Portugal Residency with a Monthly Income of 700 Euros, Without Investment, In 4 Months
What is a Portugal D7 Visa?
The D7 visa, also known as the Visa for Retirement, Passive Income, or self-supporting visa, is a long-stay visa introduced in 2007 and does not require investment, unlike the Golden Visa of Portugal. In addition to retirees, this visa is also suitable for some telecommuters and digital business owners. Portugal is a financially viable visa for non-EU / EEA / Swiss citizens who wish to reside in Portugal and can prove they have a reasonable passive income. This income can be from pensions as well as income from financial investments, real estate, and salaries.
The minimum passive income required is € 8,460 per year for the main applicant. For the spouse, you have to add 50% to this amount (€ 4,230) and for each dependent child, you have to add 30% to this (€ 2,538). Therefore, for a couple with one child, you must have € 15,300 per year to be eligible for a D7 visa.
D7 Portugal Visa Requirements
It is very easy to qualify for a D7 visa in Portugal. Here are the main criteria for a Portuguese D7 visa:
- Be a non-EU citizen / European Economic Area / Switzerland.
- Have a minimum inactive income of € 8,460 per year (+ 50% for spouse and + 30% for dependent child).
- Have a clean criminal record all over the world.
- Prove that you live (rent or buy) in Portugal.
- You must spend at least 16 months in Portugal in the first 2 years.
What Are the Benefits of Portugal D7 Visa?
- Visa exemption
Portugal D7 visa allows you to enter Portugal and the Schengen area (26 EU countries). You can travel freely without a visa. The D7 visa basically gives you the same travel rights as all EU citizens.
- Family Benefits
The Portugal D7 visa allows you to apply for family reunification after receiving your visa. This is where your family members will be given the same residence rights as you have. You will need to prove the type of relationship you have with each family member you want to include in the file. The following are eligible for family reunification: spouse, children under 18, dependent children over 18 who are studying, your parents, your spouse’s parents, and younger siblings. All of these people can live and work in Portugal and travel freely in the Schengen area, as well as enjoy all the benefits of a visa.
- Permanent residence
Does a Portuguese D7 visa lead to residence? The Portugal D7 visa allows you to eventually obtain permanent residence. You can receive legal residency in the first year. Then extend your stay for two consecutive years. After five years of legal residence, you can apply for permanent residence.
Does a Portuguese D7 visa lead to citizenship? Portugal D7 visa can lead to citizenship. After six years of legal residence, you can apply for Portuguese citizenship. To be a citizen, you must obtain an A2 Portuguese language certificate, provide documents such as a Portuguese bank certificate, and have no criminal record.
- Tax Incentives: Special Tax Regime
NHR Tax Regime Guide
You can become an NHR resident and enjoy the incentives of this financial regime. This tax regime allows you to transfer your tax residence to the country. The benefits of this tax regime are as follows:
- If your country has a double taxation agreement (DTA) with Portugal, you may be eligible for NHR of taxes on pensions, rental income, property interest, and income from non-Portuguese sources. Instead, you pay taxes in your home country. The United Kingdom, the United States, and many other countries have a DTA with Portugal.
- If your retirement income in Portugal is taxable, it will be at a fixed rate of 10%, which includes retirement savings and insurance.
- Income from “high value-added activities” in Portugal includes a 20% tax. This includes job and self-employment income from scientific, artistic, or technical activities carried out in Portugal. However, for other types of domestic income, you will pay the same income tax that ordinary taxpayers are required to pay.
- Only after the first 10 years of residence will you be subject to your international income tax.
- Foreign interest, share interests, rent, and capital gains can be tax-exempt.
- You will not pay inheritance or wealth taxes.
The criteria to be eligible for Non-Habitual Regime are as follows:
- You must not have been taxed in Portugal for up to five years before filing.
- You must apply for a tax residence permit, which means you must live in Portugal for more than 183 days a year (does not have to be consecutive) or for less than 183 days a year in Portugal, but during this time you have bought a property for, or have done public activities in favor of Portugal.
- You must be eligible to enter Portugal on a work visa, the Portugal Golden Visa, the Portugal D7 Visa, or through EU citizenship, the European Economic Area, and Switzerland.
Who Can Apply for a Portugal D7 Visa?
Non-EU / EEA / Swiss citizens with inactive income can apply for a Portugal D7 visa. Although this visa is also known as a retirement visa, if you can work remotely for an employer outside Portugal, you may also be eligible. Therefore, freelancers and eligible digital nomads can apply for a D7 visa.
Why is a Portugal D7 visa suitable for UK citizens? If you are a British citizen who cannot afford to pay for the Portuguese Golden Visa, the D7 visa is the place for you. After 6 years, you will have permanent residency and possibly citizenship, which will allow you to recoup lost EU rights after Brexit. As a British citizen with a D7 visa, you can travel freely in the Schengen area, as well as have the right to work, study and live in any EU country.
Portugal D7 Visa and Cryptocurrencies
Portugal is one of the last remaining tax havens in Europe for Cryptocurrencies. The Portuguese Taxation and Customs Administration (PTA) officially announced in 2019 that the purchase or sale of Cryptocurrencies in Portugal is tax-free. You will not be charged VAT or Personal Income Tax (IRS) for each Cryptocurrencies transaction. It does not see cryptocurrencies as an asset, but as a form of transaction, so they are not taxed like assets. However, businesses that provide services related to Cryptocurrencies are subject to income tax. There are many determining factors such as profit and the number of times you have traded. You should contact a tax advisor in Portugal for more details.
Why is Portugal a Cryptocurrency-friendly Country?
- There is no tax on Cryptocurrencies
- Cryptocurrencies and NFT conferences are held there.
- Bitcoin ATMs are available in Lisbon and Porto.
- You can use a Bitcoin credit card.
Healthcare with a Portuguese D7 Visa
You will have to buy health insurance for four months of your D7 visa duration, which should cost between € 20 and € 50 per month. After this period, you will receive your residence and then you can access the Public Health Care System (SNS). Portugal’s healthcare system is world-renowned, ranking 17th in the global healthcare innovation index. You must register with your SNS at your local health center. Most services with SNS are free, but you will have to pay for certain services, such as some examinations. However, these costs will not exceed 5 to 20 euros. Dentistry is not included in the SNS.
You can also access private hospitals if you wish. The price of annual health insurance varies from € 300 to € 1,000, depending on the company and other personal factors such as your age.
For more information on the requirements for obtaining Portugal D7 Visa (Passive Income Visa), please contact one of our advisers in the UAE, Denmark, or Canada, we will accompany you and your family until you obtain Portugal residency.
If you have any questions or comments about Portugal D7 Visa, you can share them with us in the comments section.