DUBAI, UAE, April 8, 2023 /PRNewswire/ — Portugal offers a wide range of immigration channels to prospective residents, the most prominent being, the golden visa. But another Portuguese immigration option has been gaining popularity in recent years, the D7 visa.
What is the D7
The D7 visa is a route for people with stable, passive income to issue a Portuguese residence permit and live in Portugal.
The D7 requires applicants to prove they have recurring income from a passive source, which could be:
- Pensions
- Rent
- Dividends
- Royalties
- Others
For example, a mutual investment fund that produces annual ROI classifies as passive income.
The D7 is issued for 2 years at a time and can be renewed for 3years as long as its holder continues to qualify for the visa.
In order to renew their visa, D7 holders must have spent at least six months a year in Portugal, effectively making them tax residents.
How to qualify for a D7
To qualify for the D7, applicants must:
- Have a clean criminal record
- Be above 18 years of age
- Have active health insurance across the EU
- Have proof of address in Portugal (12 months lease agreement or property ownership)
- Meet the required passive income threshold
The income threshold differs depending on the family composition of the applicant as follows:
- A minimum monthly income of €760 for a single applicant
- 50% additional for the spouse
- 30% additional for any extra dependent
Applicants can add their spouse and dependent children under 18 to their D7 application. Dependent children above the age of 18 years must prove dependency on the main applicant, i.e., they should be unmarried, child-less, enrolled in universities or colleges and financially dependent on the main applicant. Applicants can also add their parents if they are above the age of 55 years and dependent on the main applicant.
It is best to open a bank account in Portugal and transfer the required maintenance funds for a 12-month period, the minimum amount required in the Portuguese bank account is determined by the number of family members, the minimum wage rate at the time of application etc. The bank will conduct due diligence on the money’s origin and save the Portuguese government time in tracing the money, hence giving an applicant a better chance at being approved.
Benefits of the D7 visa
The D7 visa gained more popularity in the past few years as the pandemic made remote working easier and highlighted the need for a second home for many people. However, as of October 2022, remote workers no longer qualify to apply for D7 visa, they can opt for another visa category called the digital nomad visa which has been recently introduced.
It comes with a variety of benefits, such as:
- The right to live in Portugal
- Visa-free access to the Schengen Area
- The ability to add family members
- No investment required
- No job offer required
- Fast processing time
- Easy renewals
- D7 visa applicants can qualify for Non-Habitual Residence (NHR) taxation
The D7 or the golden visa
Assuming a person qualifies for both, there are two major deciding factors, the first is financial.
The golden visa requires a minimum investment of €280,000 in real estate, while the D7 does not need major outlays. Even for a family of five, savings amounting to €50,000 are enough.
The D7 requires its holders to live in Portugal for six months a year, meaning they will have to make Portugal their main homestay. The golden visa requires applicants to spend just seven days a year to maintain their status and qualify for citizenship after five years.
At the end of the day, it’s what suits the future of people best. And our experts at Savory and Partners are available around the world, including Lisbon to help plan residencies in Portugal.
Visit our website www.savoryandpartners.com for more information.
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Media contact:
For more information, please send an email to contact@savoryandpartners.com. You can also call +971 04 430 1717 or send a WhatsApp message to +971 54 440 2955.
SOURCE Savory & Partners