D7 Visa Portugal: The Ultimate Guide for Expats and Retirees
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Applying for a D7 Visa Portugal: The Ultimate Guide for Expats and Retirees
If you're intending to retire or live off passive income in Portugal, the D7 Passive Income Visa is the permit made for you.
In this guide, we'll clearly explain what the D7 visa is, who it is intended for, and the exact steps to secure it, including the necessary documentation and submission procedures. We'll also provide an overview of expected timeframes, associated costs, and a helpful summary.
The D7 has quickly become a very popular residency permit for moving to Portugal because it's attainable and affordable, particularly for those moving from countries like the US, UK, or Canada, and it is a straightforward path to obtaining Portuguese citizenship.
With the D7, you don't need to invest large amounts of money, buy a property, or start a business. You just need to show that you can support yourself in Portugal with an income that comes from outside of Portugal, and that it is secure.
What is the D7 Visa?
The D7 Visa, sometimes called Portugal Passive Income Visa (or inaccurately, the Portugal retirement visa) is a type of Portuguese residency visa specifically designed for foreigners who wish to obtain Portuguese residency to reside in Portugal based on their regular, passive income. The income can be derived from pensions, rental income, dividends, or other passive income sources. It cannot include a salary or an income that you work for. The D7 Visa is governed by Portuguese law, which outlines the necessary criteria and guidelines for a successful application.
Because the D7 Visa focuses on income like a pension or income from a rental property, it’s often more suited to retirees or those later in life, whereas the digital nomad visa is aimed at those who are getting their income from working. Because of this, you’ll often hear the D7 referred to as the passive income visa or the retirement visa - but don’t get confused, an 18-year-old can get the D7 Visa if they earn enough passive income. After five years of residency, holders can apply for a Portuguese permanent residence permit, allowing them to live and work in Portugal indefinitely.
Benefits of the D7 Visa
The Portugal D7 Visa offers numerous benefits to its holders, making it an attractive option for non-EU nationals seeking to relocate to Portugal. Here are some of the key advantages:
Residence Rights in Portugal: The D7 Visa grants you the right to live in Portugal, allowing you to enjoy the country’s beautiful landscapes, rich culture, and warm climate. Whether you want to retire, study, or simply enjoy a new lifestyle, the D7 Visa makes it possible.
Access to Public Services: As a resident, you gain access to Portugal’s public services, including healthcare, education, and social security. This means you can benefit from the country’s high-quality healthcare system and educational institutions.
Tax Benefits: One of the significant advantages of the D7 Visa was the potential tax benefits. By registering for the Non-Habitual Tax (NHR) Regime, you could enjoy generous tax incentives on certain types of income, such as foreign-sourced income, dividends, and interest.
Family Reunification: The D7 Visa allows you to bring your family members to Portugal. This includes your spouse, children, and even dependent parents, making it an excellent option for families looking to relocate together.
Pathway to Permanent Residency and Citizenship: After five years of legal residency in Portugal, D7 Visa holders can apply for permanent residency. Eventually, you can also apply for Portuguese citizenship, giving you the right to live, work, and travel freely within the European Union.
Who Qualifies for the D7 Passive Income Visa?
The D7 visa is ideally suited for retirees, individuals with rental properties, or other adequate passive income, or remote workers.
The critical eligibility criteria for the D7 visa, as defined by Portuguese law, are:
You must have a stable and sufficient income from ‘passive means’. A general guideline is that the minimum passive income requirements should exceed the Portuguese minimum salary, which stands at €820 per month as of 2024. It’s advisable that the income should be sufficient to support yourself and any dependents - but please bear in mind, this is the absolute minimum.
For secondary applicants (e.g. a spouse or partner) a further 50% is required and a further 30% for each child.
Please note though. In reality, you will probably need (and need to show) more than this: surviving on €820 per month in Portugal would be difficult, especially if you have to pay rent or a mortgage, and the more income you can show, the better your chances of acceptance for the visa are likely to be. 2. You must have already secured somewhere to live in Portugal. This can be a rented or owned property. On the official guidelines, a 12-month rental contract is preferred, but we have heard of applicants being successful with just an Airbnb reservation and a cover note explaining that the applicant wants to find more permanent rental accommodation when they arrive.
A view over vineyards.
Tax Implications of the D7 Visa
Understanding the tax implications of the D7 Visa is crucial for anyone planning to move to Portugal. Here are some key points to consider:
Tax Residency: To become a tax resident in Portugal, you must spend more than 183 days in the country within a fiscal year or have a permanent residence in Portugal by the end of the year. As a tax resident, your worldwide income will be subject to Portuguese tax.
