-compliance, which can be severe. So, include accounts, investments, and all property interests you hold outside Portugal, even if they do not generate income that year. Double Taxation Treaties: How to Avoid Paying Twice Portugal’s network of double taxation treaties (DTTs) supports investors. These are international agreements in place to prevent investors from being taxed twice: once in Portugal and once abroad. These treaties exist with the UK, the US, and many other countries. For all practical purposes, you do not have to pay tax twice. Golden Visa Program Updates That Affect Tax Planning As discussed above, the Portugal Golden Visa went through updates that have a direct impact on how investors approach their tax and residency strategy. Real Estate Investment Routes Closed Since October 2023 Again, purchasing property in Portugal used to be one of the most popular ways of qualifying for the Golden Visa, but that is no longer the case. Anyone seeking a new Golden Visa today must look elsewhere, such as funds and cultural projects. Investments in approved Portuguese funds or support for national cultural initiatives are now the main qualifying routes. These main qualifying routes must meet government criteria and are often professionally managed with an emphasis on technology, innovation, or the arts. These options also typically come with lower ongoing tax burdens (no property taxes, fewer indirect taxes). What These Changes Mean for Taxation and Compliance With no real estate options on the table anymore, investors face a clearer picture for tax: No annual property tax or property transfer taxes for fund-based Golden Visa holders Gains and distributions from funds benefit from favorable tax treatment, especially for non-residents who often face little to no Portuguese withholding tax, depending on structure and bilateral tax agreements Compared to property owners, fund investors have more consistent compliance requirements and much less administrative paperwork Fund investments are more liquid and flexible, offering more financial freedom To make the most out of Portugal’s updated Golden Visa program, you need a thorough understanding of the tax benefits and compliance requirements of fund and cultural investment. Planning for Citizenship and Long-Term Taxation The path to Portuguese citizenship is clearer than ever before. After spending five years with a Golden Visa (and meeting the stay requirements), you can apply for a passport. Needless to say, keep your record clear. Make investments accordingly, with your goals clear. Fund investments, especially in diversified and well-managed options, are now the gold standard for keeping taxes low, building wealth, and facilitating your eventual move toward EU citizenship. If you choose that path, the tax rules are the same as for any other residents. How Bitizenship Helps Navigate Portugal’s Golden Visa The Golden Visa Program can be a bit complex to tackle alone, especially as a crypto investor. The process becomes more nuanced. That is where assistance from an advisory firm like Bitizenship comes into play. Unlike many other advisory firms, we have a crypto-first approach. We offer a Golden Visa-eligible fund managed by a licensed crypto-focused asset manager in Portugal, with 110 visas managed to date. The fund provides exposure to real Portuguese companies that integrate Bitcoin in their balance sheets, as well as access to top-tier, low-fee ETFs from names like BlackRock and Bitwise. Our team assists you at every step, working with law firms and financial advisors, making sure the paperwork is air-tight, and there is proper planning for tax and compliance. If you are a crypto investor looking for residency, the right fund route, and structured support, get in touch with us today. Closing Thoughts  Providing access to over 27 countries and plenty of tax benefits when used correctly, Portugal opens real doors for a new life. Begin a new chapter of your life in Portugal with built-in tax efficiency as a crypto investor by partnering up with Bitizenship. Planning and staying current with the requirements sets you up for long-term success in Portugal, confidently. FAQs What are the disadvantages of a Golden Visa? No visa is perfect. The Golden Visa, too, for example, has some drawbacks such as rules changing, removal of the ability to qualify with real estate, and raised investment requirements, tax on fund returns (depending upon your tax residency and investment choice), and ongoing compliance. What are the tax benefits of moving to Portugal? Tax benefits of moving to Portugal include lower or exempted taxes on several kinds of foreign income, no wealth tax, tax-free inheritance for immediate family, fund-based investments that deliver lower tax exposure compared to direct property holdings, and the possibility of benefiting from double taxation treaties to avoid paying tax twice on the same income. Why is Portugal ending the Golden Visa? The Golden Visa is not ending. The government has made some changes to the program, but these changes are not an indication of an end, rather an evolution. The program continues and is now focused on broader economic growth, like research, heritage, job creation, and not just the residential real estate sector. Has Portugal scrapped the 90-day rule? No, the 90-day rule remains. Non-residents can stay in Portugal and other Schengen countries for up to 90 days within any 180-day period without a visa. Residency permits and Golden Visas offer different, more permanent rights, but the standard Schengen stay rule is still in force.

