In the past two years both The Golden Visa and the Non-Habitual Residency accords suffered some limiting changes, which impacted applications of clients who wished to invest in Portugal. As a way to guarantee residence and ease of travel within the Schengen Area, Portugal has always been seen as a leading destination for investors and families.
Offering a secure political and social environment, advantageous and transparent tax procedures, great infrastructures, a growing investment climate and a wonderful lifestyle, Portugal and even more so, the Algarve, are one of the first options for foreigners.
The D7 Visa, most commonly known as the Retirement Visa or Passive Income Visa was introduced in 2007 by the Portuguese Government. This Visa allows non-EU/EEA/Swiss citizens to apply for temporary residency in Portugal, conditioned on the applicant being in receipt of a reasonable and regular passive income.
What Benefits Can Applicants Expect From The D7 Visa?
1 - Permission to live, work and/or study in Portugal
2 - Applicant can extend process for children and parents
3 - Non Visa dependant travel in the Schengen Area
4 - The opportunity to either establish a business or accept an employment in Portugal
5 - Eventually take advantage of the tax benefits when applying for either the Non-Habitual Residency Scheme
6 - After a period of 5 years in which a renewal of visa applications has been followed, the applicant is eligible to qualify for a permanent residency or Portuguese citizenship
7 - Resident rights in Portugal, which include healthcare and education
What Are The Requirements For The D7 Visa Eligibility?
1 - Are a Non-Eu/EEA/Swiss Citizen
2 - Proof of funds to be financially self sustaining during stay in Portugal
3 - A clean criminal record
4 - Proof of a residency address in Portugal
5 - Spend a minimum of 16 months in Portugal within the first 2 year period of application
What Are The Passive Income Requirements For The D7 Visa Eligibility?
1 - Proof of a regular passive income, derived from either a pension, rentals, dividend or financial investments
2 - There are minimum income requirements. However these are dependant on the number of dependents included in the application. The applicant must show proof of a minimum passive income of €8,460 per year (+50% for a spouse and +30% for a child)
3 - It is advisable that the applicant hold an amount equal to as 12 months income in a Portuguese bank account
What Are The Documents Required And Application Procedure?
1 - Open a bank account in your name in Portugal
2 - Proof of a secured long-term accommodation in Portugal, either through purchase or rental
3 - Fill the D7 Visa form via the SEF website. Organize and attend an interview with the Portuguese Consulate in the current country of residence, bringing the form. For a temporary visa expect a cost of €75, and for a permanent visa €90
4 - Once the application is approved a temporary visa is issued enabling travel to Portugal for 4 months, where a meeting must be had with Immigration & Borders Service – Serviço de Estrangeiros e Fronteiras (SEF) – in Portugal. For this appointment the application form is needed along with recent photos, passport, proof of sufficient funds, proof of accommodation, criminal record, NIF, valid medical insurance.
What Are The Minimum Stay Requirements And Renewal Intervals?
With the application approved, a Portuguese residency card is emitted which is valid for 2 years. To maintain the residency, the card must be renewed at the end of the second year, where a 3 year residency card is issued. For the whole time period for which a residency card is approved, the applicant must spend a minimum of 6 consecutive months or 8 non-consecutive months in Portugal.
At the end of the 3 year residency, which should be equal to a 5 year period with a Portuguese residency card, the applicant can then apply for either another 3 year residency permit, a permanent residency or citizenship. All applicants should expect a fee between €50 to €300, per applicant.
Could The D7 Passive Income Visa Be The Answer For UK Nationals After Brexit?
Given the latest investment alterations for the application of a Golden Visa, the D7 Visa could be the answer for British nationals who either cannot afford the property investment or do not find their home in the right location.
The D7 Visa allows for UK nationals to gain back EU rights that were lost after Brexit, where after the 6 years either a permanent residency or possible citizenship can be obtained. Not only does this offer freedom when travelling to Portugal, but also for any travels throughout the Schengen area, alongside being given the right to work, study and live in any EU country.
What Could The D7 Visa Mean For Your Cryptocurrency Investment In Portugal?
Portugal has become a crypto haven in Europe. In 2019, it was announced by the Portuguese Tax Authorities that buying and selling any cryptocurrency would be tax free. Neither VAT or Personal Income Tax can be charged to a cryptocurrency transaction.
In Portugal cryptocurrencies are not viewed as an asset but as a form of payment, therefore no taxes are applied. Nonetheless, any digital currency transactions performed under a registered business name will be taxed on gains.
Alongside a D7 Passive Income Visa, moving to Portugal could be the answer if some or all your investments are within cryptocurrency. Whether for digital currencies or for the freedom to travel in Europe, we would be happy to help with the acquisition of your home in the Algarve, a beautiful and luxurious nook in Portugal