Unlike the Portugal Golden Visa, which is Portugal’s main citizenship by investment program requiring a significant investment in real estate or other assets, the D7 Visa, also known as the Portugal passive income visa, is an accessible route to Portuguese residency for those with stable passive income sources.
The D7 has been particularly popular among UK citizens who find themselves outside the European Union as a result of Brexit. (As well as this article) I would recommend our article moving to Portugal from the UK to anyone who is approaching retirement or, indeed, is considering remote work in Portugal.
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1. What is the Portugal Passive Income Visa?
The D7 visa or retirement visa Portugal - allows foreigners with regular passive income to establish legal residence in Portugal. Unlike other visas, the D7 visa focuses on your ability to support yourself financially while living here.
This residency visa leads to a temporary Portugal residence permit valid for 2 years, renewable for successive 3 year periods. After 5 years of legal residency you can apply for a permanent residence permit or even Portuguese citizenship. Portuguese residents have many benefits, such as being able to travel freely within Schengen countries, making the D7 Visa a cost effective and practical option for those looking for residency in Portugal.
2. Eligibility and Income Requirements
The key to the D7 visa is proving you meet the minimum income requirements to support yourself without working in Portugal. The Portuguese government sets these thresholds relative to the Portuguese minimum wage (currently €820 per month in 2025).
As a general rule of thumb you should demonstrate monthly passive income of at least 100% of the minimum wage for the main applicant, plus 50% for a spouse and 30% for each dependent child. Your foreign income can come from:
- Pension payments
- Rental income from properties
- Dividends from investments
- Royalties or intellectual property
- Interest from savings
The Portuguese immigration authorities will examine your bank statements to verify your income is stable and regular. I recommend showing at least 12 months of consistent passive income to strengthen your visa application.
3. Application Process and Legal Requirements
The application process for the Portugal D7 visa requires planning and knowledge of Portuguese law:
- Gather Documentation: You will need:
- Valid passport
- Proof of accommodation in Portugal (rental contract or property deed)
- Clean criminal record from your home country
- Private medical insurance
- Proof of passive income
- Birth certificates and marriage certificate if applicable
- Valid passport
- Submit Application: Contact your local Portuguese embassy or Portuguese consulate to submit your visa application.
- Attend Interview: Some consulates require an interview.
- Receive Visa: If approved, you will receive a temporary visa (valid for 4 months) to enter Portugal.
- Apply for Residence Permit: Once in Portugal, schedule an appointment with the Portuguese immigration services (SEF - Serviço de Estrangeiros e Fronteiras) to obtain your temporary residence permit.
- Get Portuguese Tax Number: Apply for a tax number (NIF) and open a Portuguese bank account.
The application process takes 2-3 months, but processing times vary by consulate. Planning ahead is essential and don’t forget to budget for the residence permit fee which is currently €200 per person.
As you can see the D7 visa application involves several steps - this includes proving you have a place to reside in Portugal. Applicants must show they have a place to live which can be done through a rental agreement or property ownership.
For those considering buying property as part of their relocation, understanding the legal and financial aspects is crucial. Our comprehensive guide on buying property in Portugal provides detailed information on the process, legal obligations and potential pitfalls to avoid.
4. Application Costs and Processing Times
When applying for the D7 Visa it’s important to be aware of the costs and processing times. The application fee for the D7 Visa is €100 and the residence permit fee is €90. These are very reasonable compared to other visa programs making the D7 Visa a popular choice for many.
The processing time for the D7 Visa is up to 2 months and once you arrive in Portugal the residence permit can take up to 4 months to be processed and issued. Please note these times can vary depending on the specific requirements of the Portuguese authorities and the complexity of your application.
To make the transition smoother, it’s recommended to apply for the D7 Visa and residence permit well in advance of your move to Portugal. This way you avoid any last minute complications and get your documents in time from the Portuguese immigration services.
5. From Temporary to Permanent Status
Your Portuguese residency journey starts with a temporary stay visa, which allows you to enter Portugal. Once in the country you will receive Portuguese residence permits that need to be renewed every 2 years initially and then every 3 years.
As a D7 visa holder with a temporary residency permit you have freedom to travel throughout the European Union’s Schengen Area. However to maintain your residency status you must spend at least 6 months per year in Portugal.
