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:

01
The right to live, work and/or study in Portugal
02
An applicant may include dependant children and parents
03
Visa-free travel throughout the Schengen Area of 26 European countries
04
The option to take employment or establish a business in Portugal
05
The option to apply for Portugal’s Non-Habitual Resident (NHR) tax regime status
06
Qualification for permanent residency or citizenship in Portugal after five years
07
Portuguese residency rights, including education and healthcare

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:

01
Main Applicant – 100% of the minimum wage (currently €7,620 per annum)
02
Spouse or parents of main applicant – 50% of the minimum wage per person (currently €3,810 per annum)
03
Dependant children – 30% of the minimum wage per person (currently €2,292 per annum)
04
It is advisable to hold a minimum amount equal to 12 months’ income within a Portuguese bank account.

Eligible dependants


The main applicant is entitled to include the following dependant family members within their application:

01
A spouse or partner
02
A minor or incapacitated child
03
Children older than 18, who are single and studying in an educational establishment in Portugal
04
Dependant parents of the main applicant or their spouse
05
Minor siblings, who are legally deemed to be in the care of the main applicant

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
8 non-consecutive months each year

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:

  1.  Appointment of Sovereign as your fiscal representative in Portugal in order to obtain a Portuguese fiscal number
  2.  Open a personal bank account in Portugal
  3.  Secure long-term residential accommodation in Portugal either through a purchase, rental or loan agreement
  4.  All applicants must apply for a D7 Visa and attend an interview with the Portuguese Consulate in their current country of residence.
  5.  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.

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