Portugal Tech Visa: a Gateway to the Entrepreneurial Paradise
Tech Visa and other Government support schemes are making it easier to move to Portugal. Entrepreneurs, workers and even celebrities have taken the plunge. Here’s why.
Photo by Alex Paganelli on Unsplash
Many are the professionals that are moving to our country to take leadership positions within startups or well-established companies: the Mexican Ana Claudia Ruiz, general director of Coca-Cola Portugal since earlier this year, the French Christine Ourmières-Widener, the current CEO of TAP Air Portugal, or the CEO of Galp Energia, the British Andy Brown.
Global companies, from Google to Volkswagen and Farfetch are using governments’ provisions such as Tech Visa to help employees move to Portugal.
Even celebrities like Madonna and John Malkovich got used to calling Lisbon their home. Everybody seems to be moving to Portugal both for personal and professional reasons - here is why.
Tech Visa in Portugal - an Overview
Active since 2019, Tech Visa is a fast-track program created by the Portuguese Government that allows companies based in Portugal to access a highly qualified pool of workers from outside the European Union. Any tech company can partake, as long as they are inserted into the global market, with headquarters or permanent establishment in Portugal.
With the Portuguese Startup Ecosystem booming, the need for highly qualified talent has recorded unprecedented highs. As the traditional cross-border recruitment processes are complex, Tech Visa's goal is to ease the hiring of foreign talent for companies working in technology and innovation. It cuts cross-continent hiring lead-time, widens the talent pools and makes it easier for companies to compete in a global market.
Still, there are a few boxes to check before candidates can jet off to sunny Portugal. To apply, workers are required o have a statement of responsibility provided by a certified company, a special certificate for highly qualified professions, the host company's signature on a proof of means and proficiency certificates in Portuguese, English, French or Spanish. Applicants will also be required five years of experience in a specialised technical field and a bachelor's education or equivalent level.
For companies looking to benefit from the talent opportunities provided by Tech Visa, the first step is to create an IAPMEI (Agência para a Competitividade e Inovação) Account and submit an application. This step requires businesses to be incorporated in Portugal with a clean debt sheet to both Social Security and Tax Authorities. The certification process lasts about a month, after which the Certified Company can start recruiting. This certification is valid for two years.
The application’s success depends on the innovation level and how international the companies are (or can become). Companies may not have over 50% of their workers under the Tech Visa unless their focused activities are primarily within Portugal. In that case, the limit is 80%.
There is also a mandatory minimum wage, which is higher than the general minimum wage, that companies must pay staff recruited through the Tech Visa program. The wage should be equivalent to 2.5 times the Index of Social Support (IAS). For example. IAS in 2022 is 443.20 euros. Thus, the minimum gross mandatory wage will be 443.20 x 2.5 = 1108 euros/ month.
For workers and companies that meet these requirements, Tech Visa – and Portugal – await.
Why apply for a Tech Visa in Portugal?
Tech Visa provides access to a unique entrepreneurs’ paradise–Portugal. Here are 3 key reasons so many professionals and companies from around the world are happy to be here.
PORTUGAL HAS AN OUTSTANDING QUALITY OF LIFE
Lisbon is a diverse city with a low cost of living and growing potential to host both established companies and start-ups. Portugal offers breathtaking scenery, great food and weather, an enviable sunny coast from north to south, and a relaxed lifestyle. It is immersed in centuries of history and is a vibrant and diverse culture. With an unbeatable quality of life, Portugal has become a top destination where people want to live and work. These facts make Portugal a goldmine of business opportunities, attracting not only tourists but also residents and, above all, investment from companies with a global mindset.
PORTUGAL IS A STABLE, OPEN-MINDED COUNTRY
There is more to Portugal than the sun and sea. According to The Institute for Economics & Peace, Portugal is among the five safest countries in the world and is the second safest country in the European Union. These numbers are aligned with the perception of the Portuguese themselves–they fully accept people from other cultures.
In fact, for these communities, living in Portugal brings a sense of freedom, tranquillity, and security. Portugal’s population is made of warm, welcoming people. Most locals understand and speak English - and some will probably understand Spanish or French as well. It’s no coincidence that Portugal ranked #7 out of 100 countries in the English Proficiency Index.
THERE ARE TAX BREAKS FOR FOREIGNERS UNDER THE NON-HABITUAL RESIDENT STATUS (NHR)
“Non-habitual residents” are individuals who transfer their residency to Portugal (i.e., become tax residents in Portugal). The Government has devised a special tax regime for such workers, to attract qualified professionals, high net worth individuals and foreign pensioners to Portugal. This fiscal regime grants a 20% tax rate or a total exemption on the taxation of income of expatriates who choose to live in Portugal for 10 years.
What are the alternatives to Tech Visa?
The Portuguese Government has been embracing entrepreneurship and innovation as strategic priorities. Therefore, several measures are in place to support foreign investment, such as alternative Visa schemes to motivate people and companies to move to Portugal.
The most relevant alternative to Tech Visa is the Start-up Visa, which offers a residence permit to foreign entrepreneurs who set up a technology-based company in Portugal, with new ideas and business models.
The D7 Visa - applicable to Digital Nomads too - is another key alternative to the Tech Visa. Digital nomadism has gained more and more popularity, mainly because of the increased opportunities in remote work. This program allows foreign nationals to secure a Portuguese bank account and rent a home provided that they can prove to have sufficient income. Portugal is one destination of choice for digital nomads, and this Visa provides these professionals with full mobility.
What happens after the Tech Visa?
Tech Visa certificates are valid for just two years. Once they expire, companies can go through the entire process again and reapply. That, however, is no guarantee of acceptance or that businesses will keep their employees.
BRIDGE IN can assist you during the application phase and throughout the whole process, including eligibility assessment, drafting, and submission of applications as per the program requirements. Our services extend after all the formalities have been handled, giving you guidance also once the Tech Visa duration expires.
Portugal is becoming a European tech tiger, with a fast-developing start-up scene. Companies and workers are considering Portugal as a top destination with a high quality of life. If you are thinking of relocating to Portugal, we can help you through the complete process. Book a call today.
