FAQ's - Frequently asked questions from Digital Nomads in Madeira Islands
Which are the immigration requirements?
For EU- Citizens, EEA Citizens and Swiss Citizens
European Citizens can live in Madeira Island for a period of up to 3 months without registering their residence with local authorities.
After this period (3 months), European citizen have a period of
30 days to register, which they will obtain a certificate.
If you don't comply with this legal requirement, you may face fines. Registering or remaining registered without meeting the necessary conditions is an punishable offence.
If you are a national of another country, please note that you will be required to have a visa in order to exercise any professional activity in Portuguese territory. Just make sure you have the property entry visa.
What are the tax implications for digital nomads relocating to Madeira?
Digital nomads living in Madeira up to 183 days are normally not
considered residents for tax purposes, and so they are not subject
to personal income tax on their income.
If you plan to stay longer than 183 days, either working a free-lancer or as an employee, there are benefits for those who wish to be permanent residents in Madeira. That information is under the Non-Habitual Tax Resident Scheme.
What are the tax implications of long-term relocations?
Personal Income Tax
Digital Nomads who want to relocate to Madeira for a period
longer than 183 days, may be subject to income tax. In order to
comply with the Portuguese law, check with the Tax Authorities or
the Non-Habitual Tax Resident to check if you are eligible or
In this case, income that has a source of origin in Portugal may be subject to a flat tax of 20% if the activity carried out is rated as a high value activity.
Personal Income Tax as a Freelancer
Freelancers must register with Social Security (National Insurance) and make monthly payments in the beginning of the second year of business activity. Services as well as sales and production currently contribute 21%. If you receive Social Security benefits or are already contributing to Social Security in another country, you may be eligible for exemption from contributions in Portugal.