How to Become a Permanent Resident in Portugal
If you’re thinking about moving to Portugal, you might be wondering what it takes to obtain permanent residency in Portugal; or become a Portuguese resident.
The requirements are fairly straightforward and simple, depending on your individual circumstances.
This guide will walk you through the process step-by-step so that you can make an informed decision about your future in the country.
Understanding the Residency Process
Portugal is considered an attractive place for expats, with its warm climate and historic architecture. As an EU member state, Portugal does not require special visas for long-term visitors or workers; but non-EU citizens do need residency permits (called Autorização de Residência) if they plan on staying in Portugal more than three months.
Individuals who are married to Portuguese citizens don’t need residence permits. If you’re moving with your family, it’s important to understand that visa policies change depending on whether you have children. Regardless of their age, all non-Portuguese family members must apply for their own residence permit at the local Immigration and Borders Service (SEF) office; there’s no option to include them in yours.
Residency procedures vary depending on where you live, but they tend to involve some combination of gathering documentation, attending meetings and presenting your case. This is where understanding how residency in Portugal may affect your taxes and personal finances is key. For example, while expats are required to pay Portuguese income tax regardless of their nationality or country of residence, foreign nationals who have lived outside of Portugal for more than five years are no longer subject to taxation unless they spend time working or residing here.
Completing the Application
The process of obtaining permanent residency in Portugal is relatively simple and expats looking to make Portugal their home must submit photocopies of their passport, proof of address and proof of employment. To prove your income, you must show: payslips from two different jobs; or proof that you have enough money in a bank account for 6 months; or notarised bank statements demonstrating a minimum set amount of annual savings
All documents must be translated into Portuguese by an official translator or consulate officer. Expats will also need to complete and sign an application form; which they can download online before submitting it to Centro de Serviços de Estrangeiros e Fronteiras (Immigration Office). This form should be filled out thoroughly and legibly with no spelling mistakes; applications will automatically be rejected if forms are inaccurate.
The Next Steps
The next step is for applicants to submit their application, along with all supporting documents, to Serviço de Estrangeiros e Fronteiras (SEF) which can be done by mail or in person. If you are planning on submitting your application by mail, be sure that everything is included and that any photocopies are clear and easy to read. Include all forms of ID including passports and don’t forget your proof of address!
It can take anywhere from two weeks to six months for your application to be processed, so be sure you keep copies of everything you submit. Upon approval, expats will be given an entry visa and then upon arriving in Portugal they can collect their card at local police station (Polícia de Fronteira). Expats must then spend five years living continuously in Portugal without travelling outside of Europe before being able to apply for permanent residency in Portugal, known as Status de Residencia Permanente.
Is Portugal a Good Place To Move?
Is Portugal a good place to live? It depends on who you are and what sort of life you want. But if it sounds like somewhere that could work for you, read on! There are many factors which go into determining where is best for you – your job prospects, for example, or your family situation.
Pros and Cons of Moving to Portugal
Deciding where to move can be challenging, but once you find that perfect place, it’s easy and exciting. If you’re considering moving to Portugal, here are some reasons why you should make it your next destination.
Advantages
- Warmer climate – The climate is warm all year round, which makes it easier to deal with rain, cold and heat. Since Portugal is on a more southern latitude, it doesn’t get as cold during winter or hot during summer. So if you don’t like extreme temperatures and prefer mild weather, then Portugal is a good place for you. It even has one of highest number of sunny days each year in Europe.
- Entertainment and leisure time – A tourist destination , there are plenty of beaches, resorts and theme parks where you can have fun.
- Safety – Despite being part of Western Europe, Portugal doesn’t get affected by major terrorist attacks. The country has managed to avoid several military conflicts and natural disasters making it one of safest places for people from all around the world. A Global Peace Index Survey showed that Portugal was ranked among world’s top ten safest countries in 2015 and since it is rare for tourists or locals to be involved in violent crime, it remains one of Europe’s safest destinations.
