Act 23/2007
4 July 2007

This Act approves the legal framework of entering, temporary Resident permit, permanence, exit, and removal of foreigners; into and out of the national territory.

The immigration law, as Article 89 and paragraph 2 also introduced on 4th July 2007 and Amendment 2012 and 2017. Temporary Resident permits for self-employment purposes shall only grant to third country nationals. Who has a legal identity or freelancer professional’s employment relation in Portugal or independent professional activity national territory; and are registered in the Social Security System for at least 12 months in Portugal.

The expression of interest is preferable submit through the electronic platform (SAPA Portal). And the application is submitted personally on a standard form signed by the applicant or his/her legal representative; and may be submitted at any SEF’s directorate or regional delegation. Which, after proceedings and decision, will forward it to the directorate or regional delegation of the applicant’s area of temporary resident permit.

Article Points

1- This Article is only granted a temporary resident permit; for the purpose of carrying out an independent professional activity to third-country nationals that fulfill the following requisites:

a) Have formed a company within the terms of the law, have declared the start of the activity to the Fiscal and to the Social Security Authorities; as an individual entrepreneur, or have signed a contract for providing services within the ambit of a liberal profession;

b) Detain the necessary qualifications to engage in an independent professional activity, when applicable;
c)Possess sufficient subsistence means, such as defined by the joint administrative rule of the Ministers of Internal Affairs and Work and Social Solidarity;
d) Are registered in the Social Security; for at least 12 months in Portugal; (have paid tax for a year).
e) When required, present a declaration issued by the respective Bar Association; that certifies their ability to fulfill the requisites of membership.
f) As a freelancer professional’s employment relation in Portugal;

2- Exceptionally, against a proposal of the Director General of SEF or by the initiative of the Minister of Internal Affairs. The requisite Hold a valid residency visa, granted to one of the purposes established in the present Act as grounds for the concession of a temporary residence permit may be dispensed with, provided the foreign citizen entered and remained legally in the national territory.

3- The holder of a residence permit for the purpose of carrying out an independent professional activity may engage in a subordinated professional activity; in which the case is applicable, with the necessary modifications. The disposition of the preceding article and the residence title has to replace.

There are a few steps to obtain temporary residence under the law :

Step 1. Legal Entry Declares:

• Foreign citizens entering the country from another Member State by way of a border not subject to control; shall be required to report this fact to SEF (Portugal Immigration department). The declaration of entry is mandatory for foreign citizens’ third country nationals within three working days after the date of entry in Portugal. According to articles 14 &16 of act 23/2007 of 4th July and subsequent amendments.

Step 1(a). No Further Requirements of Declaration:

• Foreign citizen’s third country nationals who entered Portugal by way of a border Subject to control. Foreign citizens who are residents or visa holders are authorized to stay in the country for more than six months. Foreign citizens who immediately after entering the country, stay in hotels or in other kinds of accommodation units which submit accommodation forms to SEF; Foreign citizens who are covered by the EU legal framework or equivalent arrangements.

Step 2. NIF Number (Tax Identity):

• The NIF number is a unique ID in Portugal that is issued by Finance & taxation department; for correspondents, not only taxpayers but also related to contracts, opening bank accounts, sales, and purchases; to obtain any registration & resident status among others.
• To receive the NIF number, you have to be in the Finance department via physical or power of attorney representative with a valid ID document (Citizen’s Card or Passport); or declaration of the Fiscal Representative. NIF is issued at the moment you request it, through a standard report stating the period during which you receive your final tax Payer’s Card.

Step 3. Accommodation Confirmation Letter:

• The Junta de freguesia is the executive body of each municipality in Portugal that delivers the Function of legislation of address confirmation after the request with valid local proof of accommodation or reference on behalf of two citizens. The correspondent address is obligatory (documentary proof) to receive later from public and Private Institutions in Portugal.

Step 4. Registration of Company in Portugal or Register as Freelances :

• To open/form a Company in Portugal takes care the applicant should be in Portugal or hire a legal representative who holds power of attorney. Compliance of documents as such Passport, prepare an article of association, legal office space for registration, or virtual office space.
• To open a bank account and declare to tax and financial institute within 15 days after the formation of the company in Portugal. The type of company depends on the nature of business and conmen companies in Portugal uni pal and LDA.
• To the establishment with 1 euro or 5000 euro as paid off the capital of the identity. All the shareholders must bring a contribution to the capital, and their liability is limited to that contribution. The management is assured by a director appointed by the general meeting of the shareholders; the supreme authority in the Portuguese LDA.
• Freelances and independent professionals are also liable to declare the nature of work and yearly turnover to competent tax authorities of Portugal.

Step 4(a). Social Security Number:

• One of the mandatory steps is to have a Social Security number for any expatriate/employee/who wants to work in Portugal. The social security number was issue by Segurança Social Institute.
• To apply for and obtain the Portuguese NISS social security number, you must present a copy of the employment contract certified by the hiring company. If the intention is all ready to hire a foreign citizen, the contracting firm can issue a promise contract. Freelancers and self employers can request a social security number without job offers.
• The competent authority issues number within 90 days after the required application for worker admission with the social department in Portugal

Step 5. Employment Contract and Taxes:

The employment contract in Portugal was legislated under Portuguese labor law (articles 273–275). The minimum working age is 16 years from the age of 18, and a person can obtain an employment contract without completing school.

There are several types of employment contracts. In 2018 the government increased the Portuguese monthly minimum wage from €557 to €580. By the end of the parliament in 2019, the government has pledged to raise Portugal’s minimum wage beyond €600 for the first time. The tax obligation consists of the employer and 2 employees including income tax and social security deductions from the salary or paid by the employer.

• Employer (Company) pays 23.75%
• Employee (worker) Pay 11.00%
• Both calculated 34.75% in gross salary.
• The standard VAT rate in Portugal is 23%.its obligatory on sales of goods or services. Rules based on regulations drawn up by the European Union.

Step 6. SEF ENTRY (Request for Residency Permit):

• Application submitted through the electronic platform (SAPA Portal) and the application submitted personally on a standard form signed by the applicant or his/her legal representative along with supporting documents as under Passport or any other valid travel document.
• Evidence of regular entry in Portuguese territory as such legal entry.
• Proof of sufficient means of subsistence (income or funds).
• Extract from the criminal record from the country of origin.
• Extract the illegal file from the state of residence for more than one year.
• Evidence that the applicant has adequate accommodation. (Junta).
• Confirmation of having registered with the Social Security, except in the case of a promised employment contractor registration Certificate Of Portuguese Company.
• Proof of registration in the tax authority, tax, and salary confirmation.
• Contract of employment or document issued under article 89, paragraph 2, subparagraph a) of Lawn. º 23/2007 of 4th July; or promised work.

Step 7. Visiting SEF for FingerPrints:

• After submission of the application, the assessment undergone by SEF further provides the user the possibility to make an appointment for the SEF Bureau in SAPA Portal. The user is allowed to select the place, date, and time of his/her convenience.

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