14 MIN READ

20 Aug 2025

7 Reasons Singapore Is the Greatest Civilization in Southeast Asia
Residency7 Reasons Singapore Is the Greatest Civilization in Southeast Asia Thanks to technology and globalization, the world is rapidly shrinking. And for the same reasons, you now have access to new markets, new business opportunities, and new investment options that just 50 years ago, didn't exist. This is where the story of Singapore, the Lion City, begins. Singapore exemplifies how visionary leadership and pro-business policies can create explosive and consistent economic growth. So, how did this sleepy port at the southern tip of Asia transform itself into an ultra-safe city-state worthy of global recognition and economic prowess (and the incorporation of Bitizenship)? The Rise of Singapore When you think about Singapore today, images of towering skyscrapers, busy city streets, high-stakes Asia business meetings, and the iconic Marina Bay Sands probably come to mind. But Singapore didn't always look like this. Just 50 years ago, Singapore was an industrious fishing village. Separated from Malaysia and left with few natural resources, Singapore's future looked uncertain in 1965. Enter Lee Kuan Yew, the country's first prime minister and the mastermind behind its transformation. Serving at the country's helm from 1959 to 1990, Yew is credited with the tremendous development in Singapore GDP – from US$974 million in 1965 to US$501 billion in 2023, a generous 51,337% increase. In a shocking turn of events, Singapore's nominal per capita GDP now more than doubles that of the European Union. The state of the Singapore economy is strong. Lee Kuan Yew had a vision to turn a main island city at the southern tip of Asia into a thriving metropolis with a strong currency – the Singapore dollar. Facing land constraints, the republic started with an ambitious land reclamation project, expanding the city by establishing more land in the sea. Today, land reclamation alone has increased Singapore's physical area by more than 20%, a testament to Yew's approach to natural limitations. As the city has rapidly developed and housed a growing population, this expansion has been a critical investment. Singapore's Economic Development Under Lee Kuan Yew's leadership, the People's Action Party (PAP) focused on economic development like a laser beam. They knew that without many natural resources, Singapore had to become a hub for trade, finance, and professional services. Yew's ruling party implemented policies that attracted foreign investment and encouraged multinational corporations to set up shop. For example, Jurong Island was created through the combination of several small islands. Attracting foreign investment from fossil fuels giants like Shell and ExxonMobil and fueling (literally) the local economy, it's now become a regional petrochemical hub. Yew knew, however, that Singapore could not grow without an injection of particular skills and expertise that the local population could not provide alone. So, the government increased immigration to the island city and welcomed hundreds of thousands of Chinese foreign workers to supplement the local workforce. Today, more than half of Singapore's workforce comprises foreign workers and expatriates, who contribute significantly to its local economy and GDP. This influx allowed Singapore quick ascension and transformation into one of the world's most prosperous nations within a few decades. Even today, the Singapore government maintains a delicate balance between economic growth and social development, ensuring that the public and private industries' benefits trickle down to the population. But what's made Singapore so successful in my eyes is its aggressively pro-business public policy. Reason #1 – A Pro-Business Government Mentality One of the secrets to Singapore's success is its alignment of public policy with the needs of its private industry and local population. Lee Kuan Yew and subsequent leaders understood that for the country to thrive, they needed to create an environment where businesses could flourish. First, Singapore revolutionized their now-top-ranked education system. At its core, the meritocratic system teaches that if you work hard, you will succeed. And, the local economy will boom as a result. In fact, the current Singapore prime minister Lee Hsien Loong is a Cambridge-educated mathematician. Second, Singapore offers a competitive tax environment, with low corporate tax rates and countless incentives for both startups and multinational companies. Singapore has no capital gains tax and no tax on foreign-sourced income. Ensuring that high-quality amenities match the high cost of living in Singapore, the government also heavily invests tax revenues in infrastructure and social services. Third, the prime minister and his cabinet work closely with local and international businesses to make sure their policies remain relevant, effective, and helpful. They cooperate to build trust between the government and private sector, which, having done business in several continents, I can say is lacking in most other countries. This carefully-crafted business