Passive income earners, including retirees, who intend to move to Portugal may advantageously apply for a specific residence permit, known as the Portugal Passive Income Visa, also known as D7 Visa, for a special tax status that grants them a 10-year income tax break.
Qualifying for the Portugal Passive Income D7 Visa and Portugal Residence Permit Program:
The Portugal Passive Income Visa, or D7 Visa, is a part of the Portugal residence permit program.
Non-EU/EEA/Swiss citizen who intend to relocate to Portugal and have a reasonable net regular passive income can apply for this route to residency. The subsequent residence permit does not preclude the holder from having a professional activity in Portugal. Therefore, this is generally one of the best alternative to the Golden Visa for someone who actually intends to live in Portugal over an extended period of time.
A Portugal Passive Income D7 Visa or permit can only be applied for after a series of residence applications are filed by the main applicant at the Portuguese Consulate. Once this is issued, his/her immediate family members are also entitled to enter into the Portugal residence permit program under the "family reunification" regulations.
Passive Income D7 Visa permits are issued as credit-card sized ID cards (similar to those of the Golden Visa and are registered with the Schengen Space central system, thereby entitling the holders to enter all Schengen Space adherent European countries with no need for a visa). Do not hesitate to get in touch with us should you wish to learn more about any of the above or about the Portugal residence permit program.
Benefits of the Portugal Passive Income D7 Visa:
The process for a passive income D7 visa is considerably faster and less costly to obtain than a Golden Visa and also entitles the holder to the main benefits of Portugal residency, namely:
• Permanent free entry and circulation in the Schengen Space, comprising 26 European countries.
• Freedom to live in Portugal and, if so wished, to have a professional activity in this country.
• Option to become a non-habitual resident of Portugal for tax purposes (little or no tax for 10 years on most foreign-source income, applicable to pension income, dividends, interests, royalties and real estate income foreigned sourced).
• Access to other Portugal residents’ rights, such as education, recognition of diplomas and qualifications, healthcare, social security, trade union protection, the law and the courts of law.
Portugal Residence Permit Program Application Requirements:
Having acquired permanent residency rights for having resided in Portugal for a period of 5 years, an EU citizen and his/her dependent relatives will only lose such rights in the event of an absence from Portugal for a period that exceeds 2 consecutive years or in the event a valid decision is made to expel him/her from the country.
Step 1: Bank Account and Accommodation in Portugal:
The applicant for a Portugal passive income D7 visa as part of the Portugal residence permit program must begin the proceedings, completing this checklist:
• Open a banking account in Portugal.
• Secure long-term accommodation in Portugal (by either buying, renting or borrowing a property).
• Apply online for a residence visa and for an appointment for an interview at the Portuguese Consulate serving his/her current region of legal residence, even if the applicant's nationality entitles him/her to enter Portugal without a visa.
Step 2: Visa Application at the Portuguese Consulate:
The exact requirements of each consulate may vary but all consulate interviews will require the following documentation:
• Passport, valid for at least 6 months after the expiry date of the Portugal passive income visa being applied for (which will be valid for 4 months)
• Two recent passport-size colour photos
• Declaration outlining reasons for obtaining Portuguese residency
• Health insurance policy or affidavit stating that this will be bought in Portugal within 90 days of arrival
• Criminal record certificate (or police clearance letter)
• Documentary evidence of having accommodation in Portugal (property title deed, rental agreement or property loan agreement)
• Documentary evidence of sufficient finances available to the applicant in Portugal (e.g. a Portugal bank statement showing a reasonable balance)
• Documentary evidence of having a reasonable net regular passive income
Step 3: Residence Permit Program Application In Portugal:
A special visa, as outlined above, is required for entering Portugal when applying for the Portugal passive income D7 visa permit.
The special visa allows for a maximum of two entries and a stay in the country of up to 4 months. Once in Portugal, you will need to submit the following documents in order to apply for the residence permit (known in some areas as Portugal residence permit program):
• Passport having the special visa issued by the Portuguese Consulate
• The documentary evidence of having sufficient financial means and permanent accommodation in Portugal, as submitted to the Portuguese Consulate
• Health insurance policy in case you bought it in Portugal
• Various Portuguese documents that my lawyer of confidence can obtain on your behalf
How to Renew the Portugal Passive Income D7 Visa:
As part of the Portugal residence permit program, the Portugal passive income visa must be renewed at the end of the first year and then every two years after. Subject to passing a language test of basic Portuguese, the holder of a passive income permit may apply for permanent residency or citizenship at the end of 5 years
What Are the Minimum Stay Requirements:
Except in the case of duly justified personal or professional reasons, the holder of a temporary residence permit (such as the Portugal passive income D7 visa and not including the Golden Visa), is expected not to be away from Portugal for more than 6 consecutive months or 8 non-consecutive months during the validity of each permit. For the holder of a permanent residence permit, this is increased to either 24 consecutive months or else 30 non-consecutive months in any given period of 3 years.
How Much Does it Cost to Obtain a Portuguese Passive Income Permit?
The Government fees for this type of temporary residence visa permit are not significant (between €45.90 and €276.80 per applicant). The primary costs the applicant will incur are relocation expenses and professional lawyers fees. Alternative routes to acquiring residency are more expensive.
How Can I Help?
I can provide full assistance to obtaining a Portugal passive income D7 visa. As a comprehensive, non-biased party, I am able to understand and advise on the best route for individual circumstances. I will assist at every step of the way, from acquiring a Portuguese bank account to relocation help. Having assisted hundreds of clients with a 100% success rate, they are at ease with meeting a great variety of disparate requirements. “References upon request!!!”.
Get in touch with me to explore your options. I am ready and waiting to help you and/or your family in entering into the Portugal residence permit program.
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