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Portugal D7 (Passive Income) Visa

05 August 2022

The Portuguese government introduced Portugal Passive Income Visa in 2007, which immediately caused a great stir among pensioners, entrepreneurs, and other ex-pats living off of a recognized stable income.

Portugal D7 (Passive Income) Visa — Migronis

What is D7 Visa?

Portugal Passive Income Visa is also known as D7 Visa, the Retirement Visa, or Passive Income Visa. Among those eligible are people able to prove they meet minimum income requirements (€8,460 a year). The Portugal D7 Visa is designated for non-EU/EEA/Swiss citizens with a clean criminal record who wish to get legal residency in Portugal. It is intended to attract wealthy individuals from all over the world, which helps to increase inflows in the Portuguese economy.

The residence permit for Portugal D7 Visa can be renewed after one year for two successive periods of two years. And after five years, you can apply for a permanent residency or request Portuguese nationality (if all additional conditions are met).

While thinking about D7 Visa, it is also important to consider alternatives. For example, Portugal Golden Visa Program is a great option for entrepreneurs wishing to do business in Portugal, invest in this country, or simply for those who don’t need to live there the whole time. D7 Visa Portugal has a lower processing time, and financial investments are not required. But for that, you must stay in the country for 183 days per year (while with the Portugal Golden Visa, you can reside only seven days a year on average). To know more about Golden Visa, reach out to this guide with all the explanations on what this visa is like and the potential benefits waiting for future applicants. One should not forget HQA Visa. Read this guide to learn more.

In the meantime, we’ll proceed to the benefits of Portugal D7 Visa!

Did you know that in Portugal you could enjoy a decade of generous tax breaks?

Enjoy tax exemption on almost all foreign source income due to the NHR, one of the most favorable and competitive European tax regimes. A special draw of the NHR regime for high-net-worth individuals is that it is granted for 10 years! 

Read our guide to taxes (below) and get a free consultation to find out even more!

Advantages of the Portuguese D7 visa

What’s the main allure of the Portuguese residence permit? With Portugal D7 Visa, numerous possibilities are waiting just for you!

  • 1. Visa-free entry to any country in Schengen Area and access to 188 countries once you get a Portuguese passport

    Enter any Schengen country without needing to obtain a visa and get visa-free access to many destinations once your Portuguese citizenship is approved.

  • Portugal D7 (Passive Income) Visa — Migronis
  • 2. An opportunity to get a permanent residence permit in just 4-5 months

    Become a Portuguese resident and get Portuguese residency for you and your family members in just 4-5 months.

  • 3. The personal income tax is at a flat rate of 20%

    If the main applicant spends more than 183 days in Portugal, he automatically becomes a tax resident of the country. This means that an applicant can qualify for a preferential tax status NHR, famous for its 20% flat rate. Without NHR, it would be up to 48%.

  • 4. No taxes on global income

    NHR is also famous for an absence of taxes on global income (if the tax has already been paid in one of the countries that have double tax treaties with Portugal)

  • 5. Live, work, and study in Portugal

    With D7 Portugal residency, the main applicant is entitled to all main rights like living, working, or studying in Portugal.

  • Portugal D7 (Passive Income) Visa — Migronis
  • 6. Become a Portuguese citizen in 5 years

    A Portuguese resident can apply for Portuguese citizenship after five years.

  • 7. All the benefits of the National Health Care System

    The Portuguese Health Care System is one of the best in Europe, and Portuguese residents can benefit from free healthcare while using the national services.

  • 8. Preferential tax rate — Portuguese Non-Habitual Residency (for the following 10 years)

    Under the NHR regime, most foreign-sourced income is exempted from taxation in Portugal for ten consecutive years.

  • 9. D7 Visa can be obtained by family members

  • Eligible family members:

  1. A spouse
  2. A minor or incapacitated child
  3. Children over 18 (not married and studying in an educational institution in Portugal)
  4. Dependant parents of the main applicant or their spouse
  5. Minor siblings dependent on the main applicant

Portugal D7 (Passive Income) Visa — Migronis

  • 10. No need to pass a Portuguese language test

  • One of the many benefits of getting this residence visa is the fact that you don’t need to pass any language test.

Want to know more about the beneficial tax regime NHR?

This guide will explain you everything you need to know, including how to make sure you’re eligible

D7 Visa or Portugal Golden Visa?