environment has ranked Singapore second in the world for ease of business. Reason #2 – Singapore's Crypto-Friendly Stance In recent years, Singapore has positioned itself as a crypto-friendly nation, embracing blockchain technology and digital currencies. Because of favourable tax incentives, a friendly business environment, and a government supportive of the industry, multiple crypto and Bitcoin companies now call Singapore home. The Monetary Authority of Singapore (MAS) has established a clear, straightforward framework for crypto businesses to operate, attracting tech entrepreneurs from around the world. In fact, all crypto or Bitcoin capital gains are exempt from personal and corporate income tax. Evidently, Singapore's approach contrasts with the skepticism seen in other parts of the world – namely, Europe. By providing clarity and support, the republic government is tapping into a growing industry that many (including me!) believe is the future of finance. This forward-thinking approach aligns with everything else Singapore is doing to embrace the trend of innovation and technology. Reason #3 – Strict Laws But High Rewards Ask a street passerby their opinion of Singapore, and they'll likely respond with a variation of "What is Singapore?" and "Isn't Singapore that country in Southeast Asia with the strict rule of law?" Singapore is known for its strict laws. While that fact might raise some eyebrows of the freedom-seeking entrepreneurs and investors who read this piece, it's part of what makes the city-state so attractive. Let me explain. The clear, structured legal framework in Singapore ensures stability, safety, and predictability – crucial success factors for businesses and individuals making long-term plans. Lee Kuan Yew believed that order was essential for Singapore's success. With low crime rates, a highly efficient government apparatus, top-ranked passport, and the safest city in the world, Singapore's approach clearly paid off. The judiciary, including the Supreme Court and the Chief Justice, maintains the rule of law, which makes Singapore a predictable environment for foreign investors. Yes, the cost of living is high, but so is the quality of life. Exceptional services, from world-class healthcare to top-ranked education, make it worth every Singapore dollar – Singapore's national currency. Reason #4 – Education and Innovation as Pillars Lee Kuan Yew believes strongly in the ancient proverb, "The wealth of a nation lies in its people." So, from 1965 until today, Singapore has made education a cornerstone of their development strategy and national ethos. In 2024, the education system in Singapore ranks among the best in the world, instilling in its population a culture of excellence from a young age. Why? Well, Singapore aims to transform into the world's first "Smart Nation." From AI to climate change to cryptocurrency to biotech, Singapore is investing in industries of the future, ensuring that it stays ahead of each global trend. Singapore's commitment to education and innovation is not just about economic gains. Supported by the Singapore parliamentary majority and opposition parties, their values are about preparing Singaporeans for the monumental culture shifts and challenges of the future. And, with a population median age of about 42 years, Singapore has a dynamic and energetic society ready to face them. Right when you arrive at Singapore's international airport, you're greeted with some of the most awesome sights you'll ever witness in a country: Singapore is the fourth largest financial center in the world (200+ banks and 64 of Asia's top 100 companies are headquartered here) Tuas Mega Port will be the world's largest fully-automated terminal in 2040 40% of land is green space These developments are testaments to the Smart Nation government initiatives coexisting with pre-existing cultural sites. Reason #5 – The Melting Pot of Ethnic Groups 74.3% Chinese, 13.5% Malay, 9% Indian, 3.2% other. This is how the Singapore population breaks down demographically. With four official languages (English, Mandarin, Malay, and Tamil), Singapore is a melting pot of several cultures, a community where many ethnic groups coexist harmoniously. These differences aren't just tolerated but celebrated. Even through public policy, the Singapore government promotes social harmony and multiculturalism, ensuring that every group has a voice. The national anthem "Majulah Singapura" (Onward Singapore) furthers this unity. This melting pot of cultures also makes Singapore a culinary paradise. Just walk down Orchard Road and smell all the different cuisines emanating from the skyscrapers and street markets. Reason #6 – Highly Efficient Health System Singapore welcomes 500,000 visitors a year for medical tourism. Even foreign leaders like Zimbabwe's former president Robert Mugabe choose to visit the main island city of Singapore for their medical treatments versus closer destinations in the EU like Germany or France or in Asia like China or neighboring Malaysia. Life expectancy on the island city-state of Singapore is 83.9 years, whereas in the United States, it's just 78.5 years. This data is