Last Updated on November 29, 2024 by Maryam Siddiqui
Popular for all the right reasons, Portugal and Spain are still at the top of the list when you search for the best countries to live with passive income. But is making a comparison even fair? Are they equal in terms of visa requirements and rights? There’s a lot to compare between the Portugal D7 Visa vs Spain Non-Lucrative Visa, and we’re here to break it down.
We have separate articles for each of the two visas, detailing all that you would need to know about the documents, rights, and costs. But a side-by-side comparison always provides a lot more clarity to expats who are confused between the two.
Keep reading to learn about the income requirements to apply, the documents needed, and the life you can expect to live in each country. We promise, by the time you reach the end of the article, you’ll know exactly which visa to apply for. Happy reading!
What is the Portugal D7 Visa?
Famously known as the Passive Income Visa, the Portugal D7 Visa is primarily used as a Retirement Visa. It is open to all non-EU residents who wish to live in Portugal with a passive income source.
As a top retirement destination that provides an excellent quality of life for under €2,000 a month, Portugal has won the hearts of many retirees. It’s the 7th safest country in the world, with a rich culture and a welcoming community. Let’s not forget that all legal residents can qualify for Portuguese citizenship after only 5 years of living in the country!
While it may be a small country, it is home to over 1 million expats who have left their old lives searching for a better one.
The Portugal D7 Visa is your ticket to a life of freedom, calmness, and new experiences. This visa is popular among retirees thanks to the low income requirements and the long list of rights it grants the visa holder.
- Complete Guide: D7 Visa: All About The Portugal Passive Income Visa.
What is the Spain Non-Lucrative Visa?
Similar to Portugal’s D7 Visa, the Spain Non-Lucrative Visa is also used as a Retirement Visa for Spain. It’s open to all non-EU residents who wish to live in Spain with a passive income source.
However, there are a few significant differences when you compare the Portugal D7 Visa vs Spain Non-Lucrative Visa. We’ll discuss the eligibility requirements in more detail shortly.
Spain is another extremely popular retirement destination, thanks to the calm coastal towns and welcoming expat community. It’s the 32nd safest country in the world and one of the very few European countries that still allows real estate investments for the Golden Visa.
The timeline to qualify for Spanish citizenship is a little higher than in Portugal. Residents are eligible to apply for citizenship after 10 years of living in Spain. Regardless, many expats still opt for this.
The Spain Non-Lucrative Visa allows you to reside and retire in Spain without working for financial gain. Your means of sustenance should exclusively be passive income. Let’s get into a bit more detail to help you clear your thoughts.
Comparing Eligibility Requirements
This is where things get a little tricky. You must understand the eligibility requirements and required documents to understand exactly which visa you qualify for.
And in some cases, even if you qualify for both (on paper), you might still have a preference for the other.
Despite having clear differences, it’s hard to pick a winner. Portugal and Spain, both, are widely loved by thousands of retirees. And many of them move all the way from the US, UK, Canada, and even Asia, to live a life they’ve dreamed of for years.
Portugal D7 Visa Requirements
First and foremost, what sources of income come under the category of “passive income” for Portugal?
Here’s a list:
- Pension – Retirement or disability pensions;
- Rental Income – Earnings from leased properties you own;
- Investment Income – Dividends, interest from savings or bonds;
- Royalties – Payments from intellectual property.
As of 2024, the main applicant must have a passive income of at least €10,500 annually (around €875 per month).
In the case of a spouse or partner, also known as the dependent, the main applicant must show an additional 50%, which is €5,244 annually (approximately €437 per month).
Additionally, for any children included in the Portugal D7 Visa application, the main applicant must show another 30%, amounting to €3,144 annually (roughly €262 per month).
Other than that, you will need the following documents:
- Proof of Accommodation;
- Health Insurance;
- Criminal Background Check;
- Valid Passport;
- Additional Documentation For Support.
You must present these documents at the appointment with the embassy.
Spain Non-Lucrative Visa Requirements
Similar to Portugal, the sources of income that qualify for Spain’s Non-Lucrative Visa are:
- Pension;
- Rental Income;
- Savings or Interest Income;
- Investment Income;
- Royalties.
The most important distinction between the Portugal D7 Visa vs Spain Non-Lucrative Visa is that you are not allowed to work in Spain with the Non-Lucrative Visa. However, you may work in Portugal on the D7 Visa.
This visa is intended for individuals who can support themselves financially without engaging in any economic activities within Spanish territory. However, after the first year, you may be able to switch visa types (to a Work Visa). It’s important that you discuss your concerns with knowledgeable immigration experts who can guide you.
Moving onto the income requirements for Spain’s Non-Lucrative Visa. The main applicant must show proof of income worth 400% of the IPREM (Indicador Público de Renta de Efectos Múltiples). This amounts to €2,400/month (€28,800 annually).