Worldwide Income: As a Portuguese tax resident, you are required to declare and pay taxes on your worldwide income. This includes income from pensions, rental properties, dividends, and other sources, regardless of where it is earned.
Non-Habitual Tax (NHR) Regime: The NHR Regime offered significant tax benefits for new residents. Under this regime, certain types of foreign-sourced income, such as pensions, dividends, and interest, were exempt from Portuguese tax for up to ten years. This allowed substantial tax savings.
Tax Obligations: As a D7 Visa holder, you must comply with Portuguese tax obligations, including filing annual tax returns and paying any taxes due. It is advisable to seek professional tax advice to ensure you meet all requirements and optimize your tax situation.
Moving to Portugal on a D7 Visa: How Do You Do It?
Moving to Portugal on a D7 Visa requires careful planning and preparation. Here are the steps to follow:
Meet the Eligibility Criteria: Ensure you meet the eligibility criteria for the D7 Visa, including having a minimum passive income that exceeds the Portuguese minimum wage. This income can come from pensions, rental properties, dividends, or other passive sources.
Gather Required Documents: Collect all necessary documents, including your passport, proof of income, proof of health insurance, and proof of accommodation in Portugal. Make sure all documents are translated into Portuguese and certified if required.
Apply for a D7 Visa: Submit your application for a D7 Visa at the Portuguese Consulate in your home country. The application process may include an interview and can take several weeks to a few months.
Enter Portugal: Once your D7 Visa is approved, you can enter Portugal. You must apply for a residence permit within four months of your arrival. This permit will allow you to stay in Portugal for an extended period.
Register with the Authorities: Upon arrival, register with the Portuguese authorities, including the tax authorities and the social security system. This step is essential to ensure you are legally recognized as a resident and can access public services.
Submitting your Application to get the D7 Visa
If you meet the eligibility criteria, the process to secure the visa, while a little time-consuming, is relatively straightforward.
Please note: Requirements differ from consulate to consulate. Very few, if any, consulates specifically state what they're looking for, but the requirements listed below should cover most bases.
Proof of Regular Income: You need to demonstrate that you receive a regular income that will be enough to support you while in Portugal. This can be pension slips, investment reports, rental agreements, etc.
Proof of Accommodation: As per above, whether it's a rental contract or property deeds, you'll need to prove you have a place to stay in Portugal.
Collect Required Documents: The typical documents needed include:
A completed application form
2 x Passport photos
Valid Passport (have at least 6 months validity, if not more)
Proof of regular income
Proof of accommodation in Portugal
Clean criminal record certificate
It might also aid your application to also submit the following:
Marriage and birth certificates
Personal or motivational statement
Flight itinerary
Proof of legal status (if you are a third-party national living in another country)
References
All documents should be translated into Portuguese.
Submit Your Application: You should submit your application to the nearest Portuguese consulate or embassy in your home country.
Interview: Following the review of your application, you may be asked to attend an interview at the consulate or embassy.
Receive Your Visa: If your application is approved, your visa will be issued, typically within 2 to 4 months. Upon receiving your visa, you can travel to Portugal and apply for a residence permit.
Apply for a Residence Permit: Once in Portugal, you will need to exchange your visa for a residence permit from the Immigration and Borders Service (SEF). Your proof of ongoing regular income will be required.
A notebook and laptop.
What is a NIF and how to get one
A Número de Identificação Fiscal (NIF) is a tax identification number in Portugal. This nine-digit number is unique to each individual and is required for a wide range of financial and administrative activities in Portugal. It's akin to a Social Security Number in the U.S. or a National Insurance Number in the U.K. Essentially, it is a means of identification that ties you to the Portuguese Tax and Customs Authority, ensuring your financial transactions within the country are accurately recorded and taxed where applicable.
Having a NIF is essential for many different transactions and activities in Portugal, including but not limited to: opening a bank account, purchasing a property, setting up utilities, getting a phone contract, and of course, paying taxes. Even if you're not a Portuguese resident or don't plan to pay taxes in Portugal, if you're carrying out any kind of financial transaction in the country, you will likely need a NIF.
As for how to obtain a NIF, the process is generally straightforward in theory, but it can be confusing, especially if you don't speak Portuguese.
In Portugal, you can apply in person at a local Finanças office (tax office). You'll need to bring a valid form of ID (like your passport) and proof of your address, which could be a utility bill or rental agreement. If you're not a resident, you will also need a Portuguese tax representative, who could be a lawyer, accountant, or even a trusted friend or relative who is a Portuguese resident.
