D7 Passive Income & Retirement Residency Visa in Portugal

This can be a very interesting option for non-EU – including British citizens (post-Brexit) – who wish to reside in Portugal. The visa awards to successful applicants – and their dependant children and parents - the right to reside in Portugal. The visa is valid for 2 years, renewable for 3 years.

The D7 visa is a residence visa for those with an existing sufficient and stable income - including pensioners - who wish to live in Portugal.

*** Please note, this visa is not suitable for those who wish to relocate to Portugal and continue working - whether for a Portuguese or non-Portuguese company. A passive income rather than a work income is required ie income from existing investments, rental income etc.

For those who wish to relocate to Potugal and set-up a business, the D2 Visa is appropriate.

One of the requirements is proof that the applicant has the minimum income foreseen by law to permit residency in Portugal for a period of not less than 12 months, being as follows:

• 1st adult (applicant): 100% of the current minimum wage (€ 665) = € 7,980/year;
• 2nd or more adults: 50% of the current minimum wage (€ 333) = € 3.996/year;
• Children and young people under 18 years of age and dependent adult children: 30% of the current minimum wage (€ 200) = € 2,400/year.

The procedure is composed of two steps: the first at the Portuguese Consulate or Embassy of the country where the applicant resides and the second at the Foreigners and Borders Services (SEF) in Portugal.

The D7 Visa allows the holder to obtain a residence permit in Portugal for a period of 2 years, which can then be renewed for a period of 3 years and, after 5 years, the applicant may acquire permanent residence or Portuguese nationality. The minimum period of stay in Portugal is 6 consecutive months or 8 non-consecutive months. Additional advantages that the holder of a D7 visa may have are

• Family reunification (so other members of your family may join you);
• Enjoy access to a modern health system;
• Access to law and courts;
• Obtain Non-Habitual Resident Status.

Holders of Non-Habitual Resident Status (NHR), for a period of ten consecutive years, are entitled to:

1. exemption for income obtained abroad from dependent work, self-employment, capital, property income and real estate capital gains, intellectual or industrial property, when such income is taxable in the source country
2. taxation on income obtained in Portugal at reduced rates in the case of high added value activities (e.g. 20% for employment or self-employment income and 28% for capital and real estate income).
3. Pension income is taxed at 10% (following changes introduced by the Portuguese budget of 2020). Note, most UK pensions are taxable in the country of residence, so this is the full tax payable.

An important difference between this route to residency and the Golden visa is that here you are not entitled to work, but it is perhaps a more accessible option for residency.

Even not being allowed to work in Portugal that does not mean you will not be allowed to work in any other country provided you do not lose Portuguese residence by staying abroad working for longer periods of time.

• Advice and assistance from an experienced immigration lawyer to ensure the applicant has the required documentation and information necessary to make a successful application via the Portuguese Consulate in your country.
• Assistance and advice on the documentation required and completing and submitting the forms in both countries before stipulated deadlines to ensure the application is approved
• Act as your Fiscal Representative in Portugal and obtain an NIF number on behalf of the applicant(s)
• Accompany the applicant to the appointment with the relevant government department to collect the residency permits once approved
• Advise and assist with your application for Non-Habitual Residency Status in Portugal which entitles you to tax-free foreign-sourced income for a limited period (Pension income taxed at 10%)
• Assist with renewal of the visa after expiry of
• Long-term assistance with all legal and tax related compliance matters in Portugal