Thinking About Moving to Portugal
Thinking about moving to Portugal may seem like a promising and easy step, but in reality, it is one of the most difficult decisions faced by investors or high-income remote workers. The planning stage is often filled with uncertainty:
- Is this visa suitable in terms of taxes and requirements?
- And 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 obtaining residency in Portugal, it must be clarified that Portugal 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 options.
Main Pathways to Migrate to Portugal
Anyone interested in migrating to Portugal first looks for the legal options available and the requirements of each. The most prominent 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.
However, real estate investment has not been completely eliminated; property still remains a legal route to residency through other channels linked to business or investment.
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
The Digital Nomad Visa targets high-income professionals with basic 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.
3. Passive Income Residency (D7 Visa)
This residency is designed 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 living costs for themselves or their families.
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.
Can You Change Your Residency Type Later?
Portuguese law allows changing the type of residency within the country, provided the requirements of the new programme are met. This means that starting 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, however, that this does not apply to tourist visas, as they cannot be directly converted into residency permits. This flexibility is reserved for transitions between legal residency categories.
Portugal’s flexibility extends beyond the legal framework, encompassing quality of life as well, making it an ideal place for long-term settlement. Choosing Portugal is not only about the visa type but also about daily life considerations: affordable living costs, quality healthcare, education opportunities, and family reunification options.
Compared to France or Germany, Portugal is significantly more affordable in terms of housing, food, and transportation, providing long-term stability. With a clear understanding of rights and obligations—especially regarding taxes—migrants can focus on building a new, secure life.
Taxes in Portugal: What Migrants Should Know
Taxes are one of the most critical aspects to consider before relocating. 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 down.
Despite Portugal having double taxation treaties with dozens of countries, taxes remain relatively high, especially for high earners. According to official regulations issued by the Portuguese Ministry of Finance, residents are subject to the progressive tax system but may benefit from these international agreements.
The OECD also highlights Portugal’s tax framework as one of the most advanced and integrated in Europe. Nonetheless, rates can still be considered high, making tax and financial planning essential for a successful relocation.
It is strongly recommended to consult a tax advisor or legal professional before moving 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 migration and residency in Portugal.
- Laws may change, so it’s always best to 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.
Final Thoughts
Migrating to Portugal is a strategic move that requires a clear vision from the outset, given the wide range of available options, including investment, remote work, passive income, or entrepreneurship.
What makes Portugal particularly attractive is the possibility of later adjusting your legal status 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, European citizenship.
With these advantages, Portugal stands out as one of Europe’s most appealing destinations for those seeking to combine quality of life with promising opportunities.
Frequently Asked Questions (FAQ)
Can I change my residency type after arriving in Portugal?
Yes, the 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 investment or business channels.
When can I apply for Portuguese citizenship?
After 5 years of continuous legal residency.
Are taxes high in Portugal?
Yes, taxes are progressive and considered high for top earners—making early planning essential.