Portugal D7 Visa may lead you to the Portugal Golden Visa.

Sometimes it happens that D7 Visa holders are unable to follow stay requirements. However, they can do this with the help of the Portugal Golden Visa if a necessary investment is made. Or you can choose the Portugal Golden Visa instead of the D7.

So, what are the differences between these two Programs?

Stay requirement

Stay requirement is one of the most significant differences between the Portugal Golden Visa and the D7 Visa. While Portugal Golden Visa requires you to stay, on average, only 7 days a year, D7 Visa makes you spend at least 6 months in the country.

Processing time

D7 Visa has a lower processing time, while waiting for the Portugal Golden Visa may take 6-8 months.

Investment or income requirement

While Portugal Golden Visa has more significant financial requirements, D7 Visa demands showcasing evidence of the regular net passive income. The popularity of the Portugal Golden Visa is mostly determined by its affordability. Although it is more expensive than D7 Visa, this residence permit is mostly aimed at entrepreneurs.

Tax benefits

Under the NHR regime, most foreign-sourced income is exempted from taxation in Portugal for ten consecutive years. With D7 Visa, you automatically become Portugal’s tax resident but could apply by March 31 of the year after your move. At the same time, with the Portugal Golden Visa, you don’t need live in Portugal the whole time. But the NHR can be accessed only if you spend more than 183 days per year there.

If you are interested in the Portugal Golden Visa and want to know more about this program, then reach out this guide.

Learn everything about the Portugal Golden Visa

Reach out to this most-detailed guide. 

Portugal D7 (Passive Income) Visa — Migronis

Visa requirements for applicants

Like all visas, Portugal Passive Income Visa comes with some uncertainty: “Do I eligible for this visa?” “How hard is the process?” In this section, we’ll try to answer the most important questions so that you can understand what you need to apply.

Who is eligible for a Portugal D7 visa?

As it was said before, only non-EU/EEA/Swiss citizens are eligible for Retirement Visa. Interestingly, the name is confusing — Retirement Visa is not just for retirees; anyone can apply for it.

But what about any special requirements?

  1. Be a non-EU/EEA/Swiss citizen
  2. Meet passive income requirements (sufficient income — €8,460 a year)
  3. Clean criminal record
  4. Valid travel insurance. Note! Your health insurance should be EU recognized and paid for in advance (12 months).
  5. Reside in Portugal for at least 183 days per year
  6. Show proof of a place to live in Portugal. Proof of accommodation means that you have a long-term rental agreement (minimum 12 months)
  7. Become a fiscal resident in the country. This can be done remotely
  8. Have a Portuguese tax number (NIF)
  9. Have a Portuguese bank account. Single applicants should have a deposit in their Portuguese bank account. The same goes for married couples commonly required to invest a higher amount. The exact sum is not specified, but most applicants put around $10,000.
  10. Meet residency requirements. Such are:
  • Initial Residency Permit — 16 months per 2 years

  • Subsequent Residency Permit — 28 months per 3 years

  • Permanent Residence Permit — 30 months per 5 years

Minimum Passive Income Requirements

To apply for a D7 Visa and get legal residence in Portugal, an applicant should prove he has an income of 12 months of savings. Specifically:

  1. €8.460 for the first adult (€705 per month)
  2. €4.230 for second or more adults (€352,5 per month). For both you and your spouse, you need a total of €12 690 per year.
  3. €2.538 per child (€211,5 per month).

    Although specific financial requirements exist, Portugal D7 Visa should not be linked only to your salary income. Actually, it would be more beneficial to use a combination of investments, savings, and income. The sum is asked by Immigration and Border Services regardless of your country of origin.

    The Portuguese consulate also does not demand a minimum requirement for your net worth. But note that the Portuguese government may ask that you submit proof of your additional savings.

    Passive Income Explained

    What is considered eligible passive income?

1.Intellectual property

2. Pension income

3. Royalties

4. Transferable equity

5. Interests from savings

6. Real estate

7. Dividends (if you don’t work for the company)

8. Earnings from long-term, fixed-rate financial investment

Documents required for a Portugal D7 Visa

1.Completed Visa Application Form

2. Valid passport with 2 recent passport photos

3. Proof of sufficient funds

4. Proof of Accommodation

5. Valid Health Insurance Coverage

6. The FBI Criminal Record Certificate. The police clearance certificate is mandatory to be authenticated and stamped by UAE MoFA

7. A request for consultation of the Portuguese criminal registry for the SEF

8. Cover Letter clearly indicating the reason for your request for D7 Visa

9. A company pension certificate, a notarized letter confirming a pension, or a pension check statement (for retirees)

10. Document certifying revenue from movable and immovable property, intellectual property, or financial assets (for self-employed)

11. Tax returns from the previous fiscal year or any proof of income from the previous fiscal year (for self-employed)

Important! Ensure you have copies of all the abovementioned documents and their equivalents in Portuguese.