testament to Singapore's ranking as the world's top destination for medical efficiency. Not just is the quality of care excellent. But the cost of healthcare in Singapore is substantially lower than in other, less efficient states like Australia, New Zealand, or the United States. Reason #7 – Military Strength and Regional Influence The parliamentary republic of Singapore also boasts a highly capable military, despite its size and position in South Asia. The Singapore Armed Forces (SAF) play a role in protecting national security, regional stability, and Singaporeans abroad. Mandatory national service ensures that military personnel and the armed forces are invested in the country's defense and success. In terms of foreign affairs, Singapore maintains strong relationships with neighboring countries like Malaysia and Indonesia, as well as global powers like the United States and China. You'll notice that the latter are not particularly friendly with one another. So, Singapore attempts to maintain diplomacy amid an increasingly hostile environment in the South China Sea. This strategic diplomacy furthers Singapore's influence beyond its borders, allowing it to punch above its weight on the international stage. Other Nations Poised for Similar Growth Singaporeans believe their country is an example for many more to come. I agree. From just an island off the coast of Malaysia to a global economy and Asia powerhouse, Singapore offers lots of valuable lessons for other nations, not just in Southeast Asia but other parts of the world as well. By duplicating many of their policies, special economic zones and countries like the United Arab Emirates and Indonesia are showing promising signs. Singapore showed that you can attract foreign investment and focus on economic development while also prioritizing your people and keeping taxes low. Singapore joined global giants in Asia, such as the Japanese, in the EU, and in North America by breaking boundaries and offering services and incentives no other government dared to offer. Despite their land constraints and their small population, more than half of Singaporeans earn $50,000 or more per year. In Europe, nations like Estonia are embracing digital transformation and pro-business policies. In Africa, countries like Rwanda are making strides in economic growth and technological adoption. All with Lee Kuan Yew's successful policies in tow, leadership at the forefront, and consistent economic growth as the goal. Singapore's model for education, public services, employment, industry, and resources despite land constraints will serve civilizations – and the world – for centuries to come. The Strategic Advantage of Second Citizenship So, what does all this have to do with second citizenship? Well, in a world where geopolitical and financial risk are becoming second nature, a second passport up your sleeve is an increasingly important asset to have. Dual citizenship grants you access to new markets; more investment, education, and employment opportunities; immigration options; increased financial security; and even a backup plan in case things go downhill in your native country. Countries like Singapore offer attractive options for second citizenship and major return on investment. And, we've evaluated a few of those opportunities in El Salvador, Portugal, and Argentina. However, to maintain the value of their citizenship and community, Singapore has chosen to make naturalization very rare. Plus, Singapore does not allow dual citizenship. So, if you were to naturalize as a citizen of Singapore, you'd have to renounce your original citizenship(s). https://twitter.com/0x_ale/status/1845752993854914898 But, one can invest in residency in the city of Singapore via a few different channels. The Global Investor Program (GIP) offers immediate permanent residency and a two-year path to citizenship for those who invest at least US$7.5 million in a Singapore-based company or investment fund. More relevant to the average reader of this piece, the Singapore Entrepass Program allows investors to either invest an unidentified amount of money in a local business (typically more than a few hundred thousand dollars) or receive US$100,000 in new business investment from a government-recognized venture capital firm or angel investor. Or, every year, some 180,000 highly-qualified investors hire themselves in a local business through the Singapore Employment Pass visa and are granted residency in the country. So, while Singapore does make investment migration rather rare in the country, the Lion City still allows tourism and business to be done in its small island city through temporary tourism visas. Singapore's journey from a small island city with land constraints and limited natural resources to a global powerhouse is nothing short of extraordinary. Politicians and leaders around the world have taken note of Lee Kuan Yew's leadership style, government policy, and approach to the economy so as to duplicate its positive examples in their locales. With the right policies and mindset, even the smallest nations can achieve great heights and account for much of a region's growth.

