The firm has EU locations. How would my residency in Portugal affect my US employer?
Remote workers from third countries, like the US, are able to apply for the D8 visa and get a residence permit to live in Portugal, continuing to work for abroad. It is important to highlight that social security, insurances and tax aspects can arise in the sphere of the foreign employer.
According to the law, you can work remotely for a US law firm and live in Portugal, by applying for a residence visa for professional activities outside the national territory. Since the company in the US is a non-resident entity without a permanent establishment in Portugal, it’s possible to hire workers living in Portugal without having to set up a company structure or take on another legal form in Portugal. However, it is required to fulfil some obligations regarding the entity’s registration with the National Registry of Legal Persons, the Tax Authority and Social Security. The first step is registration in the National Register of Legal Entities, which will assign a tax identification number so that it can fulfil its obligations to Social Security and the Tax Authority. Secondly, a declaration of the start of activity must be submitted to the Tax Authority. Finally, the organisation must obtain a social security number by registering at the Social Security. Therefore, if the non-resident company has employees working in Portuguese territory, the entity will have to fulfil regular obligations to the social security and tax authorities.
The Portugal Digital Nomad Visa is for remote workers who are looking to work remotely from Portugal. The requirements are that the individual has to make four times the national minimum wage to live and work in the country, which amounts to around $3,350 (€3,040) per month. Portugal's Digital Nomad Visa is split into two categories. Remote workers can either apply for a temporary stay visa (short stay visa) for up to one year or a residency permit that can then be renewed for up to five years. The two categories are very appealing, whether you are looking for a short-term temporary stay visa or are looking to obtain a residency visa and perhaps live longer in the country. If you obtain a residency visa, after five years, you can apply for permanent residency and even Portuguese citizenship, provided that you fulfill all the requirements. With citizenship, you will have the right to live, work, and study in any European Union (EU) member country. This visa type is a nice alternative to the D7 Visa (also referred to as the Portugal Passive Income Visa), which is ultimately a visa for passive income earners. Portugal's Digital Nomad Visa provides an entire visa type focused on attracting remote workers and entrepreneurs to the country. Should you become a resident in Portugal, your employer would be unaffected, since the company doesn't have any presence in Portugal. As your income is generated overseas, it wouldn't be subject to any taxation on the employer's side.
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