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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.

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.

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 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 €740.83 per month as of 2023. 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 €740 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.
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.

Moving to Portugal on a D7 visa. How do you do it?

Moving to Portugal on a D7 visa is a two-step process.

Step 1 - Submit your application for the D7 visa and the relevant documentation (see below) to the Portuguese consulate in your home country. This is to get given the D7 visa, which is valid for four months from the date of issue and allows you to travel to Portugal.

Step 2 - After you arrive in Portugal, book an appointment at the immigration department (which in Portugal is called SEF), to exchange your visa for a temporary residence permit, which is valid for two years. After two years, you can renew your permit for a further period of three years. At this point, you can either extend again or convert temporary residency into permanent residency if you choose to do so.

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)
- NIF (fiscal number)
- Portuguese bank account
- Proof of expat health insurance
- 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.

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.

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.

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 SEF), 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.

The immigration agency, SEF, 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.

Do-It-Yourself Or Use A Lawyer?

If you’re using a lawyer to help with your visa application, you’ll likely pay between €1,000 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.

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 are the tax benefits of Portugal D7 visa?

The main tax advantage associated with the Portugal D7 visa is the potential to register as a Non-Habitual Resident (NHR).

The NHR status, if granted, offers significant tax benefits for the first ten years of residence in Portugal. For certain types of income, including some pensions and foreign-sourced income, the NHR status could result in a complete exemption from Portuguese tax.

It's important to note that the NHR status doesn't exempt you from taxes in other jurisdictions, and professional tax advice should be sought when considering this.

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 2023, 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.

How long can you live in Portugal with a D7 visa?

The D7 visa initially grants you the right to live in Portugal for one year, after which it can be renewed for two additional two-year periods.

Therefore, on a D7 visa, you can live in Portugal for up to five years. After five years of legal residence, you become eligible to apply for a permanent residence permit, which, if granted, allows you to live in Portugal indefinitely.

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.

How much money do you need to get a Portugal D7 visa?

There isn't a fixed amount of income that you need to show for the D7 visa application, but generally, you need to demonstrate that your passive income is at least equivalent to the Portuguese minimum wage, which, as of 2023, is around €700 per month.

If you have dependents, you'll need to show additional income to support them. It's important to note that the more income you can demonstrate, the stronger your application will be, and you will need enough income to live comfortably in Portugal.

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.

Do you pay taxes with a Portugal D7 visa?

Yes, when you become a resident in Portugal under the D7 visa, you generally become liable to pay Portuguese taxes on your worldwide income.

This includes income from employment, self-employment, property, capital gains, and even some pensions. The tax rates can vary, and there may be options to minimize the tax you pay through schemes such as the Non-Habitual Resident scheme.

It's crucial to seek professional tax advice to understand your tax obligations fully.

Who is eligible for Portugal D7 visa?

The eligibility for the Portugal D7 visa is primarily focused on having a regular passive income.

Essentially, anyone who can prove that they have enough passive income to support themselves (and any dependents) without working in Portugal can apply.

This often includes retirees, individuals with rental income, and those living off investments, but it can apply to anyone who meets the income requirements.

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What is the Portugal D7 visa for 2023?

The D7 visa for Portugal in 2023 remains a great option for individuals with regular passive income who want to live in Portugal.

It offers the possibility of becoming a resident in Portugal, enjoying the lifestyle and climate of the country, while having your income from abroad.

Once the D7 visa is granted, you'll need to apply for a temporary residence permit, which can be renewed every two years and can lead to a permanent residence permit after five years.

Which is better D7 or golden visa Portugal?

Unfortunately the Golden Visa scheme in Portugal has been discontinued.

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 do I qualify for a Portugal D7 visa?

To qualify for a D7 visa, you'll need to demonstrate that you have a reliable, regular source of passive income that will allow you to support yourself (and any dependents) in Portugal without needing to work.

This can come from a variety of sources, including pensions, rental income, dividends, and other investments. You'll also need to have health insurance, pass a criminal background check, and meet some other requirements, which can vary depending on your specific circumstances.

How much passive income is enough for the Portugal D7 visa?

The minimum passive income required for the Portugal D7 visa is usually equivalent to the Portuguese minimum wage, which is about €700 per month as of 2023.

If you have dependents, you'll need to demonstrate a higher income. However, more income is generally better, both for ensuring a comfortable lifestyle and for making your visa application more compelling.

