Why Portugal is cracking down on digital nomads and where it’s cheaper to remote work

Lisbon: Lisbon once welcomed digital nomads flocking to the country in their droves, thanks to cheap rents, mild winters, a young population, and a vibrant social scene.

But this influx of approximately 16,000 extra people (on top of the annual tourist figure of 6.5 million) has started to leave a sour taste that no amount of pastel de nata can fix.

This could be partly attributed to the higher salaries digital nomads typically enjoy. To qualify for the visa, digital nomads must earn at least €3,280 per month.

This is often double the salary of the locals, 50 per cent of whom earn €1,000 per month on average), and has driven inflation across the board.

It’s also worth noting that Portugal has one of the lowest minimum wages in Europe, coming in at €957 per month, compared to Ireland’s €2,146, Luxembourg’s €2,571, and neighbouring Spain’s €1,323.

The country is also in the grip of a housing crisis that is being felt most acutely in its cities. According to the International Monetary Fund, house prices in Portugal have doubled since 2018.

Rents are also crippling Lisbon locals, with the average rent for a one-bedroom apartment now standing at €1,200, an increase of 17 per cent from December 2022 to December 2023.

Digital nomads can expect to pay upward of €2,500 per month for a short-stay apartment during the summer, while a family of four now pays between €2,100 and €3,000.

Eating out has also become pricey. A meal at a mid-range restaurant costs at least €20 per person without alcohol.