Do I pay taxes in Portugal with a digital nomad visa?
AI Answer
Yes, you will pay taxes in Portugal with a digital nomad visa if you become a tax resident. This usually happens when you spend over 183 days in Portugal within a 12-month period, or if you have your habitual residence there.
Many D8 visa holders are eligible for the Non-Habitual Resident (NHR) tax regime. This program offers a flat 20% tax rate on qualifying Portuguese-sourced income, like income from your remote work, for your first ten years.
The NHR also provides potential exemptions on foreign-sourced income, meaning income earned outside Portugal may not be taxed there. For example, if you earn $100,000 remotely, you could pay just $20,000 in Portuguese tax under NHR, assuming it's considered Portuguese-sourced income.
It’s smart to consult a tax advisor to understand how your specific income sources will be treated under NHR and ensure you meet all requirements.