Portugal Golden Visa is one of the most popular Residency-by-Investments Programs in Europe and worldwide

Want to know why? 

Step-by-step guide

  • Step 1. Gather your documents and fill in your visa application form

    Firstly, you need to gather all the required documents like proof of funds or proof of accommodation. Although there is a bit time-consuming process, once you are done, the hardest behind.

    Step 2. Submit your visa application

    Once you collect all the documents, it is important to head over to your Portuguese consulate in order to submit your visa application form. Keep in mind that an applicant is expected to pay about €75 for a temporary visa or €90 for a residence permit. Portuguese consulate may ask you to leave your passport, as they should attach a new residence visa to a passport in case of a successful application. This issue can be solved if you ask the embassy to mail your passport when you receive favorable feedback.

    Step 3. Get D7 Visa

    The Portuguese consulate will inform you via email or mail once your visa application is approved. The application process commonly takes anywhere between 60-90 days, but it might take longer if you fail to submit the correct documents.

    Quick tip: Remember to bring a copy of your ID and receipt. It is also essential to check that all details on your temporary visa are correct.

    Step 4. Visit Portugal to attend a SEF appointment and obtain Portuguese residency

    Congratulations, you are done with the first hardest part of the application process! Now you can visit Portugal for four months. This period also has an important purpose — you must schedule an appointment at Serviço de Estrangeiros e Fronteir (SEF) and apply for a D7 residency permit. Here you’ll also enroll your biometric data.

    Your date of appointment can already be indicated as an URL in your new passport under “appointment.” Enter this URL and find out the details.

    You must do it via the SEF portal if you haven’t scheduled an appointment. Choose the closest SEF bureau and request a confirmation email from SEF. You can print this email and keep it with your passport.

    Step 5. Attend SEF appointment

    Generally, SEF appointment takes about 20 minutes.

    Step 6. Renew your residence permit

    Your residency visa is valid for one year, so you need to renew it within this period.

    Step 7. Renew your Portuguese residence permit for two additional years

    You also need to renew your temporary residence permit when the third year comes.

    Step 8. Obtain Portuguese citizenship or permanent residency

    You can get Portuguese permanent residence or citizenship after 5 years.

GOLDEN VISA PRESENTATION

Let’s see our best examples of Portuguese real estate and learn about theconditions of funding to get the Portuguese Golden Visa! 

Portugal D7 (Passive Income) Visa — Migronis
Portugal D7 (Passive Income) Visa — Migronis
Portugal D7 (Passive Income) Visa — Migronis
Portugal D7 (Passive Income) Visa — Migronis
Portugal D7 (Passive Income) Visa — Migronis
Portugal D7 (Passive Income) Visa — Migronis
Portugal D7 (Passive Income) Visa — Migronis

Applying for a Portugal D7 visa

  • Applying for Portugal D7 Visa is possible at the Portuguese consulate or embassy.

    You don’t need to own real estate to apply for legal residence, but remember to provide proof of accommodation. A rental agreement is an option.

Fees and Costs

Stamp duty — 0.8% of the property value

Annual municipal property tax — 0.3 to 0.8% of the property value

Health insurance — €14 a month per individual

Visa application fee — €90 per family member

Residence permit card — €83 per family member (processing fee); €72 per family member (residence card issuance fee)

Validity of D7 visa

D7 Visa allows getting a Portuguese residence permit for one year. Later it can be renewed for successive periods of 2 years and converted into a permanent residence permit after 5 years.

How much does the D7 Visa cost?

The cost of a Portugal D7 Visa is comparatively low, ranging between €50 – €300. However, it is also important to note that the applicant should meet the passive income requirements (€8,460 a year).

Can you work in Portugal with D7 Visa?

Yes, Portugal D7 Visa allows an applicant to work in the country legally.

How much is the bank balance required for Portugal visa?

The exact sum is not specified, but most applicants put around $10,000.

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