Complete analysis of the D7 Visa, for those who have passive income and intend to reside in Portugal. Requirements, documents, procedures, rights and duties.

Last Updated on May 4, 2022 by Letícia Melo

Portugal is a very attractive destination for foreigners, as everyone knows.

It’s a great place to enjoy life, with great weather, excellent quality of life and also tax benefits.

So if you’re someone with passive income, the D7 Visa can be your way to Portugal.

In this article you will understand what the D7 Visa for Portugal is.

We will analyze the process to apply for this visa.

Who can apply? What documents you need to present? We will answer these questions and much more.

What is the D7 Visa to Portugal?

The D7 visa is intended for non-EU citizens who holds 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 to explain the process to obtain residence-types of visa to Portugal.

Visas to live in 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.

So, briefly:

  • 1st Stage – Country of residence: The initial procedure to apply for a visa for residence in Portugal. 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, renewable.

Read also our complete 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 VisaSchengen VisaTemporary Stay VisaTemporary Residence Visa (or National Visa)
AuthorizationEntry in Portugal and countries that comprises the Schengen zoneStay in Portugal for up to 1 yearStay in Portugal for more than 1 year
Approval TypeVisa stamped in the passportVisa stamped in the passportVisa stamped in the passport that needs to be converted into a Residence Permit
Validity90 daysUp to 1 yearMore than 1 year

In this sense, the D7 Visa is a Residence type-of Visa, as it happens with the D2 Visa (business), the D1 Visa (work), among others.

The D7 Visa makes it possible for 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 the 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.

D7 visa application to Portugal

Check below some of the mandatory documents 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 to apply 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 in 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, in accordance with 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 or 3 months, depending on the country where the process starts and the documents 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.

Read also: Business visa or Passive Income visa? Choosing between the D2 and D7 visa to Portugal

Available funds

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 takes into account the minimum wage in Portugal, which in 2022 is 705€ per month.

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 8,460€ per yearProof of passive income and bank statement proving the income
Resources in Portugal At least 8,460€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 he has a higher amount of savings. It’s €4,230 extra to bring a partner and €2,394 for each child.

Rights and Duties that come with the D7 visa

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 countries that comprises the Schengen area, 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.
D7 Visa to Portugal - Expats in Lisbon

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 can’t you 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 that you’ll be able to live in Portugal.

It is true that the holder can visit another Schengen country for up to 90 days, but to be able to reside and work in Portugal it is necessary to comply with the requirements to become a Portuguese resident.

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, taking into account that the Portuguese resident receives 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.

General rule for taxation

The income from retirement, after being transferred to Portugal, is considered as a source of income originated from abroad.

Taxation in Portugal

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.

Double taxation

It so happens that, currently, there are many international agreements that aim, precisely, to avoid double taxation of the same revenue by different countries.

The reason for this benefit consists in 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 remeber, each situation must be analyzed individually.

Non-Habitual Resident

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 Guide on 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, before deciding to change address, it is mandatory to analyze the tax situation in the country of origin. 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, 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.

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.

Read also: 7 reasons why you should hire an immigration assistance company to move to Portugal

Why are people moving to Portugal?

We know that Portugal has been considered as one of the most desired destinations by people who want to spend their free time in a different country.

Cascais, the Algarve coast, and Madeira Island are some of the preferred destinations.

Algarve is a place for retirees to live in Portugal

Among the main reasons why Popular became so popular, we can highlight:

  • Stable climate
  • Safety
  • Infrastructure
  • Public health service
  • Paradisiacal spots
  • Excellent cost of living
  • Gastronomy

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, could not be experienced in their own countries.

We’ve also written an article about where the rich people live in Portugal, in case you’re interested.

Conclusion

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.

The D7 Visa is one of the most requested visas due to the benefits granted to the citizen in Portugal.

If you still have any doubts or want more information, check out our FAQ about the D7 Visa.

Moving to Portugal can be quite complex, but it is definitely worth it.

Therefore, if you need it, you can always count on Viv Europe to assist you in the process of obtaining your D7 Visa.

We will love to help to turn your Portugal dream into a reality.

Get in Touch with Us

Viv Europe can assist you to put into action your plans to relocate to Portugal. Our team of experts knows what it takes to handle all the paperwork to make your move as smooth as it can be.

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