Europe

D7

Portugal
The D7 Visa is also known as the Retirement or Passive Income Visa but is also suitable for remote workers and digital nomads. The Portugal D7 Visa was introduced in 2007 and requires no investment. This visa is for non-EU/EEA/Swiss citizens who want residence in Portugal and have a reasonable passive income. This income can come from real estate, a retirement pension, a salary, etc.

The minimum passive income required is €8,460 per year for the main applicant. For a spouse, you must add 50% to this (€4,230) and for a dependent child, you must add 30% to this (€2,538). Therefore, for a couple with one child, you would need around €15,300 a year to be eligible for the D7 Visa.

For this visa, you must spend at least 16 months in Portugal during the first 2 years. Along with a clean criminal record, when applying you need to show that you have proof of address in Portugal (rental or purchase). This visa allows for family reunification where your family members are granted the same residency rights as you.

Portugal D7 Visa Requirements:

The requirements to be eligible for a D7 Visa in Portugal are pretty straightforward. Here are the main eligibility criteria for the Portugal D7 Visa.
✅ Non-EU/EEA/Swiss citizen
✅ Minimum passive income of €8,460 per year (+ 50% for spouse and + 30% for dependent child)
✅ Clean criminal record
✅ Proof of residence address in Portugal (rental or purchase)
✅ You need to spend at least 16 months in Portugal during the first 2 years.

1. Visa Exemption

The Portugal D7 Visa allows you to enter Portugal and the Schengen area (26 EU countries). You can circulate freely without a visa. The D7 visa essentially grants you to the travel rights of all European Union citizens.

2. Family Perks

The Portugal D7 Visa allows you to request family reunification once you have your visa. This is where your family members are granted the same residency rights as you. You will have to prove your relationship to any family members that you would like to include in the program. The following qualify for family reunification: partner, children under 18, dependent children over 18 that are studying, your parents, your partner’s parents, and minor siblings. These can all live and work in Portugal and travel freely within the Schengen area, as well as enjoy all the visas’ benefits.

3. Permanent Residence: Does the Portugal D7 Visa Lead to Residence?

The Portugal D7 Visa allows you to obtain permanent residence, eventually. You can obtain legal residency in the first year. You can then renew your residency for two years successively. After five years of legal residency, you can apply for permanent residency.

4. Citizenship: Does the Portugal D7 Visa Lead to Citizenship?

The Portugal D7 Visa can lead to citizenship. After six years of legal residency, you can apply to become a Portuguese citizen. To become a citizen, you must obtain an A2 Portuguese language certificate, provide documents such as proof of a Portuguese bank, and have no criminal record.

5. Tax Incentives: Non-Habitual Tax Regime:

You can become a non-habitual resident (NHR) and enjoy the incentives of this fiscal regime. This tax regime allows you to transfer your tax residency to the country. Here are the benefits of this tax regime:
✅ You can be eligible to not pay ANY tax on pensions, rental income, real estate gains, and income from non-Portuguese sources if your country has a Double Taxation Agreement (DTA) with Portugal. You would instead pay taxes in your country of origin. The UK, USA, and many more countries have a DTA with Portugal where this is the case.
✅ If your pension income is taxed in Portugal, it will be at a flat rate of 10%, including retirement savings and insurance.
✅ Income from “high value-added activities” in Portugal is taxed at 20%. This includes employment and self-employment income from activities of scientific, artistic, or technical character performed in Portugal. Still, you will pay the same income tax as ordinary tax residents for other types of domestic income.
✅ You will only be taxed on your worldwide income after the first 10 years of residence.
✅ Foreign interest, dividends, rents, and property capital gains can be exempted from taxation.
✅ You will not pay an inheritance or wealth tax.

Here are the conditions to follow the non-habitual residency program:
✅ You cannot have been taxed in Portugal during the five years before the application.
✅ You must request a tax residence certificate which means you must live in Portugal for more than 183 days (doesn’t need to be consecutive) for 12 months, lived in Portugal for less than 183 days, but has bought property during those 12 months, or performs public functions in the name of the Portuguese state.
✅ You must have the right to be in Portugal through a work visa, Portugal Golden Visa, Portugal D7 Visa, or by being an EU/EEA/Swiss citizen.

🥳 Who can get a Portugal D7 Visa?

Non-EU/EEA/Swiss citizens who have a passive income can apply for a Portugal D7 Visa. Although this visa is also known as the retirement visa, if you can work remotely for an employer outside of Portugal, you might also be eligible. Therefore, freelancers and digital nomads who meet the requirements can still apply for the D7 Visa.

🚀Life After Brexit: Why Should UK Nationals Apply for a Portugal D7 Visa?

If you’re a British national who cannot afford the investment necessary for the Portugal Golden Visa, the D7 Visa is the right route for you. You will enjoy permanent residency and possibly citizenship after 6 years, allowing you to get back your EU rights lost after Brexit. As a UK national with a D7 Visa, you’ll be able to travel freely through the Schengen area, as well as have the right to work, study, and live in any EU country.

✌️Portugal D7 Visa: Cryptocurrency

Portugal is one of the last European crypto havens. The Portuguese Tax & Customs Authority (PTA) officially announced in 2019 that buying or selling cryptocurrency in Portugal is tax-free. You will not be charged VAT or Personal Income Tax (IRS) on any crypto transaction. The country does not view cryptocurrencies as an asset, but rather as a form of payment so they do not tax it as the former. However, businesses that provide services related to cryptocurrency are taxed on their gains. There are many factors that determine whether this is the case like your profit and the frequency of your trade. To be sure, contact a tax advisor in Portugal.