This residency requirement is crucial for those planning to apply for a permanent residence permit or Portuguese citizenship after 5 years. The Portuguese immigration authorities check your entry and exit stamps so tracking your time outside Portugal is important.
6. Residency and Citizenship Options
The Portugal D7 Visa offers a clear path to both residency and citizenship in Portugal. Initially you will receive a temporary residence permit which is valid for 2 years and can be renewed for successive 3 year periods. To transition from a temporary residence permit to permanent residency you must have resided in Portugal for at least 183 days each year for 5 consecutive years. Additionally you must meet basic language and cultural integration requirements.
Once you have held permanent residency for 1 year you can apply for Portuguese citizenship. This requires you to continue to meet the residency requirement of 183 days per year, demonstrate proficiency in the Portuguese language and pass a citizenship test that covers Portuguese history and culture.
Becoming a Portuguese citizen comes with many benefits. As a Portuguese citizen you have the right to live and work not only in Portugal but throughout the European Union. You also have access to Portugal’s high quality education and healthcare systems and the ability to travel visa-free to over 170 countries. The D7 Visa thus provides a structured and achievable path to full Portuguese citizenship.
7. Living in Portugal
Portugal offers many advantages to D7 visa holders:
- Safe environment with low crime rates
- Excellent healthcare system
- High quality of life
- Lower cost of living compared to other Western European countries
- Mild climate year-round
- Rich cultural heritage
- Friendly local population
Until recently Portugal offered the Portuguese Non-Habitual Residency tax regime, which provided tax benefits for the first ten years as a tax resident. While this has now been withdrawn to new entrants, it can still be applied for by those who became tax resident before the cut-off, and are able to demonstrate they comply with the requirements. Those retiring in Portugal in the last number of years would do well to consider applying quickly given the current trajectory of Portuguese tax rates.
8. Cost of Living in Portugal
One of the biggest advantages of moving to Portugal is its low cost of living compared to other Western European countries. This extends to many aspects of daily life making it a great destination for retirees, digital nomads and families.
Accommodation costs in Portugal can vary greatly depending on the location and type of property. For example, a one-bedroom apartment in the city centre can cost between €600-€1,000 per month. If you prefer more space a three-bedroom apartment in the suburbs can cost between €800-€1,500 per month.
Food costs are also very reasonable. Eating out at a mid-range restaurant usually costs around €10-€15 per person. If you prefer to cook at home a weekly grocery basket of basic items can cost between €30-€50.
Transportation is another area where Portugal excels in terms of affordability. A monthly public transportation pass costs around €30-€50 and gives you access to an efficient and reliable network of buses, trams and trains.
Overall the cost of living in Portugal allows for a comfortable lifestyle without the high costs associated with other Western European countries.
9. Tax Implications and NHR Scheme
One of the biggest advantages of the D7 Visa was the potential eligibility for the Non-Habitual Residency (NHR) scheme which offered a range of tax benefits. However this scheme has now been withdrawn and is only open to those who became tax resident before the scheme closed. To qualify for the NHR scheme you must have the right of residency in Portugal and not have been a tax resident in Portugal for the last 5 years.
If you are still eligible for the NHR scheme it provides significant tax benefits including 20% flat tax for certain professions such as doctors, lawyers and engineers. Additionally the scheme offers tax exemptions on foreign income including dividends, interest and royalties. This can be very beneficial for retirees and remote workers with income sources outside Portugal.
It is highly recommended to consult with a tax professional to fully understand the tax implications of the D7 Visa and the NHR scheme. A tax advisor can help you comply with all tax requirements and maximise the benefits of the NHR scheme.
10. Healthcare and Financial Setup
All D7 visa applicants need health insurance when they apply. Once you get your residence permit you can register with the Portuguese National Education Service (SNS) for public healthcare.
Opening a Portuguese bank account is essential. Most banks require:
- Tax number (NIF)
- Proof of address
- Valid passport
- Residence permit
Many Portuguese banks have English speaking services, especially in areas popular with expats. I advise clients to transfer substantial funds to their Portuguese bank account before their SEF appointment to demonstrate financial stability.
11. Health Insurance and Other Requirements
Health insurance is a mandatory requirement when applying for the D7 Visa. You can purchase private health insurance from a Portuguese insurance company or opt for an international insurance provider that covers Portugal. This will give you access to healthcare services while living in Portugal.