If you are overseas, you can apply for a NIF through a company like Bordr who take care of everything for you.
Bear in mind that while obtaining a NIF is a relatively simple process, it's also a vital one for anyone looking to spend a significant amount of time in Portugal or engage in financial transactions in the country. Therefore, it's recommended to obtain your NIF as early as possible in your relocation process.
Remember that once you have your NIF, you will need to provide it whenever requested for financial or administrative purposes. You should also ensure that any changes to your situation (such as a change of address) are updated with the Portuguese Tax and Customs Authority to ensure your records remain accurate.
How to get a Portuguese Bank Account for the D7 visa
Establishing a Portuguese bank account is a crucial step in the Portugal D7 visa application process. The Portuguese authorities require proof that you have sufficient funds to support yourself during your stay in the country, and showing a local bank account with the required minimum amount can provide this evidence.
Having a Portuguese bank account also simplifies many aspects of life in Portugal, including setting up direct debits for utilities, receiving income, and paying taxes.
While the process of opening an account may vary between banks, generally, you will need to go to the bank in person and provide your passport, proof of address, and a fiscal number (NIF) - which of course can be difficult if you aren't in the country and why services that allow you to get an account online like that provided by Bordr can be a Godsend. Please note that some banks may also require additional documentation or have specific requirements for non-residents.
A bank’s entrance.
What is Expat Health Insurance, and do I need it for the D7 visa?
Expat health insurance is a crucial aspect to consider when planning a move to Portugal, and yes, it's compulsory for your visa application.
Expat health insurance (which can confusingly sometimes be called visa insurance, expat insurance, expat health insurance or Schengen travel insurance!) is a comprehensive insurance plan designed to provide health coverage to individuals living abroad.
As far as the name goes, you might have heard the above terms used interchangeably, but in truth, they are referring to the same thing. For the sake of this article, we'll refer to it as expat health insurance.
Unlike regular travel insurance, which typically covers short-term stays and emergencies, expat health insurance covers routine healthcare, specialist treatments, and sometimes even maternity care and preventive health measures, making it suitable for those residing in a foreign country for an extended period.
Expat health insurance in Portugal comes in many forms and from various providers.
International health insurance policies from global providers such as Cigna, Allianz, or BUPA are common choices for expats, however the best value (and best cover) policy that we've found for those aged 69 and under which meets your visa requirements is the SafetyWing Nomad Policy.
For those aged over 70, Now Health International often comes up cheapest.
IMPORTANT! For your visa application your policy needs to cover you for at least 4 months!
When choosing expat health insurance, you need to consider your personal circumstances, including your general health, age, budget, and healthcare needs. Premiums will vary based on factors such as the level of coverage, deductibles, your age, and any pre-existing conditions.
Finally, it's sensible to understand the specifics of your policy. Expat health insurance can be complex, so don't hesitate to ask your insurer to explain any terms or conditions that you don't understand. Taking the time to ensure you have the right coverage can give you peace of mind and protect your health during your first few months in Portugal.
Health center Portugal.
How to exchange your visa for a residency permit
After you arrive in Portugal, arrange an appointment with your local immigration office (in Portugal it is called AIMA), where they will want to see your paperwork (hint! Take EVERYTHING you have!), they take your biometric data, and then exchange your visa for a residency permit. After five years of residency, you can apply for a Portuguese permanent residence permit.
The immigration agency, AIMA, are notoriously busy and overwhelmed with applicants, so there is often a backlog, but don’t worry if you cannot get an appointment or you don’t receive your permit as quickly as they said, or as you would like.
As a rule, they are very tolerant and understanding of the fact that the delays are at their end, and make allowances for any slight infraction or problem caused by these delays.
Residency and Renewal: What You Need to Know
As a D7 Visa holder, understanding the residency and renewal requirements is crucial. Here are some key points to consider:
Temporary Residence Permit: The initial residence permit granted under the D7 Visa is valid for two years. After this period, you can renew it for an additional three years, provided you continue to meet the eligibility criteria.
Minimum Stay Requirements: To maintain your residency status, you must spend at least 16 months in Portugal within the first two-year period of your residency. This ensures you are genuinely residing in the country.
Renewal Process: The renewal process involves submitting an application and providing the required documents, such as proof of income, proof of health insurance, and proof of accommodation. It is advisable to start the renewal process well before your current permit expires.
Permanent Residence: After five years of legal residency in Portugal, you can apply for permanent residency. This status allows you to live in Portugal indefinitely and enjoy the same rights as other permanent residents.
