Portugal’s warm climate, rich history, and welcoming communities have made it one of Europe’s most attractive destinations for expats, remote workers, and digital nomads. For professionals considering relocating to Portugal with their partner, the appeal extends beyond the lifestyle: it’s also a strategic choice.

Living in Portugal allows you to maintain your current job, benefit from a relatively low cost of living compared to other Western European countries, and enjoy access to high-quality healthcare and education. With Portugal increasingly popular among remote workers, understanding the steps and requirements to legally live and work here is more important than ever.

Moving to Portugal involves careful planning, whether you’re employed by a non-Portuguese company, running your own freelance business, or planning to transition into a new role. From learning visa requirements and tax obligations to ensuring that your remote work arrangement is fully compliant with Portuguese labour laws, there’s plenty to consider. This guide will walk you through everything you need to know to make the transition smooth and successful.

Can you legally live and work remotely in Portugal?

Remote work in Portugal is becoming increasingly popular, thanks to the country’s robust digital infrastructure, pleasant climate, and welcoming environment. However, whether you can legally work remotely from Portugal depends on a few key factors. If you’re working for a non-Portuguese company, you may not require a traditional work visa, but you must still comply with Portuguese tax and residency regulations.

One important consideration is your employment status. If you’re a remote employee working for a foreign company, you need to ensure that your contract allows you to work from Portugal.

Besides, you must understand Portuguese social security and tax requirements. Becoming a tax resident typically occurs if you spend more than 183 days a year in the country, which can have significant tax implications. It’s crucial to consult with a tax professional or an Employer of Record to ensure you meet all compliance standards.

Visa options for relocating to Portugal with your partner

For non-EU citizens, obtaining a visa to live and work remotely in Portugal is often necessary. Portugal offers a range of visas suitable for remote workers and their accompanying partners. The digital nomad visa, for instance, is specifically designed for remote professionals who earn income from non-Portuguese sources.

To qualify, you must demonstrate a stable income and provide proof of remote work arrangements. The application process involves submitting the necessary documentation to the Portuguese consulate in your home country or applying from within Portugal if you’re already there.

If you’re moving with your partner, you must explore family reunification visa options. These permits allow your spouse or long-term partner to join you in Portugal. They will need to show proof of your relationship and evidence that you can financially support yourselves while living in the country. Once approved, both you and your partner will be granted legal residency, allowing you to enjoy the benefits of living in Portugal.

Tax implications of working remotely in Portugal

One of the biggest considerations for remote workers in Portugal is taxation. Once you establish tax residency, you’ll be subject to Portuguese income tax (IRS) on your worldwide income. This means that even if a foreign company employs you, you may need to declare your earnings in Portugal and pay taxes locally. The tax rates in Portugal are progressive, ranging from 14.5% to 48%, depending on your income level.

Social security contributions are another factor. Remote workers must pay into the Portuguese social security system, which provides access to healthcare, pension benefits, and other employment protections. Moreover, Portugal has double taxation agreements with many countries, which can help you avoid paying taxes twice on the same income. Reviewing these agreements and working with a tax advisor to understand your exact obligations is essential.

Cost of living and settling in Portugal

Portugal is renowned for its relatively low cost of living compared to many other Western European countries. While Lisbon and Porto have higher housing costs, smaller towns and rural areas offer more affordable options. When planning your relocation, consider the price of renting or buying property, utilities, groceries, transportation, and leisure activities.

Healthcare is another important aspect of settling in Portugal. The public healthcare system is available to residents, but many expats opt for private health insurance for shorter waiting times and access to a broader range of medical services.

Opening a local bank account and understanding the financial system will help you manage your expenses more effectively. You can enjoy a comfortable lifestyle in Portugal while working remotely by carefully budgeting and planning.

Challenges of relocating while working for a non-Portuguese company

Relocating to Portugal while maintaining employment with a non-Portuguese company presents several challenges. First, ensuring payroll compliance and accurate tax withholding can be complicated, especially if your employer does not have a local presence in Portugal. Without proper tax deductions, you may find yourself facing unexpected liabilities.

Access to employee benefits can also be an issue. Freelancers or contractors often lack employer-sponsored health insurance, pension contributions, and paid leave. Additionally, learning Portuguese labour laws to maintain legal employment status and avoid misclassification risks can be daunting. The right legal framework is crucial to avoid penalties or disputes.

How an Employer of Record can help expats work legally in Portugal

An Employer of Record (EOR) is a service provider that acts as the legal employer for workers in a specific country, managing payroll, tax compliance, and local employment contracts on behalf of a company. For expats moving to Portugal, an EOR can streamline the entire employment process.

Remote workers employed by a foreign company without a Portuguese entity can rely on an EOR to maintain full legal compliance. The EOR ensures that these employees meet Portugal’s labour law requirements, including proper tax withholding, social security contributions, and access to local benefits.

For employers looking to support their relocated staff, an EOR simplifies workforce management by handling local contracts, ensuring adherence to Portuguese employment regulations, and managing payroll without the company needing to set up a local presence.

The main benefits of using an EOR include:

• Ensuring full compliance with Portugal’s employment laws.
• Providing employees with local benefits, such as healthcare, pension plans, and paid leave.
• Minimising the risk of worker misclassification.
• Reducing the administrative burden of payroll and social security filings.

For example, Thomas, a marketing manager from Germany, wanted to move to Porto with his wife while continuing his job. Unsure of handling Portuguese employment and tax compliance, his company partnered with an Employer of Record. The EOR managed all legalities, payroll, and social security contributions, allowing Thomas to work legally and access local benefits. This streamlined solution made their relocation to Porto worry-free.

An EOR enables expats and their employers to understand Portuguese labour requirements smoothly and efficiently, ensuring a compliant and professional work arrangement.

Move with your partner

Relocating to Portugal with your partner while keeping your current job is a rewarding experience, but it requires careful planning and compliance with local regulations. From visa applications and tax obligations to ensuring legal employment structures, several key considerations must be addressed.

Contact us today to learn how an Employer of Record can simplify the process, ensuring you remain compliant with Portuguese laws and enjoy full employment benefits. With the proper support and preparation, you can relocate to Portugal and make the most of this beautiful country.