The Schengen Area is best described as the world’s largest free movement zone, encompassing 29 European countries that have abolished passport and other types of border control at their mutual borders. Functioning primarily as a single jurisdiction for international travel, it operates under a standard visa policy.

As of April 2025, the Schengen Area currently includes 29 countries:

• 25 European Union (EU) member states: Austria, Belgium, Bulgaria, Croatia, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Italy, Latvia, Lithuania, 1 Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, 2 and Sweden.
• 4 non-EU member states: Iceland, Liechtenstein, Norway, and Switzerland.

It’s important to note that the number can change slightly with new countries joining, and not all EU member states are part of the Schengen Area. Ireland maintains an opt-out and has its own Common Travel Area agreement with the UK. Cyprus is legally obligated to join but has faced delays due to its political situation. While not formally part of the Schengen Area, microstates like Andorra, Monaco, San Marino, and Vatican City have open border arrangements with neighboring Schengen countries, effectively making them part of the free movement zone.

As a non-E.U/EEA citizen, you can enter the Schengen Area without a visa for short stays—specifically, up to 90 days within any 180-day period for tourism or business purposes.

Key Points:

• 90 Days: The maximum number of days you can stay in the Schengen Area without a visa.
• 180 Days: The rolling period in which the 90 days are counted.

The 180-day period is not fixed; it rolls forward with each day. Every day you spend in the Schengen Area, you must consider the previous 180 days to ensure you haven’t exceeded the 90-day limit.​

On any given day, you should look back at the previous 180 days and count how many days you have spent in the Schengen Area. You’re within the legal limit if the total is less than 90.

The day of entry and exit are counted as days spent within the Schengen Area.

Examples

Example 1: Single Continuous Stay

• Entry: January 1
• Exit: March 31
• Duration: 90 days​

In this case, you’ve used your entire 90-day allowance. You must leave the Schengen Area and can only return after spending 90 days outside the Schengen countries.​

Example 2: Multiple Short Stays

• Stay 1: January 1–January 30 (30 days)
• Stay 2: March 1–March 30 (30 days)
• Stay 3: May 1–May 30 (30 days)​

Total within 180 days: 90 days. After May 30, you must spend 90 days outside the Schengen Area before returning.​

Staying compliant

• Meticulously Track Your Dates: Maintain a detailed personal record of all your entry and exit dates into and out of the Schengen Area.
• Utilize Online Calculators: Employ reliable Schengen Visa Calculators available online to monitor your permitted stay accurately.
• Plan Your Travels Strategically: If you anticipate being close to the 90-day limit, carefully plan your subsequent trips to avoid unintentional overstays. Remember that both your entry and exit days count as days spent in the Schengen Area.

Exceeding the 90-day limit can lead to serious consequences, including fines, taxation, deportation, and bans on re-entry into the Schengen Area.​

• Fines: Many countries impose fines for overstays—even by a single day.
• Deportation: You may be ordered to leave the country immediately.
• Travel Bans: Overstaying can lead to entry bans of 1–5 years across the entire Schengen Area.
• Record Flagging: Your passport may be flagged in European border control systems, making future entry more difficult.
• No Appeal: Many countries treat overstay violations as strict liability offences (intent doesn’t matter).

While the rules are standard, the specific penalties and enforcement practices can vary between Schengen countries.

A Hidden Danger: Triggering Tax Residency

Even without overstaying the 90-day limit, spending a significant amount of time in a single Schengen country can trigger unintended tax consequences:

• 183-Day Rule: Most Schengen countries consider you a tax resident if you spend more than 183 days within their territory in a calendar year.
• Additional Criteria: Some countries also consider factors like habitual residence, economic interests, or family ties when determining tax residency.
• Consequences of Tax Residency: This can lead to the obligation to file a tax return in that country and potentially be taxed on your worldwide income, which could create conflicts with your home country’s tax obligations (though tax treaties may offer relief).
• Example: Spending 80 days in Italy in the spring and another 110 days in the same year in Italy could inadvertently make you a tax resident there.

Example: If you spend 90 days in Portugal in spring and return for another 100 days in the fall, you could unintentionally trigger tax residency and be liable for Portuguese income tax.

Schengen Visas vs. National Residence Permits/Visas

The 90/180-day rule applies strictly to visa-free travel across the Schengen Area. However, many individual Schengen countries offer national long-stay visas or residence permits that operate independently of the Schengen short-stay limits.

