Portugal truly has it all – miles upon miles of sandy beaches, a warm and welcoming people, and a buzzing tech scene combined with an affordable cost of living and great healthcare.
While Port Wine and Christiano Ronaldo might come to mind when you think of Portugal, what you really should know is that – Portugal is where you can enjoy all the perks of a European lifestyle for not much more than you would spend in Asia!
In addition to its natural beauty and lifestyle, Portugal also boasts a stable socio-political climate, clear and transparent tax rules and reliable infrastructure. No wonder Portugal is the most preferred destination for individuals and families seeking to relocate to the European Union and several of them are taking advantage of the D7 visa to make the move.
If you do decide to become a resident of Portugal, you will be able to:
- Rent a comfortable apartment – Apartments in many parts of Portugal can be rented for less than thousand dollars a month.
- Enjoy a low crime rate – Portugal was ranked as the fourth safest country in the World as per the Global Peace Index 2021, just behind Iceland, New Zealand, and Denmark.
- Access world class affordable health care – The World Health Organization ranks Portugal #12 out of 190 countries for its international-quality healthcare.
- Experience some of the most beautiful places and temperate climate on the planet — Portugal boasts miles upon miles of gorgeous coastline and a large number of amazing National parks.
- Make friends easily as the Portuguese are a friendly people and English is widely spoken.
So what is the D7 Visa?
The D7 visa or Portugal Passive Income Visa is a long-term Portuguese residency visa that permits non-EU Citizens to obtain Portuguese residency as long as they have the financial resources to sustain themselves in Portugal without seeking employment in the country.
This visa is suitable for retirees, online entrepreneurs, digital nomads and remote employees who want to live in Portugal without making a large financial investment.
The D7 visa is initially issued for a period of one year and can be extended for two consecutive two-year periods, with eventual conversion to permanent residency after five years. Furthermore you will also be eligible to petition for Portuguese Citizenship after five years, given that you satisfy the other requirements for Naturalization.
Benefits of the D7 Visa:
- The application process and turnaround time is quick.
- You do not need to make a large investment in Portugal.
- You will be able to enter and travel freely in The Schengen Area (26 European countries).
- You can reside and engage in professional activities in Portugal.
- You will have the option to become a “Non-Habitual Resident” of Portugal for Tax purposes (little or no tax for 10 years on most overseas income).
- You will be eligible to apply for Portugal Citizenship after 5 years of residency given that you meet the other conditions for Naturalization.
Who is eligible for the D7 Visa:
To be eligible for the D7 visa:
- You must be a non-EU Citizen.
- Have a clean criminal record.
- Have sufficient recurring passive income or overseas employment/business income to support yourself and dependents during your entire stay in Portugal.
- Be willing to reside in Portugal for more than 183 consecutive days in a year.
- Have long term accommodation in Portugal.
D7 Visa Income Requirements:
The Portuguese Government is primarily concerned with your ability to sustain yourself in Portugal without needing to seek employment in Portugal. Hence there is a big focus on recurring passive income or income from overseas employment/remote work for the D7 visa.
At the minimum, you will need to be able to provide proof of passive retirement income or access to assets equal to the Portuguese yearly minimum salary though this will vary depending on the consulate and country you are applying from.
The minimum income requirements for 2022 are as follows:
- First adult applicant: 100% of the current minimum pay (705€) = 8460 €/year;
- Second or more adult(s): 50% of the current minimum pay (352.50€) = 4230 €/year;
- Children and young people under the age of 18 and 18+ dependent children: 30% of the average wage (211.50€) = 2538 €/year.
These assets are calculated on a per calendar year basis so you will need to be able to show annual income exceeding these amounts or access to larger non-recurring assets. Passive income can include income derived from fixed deposit investments, annuities, pension plans, rental income and also income from stock dividends.
There is no fixed rule for the amount of assets that you will need to show if you do not have non-recurring income and this can vary based on the discretion of the person reviewing your case. The funds must also be accessible to you from Portugal.
How to apply for a D7 Visa:
Here are the steps you will need to follow to apply for the D7 visa:
STEP 1: Apply for NIF number
A NIF (Número de Identificação Fiscal) number is a Portuguese Individual Tax Identification Number that is required for all legal transactions in Portugal. Obtaining a NIF is the first step in the process of applying for a D7 visa and you will need a NIF to open a Portuguese bank account, get a rental contract or to request a SEF appointment.
The quickest and easiest way to obtain a NIF remotely yourself is via bordr.io which costs €150 and takes roughly 1 week.
STEP 2: Open a Bank Account
Once you have your NIF, you can open a bank account in Portugal which is also required for the D7 Visa.
People have had mixed results opening bank accounts online and have had some success opening accounts online themselves at Activo and Atlantico banks. Here again the easiest way to open a bank account remotely is through bordr.io. You can open a bank account with them for a fee of €350 or select their combined NIF and Bank Account package for €470.
STEP 3: Look for Housing
You will need to provide proof of long term housing when applying for the D7 visa. This means house ownership or a rental contract lasting at least 6 months (1 year in most cases when applying from Asia) with the contract being registered with Financas – The Portugal Tax and Customs Authority. Your landlord can register your lease with Financas but will need your NIF to do so.
You can also meet the housing requirement via a letter of invitation or term of responsibility form from a Portuguese resident inviting you to come and stay with them. This letter is typically required to be notarized before it can be accepted.
There are many ways to find accommodation in Portugal all with their own challenges. Some of the recommended apartment listing sites you can consider are idealista and flatio.
STEP 4: Apply for D7 Visa via Portuguese Consulate in Home Country
You will need to apply for the D7 Visa in your home country. For many countries, this can be done via VFSGlobal but will vary depending on the country. The required documentation may vary based on consulate but in general, you’ll need the following:
- Your passport. You will want to make sure your passport is valid for at least six months after the expiry date of your D7 Visa.
- Two identical passport photographs – size 35×45 mm, with plain white background.
- Your Personal Statement explaining the reason for your application.
- A health insurance policy that covers you in Portugal (This should be valid for 120 days, which is the duration of your initial stay under the visa, have no deductible, and have a minimum coverage of €30,000 per person)
- Your criminal record certificate from your home country.
- Proof of long term accommodation in Portugal.
- Proof of recurring passive income or overseas employment to satisfy the income requirements.
- Proof of bank deposits or savings if used to meet income requirements.
If your application is approved, the embassy will provide you with a temporary visa allowing you to fly to Portugal, and also in many cases an appointment date with the Portuguese Immigration and Borders Service (SEF). This provisional visa is valid for four months from the date of approval.
If you are not provided a SEF appointment date, you can schedule an appointment by calling 808-202-653 from a Portuguese landline or 808-962-690 from a Portuguese cell phone.
We hope you found this article helpful. The Holiday Home Times also offers a white glove service for D7 applicants who would like a helping hand through the application process. Here we would handle most of the application for you for a fee. If you would like to get more information about this service please contact us using the form below.
