Last Updated on November 27, 2023 by Victor Queiroz
Passive income earners can’t say no to this! As you would’ve probably heard, Portugal is a very attractive destination for those who want to enjoy life with great weather, excellent quality of life, and tax benefits. So if you’re someone with passive income, the D7 Visa can be your way to Portugal.
Pensions aren’t the only recognized source of passive income. Check out all the other ways you can live in Portugal without working here. Pretty soon, you’ll understand why retirees flock to this country and spend the rest of their lives near a stunning beach.
Who can apply? What documents do you need to present? How much income do you need to prove for one individual? We’ll answer all these questions and much more. Keep reading to know what the procedure is and how you can qualify for the D7 Visa!
What is the D7 Visa to Portugal?
The D7 visa is intended for non-EU citizens who hold passive income.
This visa, also known as a Visa for pensioners, grants its holder permission to enter Portugal and to apply for the temporary Residence Permit.
This is one of many residency types of visas to Portugal.
Brief considerations about visas to Portugal
Before jumping to the main topic, it is worth spending some time explaining the process of obtaining a residence-type of visa to Portugal.
The initial procedure for obtaining a visa normally takes place at the Portuguese Consulate in the applicant’s country of residence.
The Consulate will make a prior analysis of the documents that you submitted. If they meet the requirements, the visa will be granted.
After obtaining the requested visa (which consists of an authorization stamped in your passport), the second stage of the procedure begins.
In this stage, you will apply for a temporary residence permit in Portugal.
- 1st Stage – Country of residence: The initial procedure to apply for a residence visa takes place at the Portuguese Consulate.
- 2nd Stage – In Portugal: You already have a visa stamped in the Passport and will apply for a Temporary Residence Permit at the Foreigners and Borders Services (SEF) in Portugal.
However, although we have introduced the process of obtaining a Residence Permit, there are other types of visas for moving to Portugal, which vary according to the reason for residing in Portugal.
In this sense, the D7 Visa is intended for those who have passive income.
This visa will allow its holder to apply for a Residence Permit in Portugal, which is valid for 2 years, and renewable.
- Read our article All About Visas to Portugal to understand each one of them.
Beyond the D7 visa: Know the other types of visas
In addition to the Residence Visa, there are other types of visas to choose, as displayed in the table below:
|Type of Visa||Schengen Visa||Temporary Stay Visa||Temporary Residence Visa (or National Visa)|
|Authorization||Entry in Portugal and countries that comprises the Schengen zone||Stay in Portugal for up to 1 year||Stay in Portugal for more than 1 year|
|Approval Type||Visa stamped in the passport||Visa stamped in the passport||Visa stamped in the passport that needs to be converted into a Residence Permit|
|Validity||90 days||Up to 1 year||More than 1 year|
In this sense, the D7 Visa is a Residence Visa, as it happens with the D2 Visa (Business), the D1 Visa (Work), among others.
The D7 visa allows the applicant to obtain the Residence Permit once in Portugal.
Also, after residing in Portugal for 5 years, its holder may apply for the Permanent Residence Permit and Portuguese nationality.
Requirements for the D7 Visa
To obtain the D7 Visa, it will be necessary to present some information and documents to the Portuguese Consulate.
Among the documents, proof of passive income is one of the most important.
Check out some of the mandatory documents you need to apply for the D7 Visa:
- Passport: Copy of the passport profile page.
- Proof of Passive Income: Documents that prove the monthly passive income.
- Personal Statement: Statement that specifies the reasons for applying for the visa, the period intended to reside in Portugal, and the place of accommodation.
- Proof of Means of Subsistence: Proof of income that allows residence in Portugal for at least 1 year.
- Proof of Accommodation: Corresponds to the purchase or rental of a property in Portugal. In some cases, an invitation letter signed by a resident of Portugal is enough.
- International Travel Medical Insurance: It must be valid for the period of residence in Portugal. The insurance policy must cover repatriation for medical reasons, urgent need for medical care, and emergency hospital treatment.
- D7 Visa form: Complete the form to apply for the D7 Visa. Any mistake in filling may lead to the denial of the application
- Criminal Background Certificate: This document must be related to the applicant’s residence country, by local regulations.
- SEF authorization: Approval for the Foreigners and Borders Service (SEF) to consult your Portuguese criminal record, except for minors under 16 years of age.
In addition to the mentioned documents, the applicant may have to submit others, according to the Consulate’s decision.
Timeframe and cost to apply for the D7 visa
The procedure to obtain the above documents usually takes about a month.
The analysis of the process by the Consulate of Portugal can take between 2 to 3 months. This depends on the country where the process starts and the documents that are presented.
After obtaining the D7 Visa, the applicant will carry out an interview at SEF in Portugal.
After this, the Residence Permit title will be issued in about 2 to 3 weeks.
The total cost related to issuing the visa and residence permit is approximately €150.
In addition, one of the most important documents you must present is proof of subsistence in Portugal for the main applicant and family.
This value considers the minimum wage in Portugal, which is €760 per month in 2023.
In this sense, the applicant must include the following information in the process:
|Type of document||Minimum value||Example documents|
|Resources related to passive income||At least €9,120 per year||Proof of passive income and bank statement proving the income|
|Resources in Portugal||At least €9,120||Bank statement from a Portuguese bank|
It is important to mention that the greater the resources available, the greater the chances of obtaining the D7 Visa.
Finally, to move to Portugal with family, the applicant must prove that they have a higher amount of savings. It’s €4,560 extra to bring a partner and €2,736 for each child.
Rights and Duties that come with the D7 visa
Once you have your D7 Visa, it’s time to enjoy your new life in Portugal!
