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Living and working in Portugal

Learn about some of the requirements you will need to meet if you are to move to Portugal and set up home permanently.

Living and working in Portugal

On arrival
Citizens of EU member states are free to enter Portugal by presenting a valid passport or identity card. Visitors intending to stay no longer than three months need not apply for a residence permit. Those intending to stay for three to 12 months will need a temporary residence permit and new arrivals proposing to stay longer than a year in the country should apply for a full residence permit (autorizaca de residencia). Permits are issued by the Servico de Estrangerios  Fronteiras. On application for a residence permit you will be issued with a receipt which is needed to collect your cartão. A residency permit acts as one's official identification card and, officially, it should be carried at all times.

Working
Members of EU countries do not require a work permit in order to work in Portugal but must adhere to residency requirements as explained above. Workers will also need a fiscal number, which may be given at the time of residence approval. For the first few months a temporary number is given. Income tax – Imposto Sobre O Rendimento Singulares (IRS) – is payable by both residents and non-residents. It is self-assessed annually and must be paid a month after the notice of the tax owed is sent out by the tax office. Non-residents are taxed only on income received inside Portugal. Residents are liable to IRS on their worldwide income. You are deemed to be a resident if: you remain in Portugal for more than 183 days in any calendar year. Double taxation can occur when income from one country is received in another and is taxed in both. To counteract this, Portugal has taxation agreements with all EU member states under which each one agrees to give up or reduce its tax in certain circumstances.

Removals
Those planning to move to Portugal permanently and take their furniture and belongings need to ensure their residence permits are ready in order to prove they are importing goods for their own use and therefore qualify for duty-free importation. People transporting goods to temporary/holiday homes can also import goods free of duty by providing proof of property ownership in Portugal and that their have owned and used the goods for at least six months.

In both situations, it is recommended that an inventory of items is compiled and includes the serial numbers of all electrical items being imported. lifestyle Those who know the Portuguese generally agree that they are tolerant and patient people who will welcome you to the country with open arms as long as you're prepared to tackle their language.

It won't just be a case of improving your basic written and spoken Portuguese; it may take some time to adjust to the slower pace of life (similar to Spain's mañana attitude) and sometimes in rural areas, the quality of amenities and services. Be careful, though, not to arrive at your Portuguese home with preconceived ideas about the local people and lifestyle.

There is huge contrast, for example, between the cosmopolitan cities of Lisbon and Porto, the ex-pat communities of the Algarve and some isolated corners of the north that remain relatively rustic. Brits making a move to the Algarve can all too easily get along without dipping a toe in to Portuguese culture thanks to the thriving expat community and an abundance of English-speaking workers on the coastal strip. Although the expat community is sometimes maligned, often unfairly, it can certainly act as a support for those struggling to settle in and provide a gentler immersion into Iberian culture, if required.

Retirement
When retiring to Portugal you need to take some preparatory steps beforehand. You will need to secure a residence permit; enroll in the Portuguese social security system; arrange pension payments; ensure adequate health cover; and take into consideration factors such as inheritance of property after death. British retirees have the right to retire to any EU country as long as they have sufficient funds at their disposal and are covered by health insurance. Health insurance must be in the form either of private insurance (the insurance company must have an office in the country you are retiring to) or proof that you qualify for medical attention under the country's public health scheme. The amount you receive from your UK retirement pension, war pension or widows' benefits will be the same as in the UK, although you should take exchange rates into account.

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For further information:
Joanna Styles: Living and Working in the European Union 
Sue Tyson-Ward: Living and Working in Portugal 

Article published in August 2006