In addition to health insurance you must meet several other requirements to qualify for the D7 Visa. These include having a valid passport, proof of sufficient passive income and proof of accommodation in Portugal. You will also need to register with the Portuguese authorities and get a residence permit once you arrive in the country.
Meeting all these requirements is crucial to avoid any delays or complications in the application process. Having all the necessary documentation and insurance coverage will help smooth your transition to becoming a Portuguese resident.
12. Family Reunification
The D7 visa allows you to bring family members with you to Portugal. Spouses, dependent children and in some cases dependent parents can be included in your application.
Each family member needs their own documentation including:
- Valid passport
- Birth certificates or marriage certificate
- Criminal record
Health insurance coverageFamily members get the same rights to education, healthcare and eventual Portuguese residency as the main applicant.
13. Comparing D7 and Other Portuguese Visa Options
14. Golden Visa
Many of my clients ask me to compare the D7 visa with the Portugal Golden Visa. While both lead to similar long-term benefits, they target different applicants:
The Portugal D7 visa is for those with reliable passive income, such as retirees, remote workers or investors with steady returns. The financial threshold is much lower than investment visas, so more people can qualify.
The Portugal Golden Visa requires significant capital investment (starting at €500,000) but has less stringent residency requirements - you only need to spend about 7 days per year in Portugal. This residency by investment program is for non-EU nationals and has various investment options, including real estate (in certain areas), capital transfer and job creation.
Your personal circumstances, financial situation and plans for living in Portugal will determine which option is better for you.
15. D2 Visa Portugal: The Entrepreneur's Path
Looking to set up your business in Portugal? The D2 Visa might be the way.
While my D7 clients arrive with passive income, my entrepreneurial clients often find the D2 Visa better suits their goals. This visa is for business owners and independent professionals who want to establish themselves in Portugal.
Unlike the D7's focus on existing income, the D2 is centered on your future business potential. You'll need a solid business plan showing how your business will benefit Portugal's economy - whether through job creation, innovation or investment.
The financial requirements are different from the D7. Instead of proving ongoing passive income, you'll need to show access to capital for your business launch. The amount varies depending on your business type but plan for at least €5-10,000 as a starting point and personal funds to support yourself (similar to D7 levels).
I've guided many clients through both visa processes and the D2 application requires more documentation:
- A detailed business plan with market analysis and financial projections
- Proof of qualifications and experience relevant to your business
- Evidence of investment capital or business financing
- Partnership agreements if applicableThe timeline is the same as the D7 - 2-3 months for initial approval, then resident permit application upon arrival. Like the D7, the D2 leads to temporary residency, renewable regularly, with the same path to permanent residency or citizenship after five years.
One advantage: D2 holders often find it easier to demonstrate economic integration during renewal phases as their business activities create clear ties to Portugal. However, D2 applications are more scrutinised regarding business viability especially in saturated markets.
16. Portugal Digital Nomad Visa (D8)
Remote work has changed the way we live and travel - and Portugal has responded with the D8 Visa specifically for digital nomads and remote workers. For those interested in digital nomad opportunities beyond Portugal, Spain also offers a digital nomad visa, aimed at attracting remote workers.
The digital nomad visa Portugal introduced in late 2022, fills an important gap between the D7 and D2 visas. I’ve long advised remote workers that the D7 could accommodate their situation but the D8 now provides a clear legal framework for digital professionals.
The main difference: the D8 explicitly recognises income from remote employment or digital services as valid for residency purposes. This clarity removes the uncertainty some remote workers faced when applying via the D7 pathway where employment income sometimes received extra scrutiny.
To qualify for the D8 you’ll need to prove:
- An employment contract with a non-Portuguese company
- Average monthly income of at least four times the Portuguese minimum wage (approximately €3,280)
- Ability to work remotely via digital technologies
- Tax residence outside Portugal in the year before application
The D8 has two options: a temporary stay visa for up to one year or a residence permit for longer stays. For those seeking permanent roots in Portugal, the residence permit option parallels the D7 path, potentially leading to permanent residency or citizenship.
Application process is the same as other visa types - submit documents to your local Portuguese consulate, attend an interview, then apply for your residence permit after arriving in Portugal.