Rights the D7 visa grants you
After obtaining your Resident Permit, the citizen will be able to perform some activities, such as:
- Circulate through the Schengen area countries without the need for a visa, limited to 90 days.
- After obtaining the Utente Number, use the Portuguese Public Health Service.
- Carry out a professional activity in Portugal.
- Carry out a business activity in Portugal.
Duties to consider
In return, the resident must:
- Not be absent from Portugal for more than 6 consecutive months or 8 non-consecutive months
- Prove the maintenance of the passive income
- Comply with general obligations applicable to citizens residing in Portugal
- Declare and pay income tax
What you can’t do with the D7 visa
The resident citizen will not be able to work in another EU country, as each EU country has its own rules for authorizing work by foreigners.
Working remotely is totally fine, provided that your residence is in Portugal and your income is taxed in accordance with Portuguese laws.
Also, if you have a Residence Permit from another EU country, this doesn’t mean you’ll be able to live in Portugal.
The holder can indeed visit another Schengen country for up to 90 days. Still, to be able to reside and work in Portugal, it is necessary to comply with the requirements to become a Portuguese resident.
- Want to work remotely? There’s a New Visa For Freelancers And Digital Nomads In Portugal! The process is easier than obtaining a D7 Visa; check out how.
Taxation in Portugal
When talking about D7 Visa, one of the first questions that come up is related to tax.
Let us consider a situation where a pensioner wants to bring his pension from his country of origin to Portugal.
In this sense, considering that the Portuguese resident receives a pension in his country of origin, how will this income be taxed if transferred to Portugal?
Taxation in Portugal must be analyzed on a case-by-case basis, according to the specifics.
However, we can underline that Portugal has a tax regime called Non-Habitual Resident, which allows pensioners to transfer most retirement funds to Portugal and be taxed at a flat rate of 10%, which is a very low rate compared to that applicable in other countries.
The NHR Regime can help expats with up to 10 years of tax incentives!
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General rule for taxation
The income from retirement, after being transferred to Portugal, is considered a source of income originating from abroad.
Thus, as a rule, this amount must be declared in the Annual Income Tax Declaration in order to be taxed in Portugal.
Some exceptions may apply, considering the countries involved in this scenario.
It so happens that, currently, many international agreements aim to avoid double taxation of the same revenue by different countries.
The reason for this benefit consists of the fact that the citizen, as a taxpayer, has already been taxed in the country of origin.
Therefore, no one should be taxed twice for the same income.
In this sense, for countries that have agreements with Portugal to avoid double taxation, as a general rule, income will only be taxed in the country of origin.
But remember, each situation must be analyzed individually.
In addition to double taxation agreements, Portugal has a tax regime applicable to most Portuguese residents, including pensioners: The Non-Habitual Resident regime, commonly known as NHR.
Under the NHR, retirees residing in Portugal can pay taxes at a lower rate, even if there is no tax agreement between the countries.
Viv Europe has a Complete Analysis of the Non-Habitual Resident Regime, with all the requirements, rights, and duties regarding this tax benefit.
Tax situation in your country of origin
Finally, another important issue concerns the tax situation in the country of origin after moving to Portugal.
In this sense, it is mandatory to analyze the tax situation in the country of origin before deciding to change the address. That’s because after residing for 183 days in Portugal, there is a change of tax domicile to Portugal.
This means that you will have to comply with Portugal’s tax obligations applicable to those living in this country. Among them is the need to declare and pay the Annual Income Tax (IRS).
It turns out that the registration of tax domicile in Portugal can have consequences in the country of origin, such as, for example, changing the residence status. In this sense, you may have to follow the guidelines of a non-resident citizen in your own country.
This is a complex subject that deserves individual analysis. After all, a wrong decision can cause substantial financial losses.
Applying for the Visa Without Assistance
Is it possible to complete this procedure without assistance? Sure, it is possible, albeit difficult.
The only thing to consider is that the chances of a visa being denied will be higher due to a few reasons:
- Portugal is a bureaucratic country, which is reflected in the number of documents (not all mentioned on the SEF website) to be presented in the application.
- It is mandatory to carry out some activities before arriving in Portugal, such as obtaining a Portuguese tax number (NIF) and a Portuguese bank account.
- Typically, Portuguese agents speak Portuguese, which can be a difficult barrier to overcome.
Legal processes can be highly confusing at times. This is why people opt to hire an immigration assistance company that can help save their time, effort, and money.
Why are people moving to Portugal?
We know that Portugal has been considered one of the most desired destinations by people who want to spend their free time in a different country.
Among the main reasons why Popular became so popular, we can highlight:
- Stable climate;
- Public health service;
- Paradisiacal spots;
- Excellent cost of living;
Due to these benefits, the Portuguese Residence Permit has become even more popular in recent years and turned into a “consumer dream” for many citizens outside Europe.
However, we cannot reduce the benefits resulting from the Residence Permit only to Portugal. Having this document also grant its owner some advantages in other EU countries.
As a result of the mentioned benefits, Portugal has faced an increase in the number of citizens who migrated to this country searching for a quality of life that, quite often, can not be experienced in their own countries.
- What do the most luxurious places in Portugal look like? Check out our article Where Do The Rich Live In Portugal? See The Most Exclusive Regions.
Do you need help obtaining the D7 Visa?
In this article, we focused our attention on the D7 Visa. We verified the requirements to apply for this visa and also some tax-related topics. It’s one of the most requested visas due to the benefits granted to citizens in Portugal.
Moving to Portugal can be quite complex, but it is definitely worth it! Contact professionals now and let Viv Europe assist you through the process of obtaining your D7 Visa. Getting it right the first time is better than failing to live your dream again and again!