- A relatively low cost of living – An average monthly expenditure is relatively low if you compare it with other European countries. For example, buying clothes and electronics is much cheaper than in Germany or UK. The same applies for buying food and drinks, fuel, public transport tickets etc. In general terms, even accommodation costs less than most other places in Europe (especially in big cities such as Lisbon and Porto)
- Tax benefits for residents – In recent years, tax laws in Portugal have changed considerably making it much more attractive for foreign investors. For example, it is now possible to pay no taxes on income generated by foreign-based companies (provided they don’t do business or produce revenue within Portuguese territory). In addition, profits derived from dividends are not taxed at all. And even if you own a company based outside of Portugal, if you are residing here you will be entitled to special tax treatment on dividends received.
- The English language – Although Portuguese and Spanish are spoken natively by almost everyone, English is considered as an official language. In fact, many young people have at least some knowledge of English. Therefore it’s not uncommon for locals to speak to tourists and expats using basic or even advanced English. You might not be able to communicate fluently but you can have conversations with most people here without any problems.
- Pace of life – The pace of life is much slower than most countries. When you compare it with big US or European cities, you’ll be able to appreciate that people here don’t have time constraints and they are more likely to take their time when going from one place to another. That being said, it is quite safe to travel around at any time of day without fear that you’ll be involved in traffic accidents or attacks.
Disadvantages
There are also some pitfalls of moving there so keep them in mind as well.
- The need to learn Portuguese – It’s no secret that Portuguese is one of most difficult languages for native English speakers to learn. Unlike many other European countries, like France or Spain, there isn’t a large community of English-speaking expats living in Portugal. This means you’ll have to learn not only how to speak but also read and write Portuguese. Fortunately, it’s possible to brush up on your grammar skills while still learning English by taking special courses available through organisations like CIEE and ISA.
- Difficulties of paying with bank cards – It can be difficult to pay with cards because merchants in Portugal are often not equipped with point-of-sale machines that allow them to process transactions. It’s more common for businesses (especially small, neighbourhood shops) to only accept cash payments. Keep some bills handy when you’re out and about, but don’t worry too much—Portugal is home to some of Europe’s most reliable ATM machines.
- Heat in Summer, Rain in winter – Summertime is hot and humid, but you can cool off by taking a dip in one of many local swimming spots or by jumping into one of Lisbon’s famous green rooftop pools. In winter, rain is abundant and temperatures tend to hover around 5-10 degrees Celsius (41-50 degrees Fahrenheit). Although it’s not possible to control Mother Nature, you can adapt: keep your windows closed when it rains and dress warmly during colder months.
- No central heating – Most houses and apartments don’t have central heating, so it can get chilly during winter. Fortunately, most households have electric heaters that are easy to use. If you have your own house or apartment, you may want to invest in a new heater that is less expensive than those sold at big-box stores back home.
How RHJ Law can help
As an expat, it’s important to avoid high tax rates and ensure you have adequate insurance coverage. Portugal is home to some of Europe’s most affordable residency programs, making it an attractive option for many. And with our experience guiding clients through these complex processes, we can expertly navigate Portugal’s most popular path to tax-advantaged residency & citizenship programs.
Whether you’re interested in full or partial tax residency, we can guide you through Portugal’s most popular residence program. Depending on your goals and needs, there are several options available. For example, if you want tax-advantaged residency with minimal responsibilities (such as participating in public work projects), apply for a Portuguese Golden Visa. If you plan to relocate on a long-term basis and integrate into Portuguese society, consider applying for permanent residency under Portugal’s Naturalisation by Investment Program.
If you’re thinking of making Portugal your home and need help formalising that plan; talk to our multi-lingual team of lawyers. We will make sure that your application is successful and you are able to move to Portugal as quickly as possible.
Working with our trusted partners; we can advise you on where to settle and how to go about purchasing property in Portugal.