For many of my clients weighing D7 vs D8 options, the decision comes down to income sources. Those with truly passive income (pensions, investments, property rentals) often find the D7 more suitable, while those dependent on active remote work contracts usually benefit from the D8’s specific provisions.
Tax implications also differ. While D7 applicants might benefit from the NHR tax regime if they become tax resident during the qualifying period, D8 holders need to plan carefully regarding tax residency status and international tax obligations. Many digital nomads structure their stays to maintain tax residency elsewhere while legally residing in Portugal.
Portugal has excellent digital infrastructure with high-speed internet and many co-working spaces in Lisbon, Porto and even smaller cities making it very attractive for D8 applicants.
17. Portugal Job Visa: Traditional Employment Pathway
Not everyone has passive income sources or can work remotely - and for these clients, Portugal’s employment visa options may be an alternative to the D7.
The Portugal Work Visa (sometimes called D1 Visa) is the traditional employment-based pathway to residency. Unlike the D7 which requires pre-existing passive income, the work visa is based on securing a job offer from a Portuguese employer.
The main requirement is a formal work contract with a Portuguese company. These visas connect to Portugal’s labour market needs, meaning your employment must typically fall into sectors with worker shortages or require specialized skills not available locally.
The application process involves the following key players:
- You, the visa applicant, with your qualifications and experience
- Your Portuguese employer, who must justify hiring a non-EU worker
- The Portuguese labour authorities, who must approve the hiring
Portuguese employers must prove they’ve advertised the position locally and couldn’t find qualified EU candidates. This additional hurdle makes the work visa much more challenging than the D7 in many cases.
Documentation requirements include:
- Your formal job offer or signed contract
- Proof of professional qualifications
- Criminal record certificates
- Valid passport
- Accommodation arrangements in Portugal
Processing times often extend beyond the D7 timeline, frequently taking 3-6 months due to the added labour authority approvals.
Salary requirements depend on the position but must comply with Portuguese labour laws and collective bargaining agreements for your profession. Generally, expect the threshold to be lower than the D8 visa requirements but sufficient to support yourself without public assistance.
The subsequent residency benefits are the same as other visas - the same path to permanent residency and potential citizenship after five years, access to Portugal’s social security system and family reunification options.
One advantage: work visa holders gain immediate integration into Portuguese professional life, often accelerating language acquisition and cultural adaptation compared to D7 holders who may have less daily interaction with locals.
The main drawback is the dependency on continued employment. Job loss could affect your residency status, requiring you to find new qualifying employment or switch to another visa category if possible.
For those interested in this pathway, I recommend focusing job searches on Portugal’s growth sectors such as technology, tourism, healthcare and specialized manufacturing where skills shortages increase the chances of successful work visa applications.The D2 visa is for:
- Those who want to actively manage a business in Portugal
- Have entrepreneurial experience and a business concept
- Can show sufficient startup capital
- Want a more active professional life in Portugal than the D7 allows
18. Common Issues and Solutions
From my experience, here are the common problems D7 visa applicants face:
Proving Stable Income Some clients struggle to show regular passive income. Solution: Consolidate income sources and provide detailed financial statements showing deposits over 12+ months.
Property Requirements Finding accommodation can be tough when you’re not in Portugal yet. Solution: Use short-term rental contracts initially, or work with a real estate agent who can facilitate remote property viewing.
Language Barriers Official processes in Portugal often require Portuguese language skills. Solution: Work with a lawyer who can provide translation services and represent you during official appointments.
Appointment Delays Scheduling appointments with Portuguese immigration can be frustrating. Solution: Apply well in advance and be flexible with travel plans.
19. Visa Renewal Process
Your initial residency permit is valid for 2 years. The renewal process requires:
- Proof of continued passive income
- Evidence you’ve maintained your tax residency in Portugal
- Proof you’ve spent the required time in Portugal
- Valid health insurance
- Updated criminal record check
I recommend starting the renewal process at least 30 days before your permit expires.
20. Path to Permanent Status
After 5 years of legal residence, you can apply for permanent residency in Portugal or Portuguese citizenship. For citizenship, you’ll need:
- 5 years of legal residency
- Basic Portuguese language proficiency (A2 level)
- Clean criminal record
- Integration into Portuguese society
Portuguese citizenship gives you a Portuguese passport and all rights of a Portuguese citizen, including unrestricted access to live and work throughout the European Union.
