Living in Portugal and working for UK clients: what freelancers need to know

Author

Emma

Professional Development Specialist

From surf-friendly beaches and golden light to pastel de nata breaks between meetings, Portugal has become one of Europe’s most sought-after hubs for freelancers and digital nomads. In the years following Brexit, more UK-based professionals and international freelancers with UK clients have looked to Portugal not just for sunshine but for its welcoming lifestyle, stable infrastructure, and increasing remote work opportunities.

Lisbon, Porto, and the Algarve have emerged as remote work capitals, with coworking spaces, tech events, and a community of global professionals. But as appealing as the lifestyle may be, relocating to Portugal while continuing to work for UK clients comes with questions: Is it legal? What about tax? Do I need to register as self-employed?

If you’re wondering, “can I live in Portugal but work in the UK?”, the answer is yes – but it’s essential to do it right. In this guide, we’ll cover the key legal and tax considerations and introduce how Hightekers can simplify the entire process for you.

Can you live in Portugal and still work for a UK company?

Yes, you can live in Portugal and work for UK-based clients or companies, whether as a remote employee or independent freelancer. This arrangement has become more common in the post-pandemic, borderless world of work.

However, just because remote work is possible doesn’t mean it’s without regulation. The key is understanding which country you are legally working from, not for.

If you’re physically living in Portugal, even temporarily, you may trigger Portuguese tax residency and associated obligations – even if your income comes entirely from the UK. The UK client may not need to do anything additional, but you, as the freelancer, are responsible for ensuring your tax, legal, and invoicing status aligns with local Portuguese regulations.

Many freelancers encounter complexity here: They want to enjoy Portugal, keep their UK clients, and remain compliant, but without becoming full-time accountants in the process.

Tax residency and double taxation explained

A core concept to understand when relocating is tax residency. Portugal determines tax residency based on the 183-day rule. If you spend more than 183 days in the country within a 12-month period, or have a permanent home there, you’re considered a Portuguese tax resident.

Once you’re classified as a resident, you must:

• Register with the Portuguese tax authority (AT)
• Declare your worldwide income, including payments from UK clients
• Pay income tax and social security in Portugal

The good news? The UK and Portugal have a double taxation agreement (DTA). This treaty ensures you won’t be taxed twice on the same income. Instead, income earned from the UK is declared in Portugal and either taxed there, or credited based on what you’ve already paid in the UK (if applicable).

But this only applies if your income is adequately declared and if you’re registered with the correct local status, which brings us to the next question.

Should you register as self-employed in Portugal?

The most common legal structure for independent workers in Portugal is becoming a trabalhador independente (self-employed worker). While this is a valid route, it’s not a simple one.

To register as self-employed in Portugal, you’ll need to:

• Register with the Portuguese tax office and obtain a NIF (tax number)
• Open activity with Finanças (Portuguese tax authority)
• Set up professional invoicing with proper formatting and VAT rules
• Make quarterly social security contributions (around 21% of declared income)
• File annual income tax returns and possibly register for VAT (if income exceeds €13,500/year)

Depending on how complex your billing becomes, you may also need an accountant. This administration level is overwhelming for many freelancers, especially if you’re only working with one or two UK clients and simply want to focus on your work, not chase Portuguese invoice formats or social security payment deadlines.

International invoicing and compliance challenges

If you’re living in Portugal and working with UK clients, invoicing becomes more than a simple administrative task: it’s a cross-border compliance challenge that requires careful attention. One of the first issues freelancers often face is the currency difference. 

While most UK clients expect invoices in pounds sterling (GBP), the Portuguese tax system requires earnings to be reported in euros (EUR). This means you’ll need to convert your income accurately, based on official exchange rates, to remain compliant with local reporting obligations. Any misalignment between the invoiced amount and what’s declared can lead to confusion or even discrepancies in your tax filings.

In addition to currency concerns, there’s the matter of invoice structure. UK clients are generally used to straightforward invoices that include only the basics: your name, a description of services, and the total due. However, Portugal’s invoicing requirements are much stricter. To comply with Portuguese tax law, invoices often need to be generated through AT-certified software, follow specific numbering rules, and include elements such as QR codes and the Portuguese tax ID (NIF). If these elements are missing or incorrect, it could lead to issues with the Portuguese authorities, and clients unfamiliar with these documents might find them confusing or difficult to process.