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Permanent Residency and Citizenship: Your Pathway in Portugal
As a D7 Visa holder, you have a clear pathway to permanent residency and eventually Portuguese citizenship. Here are the steps to follow:
Meet the Eligibility Criteria: To apply for permanent residency, you must have a minimum passive income that meets the requirements and have spent at least 16 months in Portugal within the first two-year period of your residency.
Apply for Permanent Residency: After five years of legal residency, submit your application for permanent residency. This process involves providing proof of income, proof of health insurance, and other required documents.
Meet the Citizenship Requirements: To become a Portuguese citizen, you must demonstrate a good understanding of the Portuguese language and culture. This may involve passing a language test and providing evidence of integration into Portuguese society.
Apply for Citizenship: Once you meet the requirements, submit your application for Portuguese citizenship. Becoming a Portuguese citizen grants you the right to live, work, and travel freely within the European Union, as well as access to a Portuguese passport.
By following these steps and understanding the requirements, you can successfully navigate the process of obtaining permanent residency and citizenship in Portugal, enjoying all the benefits that come with being a Portuguese resident and citizen.
Do-It-Yourself Or Use A Lawyer?
If you're using a lawyer to help with your visa application, you'll likely pay between €2,000 and €3,000, depending on the lawyer and whether you already have your NIF or Portuguese bank account. If you have a partner or children, they might incur costs as well, but the costs will be lower than for the primary applicant.
The downside of using a lawyer is the cost. The upside is that they probably regularly deal with your local consulate and know what's likely to be accepted, so just like many factors of relocation, life becomes a little easier if you are willing to pay for it!
Expected Timeframes and Costs
The processing time for the D7 visa can range from 2 to 4 months, although closer to 2 months is normal. The visa application fee is around €100, and the residence permit fee is about €77. There's also an issuance fee for the approved residence permit, (which you pay in Portugal) which is approximately €74.
Frequently Asked Questions
Who is eligible for the Portugal D7 visa?
The Portugal D7 visa, sometimes called the passive income visa, is available to non-EU/EEA/Swiss citizens who can prove a steady and sufficient passive income.
This typically includes retirees who have a pension, individuals with rental income from properties, people with dividends from investments, and individuals with any other type of passive income.
The visa is quite flexible in terms of what counts as passive income. The important point is that applicants need to demonstrate that they have enough income to support themselves (and any dependents) without needing to find employment in Portugal.
Can I live in Portugal with a D7 visa?
Absolutely! The Portugal D7 visa is explicitly designed for those who wish to live in Portugal and become a Portuguese resident.
Once you've obtained your D7 visa, you'll initially be granted a temporary residence permit which allows you to live in Portugal for one year. This permit can be renewed for additional two-year periods.
After five years of legal residency in Portugal, you can apply for a permanent residence permit, which allows you to live in the country indefinitely, essentially making Portugal your new home.
Portugal from above.
Is the Portugal D7 visa tax-free?
The D7 visa itself does not automatically confer a tax-free status. It's crucial to understand that once you become a resident in Portugal (which typically means you live more than 183 days in the country in a year), you are usually liable to pay personal income tax on your worldwide income.
The Portuguese tax system is based on individual circumstances, and there may be ways to optimize your tax situation, but the general principle is that becoming a resident triggers tax obligations.
What is the Portugal D7 visa?
The Portugal D7 visa is a type of residence visa designed for non-EU citizens who have a regular and sufficient passive income. It is often referred to as the Portugal passive income visa, or, incorrectly, the Portugal retirement visa.
It was introduced to attract individuals who wish to live in Portugal and have the means to support themselves without needing to work in Portugal.
As of 2024, the D7 visa process begins with an application to a Portuguese consulate in the applicant's home country, followed by a request for a temporary residence permit once the visa is granted and the applicant arrives in Portugal.
Can I buy a home if I have a Portugal D7 visa?
Yes, as a holder of a Portugal D7 visa, you are indeed allowed to purchase property in Portugal.
This can be a wise move for multiple reasons. Firstly, owning property can be a compelling demonstration of your commitment to living in Portugal, which can be beneficial when it's time to renew your temporary residence permit or apply for a permanent one.
Secondly, property ownership can also generate rental income, which could help bolster your passive income.
What counts as passive income for Portugal D7 visa?
Passive income refers to regular income that you receive without having to actively work for it.
This can come from a variety of sources and includes income such as pensions, rental income from property, dividends from stocks and shares, royalties from copyrights, or income from trusts and other investments.
The crucial point is that this income is regular, reliable, and will continue to be available to you once you move to Portugal.
