D3 vs D7 Visa

wnrumbo Member

Member since 25 February 2023

wnrumboMember25 February 2023 12:36:56

Hi there,

Thanks to this forum for a lot of helpful tips for relocating to Portugal. Would greatly appreciate some advice.

I’m considering visa options to apply at London VFS centre and not sure if I should apply for a D7 digital nomad visa or a D3 Highly qualified activities visa.

I work as an geophysicist for a company in the UK. I’m looking to keep an existing UK contract and I can conduct my work remotely. I understand this could work with the D7.

Alternatively, I’m not quite sure if I could qualify for the D3. Some rules seem to suggest I have to be working for a Portuguese company in order to apply for the D3.

My profession / contract seemingly qualifies and I can show the corresponding education degree for it. The company I’m employed by operates internationally and even has a Portuguese entity. However I’m planning on retaining my UK contract and not working directly for the Portuguese side of the company. Could I still apply for the D3?

Would it be easier/advantageous to do so instead of the D7?

Thanks in advance

Will

JohnnyPT Portugal Expert

Member since 23 May 2020

JohnnyPTPortugal Expert25 February 2023 16:04:48

5117

Hi Will, Welcome.

To apply for a D3 visa, you must have a work contract or a promise of work contract with a Portuguese company or institution. What I would suggest in your case is to apply for the D7 visa and then apply for the non-habitual resident status. By staying in Portugal at least 183 days per year, you would become tax resident in Portugal and as a highly qualified worker you could benefit from a 20% tax rate on your income*. And you wouldn't pay tax in the UK (except from work income outside Portugal) because there is an agreement between the two countries to avoid double taxation.

* Flat rate of 20% for income from dependent work (category A) and independent work (category B) obtained in Portugal, derived from high added value activities. In your case: self employment income, obtained outside Portugal, derived from a high added value activity, is not subject to taxation in Portugal, provided that the income may be taxed in the UK.

Or you could apply for a digital nomad visa, but then you would need to have a minimum income of approximately 2900 eur/month, but this visa is valid for only 120 days, and can be extended for another 60 days. With this visa, you would continue to be tax resident in the UK, and would not benefit from any tax reduction in Portugal on your income.

Portuguese Digital Nomad Visa

https://www.expat.com/forum/viewtopic.php?id=1006006

The Portuguese Non-Habitual Residents Tax Regime

https://www.expat.com/forum/viewtopic.php?id=911492

Best Regards

wnrumbo Member

Member since 25 February 2023

wnrumboMember26 February 2023 12:16:01

Hi Johny,

Thanks very much for the detailed reply!

So I can rule out the D3 because I won't be on a Portuguese contract.

I wasn't aware the digital nomad visa was separate to the D7 but I see now this is a shorter visa term and maybe not very suitable for long term. Though I would meet required income and perhaps it is an easier application at the embassy?

Regarding the NHR - would I still be paying UK tax if resident in Portugal and working for a UK contract remotely? Or is this where the 20% comes in which I would pay in Portugal and not have to pay in UK due to double taxation agreement?

Thanks,

Will