12 MIN READ

06 Nov 2024

D8 Visa Portugal: Your Gateway to Remote Work in Europe
PortugalD8 Visa Portugal: Your Gateway to Remote Work in Europe Portugal’s D8 Visa is a lifestyle upgrade for remote workers, freelancers, and digital nomads craving a European hub. Think affordable living (€2 coffees, €15 seafood feasts), reliable high-speed internet (for hitting deadlines between surf sessions), and a welcoming community. However, is this visa all golden beaches and tax perks? Not quite. While the D8 offers a path to residency and a lower cost of living, there’s fine print lurking behind the Instagram-worthy scenes. Let’s break down everything you need to know about Portugal’s D8 visa and find out if this is your perfect ticket to remote work bliss. What is the Portugal D8 Digital Nomad Visa? First things first, the Portugal Digital Nomad Visa allows freelancers and remote workers to live and work in Portugal. Unlike traditional visas that require a job with a local employer, this visa lets you earn income from your home country while enjoying life there. Talk about working with Portugal’s scenic beauty as your backdrop, all while maintaining your existing income sources. The D8 Visa is a long-term residency permit, initially valid for one year and renewable. After five years of residency, you can apply for permanent residency or citizenship. If you’re seeking new scenery, the D8 offers a coastal lifestyle with access to Lisbon’s vibrant cityscapes or Porto’s beachfront charm. You can swap your familiar surroundings for sunny coasts, historic towns, and a relaxed pace of life without giving up your career abroad. Who is Eligible for the D8 Visa? To apply, you must prove you can financially support yourself in Portugal. This means showing a stable monthly income from freelance or remote work. Minimum Income Requirements The minimum amount is four times the minimum wage in Portugal, which would amount to approximately €3,480 per month. This doesn’t mean that you have to stick to this figure. The more the numbers, the higher the chances of you getting the visa.  Who Can Apply? The D8 Visa is designed for: Freelancers or self-employed individuals Remote employees with a foreign employer Entrepreneurs with online businesses You must provide proof of work, such as employment contracts, client invoices, or business registration documents. As long as you have these documents, the process of securing a D8 visa will become easier. Health Insurance and Criminal Record Checks Applicants must have private health insurance valid in Portugal until they qualify for the public healthcare system (SNS). You’ll also need a clean criminal record, confirmed by a police clearance certificate from your country of residence over the past five years. How to Apply for the D8 Visa Now that you understand the basics, let’s break down the application process to avoid hiccups. 1. Documents You’ll Need A valid passport (with at least six months remaining) Two passport-sized photos (4.5x3.5 cm) Proof of remote income (employment contracts, client invoices, tax returns) Recent bank statements showing consistent earnings Portuguese tax identification number (NIF) Private health insurance valid in Portugal A clean criminal record certificate from your country of residence (past five years) Proof of accommodation (rental agreement, property deed, or hotel booking) A motivation letter (in English) explaining your reasons for moving to Portugal 2. Application Steps Visit the Embassy/Consulate: Collect the D8 visa application form from your nearest Portuguese consulate or embassy. Complete the Form: Fill in all details accurately and book an appointment. Submit Documents: Hand in the form and required documents and pay the application fee (typically under €200). Interview (if required): Be prepared to discuss your remote work setup, income sources, and reasons for choosing Portugal. Highlighting ties to Portugal (language study, cultural interests) can strengthen your case. 3. Processing Timeline It typically takes 2-3 months for the entire thing to be processed and for your passport to get delivered with the visa stamped on it. The Portuguese consulate gets about 90 days to decide whether they are going to grant you the visa or not. If you get the green light, you get to stay in Portugal for 120 days. During your 120 days of stay, you can apply for permanent residency, which again takes about 90 days to be issued. Moreover, work permits are typically finalized by SEF within 60 days of applying. Once your residency is