21. Working in Portugal
D7 Visa holders can work in Portugal, but you need to get a work permit first. Entrepreneurs may consider the D2 visa Portugal option specifically designed for business activities. The work permit is usually issued for a specific job and employer, and you need to meet the necessary qualifications and experience requirements for the position.
If you want to start your own business in Portugal, you need to meet the requirements for entrepreneurs. This includes having a business plan and sufficient funds to support your business. Portugal is an entrepreneur-friendly country with various resources and incentives to help you succeed.
It’s recommended to consult with a lawyer or business advisor to understand the specific requirements for working in Portugal. They can advise on getting a work permit, starting a business and ensuring compliance with all labor laws and regulations. This professional advice will help you navigate the process and make informed decisions about your career in Portugal.
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22. Retirement in Portugal
The Algarve has become the favourite destination to retire in Portugal. The country offers many benefits to spend your golden years.
The Portugal D7 Visa is the most popular among retirees. This visa provides a straightforward route to residency and eventually citizenship in Portugal. To qualify, applicants must show a minimum passive income of €870 per month and meet basic language and cultural requirements.
Retirees in Portugal can also benefit from the Non-Habitual Residency (NHR) scheme which offers tax benefits. Under the NHR scheme, foreign income, including pensions, can be taxed at 20% and in some cases be exempt from taxation. This scheme is designed to attract foreign investment and talent, making Portugal even more attractive for retirees - however, it’s now only open to those who became tax resident within the qualifying period.
Beyond the financial benefits, Portugal offers a great quality of life. The healthcare system is excellent and there are many recreational activities to enjoy, from golfing and hiking to exploring the rich cultural heritage of the country. Whether you choose to settle in the bustling city of Lisbon, the scenic Algarve region or the peaceful countryside, Portugal provides a warm and enriching environment for retirees.
In summary, Portugal’s combination of visa options, tax benefits and quality of life makes it the perfect destination to retire abroad.
23. Your Portuguese Future
The D7 visa offers a straightforward path to build your new life in Portugal. While the process requires attention to detail and patience, the rewards are huge: a great quality of life, tax advantages and a gateway to Europe.
As your lawyer, my role is to make this journey smoother, ensuring your application meets all requirements and anticipating any issues before they arise. With proper planning and expert guidance, your transition to becoming a Portuguese resident will be an exciting new chapter rather than a stressful ordeal.
Whether you want to retire in the Algarve sun, be a digital nomad in Lisbon or live a peaceful life in the Portuguese countryside, the Portugal D7 visa offers these possibilities with relatively low financial requirements compared to other residency programs.
24. Frequently Asked Questions
Who is eligible for Portugal D7 visa?
Non-EU, EEA, or Swiss citizens who can prove stable passive income may qualify for the Portugal D7 Visa. Eligible applicants include retirees, remote workers, and entrepreneurs with a minimum income of €9,840 per year (€820 per month) from sources like pensions, rentals, dividends, or remote work. Family members can also apply, requiring 50% more for a spouse and 30% per dependent child.
Is Portugal D7 visa easy to get?
Yes, the Portugal D7 Visa is one of the easiest long-term residency visas to obtain. It is designed for retirees, remote workers, and passive income earners who can prove a stable income, secure accommodation, and valid health insurance. As long as these criteria are met, the application process is straightforward, with relatively high approval rates.
What is the disadvantage of a D7 Visa in Portugal?
One key disadvantage of the Portugal D7 Visa is its income restriction—only passive income (such as pensions, rental income, and dividends) qualifies, excluding salaries or freelance earnings. Additionally, visa holders must reside in Portugal for at least 183 days per year to maintain residency. Other drawbacks include potential tax obligations under Portugal’s tax system and long processing times for some applications.
Is Portugal's D7 Visa ending?
No, Portugal’s D7 Visa is not ending. Unlike the Golden Visa, which has undergone changes, the D7 Visa remains available for retirees, remote workers, and passive income earners. As of 2024, there have been no official announcements to discontinue or significantly alter the program. However, applicants should stay updated on possible policy changes
