Working remotely from Portugal in 2025: best cities, visas, taxes, and lifestyle tips

Working remotely from Portugal in 2025: best cities, visas, taxes, and lifestyle tips

Franck
By Franck

Portugal has become one of Europe’s top destinations for digital nomads and remote workers. With world-class internet, year-round sunshine, affordable living, and a welcoming culture, it’s no surprise that thousands of professionals have chosen to base themselves here. This 2025 guide covers everything you need to know to work remotely from Portugal — from visas and taxes to the best cities and lifestyle advice.

Why Portugal is perfect for remote workers

Few countries in Europe combine so many advantages for remote professionals. Portugal offers modern infrastructure, a relaxed pace of life, and relatively low costs compared to Western Europe or North America. The government has actively supported remote work since 2021 with new visa programs and improved residency pathways.

  • Excellent connectivity: fiber internet is available in nearly every city and most small towns.
  • Strong expat community: co-working spaces and international meetups are common in Lisbon, Porto, and Madeira.
  • Affordable lifestyle: high quality of life with moderate prices for food, healthcare, and rent.
  • Safety and climate: one of Europe’s safest countries with mild weather year-round.

The Digital Nomad Visa (2025 version)

Portugal’s Digital Nomad Visa — officially launched in late 2022 — allows non-EU citizens to live and work in Portugal legally while earning income from abroad. The visa comes in two forms:

  • Temporary stay visa (valid for up to 1 year)
  • Residence visa (convertible to long-term residence after one year)

Requirements in 2025:

  • Monthly income of at least €3,280 (4× Portuguese minimum wage)
  • Proof of remote employment or self-employment
  • Valid health insurance covering your stay
  • Accommodation proof (rental contract or hotel booking)
  • Clean criminal record

The Digital Nomad Visa can lead to permanent residency after five years and, eventually, Portuguese citizenship if you meet stay requirements.

Best cities and regions for remote work

Lisbon — dynamic and international

Lisbon remains the heart of Portugal’s startup and tech scene. You’ll find dozens of co-working spaces (Second Home, Heden, IDEA Spaces), English-speaking locals, and plenty of cafés with fast Wi-Fi. The downsides are rising rents and heavy tourism in summer, but the energy and culture are unmatched.

Porto — creative and more affordable

Porto is calmer than Lisbon but offers the same digital infrastructure. Its riverside neighborhoods, co-living spaces, and creative community attract designers, writers, and tech freelancers. Housing is 20–30% cheaper than Lisbon, and the city’s food scene is thriving.

Madeira — digital nomad paradise

The island of Madeira has an official Digital Nomad Village in Ponta do Sol, designed specifically for remote workers. It offers co-working spaces, community events, and incredible ocean views. The island has mild weather year-round and tax advantages under the Madeira International Business Centre.

Ericeira and Lagos — surf towns with strong nomad scenes

Ericeira (near Lisbon) and Lagos (in the Algarve) combine fast internet, international communities, and beachside living. They attract freelancers, content creators, and entrepreneurs who balance work and outdoor life.

Braga and Coimbra — underrated gems

Smaller cities like Braga (tech hub) and Coimbra (university city) are gaining popularity among families and professionals seeking lower costs and authentic local culture.

Taxes for remote workers in Portugal

Taxation depends on your residency status. If you spend more than 183 days in Portugal per year, you are considered a tax resident. However, the government offers favorable regimes for newcomers.

The NHR (Non-Habitual Resident) regime

New residents can apply for the NHR status, granting reduced tax rates or exemptions on certain foreign income for ten years. Under NHR, income from abroad (such as remote salary or freelance work paid by a foreign company) may be taxed at a flat rate of 20%, or even exempt if already taxed in another country under a double-tax treaty.

Cost of living for remote workers

Portugal remains affordable compared to most Western countries, although prices in Lisbon have risen. Here’s a breakdown of average monthly expenses in 2025:

Category Lisbon Porto Algarve
1-bed apartment (city center) €1,400 €1,000 €1,200
Utilities + internet €130 €110 €120
Groceries €250 €220 €240
Cafés / eating out €150 €130 €140

Total monthly budget (comfortable lifestyle): €1,800 – €2,400 depending on region and lifestyle.

Where to find co-working and co-living spaces

  • Lisbon: Second Home, Selina Secret Garden, Impact Hub
  • Porto: Porto i/o, CRU Creative Hub
  • Madeira: Digital Nomad Village, Cowork Funchal
  • Lagos: CoWork Lab Algarve

Co-living communities are becoming more common, offering furnished apartments with flexible leases, shared kitchens, and weekly social events — ideal for newcomers.

Practical tips for working remotely in Portugal

  • Get your NIF number early — required for contracts, rent, and utilities.
  • Open a local bank account for easier payments.
  • Join local digital nomad groups on Facebook and Meetup to network.
  • Rent short-term at first; explore different towns before committing long-term.
  • Learn basic Portuguese — it helps with bureaucracy and social life.

Work-life balance and lifestyle perks

Portugal’s lifestyle is one of the biggest attractions for remote workers. The mild climate allows year-round outdoor activities: surfing, hiking, cycling, or just enjoying café terraces. Work-life balance is cultural — locals value leisure time and family moments.

Many digital nomads praise the social mix: locals, expats, and entrepreneurs regularly collaborate or share projects in informal settings. Weekend getaways are easy, with short train rides connecting beaches, mountains, and historic towns.

Final thoughts

Portugal in 2025 remains one of the best destinations in the world for remote professionals. It combines solid infrastructure, friendly communities, and a welcoming legal framework for foreigners. Whether you prefer Lisbon’s buzz, Porto’s creativity, or the calm of the Algarve or Madeira, you can enjoy a European base that balances productivity with lifestyle.

Last updated: November 2025.

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