In partnership with

If you work remotely in Portugal for a foreign company, your social security obligations may have just changed. It's Wednesday, 1 July. Twenty-eight degrees. Here's what you need to know.

🌬️ AIR QUALITY: 22 (Good).

🗞️ TOP STORY

IF YOU WORK REMOTELY IN PORTUGAL FOR A FOREIGN COMPANY, YOUR SOCIAL SECURITY OBLIGATIONS MAY HAVE JUST CHANGED.

Portugal is tightening the rules around social security contributions for remote workers employed by companies based outside the country. For a readership that includes a significant number of digital nomads, freelancers, and people employed by UK, US, and EU companies while living in Lisbon, this directly changes the maths of working here.

Under current rules, remote workers in Portugal whose employer is based abroad often fall into a grey area. Some contribute to social security in their employer's country. Some contribute in Portugal. Some, through a combination of legal ambiguity and administrative neglect, contribute nowhere. The new guidance aims to close that gap.

If you are tax-resident in Portugal and your employer does not have a Portuguese entity, you may now be classified as an independent worker (trabalhador independente) for social security purposes, even if you are a salaried employee in your employer's country. That means quarterly social security contributions to the Segurança Social at a rate of approximately 21.4% on 70% of your gross income, calculated and paid by you.

The practical implications depend on your situation. If your employer has a branch or subsidiary in Portugal, they handle contributions. If they don't, the obligation falls on you. If you have an A1 certificate from an EU country (proving you contribute there), you're exempt in Portugal. If you're from a country with a bilateral social security agreement (the UK has one with Portugal), the rules are different again. And if you're newly registered as a freelancer, there is typically a 12-month exemption from social security payments when you first open your activity.

For the growing number of expats who moved to Lisbon to work remotely for foreign companies, often attracted by the NHR tax regime or the Digital Nomad Visa, this matters. If you're earning in pounds or dollars and assumed your employer handled contributions back home, check. You may now owe Portugal money you weren't expecting to pay.

Bottom line: if you work remotely in Portugal for a company based abroad, check your social security status. The grey area is narrowing, and the obligations are becoming harder to avoid.

⚡ QUICK HITS

Caixa Geral de Depósitos (CGD), Portugal's largest state-owned bank, just paid a record €1.25 billion dividend to the state. The payment completes the repayment of the 2016 bailout. A state-owned bank that needed a taxpayer rescue a decade ago has now returned every cent and posted a record profit on top. That is news.

Lisbon's Assembleia Municipal voted for LGBTQ+ inclusion. Then it blocked flying the rainbow flag. PSD, IL, CDS-PP, and Chega voted together to approve a Livre recommendation for LGBTQ+ inclusion, then voted against the two measures that would have made it visible: flying the rainbow flag from municipal buildings and using inclusive language in city communications.

Scientists found 2,000-year-old human DNA on cave walls in Portugal and Spain. An international research team extracted ancient human mitochondrial and nuclear DNA directly from the surfaces and calcite crusts of 11 caves across the Iberian Peninsula, including the Escoural Cave in the Alentejo. The study, published in Nature Communications, recovered genetic material from hunter-gatherer populations who touched, breathed on, and lived against these walls thousands of years ago. Until now, identifying ancient populations required finding bones, teeth, or formal burial sites. "If these walls could talk" has always been a figure of speech until a team of scientists in Cáceres said why not.

How Do The French Age So Gracefully?

"Must the French always insist on doing it better? And by “it” I mean life. Sure, their popular music is often regrettable and they aren’t exactly killing it in tech, but, they look good not killing it. They also happen to look good long after most of us don’t. Sexy, flirty, confident — Parisians embrace aging with typical élan. The most stylish among them share their secrets.

Read the article for free on Air Mail LOOK, a lively, curious, informed look at beauty with a reporter’s eye, a taste for intrigue, and a sense of humor, from Linda Wells."

A quick note: Today's ad is from our network partner Air Mail. If it catches your eye, consider giving it a click. Those clicks directly support The Lisbon Letter and help us keep delivering free daily news, recommendations, and local discoveries to our community every morning. It takes a second, and it goes a surprisingly long way. Thanks for being part of this.

🍽️ SPOT OF THE DAY

In 2017, two childhood friends started hosting private ramen dinners in their Lisbon apartment on Saturday nights. They called it Ajitama. The waiting list hit 1,800 people. By 2019, the apartment became a restaurant on Avenida Duque de Loulé in Saldanha. A second location followed on Rua do Alecrim in Chiado. Both make their noodles fresh, in-house, every day.

The Chiado location is the one to go to. TheFork rates it 9.3. Tripadvisor gives it 4.8. The room is small, moody, and loud enough that you have to lean in to talk, which on a date is a feature. The Saldanha location has a terrace and more space but doesn't hit the same way.

Order the Red Tonkotsu. Pork bone broth, chashu belly, the namesake ajitama egg (soft-boiled, marinated, split open on top), and mayu garlic oil. If you want heat, the Tantanmen. If you want something lighter, the Shio. The vegetarian option with tempura cauliflower holds up.

Since June 3, both locations serve a new Izakaya & Bites menu alongside the ramen: small plates for sharing. Duck gyozas (€6.45), soft-shell crab tempura (€11.25), honey-glazed pork ribs (€8.25), and chashu pork belly croquettes at €2.25 that you will order twice. The format works for groups or for anyone who wants Japanese food without committing to a full bowl.

Chiado is consistently rated higher than Saldanha. Some Saldanha reviewers have flagged lukewarm broth on dipping ramen. Book ahead at both, especially weekends. The room at Chiado is not quiet.

Chiado: Rua do Alecrim 47A. Saldanha: Avenida Duque de Loulé 36.

Insider tip: Order the Red Tonkotsu at Chiado and a couple of izakaya plates to share before the bowl arrives.

📅 WHAT'S ON

  • Lisboa Football Arena (ongoing, Terreiro do Paço) World Cup big screens. Free.

  • Portugal vs Croatia (Fri 3 Jul 00:00 Lisbon time, Toronto) World Cup Round of 32.

  • Festival ao Largo (Fri 3 to Sat 25 Jul, CCB) Free outdoor symphony, ballet, and theatre. New venue while Teatro Nacional de São Carlos is renovated.

  • Lisb-On #Jardim Sonoro (Fri 3 to Sat 4 Jul, Monsanto) Ben Sims, CamelPhat, Sven Väth, Anfisa Letyago. Electronic music in the forest.

  • Iron Maiden (Tue 7 Jul, Estádio da Luz) Run for Your Lives 50th anniversary tour.

  • Scorpions, Kiss, and Megadeth (Wed 8 Jul, Altice Arena) Rock week in Lisbon continues.

  • NOS Alive (Thu 9 to Sat 11 Jul, Passeio Marítimo de Algés) Foo Fighters, Nick Cave, Florence + The Machine, Lorde, Twenty One Pilots.

  • Jardins de Verão at Gulbenkian (ongoing to Sun 12 Jul) Summer concerts and performances.

  • Out Jazz (Sundays, May through September, various parks) Free.

See you tomorrow morning.

Reaching Lisbon's English-speaking community, every morning. Request our media kit.

Keep Reading