approved, you’re free to enjoy Portugal’s coastal lifestyle, historic cities, and laid-back pace while continuing your remote career. Pack your bags, and get ready to turn your European workation dream into reality. Can You Bring Your Family on the D8 Visa? Yes! The D8 Visa allows you to bring family members, provided you can financially support them. Here are three things you must keep in mind: 1. Family Reunification Rules To qualify, your income or savings must exceed the base requirement. For a spouse or legal partner, you’ll need to show an additional 50% of the €3,480 monthly minimum. For each child or dependent (under 18), add 25% per child. Adult children over 18 may qualify if they’re unmarried, financially dependent (such as students), or have disabilities. Approved family members gain access to Portugal’s public healthcare and education systems. 2. Required Documentation You’ll need to submit documents proving your relationship to family members, such as marriage or birth certificates. Updated financial statements must reflect the increased income or savings required to support dependents. Health insurance covering all family members for their stay in Portugal is also mandatory. 3. Costs and Taxes Before applying for Portugal’s D8 Visa, consider both the costs and tax implications. The visa application fee is €90, paid when submitting documents at a Portuguese consulate. If approved, you’ll pay €158 for your residence permit card. Private health insurance is mandatory until you qualify for Portugal’s public healthcare system (SNS), and it costs €300–600 annually. You’ll also need a Portuguese taxpayer number (NIF), which costs €10–15 and is required for tasks like opening a bank account. Moreover, legal fees for hiring an immigration lawyer range from €500–2,000, depending on the services needed. There are also miscellaneous expenses, such as document translations or notarizations, which vary by case. More on taxes below. Portugal’s Tax Rules for Digital Nomads If you spend over 183 days/year in Portugal, you become a tax resident. This means your global income (including foreign earnings) may be taxable. While the NHR tax regime ended in 2024, its replacement, which is the Incentivised Fiscal Regime for Scientific Research and Innovation (IFICI), is great for researchers, innovators, and higher education pros. If eligible, you could get: 20% flat tax on Portuguese employment/freelance income. Foreign income exemptions (varies by tax treaties). Zero wealth tax so that Portugal remains attractive for remote workers and entrepreneurs. Social Security Contributions Freelancers registered in Portugal must pay social security (Segurança Social) contributions, typically 21.4% of declared income. Partial exemptions may apply during your first year. VAT for Freelancers/Business Owners Exempt from charging VAT if annual earnings are under €13,500. 23% VAT applies to services if earnings exceed this threshold, requiring regular VAT filings. While Portugal offers tax benefits for new residents, consult a tax advisor to understand how residency may affect your obligations, especially if earning income abroad. Living in Portugal as a Digital Nomad Living in Portugal as a digital nomad means that you get to choose from an attractive list of places, including the highly commercial capital, Lisbon, and not-so-touristy areas such as the Algarve. Here are the most preferred cities for digital nomads and the cost breakdown to help you navigate the Portugal landscape and assist you in choosing the best option. Top Cities for Digital Nomads 1. Lisbon Lisbon is by far the largest city and hotspot for digital nomads. It thrives on both the day and the night. During the day, you’ll see people hustling hard, making the most of the startup ecosystem around the place. At night, you’ll watch the same people party hard, as the nightlife of this city is famed all over Europe. The mild, sunny climate (a welcome escape from northern Europe’s harsh winters) adds to its appeal. Moreover, you get a well-connected transportation system that makes it easy to get around. It’s also home to some of the most fantastic co-working spaces where you’ll meet people from all walks of life. 2. Porto Portugal’s second-largest city offers a slower pace without sacrificing culture. It has some of the most stunning views of the river and has a thriving tech community. Coworking spaces like Porto i/o are great for creatives and entrepreneurs, while affordable rents (compared to Lisbon) make it a budget-friendly choice. 