If you are a non-EU citizen seeking to relocate to Portugal with your own funding, the D7 visa — also known as the Portugal Passive Income Visa — is a perfect option for you.
The D7 Visa is a popular option among North Americans, Russians, Chinese nationals, Iranians and Middle Easterners.
This article will help you understand the Portugal D7 visa, how to apply for it and enjoy your new life in Portugal.
What is a D7 visa Portugal?
The Portugal Passive Income Visa, or D7 Visa Portugal is part of the Portugal residence permit program. Non-EU/EEA/Swiss citizen’s (regardless of age) who intend to relocate to Portugal with a reasonable net passive income, including retirees, can apply for this route to residency. This income can come from pensions, real estate rentals and various investments.
The residence permit does not stop the holder from conducting professional activities in Portugal.
How can I get a D7 visa in Portugal?
The entire process, which will take around 5-7 years in total, looks something like this:
D7 Visa -> D7 Residency -> Renewal -> Renewal again -> Permanent Residency -> Citizenship
The first step, however, is applying for the D7 Visa. This gives you 4 months residency in Portugal, after which you can apply for the D7 Residence Permit.
D7 Visa VS D7 Residence Permit
The words D7 Visa and D7 Residence permit are terms used interchangeably. This is because they’re part of the same thing, but it’s important to be aware of the difference.
- D7 Visa (sometimes called Portugal Schengen Residence Visa): Gives you a 120 day (4 months) period in which you can move to Portugal, rent or buy a place, get settled, and apply for the D7 residency permit. You apply for the D7 Visa at the nearest Portuguese consulate in the country where you are resident rather than in Portugal.
- D7 Residence Permit: Allows you to live in Portugal for a specified period of time. Normally it is valid for 1 year at a time, but it’s sometimes given in 2-year blocks. Normally, the first permit is for 1 year and the following 2 renewals are for 2 year periods. After 5 years of living in Portugal, you would be eligible to apply for permanent residency and also, should you wish, Portuguese citizenship. You apply for the D7 Residency Permit in Portugal.
What are the Portugal D7 visa requirements for US citizens ?
US citizens applying for the Portugal D7 visa must have following when making the application to their consulate:
- A NIF number from the Fiscal office in Portugal
- Portuguese Bank Account.
- Hold a clean criminal record.
- Application Form.
- Valid Passport (Valid for at least 6 months after your D7 Visa would end).
- 2X Passport-Sized Photographs.
- Motivation letter or personal statement explaining why you’re seeking Portuguese residency.
- Proof of regular income or passive income (e.g. dividends/savings).
- Proof of a place to live (either bought, rented, or staying with friends)
- Health Insurance (at least €30,000 coverage).
- 6 months of bank statements.
- Savings (not essential if you have other income, but it helps).
It may take a few weeks or months for you to be able to get an appointment at the consulate, so be sure to book it in advance.
D7 visa income requirements
Applicants for the D7 visa must show that they have a minimum income or pensions for a 12 month-duration of:
- €7.200 for the first adult
- €3.600 for second or more adults
- €2.160 per child
Do It Yourself or Hire a Professional?
You have two choices: either come to Portugal and organise these things yourself or, through the power of attorney, use a relocation firm to open your bank account, get you a NIF, and rent you a property.
Portugal is an extremely bureaucratic country which means the system has a lot of grey areas. Someone who manages this service for multiple clients, and has experience with these grey areas, will have a much better chance of getting your application through the system. They’ll also speak Portuguese, which definitely helps.
Talk to our legal team at RHJ
We can help with all the above and arrange your appointment at the consulate in your home country.
Please note: It is now a mandatory requirement for all non EU residents to have a fiscal representative in place for three months BEFORE they become local residents.
Can I benefit from the Portuguese healthcare system with a Portugal D7 Visa?
While you’re on the D7 Visa, you’ll need health insurance to cover you while you’re in Portugal. Once your D7 Residency Visa has been approved by SEF, you will be considered a Portuguese resident. You can then benefit from the Portuguese healthcare system. You will need to register to the National Health Service (SNS) at your local Centro de Saude (health centre) in order to benefit from its services.
Once you have your residence permit and NIF, you may decide to apply for health insurance with a Portuguese company as it may be cheaper. Banks in Portugal, for example, offer health insurance as a product and offer reduced rates for current customers.
Can I apply for NHR with the D7 visa?
Yes. You can apply for NHR (non-habitual residency) and the D7. There are often many tax advantages that come with this.
Holders of the Non-Habitual Resident Status (NHR), for a period of ten consecutive years, are entitled:
- Exemption of foreign income from pensions, dependent, self-employed, capital, property income and real estate gains, intellectual or industrial property;
- Taxation of income earned in Portugal at reduced rates if they engage in high value-added activities (eg 20% for dependent or self-employed income and 28% for capital and property income).
If you would like to know more about the tax advantages of combining the D7 visa with NHR or other ways to obtain residence in Portugal, please contact us.
Alternative to the D7 Visa Portugal (Golden Visa funds)
The D7 (or passive income) visa is mostly targeted for retirees and people living off their own foreign income (investors, freelancers, remote workers) who want to live in Portugal full-time.
The Portuguese Golden Visa provides a path to residency through investment and does not require you to live in Portugal most of the year.
You need to decide which is the best fit for you.
Our legal team at RHJ assists non-EEA nationals to obtain residency in Portugal. Our English speaking accountants specialise in helping entrepreneurs to set up, manage and grow their businesses in Europe.
We offer an end-to-end visa application and accountancy service. Working with our trusted partners we can advise you on where to settle and how to go about purchasing property in Portugal.
Ensure that your transition to Portuguese residency is hassle-free.
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