National residence permits override the 90/180 Rule, but only within that country. For instance, if you obtain a national permit (e.g. Portugal’s D7 Visa, D8 Visa, or Golden Visa), you are authorized to stay in that specific country beyond the 90-day limit.

It’s important to note that national visas do not automatically grant unlimited travel across other Schengen countries. Most national residence permits only allow up to 90 days in any other Schengen country within a 180-day period—just like a tourist. To stay longer in other Schengen countries, you would need to apply for a residence permit or national visa for that country.

This distinction is especially relevant for slow travelers, digital nomads, or second-home owners who split time between European countries.

Working during a tourist stay

A common misconception is that working remotely (especially for a foreign employer) is allowed while on a Schengen tourist stay. This is not legally permitted in most countries, even if you are not working for a local company and/or being paid in Europe.

Remote work without the proper visa or residence permit can be considered unauthorized labor. It may violate immigration, employment and tax laws. This could sometimes lead to fines or affect future visa applications.

Exploring Digital Nomad Visa Options in Europe

Fortunately, several countries now offer dedicated digital nomad visas, which allow you to live and work legally while maintaining your non-EU income. For example, Portugal offers the D8 Digital Nomad Visa for remote workers and entrepreneurs, allowing residency with access to Schengen travel.

Such programs offer a compliant pathway to long-term stays—especially for freelancers, business owners, and remote employees.

Before You Travel:

• Thoroughly understand the Schengen 90/180-day rule.
• Plan your itinerary carefully, clearly marking entry and exit dates.
• Utilize a reliable online stay calculator to model your travel plans.
• Research the specific rules of each country you visit; some may have additional entry requirements or local tax regulations.

During Your Stay:

• Keep copies of your flight tickets and hotel bookings as proof of your entry and intended departure.
• Avoid “border hopping” as a misguided strategy to reset your allowed days. The 180-day window applies across the entire Schengen Area.
• If you are working remotely, investigate whether a digital nomad visa is appropriate for your situation.
• Strictly adhere to the 90-day limit within any rolling 180-day period in the Schengen Area.

Longer-Term Planning:

• If you are considering a second home or multiple extended stays, explore applying for a national long-stay visa or residence permit (e.g., D7, D8, Golden Visa).
• Carefully track the total number of days spent in any Schengen country throughout a calendar year to avoid unintended tax residency.
• Consult with a cross-border tax advisor if you plan to spend significant time abroad to understand your potential tax obligations.

Real-Life Example: The Ease of Unintentional Overstay

Case: Lisa, 62, from California

Lisa enjoyed an 89-day trip exploring Portugal, France, and Spain from March to May. Confident she had complied with the rules, she left on the 89th day. In October, she planned a seemingly short 2-week trip to Austria. However, she failed to realize that her March-May stay was still within the 180-day window preceding her October entry.

Upon arrival in Vienna, immigration officials questioned her for an hour and issued a formal overstay warning. While allowed entry “this time,” her passport was flagged in the system.

Lesson Learned: Always count 180 days from your intended entry date, not just from the start of the calendar year or your last departure.

GFDL Advogados is an independent law firm based in Lisbon, offering a comprehensive suite of legal services tailored to the sophisticated needs of its clients. Our team comprises seasoned advisors and lawyers with extensive international experience in law and global business affairs.

Navigating the complexities of the Schengen Area’s regulations, especially concerning long-term stays, visas, and potential tax implications, can be challenging. Our Immigration and Private Client teams offer expert legal assistance to individuals seeking to live, work, or invest within Portugal and the broader Schengen Area. We provide customized legal advice and support to meet your specific needs.

If you are planning an extended stay in Portugal or require legal assistance with any aspect of the Schengen Area regulations, contact us today for a consultation to discuss your specific needs.

Disclaimer

This publication or document contains general information and is not intended to be comprehensive or provide legal or tax advice or services. It should not be acted upon, relied upon, or used as a basis for any decision or action that may affect you or your business. Professional legal advice should be requested for specific cases. We do not undertake any continuing obligation to advise on future legal amendments or the impact of the conclusions herein. The information presented reflects our understanding as of Wednesday, April 16, 2025. Prior results do not guarantee a similar outcome. The contents of this publication or document may not be reproduced, in whole or in part, without the express consent of GFDL Advogados.