3. Madeira If you’re a water child, you simply wouldn’t want to miss Madeira. It’s an archipelago comprising four islands. People who love the vibes of an island will find their dreams come true here. Imagine speaking with your clients while drinking in the beauty of an ocean. The government has been actively trying to encourage people to work from here, so you’ll find an excellent community, lots of coworking spaces, and even get to enjoy networking events. What more could you ask for as a digital nomad? Cost of Living Breakdown Portugal remains one of the most affordable Western European countries that offers a high quality of life at a reasonable cost. Here’s a breakdown of estimated monthly expenses: AccommodationLisbon: €1,200+ for a 1-bedroom apartment in the city center, €900+ in suburban areasPorto: €900+ for a 1-bedroom apartment in the city center, €700+ in suburban areasMadeira: €800+ for a 1-bedroom apartment, with options for co-living spaces for lower costsUtilities & InternetElectricity, Water, Heating: €100-€150 per monthHigh-speed Internet: €30-€50 per monthMobile Plan: €15-€30 per monthFood & DiningGroceries (Per Person): €200-€400 per monthEating Out (Budget Meal): €10-€15 per mealMid-range Restaurant for two: €35-€50Coffee in a Café: €1-€3TransportationMonthly Public Transport Pass (Lisbon & Porto): €40-€50Taxi or Ride-sharing (Per KM): €0.50-€1Car Rental: €300-€600 per monthLifestyle & LeisureGym Membership: €30-€50 per monthCinema Ticket: €7-€12Weekend Getaway (Domestic Travel): €100-€250 Local Communities and Coworking Spaces One of the best aspects of living in Portugal as a digital nomad is the thriving community. From Lisbon’s Tech Hub to Porto’s creative scene and Madeira’s remote work retreats, there are countless networking events, meetups, and professional communities to connect with other nomads. Some of the best coworking spaces across Portugal include: Lisbon: Second Home Lisbon, Heden, Impact Hub Porto: Porto i/o, Typographia, WOW Coworking Madeira: Cowork Funchal, Digital Nomad Village (Ponta do Sol) Overall, beyond affordability, Portugal’s blend of culture, safety, and welcoming locals creates an unmatched quality of life. It continues to solidify itself as one of the best destinations for remote workers worldwide. Considering a Long-Term Move to Portugal? Explore the Golden Visa with Bitizenship While the D8 Visa is ideal for remote workers, Portugal’s Golden Visa program offers an attractive pathway for those looking to invest and settle long-term. You get added benefits like visa-free travel across the Schengen Area and a route to EU citizenship. At Bitizenship, we specialize exclusively in Portugal’s Golden Visa and provide end-to-end support for it, including: Document Prep: Prepare your documents to meet all legal requirements. Application Support: Submit your application, book embassy appointments, and handle follow-ups. Tax & Residency Advice: Help you maximize financial benefits while settling in Portugal. Relocation Assistance: Ongoing support to make your transition to Portugal smooth. We let you focus on planning your European move while we manage the paperwork to turn your Portugal dream into reality. Invest in Portugal Golden Visa today. Closing Thoughts Portugal’s D8 Visa gives digital nomads a fresh start in a vibrant new home. You trade your usual office routines for mesmerizing ocean views at an affordable cost. And with Bitizenship handling the visa process smoothly, there’s nothing holding you back. Ready to make the move? Contact us today and begin your Portuguese adventure. FAQs What is the Minimum Income for D8 Visa Portugal? You need at least €3,480 per month to qualify, though having a higher income strengthens your application. What is the D8 Visa for Portugal 2025? The D8 Visa is Portugal’s digital nomad visa, allowing remote workers to live in Portugal while earning from foreign sources. What is a Portugal Type D Visa? A Type D Visa is a long-term residency visa for Portugal, covering categories like work, study, and digital nomad visas. How Long Does it Take to Get a D8 Visa for Portugal? Processing times can typically range from 2-3 months after you submit all the required documents and pay the necessary fees.

11 MIN READ

15 Apr 2025

FAQ

(3)

Yes, we coordinate with trusted law firms and advisors to streamline the entire process for you.

Visit the official Unbound Fund website for detailed insights into Unbound Fund.

We focus exclusively on Portugal’s program, offering unmatched flexibility and strategic advantages.

View More