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.

It can be helpful to work with a relocation service or immigration lawyer to guide you through the process and handle any complications.

Can I get a D7 in Portugal?

You can start the process for a D7 visa from your home country, but the final steps must be completed in Portugal. Initially, you apply for the visa at a Portuguese consulate in your home country. After the visa is granted, you then travel to Portugal and apply for a temporary residence permit. This permit is what allows you to live in Portugal for longer than the 90 days granted by the initial visa.

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.

What is D7 tax in Portugal?

If you move to Portugal under a D7 visa, your tax situation will depend on whether you're considered a tax resident or not.

Typically, you become a tax resident if you live more than 183 days in Portugal in any given year, at which point you could be liable for taxes on your worldwide income. However, Portugal has a beneficial tax regime known as Non-Habitual Residence (NHR) which, if you qualify, could potentially provide you with a tax exemption on certain types of income for your first ten years in the country.

The rules are complex, and the application of tax laws can vary based on individual circumstances, so it's advisable to seek professional tax advice before proceeding.

What language is required for D7 visa in Portugal?

The application process for the D7 visa doesn't have a language requirement.

The necessary documentation can typically be filled out and submitted in English, and many Portuguese consulates offer support in various languages. That said, knowing some Portuguese can certainly help you integrate into the local community once you've moved.

Even basic understanding of the language can make day-to-day tasks, such as shopping, using public transportation, and interacting with neighbors, a lot smoother.

What is the minimum income for D7 visa Portugal?

The minimum income requirement for the D7 visa is not fixed but generally, it is expected to be at least equivalent to the Portuguese minimum wage, which currently stands at around €700 per month.

However, the more income you can demonstrate, the stronger your application will be. This income can come from various sources including pensions, rental income, dividends, and other forms of passive income.

Evidence of financial sustainability is crucial to securing the visa.

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 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.

What is the requirement for D7 visa?

There are several requirements to apply for the D7 visa. Applicants must have a valid passport, provide proof of health insurance coverage, pass a criminal background check, and demonstrate sufficient passive income.

The required income must be sustainable and consistent, and usually equivalent to the Portuguese minimum wage for an individual, with an additional 50% for each dependent.

Further, you need to demonstrate ties to Portugal, which can be as simple as a rental agreement.

What is the minimum income for D7 visa in Portugal?

The minimum income requirement for the D7 visa is typically equivalent to the Portuguese minimum wage for an individual and an additional 50% of that sum for each dependent.

As of now, the minimum wage in Portugal is approximately €700 per month. However, it's strongly recommended to have income significantly above this baseline to strengthen your application and ensure a comfortable standard of living in Portugal.

What is considered passive income for the Portugal D7 visa?

Passive income is income that requires little to no effort to earn and maintain. For the purposes of the D7 visa, passive income can include pensions, dividends from investments, rental income from property, royalties, and any other income that comes in regularly without active work.

The key point is that this income must be sustainable and can be reliably expected to continue into the future.

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.

What is the minimum income for D7 visa?

The minimum income requirement for the D7 visa is based on the Portuguese minimum wage, currently around €700 per month for an individual.

For each dependent, an additional 50% of the minimum wage is required. This income can come from various passive sources, such as pensions, rental income, or dividends from investments.

What is the passive income for D7?

The D7 visa, or passive income visa, is designed for people who have a consistent passive income. This income can come from a variety of sources including, but not limited to, pensions, property rentals, dividends from investments, or royalties.

The key is that this income must be regular, reliable, and sufficient to support the applicant and any dependents without the need to take up employment in Portugal.

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.

How much does a D7 Portuguese visa cost?

The cost of the D7 visa application is around €90, but this can vary depending on the consulate where you apply.

Keep in mind that there could be additional costs for translations, certifications, health insurance, and other related services. It's advisable to check the current fees with the Portuguese consulate or embassy in your home country to get the most accurate information.

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.

Summary

Acquiring a D7 Passive Income Visa is a process that requires careful preparation, but it provides a fantastic opportunity to enjoy the vibrant lifestyle of Portugal while living off of a passive income. Prepare your documentation thoroughly, demonstrate your regular income convincingly, and a promising Portuguese adventure awaits you.

The process may take a few months and includes some costs, but the rewards are great.

Boa sorte!