“Digital nomads best places” might be the expression you have been searching for on Google, but search no further. You have come to the right place. In this article, we will tell you the top five reasons why Madeira Island is the best place to move to Portugal as a digital nomad.
Madeira Island is among the digital nomads’ best places to move to due to the following:
1. Portugal’s lowest tax rates are in Madeira
The Autonomous Region offers a friendly business environment. Companies benefit from a corporate income tax of 14,7% (which can be lowered to 11,9% or 5%, under certain circumstances). As for digital nomads, these may benefit from Portugal’s famous NHR scheme. The potential for tax savings on the island is vast.
Digital nomads will be astonished to know that their business potential can increase thanks to the high internet speed connections available on the island due to its geographical location (the island’s international connectivity is distributed by: 3 PoPs (London, Amsterdam and Paris), peering connections with hundreds of major international ISPs and IP transits to Europe and the USA).
2. Remote-friendly location
Initiatives such as Startup Madeira’s Digital Nomad Village have contributed significantly to the island’s digital nomad appeal.
Digital nomads from all over the world have set up their activities in Madeira. As many as 5000 digital nomads have arrived in Madeira in 2021, a tendency that is likely to continue in 2023, given Madeira’s unique conditions regarding the lifestyle and tax benefits that the island boasts.
The island’s appeal to digital nomads is crowned by the fact that Madeira boasts the fastest Internet connection in Portugal, surpassing Berlin and London because of our clients.
Madeira is the Portuguese region with the country’s lowest criminality per thousand inhabitants, surpassing the Azores and the Algarve in overall criminality statistical indicators.
Madeira is also a particularly welcoming destination for LGBTQ+ travellers. Restaurants and most service establishments are not prejudiced but do not display rainbow flags liberally. It’s simply a state of easy acceptance.
4. Low Cost
Madeira’s capital presents Portugal’s lowest cost of living. In addition, Funchal offers a unique island lifestyle with a European flavour and direct connections to mainland Europe by plane. Do not believe it? Take a look at Numbeo’s statistics below:
- A family of four estimated monthly costs are 1,943.8€ without rent.
- A single person estimated monthly costs are 542.5€ without rent.
- Funchal is 13.1% less expensive than Lisbon.
- Rent in Funchal is, on average, 32.4% lower than in Lisbon.
5. A dedicated digital nomad visa
This digital nomad visa allows remote workers, whether independent or under an employment contract, to work from Portugal to entities with domiciles or head offices outside the national territory without needing another visa.
What are digital nomads for visa purposes?
The Portuguese immigration law distinguishes between two types of digital nomads:
- Those with an employment contract – those in such a situation must accompany their visa application with documents proving fiscal residence and average monthly income in the last three months of a minimum value equivalent to four guaranteed minimum monthly remunerations and by one of the following documents:
- The employment contract;
- The promise of the employment contract;
- Statement from the employer proving the employment relationship.
- Those who are self-employed/freelancers – those in such a situation must accompany their visa application with documents proving tax residence and average monthly income in the last three months of a minimum value equivalent to four guaranteed minimum monthly remunerations and by one of the following documents:
- Memorandum of association;
- Service provision contract or proposal of service provision contract;
- Document demonstrating the services provided to one or more entities.
At MCS, we can assist you with your tax and immigration matters in Portuguese territory. This article is provided for general information purposes only and is not intended to be, nor should it be construed as, legal or professional advice of any kind. Should you have any questions, please do not hesitate to contact us.
Miguel Pinto-Correia holds a Master Degree in International Economics and European Studies from ISEG – Lisbon School of Economics & Management and a Bachelor Degree in Economics from Nova School of Business and Economics. He is a permanent member of the Order of the Economists (Ordem dos Economistas)… Read more