In addition, the amount for any dependents should be 100% of the IPREM, which is €600/month (€7,200 annually).
The documents remain the same overall. But here’s a general list:
- Health Insurance;
- Criminal Background Check;
- Valid Passport;
- Additional Documentation For Support.
Unlike Portugal, proof of accommodation is not mandatory to qualify for the Non-Lucrative Visa. This can be a huge plus point if you’re not able to find a rental before starting the process.
How to Apply for the Portugal D7 Visa
First things first – start the process early.
Once you’ve decided you’re ready to make the big move, it’s best to get in touch with a relocation expert to guide you on the path you should follow. It’s not mandatory, but it helps you save time, effort, and money you could lose by making mistakes.
Ideally, start the process at least 4 to 6 months before you intend to move. Getting an appointment at AIMA can be extremely tricky due to the high volume of interest.
During your interview, be prepared to answer any questions about your move, your financial proof, and anything related. Then, you will pay the necessary fees and track your application status.
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How to Apply for the Spain Non-Lucrative Visa
The availability of appointments at the Spanish consulate is generally much easier to secure compared to Portugal. It’s still advisable to start your process at least 4 to 6 months prior to your intended move.
Due to high rates of bureaucracy, it can be complicated to navigate the process on your own. At this stage, do not get disheartened by the amount of paperwork needed. Have confidence and trust in your relocation experts to guide you and try to accept the flow as you go.
Once your appointment date arrives, submit your documents and discuss your plans to live in Spain with a Non-Lucrative Visa. The wait will be challenging, but well worth it!
Residency Rights and Limitations
Take a look at the following rights and limitations for the Portugal D7 Visa vs Spain Non-Lucrative Visa.
| Type | Portugal D7 Visa | Spain Non-Lucrative Visa |
|---|---|---|
| Work Rights | Freelance and remote work for foreign employers is allowed. However, working for a Portuguese company requires applying for a work permit. | This visa does not allow employment within Spain. |
| Residency Duration | The initial visa is valid for 2 years, with a possible 3-year extension. | The initial visa is valid for 1 year, with a possible 2-year extension. |
| Family Members | Spouses and dependent children under 18 years, or up to 21 years if studying, are allowed. The main applicant must show proof of sufficient means. | Spouses and children can be included. The main applicant must show proof of sufficient means. |
| Travel Rights | Travel freely in the Schengen area for up to 90 days within 180 days. | Travel freely in the Schengen area for up to 90 days within 180 days. |
| Healthcare | D7 Visa holders must have health insurance covering their stay. Although you have access to free public healthcare. | Non-Lucrative Visa holders must have private health insurance covering their stay. |
Life In Portugal As A Retiree
The serenity can be an incredibly magnetic force for expats. As the 7th safest country in the world, retirees feel at peace when walking down the street, traveling to another city, or enjoying Portugal’s landscapes without worry.
Time and time again, our clients have reached out to us saying they would like to live somewhere safe, and Portugal is at the top of their list.
Another reason why life in Portugal can feel so stress-free is thanks to the low cost of living. When you’ve worked so hard your entire life, it only makes sense to get the best out of your money. And with the same amount of money, retirees can enjoy a much higher quality of life.
The cost of living in the USA is nearly 56.8% higher than in Portugal (without rent). Rental prices are 79.2% higher as well. For retirees, this means that pensions or savings often stretch further.
Life In Spain As A Retiree
Another dream destination for retirees, Spain offers a fantastic blend of cultural richness, affordability, and natural beauty. The weather is pleasant all year round, and learning Spanish is often considered easier.
The expat community has grown tenfold in the last decade, and retirees quickly find their new support system once they start socializing. Lowkey cities like Málaga and Alicante are relatively more preferred than busy cities like Barcelona and Madrid. But it all comes down to personal preferences.
Coming onto the cost of living, it is 32.3% lower than in the United States (without rent). And rental prices are also 37.3% lower in Spain.
For retirees who are interested in buying and investing in property in Spain, the option to apply for a Golden Visa (for real estate) still exists and is as profitable as ever.
- Read Also: Retire In Spain: Complete 2024 Guide.
Portugal D7 Visa vs Spain Non-Lucrative Visa: Which Visa is Right for You?
We hope this article gave you clarity on which visa suits your case and needs the best. If you’re still confused or have any detailed questions you’d like to be answered, get in touch with Viv Europe to learn more about each visa.
If neither of these two makes sense for you, there are plenty more options to choose from. And we’re here to help, every step of the way.
To mingle with our expat community, join our Facebook Group – All About Portugal For Expats and All About Spain For Expats. See you soon!
