PORTUGAL PASSIVE INCOME (D7) VISA
Portugal is the leading destination for individuals and families seeking residence within the European Union. It offers a stable political and social environment, clear and transparent tax rules, good infrastructure, a favourable investment climate and an excellent quality of life. Most foreigners consider the cost of living to be low.
The Portugal Passive Income Visa – also known as a D7 Visa – provides residency status to non-EU / EEA / Swiss citizens, including retirees, who intend to relocate to Portugal and are in receipt of a reasonable and regular passive income.
Successful applicants benefit from the following:
Passive Income requirements
The key requirement for making a successful application is to be able to demonstrate that you are in receipt of regular ‘passive’ income, which may be derived from a pension, rental, dividends or certain categories of investment income.
The minimum income requirements vary according to the number of dependants that the main the applicant wishes to include, as follows:
Eligible dependants
The main applicant is entitled to include the following dependant family members within their application:
Renewals and minimum stay requirements
Once an application has been approved, applicants are issued with a Portuguese residency card that is valid for two years. In order to maintain residency, the card must be renewed at the end of the second year, at which time a three-year residency card will be issued.
The Passive Income Visa is aimed at those who intend to live in Portugal and so, you must spend six consecutive months or eight non consecutive months in Portugal.
The following chart provides an overview of the ongoing minimum stay and permit renewal requirements.
Time Period
| Minimum Stay in Portugal | Renewal Date | Available Renewal Option |
Years 1 and 2 | 6 consecutive months or 8 non-consecutive months each year | End of Year 2 | 3-year Residency Permit |
Years 3, 4 and 5 | 6 consecutive months or | End of Year 5 | 3-year Residency Permit, Permanent Residency or Citizenship |
Application requirements and procedure
Sovereign will assist applicants and their family to obtain and complete the documentation that is required to successfully prepare, submit and process their application. These requirements include the following:
- Appointment of Sovereign as your fiscal representative in Portugal in order to obtain a Portuguese fiscal number
- Open a personal bank account in Portugal
- Secure long-term residential accommodation in Portugal either through a purchase, rental or loan agreement
- All applicants must apply for a D7 Visa and attend an interview with the Portuguese Consulate in their current country of residence.
- Arrange and attend a meeting with the Immigration & Borders Service – Serviço de Estrangeiros e Fronteiras (SEF) – in Portugal
Sovereign Passive Income Visa services
Sovereign offers a concierge service to assist with a Portugal Passive Income Visa application, which includes:
- Initial application support and consultancy
- Cross-border planning and tax advice
- Fiscal representation (to include a fiscal number application, if necessary)
- Guidance on the documentation required for application process at SEF (Immigration control)
Once an individual has been registered as a resident in Portugal, he / she can apply for Non-Habitual Resident (NHR) status. This special tax regime entitles EU and non-EU citizens who have already established residency in Portugal to receive most foreign income – including rental income, certain capital gains, interest and some dividends (although foreign pension income is now subject to a 10% rate of tax) – without attracting Portuguese tax for their first 10 years in Portugal.
Sovereigns’ Portugal-based team will review the NHR programme with applicants to determine whether they qualify for, and will benefit from, NHR status.
Once the residency application has been completed, our team of fully qualified accountants and administrators will continue to assist clients to meet all their fiscal obligations in Portugal (and keep them informed of any changes that may affect them), including:
- Preparation and submission of Personal Income Tax – Imposto sobre o Rendimento das Pessoas Singulares (IRS) – returns
- Preparation and submission of Double Tax Agreement (DTA) forms to a client’s home country
To discuss your requirements and receive an all-inclusive quotation, please contact us on serviceinfo@sovereigngroup.com or telephone + 351 282 340480.
Explore Residency In Portugal
Please contact us if you have any questions or queries and your local representative will be in touch with you as soon as possible.
