Thinking About Moving to Portugal
Thinking about moving to Portugal or even relocating to Portugal may seem like a promising and easy step, but in reality, it is one of the most difficult decisions faced by investors, retirees, or high-income remote workers. The planning stage is often filled with uncertainty:
- Is this visa suitable in terms of Portugal residency options and taxes?
- Can the status be changed later if another pathway turns out to be more flexible and stable for the migrant and their family?
Out of responsibility and our desire to assist those interested in living in Portugal, it must be clarified that the country offers several clear legal pathways for migration. However, identifying the most suitable option requires careful study of the requirements and obligations, particularly in relation to taxation.
With these considerations in mind, the first step begins with understanding all available Portugal residency permits.
Main Pathways to Migrate to Portugal
Anyone interested in moving to Portugal first looks for the legal options available and the requirements of each. The most prominent Portugal immigration pathways are:
1. Investment Residency
The Golden Visa Program has been regulated, and direct property purchases are no longer an accepted route. Alternative investment options include:
- Licensed investment funds.
- Supporting research or technology.
- Government-approved strategic investments.
Company incorporation in Portugal (D2 Visa): this involves registering a legal entity, opening a bank account, and submitting a business plan demonstrating the project’s viability. This option is considered a direct gateway to establishing businesses in Europe and opening subsidiary companies across the EU.
While property is no longer eligible under the Golden Visa, real estate investment is still possible through other legal channels linked to business or investment. Another pathway includes the EU long-term residency option in Portugal, which grants rights to work, study, or establish a business in the country.
According to EU Commission reports, these adjustments were introduced to redirect capital toward sectors that support sustainable growth and ease pressure on the housing market.
2. Digital Nomad Visa
For those moving to Portugal as digital nomads, the Digital Nomad Visa targets high-income professionals with requirements such as:
- Proof of a monthly income equal to 4 times the Portuguese minimum wage.
- An employment contract abroad or a steady income from activities outside Portugal.
- Proof of accommodation in Portugal.
This makes Portugal one of the most attractive destinations for remote workers relocating to Europe.
3. Passive Income Residency (D7 Visa)
This pathway is ideal for individuals with stable sources of income without the need to work, such as:
- Retirement pensions.
- Investment returns.
- Rental income.
Applicants must prove that their income is sufficient to cover the cost of living in Portugal for themselves and their families before relocating to Portugal.
4. Startup & Entrepreneurship Residency
Portugal’s Startup Visa is tailored for entrepreneurs with innovative business ideas. Residency is granted upon submission of a business plan backed by solid local economic potential, making it one of the most exciting Portugal residency options for entrepreneurs.
Can You Change Your Residency Type Later?
Portuguese law allows changing the type of residency within the country, provided the requirements of the new program are met. This means that moving to Portugal with one visa does not lock you in if, later, another pathway proves more suitable in terms of obligations or stability.
It is important to note that this flexibility does not apply to tourist visas, which cannot be converted into residency permits.
Beyond the legal framework, Portugal’s flexibility also extends to quality of life. Choosing Portugal is not only about visa types but also about daily life: affordable housing, excellent healthcare, education opportunities, and family reunification options. Compared to France or Germany, living in Portugal is significantly more affordable in terms of housing, food, and transportation.
Taxes in Portugal: What Migrants Should Know
Taxes are one of the most critical aspects to consider before moving to Portugal. The Portuguese tax system is based on two main rules:
- If you spend more than 183 days per year in Portugal, you are considered a tax resident.
- Portugal applies a progressive tax system: the higher your income, the higher your tax rate.
Previously, there was a special program (NHR – Non-Habitual Residency) offering significant tax benefits for foreigners. However, it has since been narrowed.
Despite Portugal having double taxation treaties with many countries, taxes remain relatively high, especially for top earners. According to official regulations issued by the Ministry of Finance, residents are subject to the progressive tax system but may benefit from these agreements.
The OECD highlights Portugal’s tax framework as one of the most advanced in Europe. Nonetheless, rates can still be considered high, making tax planning in Portugal essential before relocation.
It is strongly recommended to consult a tax advisor or legal professional before relocating to Portugal to ensure full awareness of obligations and avoid unexpected issues.
Key Notes on Moving to Portugal with Zajl
- We at Zajl do not provide job offers or employment contracts; instead, we guide you through the legal pathways available for Portugal residency permits.
- Laws may change, so always consult official sources or legal experts before making a decision.
- Early tax planning protects you from unexpected liabilities.
- Don’t hesitate to reach out to our consultants today.
Need help? Talk to our consultants today!
Final Thoughts
Moving to Portugal is a strategic decision that requires a clear vision, given the range of available Portugal visa requirements and residency pathways—investment, digital nomad, passive income, or entrepreneurship.
What makes Portugal particularly attractive is the possibility of adjusting your legal status later if another pathway proves more suitable.
Financial and tax planning play a decisive role in this process, transforming migration into a pathway toward long-term stability and ultimately Portuguese citizenship.
With these advantages, Portugal stands out as one of Europe’s most appealing destinations for those seeking to combine quality of life in Portugal with promising opportunities.
Frequently Asked Questions (FAQ)
Can I change my residency type after arriving in Portugal?
Yes, Portuguese law allows changing your residency type once you meet the requirements.
How long does it take to obtain residency?
Typically, between 3 and 6 months, depending on the application and visa type.
Does buying property grant residency?
Not through the Golden Visa anymore, but it is still possible through other business or investment routes.
When can I apply for Portuguese citizenship?
After 5 years of continuous legal residency.
Is the cost of living in Portugal high?
No, Portugal is generally more affordable compared to France or Germany, especially for housing, food, and transport.
Are taxes high in Portugal?
Yes, taxes are progressive and can be high for top earners—making early tax planning essential.