VAT is another area that adds complexity. Depending on your income level, client type, and business status, you may or may not need to apply VAT to your invoices. Even determining whether to charge VAT at all can be complicated when your client is located in a different country, and if you are not VAT-registered in Portugal, the reverse charge mechanism might apply. Understanding and applying the correct VAT rules, and documenting them properly, is essential for staying on the right side of the law.

Lastly, some UK clients may be hesitant to work with international freelancers if they don’t understand the paperwork or feel unsure about their legal obligations. They might be unfamiliar with Portuguese documentation, or worry that working with someone outside the UK introduces risks, from tax complications to legal exposure. 

This can lead to onboarding delays or lost opportunities, simply because of perceived administrative difficulties.

Even experienced freelancers can find these issues overwhelming. What starts as a straightforward client relationship can quickly become tangled in tax codes, invoice requirements, and international rules. It’s easy to make mistakes without proper support, and even small errors can lead to penalties, late payments, or strained client relationships.

Hightekers solution: work legally in Portugal, keep your UK clients hassle-free

What if you could live in Portugal, continue working for your UK clients, get paid on time, and never have to think about tax registrations, social security, or invoice formatting?

That’s exactly what Hightekers offers.

We provide a compliant, low-risk alternative to becoming a self-employed worker in Portugal. Hightekers acts as your legal employer, while you continue working with your existing UK clients. That means:

• You don’t need to open a Portuguese business or register as a freelancer
• Your UK client doesn’t need to change how they work with you
• All legal and financial obligations are handled on your behalf

How it works: the Hightekers model

Here’s how we simplify your cross-border freelance life:

• We establish a service agreement with your UK client, making it easy for them to work with you as usual, with no extra admin or legal exposure.
• You receive a local employment contract through Hightekers in Portugal, giving you legal status and access to social security and benefits.
• Your UK client is billed by Hightekers each month, and we manage all invoicing, tax reporting, and contributions.
• You get paid on a fixed date each month in your preferred currency, with all deductions clearly outlined.
• Our team provides ongoing support, including help with tax documents, visa questions, and any HR or legal matters that may arise.

For example, when Sarah, a freelance UX designer from the UK, moved to Lisbon, she wanted to continue working with her UK clients without getting bogged down in local bureaucracy. Initially, she tried managing everything herself – registering as self-employed in Portugal, issuing invoices under local tax rules, and figuring out social security. 

However, the administrative burden quickly became overwhelming, and her clients began raising concerns about international compliance.

That’s when she turned to Hightekers in Portugal. We stepped in and provided a seamless solution. By becoming her legal employer in Portugal, we handled all her tax contributions, social security, and invoicing. 

At the same time, her UK clients continued working with her precisely as before, through a simple, compliant agreement with us. Today, Sarah enjoys a fixed monthly income, complete legal peace of mind, and the freedom to focus entirely on her design work — all thanks to Hightekers.

What Hightekers manages on your behalf

Relocating to Portugal with clients in another country is a juggling act — but we handle the hard parts so you don’t have to. Hightekers manages:

• Monthly invoicing to your UK client
• Payment collection and payroll processing
• Income tax, social security, and compliance in Portugal
• Legal documentation, contracts, and residency paperwork (if needed)

Our local teams understand both the UK and Portuguese systems, allowing us to bridge the gap smoothly. You stay focused on your work, not chasing accountants, translating legal forms, or explaining Portuguese VAT to confused clients.

Relocate with peace of mind

Portugal offers the ideal blend of lifestyle, affordability, and professional opportunity for freelancers. And yes, you can live in Portugal but work in the UK. The key is doing it legally and efficiently.

If you’re not interested in opening a company or becoming a trabalhador independente, Hightekers provides a smart alternative. We take care of tax, compliance, and admin so you can take care of your business — and enjoy your new life under the Portuguese sun.

Simplify your relocation to Portugal with Hightekers

Author

Emma

Professional Development Specialist

A seasoned career development specialist based in Bristol, where she helps international professionals manage the complexities of establishing their independent careers in the UK. With over a decade of experience in talent management and professional mobility, she leads initiatives to support freelancers and independent consultants across various high-skilled sectors. When she's not advising professionals on their career journeys, you might find Emma exploring Bristol's street art scene or cheering on her beloved Bristol City FC!