It is possible for workers or service providers not resident in Portugal to work remotely in Portuguese territory, with differences depending on whether or not they are citizens or residents of the European Union.
The Digital Nomad phenomenon is an increasingly common reality across the world, including in Portugal. It is possible for workers or service providers not resident in Portugal to work remotely in Portuguese territory, with differences depending on whether or not they are citizens or residents of the European Union.
If you are a worker or service provider from the European Union, you can easily travel to Portugal without needing a visa. However, if they remain in Portugal for more than 183 days, such workers or service providers will become tax residents in Portugal.
As regards workers and service providers who are not citizens of the European Union or do not reside there, they will have to obtain a specific visa. In this regard, it should be noted that the Portuguese government recently changed the law, creating the Digital Nomad Visa, which, upon compliance with all necessary requirements, allows citizens who do not come from the European Union and the European Economic Area, to live and work from Portugal, allowing them a longer stay.
However, some practical questions may arise regarding this Digital Nomad Visa. What law applies to digital nomads? Will digital nomads have a specific work or service provision regime that is applicable to their “category”? Can service providers qualify as workers under Portuguese law? Will they be obliged to pay Social Security contributions in Portugal? What are the obligations of your employers or contractors?
As usual, the answers to these questions will depend on the specific situation and the assessment of each case.
However, even in cases where it can be argued that workers and service providers would be subject to a law different from Portuguese law, certain aspects of Portuguese law will apply, when these relate to matters that – to a certain extent – will be considered as fundamental rights of workers.
In these cases, Portuguese law will apply, if it is more favorable than the applicable law of the employer’s country. This concerns, in particular, issues such as:
- job security;
- maximum working time;
- minimum rest periods;
- vacation;
- minimum wage and overtime pay;
- posting of workers by a temporary employment agency;
- occasional posting of workers;
- health and safety at Work;
- parental protection;
- protection of minors at work;
- equal treatment and non-discrimination.
On the other hand, there is also the possibility that a worker or service provider may be subject to Portuguese social security. Social Security principles are applied based on a territorial principle, being applied with reference to the place where the work is carried out. There are, obviously, European Union regulations, as well as international agreements to which Portugal is a party that provide for exceptions.
However, the applicability of general rules or exceptions to them is something that workers and service providers, as well as employers and contractors, should keep in mind, as certain obligations may also apply to them, even if they are not expected to.
Portugal is successively creating possibilities for Digital Nomads to feel welcome to work remotely, easing entry and stay requirements. However, it will always be necessary to confirm which obligations may apply to them.