How long does it take to get a Portugal D7 visa?
The time it takes to get a Portugal D7 visa can vary depending on several factors, including the specific Portuguese consulate where you apply, the time of year, and your personal situation.
Generally, after you submit your application, you might expect to wait several weeks or even a few months for your application to be processed and the visa to be granted. Around 2-3 months is normal.
After you arrive in Portugal, you'll need to apply for a temporary residence permit, which can also take a few months to be issued.
How hard is it to get a D7 visa?
The process of getting a D7 visa can be complex, as it involves multiple steps and requires various documents. However, if you meet the requirements - notably, having a regular passive income that's sufficient to support yourself (and any dependents) in Portugal, and you can supply all the necessary documentation, the process is fairly straightforward.
What is the salary requirement for the Portugal D7 visa?
The D7 visa, often referred to as the passive income visa, is designed for individuals who have a regular passive income such as pensions, dividends, or rental income.
The visa doesn't require the holder to work or start a business in Portugal, although you are allowed to do so if you wish. It's worth noting that each case is unique and the specific circumstances and personal preferences can impact your lifestyle, costs, and overall experience in Portugal.
How do I prove my income for the Portugal D7 visa?
To prove your income for a Portugal D7 visa, you will need to provide official documents verifying your regular passive income.
This could include bank statements, pension statements, rental agreements, dividend vouchers, or other official documents that demonstrate a steady inflow of income.
These documents should be recent, typically no more than three months old, and it's essential that they're translated into Portuguese by a certified translator.
How much passive income to retire in Portugal?
The amount of passive income you need to retire comfortably in Portugal varies depending on several factors including the location, lifestyle, and personal spending habits.
However, as a general guideline, you might aim to have a passive income equivalent to the average wage in Portugal, which currently stands at around €1,200-€1,300 per month. This would afford a fairly comfortable lifestyle in most areas of the country.
How long can you stay in Portugal with a D7 visa?
The D7 visa initially grants a temporary residence permit valid for one year, and this can be renewed for two subsequent two-year periods.
After five years of legal residence in Portugal, D7 holders can apply for a permanent residence permit, which is renewable every five years.
It's important to note that to maintain your residence status, you must not be away from Portugal for more than six consecutive months or eight non-consecutive months in a year.
Portuguese traditional building.
How to get permanent residency in Portugal with D7 visa?
After five years of holding a temporary residence permit under the D7 visa, you can apply for a permanent residence permit in Portugal.
The application process requires you to demonstrate that you have maintained the requirements of the D7 visa, including having a consistent passive income and not being absent from Portugal for more than six consecutive months or eight non-consecutive months per year.
Do you need a Portuguese bank account for D7 visa?
While it's not a requirement to open a Portuguese bank account for the D7 visa application, it can be helpful in demonstrating financial stability and intention to settle in Portugal. Plus, having a local bank account can simplify everyday financial transactions, like paying bills or receiving income.
It's typically straightforward to open a bank account in Portugal, with many banks offering services in English and online banking facilities.
Can I bring family members on a D7 visa?
Yes, you can indeed bring family members to Portugal under your D7 visa as dependents. Family reunification is a feature of the D7 visa and encompasses your spouse or legal partner, as well as minor children, and in some cases, dependent adult children and dependent parents. You'll need to demonstrate that you have sufficient passive income to support not just yourself but also any family members you wish to bring with you. The process of bringing family members to Portugal requires additional documentation and may involve additional steps compared to the initial D7 visa application.
Firstly, each family member will need to apply for their own visa, and there will be additional fees for each application. The specific requirements and processes can vary depending on your situation and the specific consulate where you apply, so it's important to check with the consulate in advance.
In addition, once in Portugal, each dependent will need to apply for their own temporary residence permit, just like the main D7 visa holder. This permit will allow them to reside in Portugal, access healthcare, and attend school, among other things. After five years, provided they have stayed in Portugal as required, they can apply for a permanent residence permit, similar to the primary visa holder.
Please note that while the D7 visa allows dependents to live in Portugal, it doesn't allow them to work in Portugal. If a dependent wishes to work, they may need to apply for a separate work permit.
Lastly, it's important to remember that any dependents you bring to Portugal will also have tax implications. As a resident in Portugal, you are generally required to pay taxes on your worldwide income, and this includes any income that your dependents might have. Therefore, it's crucial to seek professional tax advice to understand your full tax obligations.
Please note: Requirements differ from consulate to consulate. Very few, if any, consulates specifically state what they’re looking for, but the requirements listed below should cover most bases.
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