Portugal D7 Visa: complete guide for Passive Income Visa

The D7 visa — also known as the Retirement Visa or Passive Income Visa — allows non-EU citizens to travel to Portugal and apply for a residence permit. It’s a popular choice for people who want to enjoy life in Portugal without needing to find a job or run a business there.

This visa is ideal for financially independent individuals — such as retirees or investors — who have a reliable income from outside Portugal. This income might come from pensions, rental properties, dividends, or other investments.

To qualify, you need to show that your income meets a certain threshold. In 2025, Portugal’s minimum monthly wage is €870. So, to be eligible, you must prove an annual income of at least €10,440.

Most people apply for the D7 Visa because they want to live in Portugal long-term. Many aim to stay long enough to eventually apply for Portuguese citizenship. The visa is not designed for people planning to take up a job or start a company right away.

The key facts about the D7 Visa:

1. Purpose: Lets you enter Portugal in order to apply for a residence permit.

2. Entries allowed: Two.

3. Visa duration: Valid for 4 months.

4. Processing time: Usually issued within 60 days after you submit all the required paperwork.

5. Work status: The visa itself does not give you permission to work. However, once you get your residence permit, you are allowed to take up employment in Portugal if you choose.

The D7 Visa is backed by Portuguese immigration laws:

• Article 58, paragraph 1 of Law No. 23/2007 from July 4th, 2007;

• Article 24, paragraph d of Resolution No. 84/2007 from November 5th, 2007.

1. Visa-free travel across Europe. Once you get a residence permit through the Portugal Passive Income Visa, you can travel without a visa to other countries in the European Union and Schengen Area. This makes it easy to explore much of Europe while living in Portugal.

2. Easy permit extensions. The initial residence permit is valid for 2 years, and you can renew it for another 3 years if you continue to meet the basic requirements — like maintaining your income and spending enough time in Portugal.

3. Residency for family members. Your immediate family can join you in Portugal. That includes your spouse, children, parents, and even siblings — as long as they are financially dependent on you. They can all apply for residence permits under the family reunification program.

4. Path to permanent residency or citizenship. After 5 years of being a Portuguese resident, you can apply for either permanent residency or Portuguese citizenship. The countdown starts on the application date for the first residence permit.

Therefore, Portugal offers one of the shortest paths to naturalisation in the EU. For comparison, countries like Spain and Italy require you to live there for 10 years before you can apply for citizenship.

5. Low taxes — sometimes 0%. Portugal’s income tax starts at 13%, but the first €12,180 you earn is tax-free. Since the D7 Visa requires just €10,440 in annual income, some applicants pay no income tax at all.

How to move to Portugal and how fast you can do it via the D7 Visa

To qualify for the Portugal D7 Visa, you must meet a number of financial, legal, and administrative requirements. These ensure that you can support yourself in Portugal and comply with immigration regulations.

Confirming income. To begin with, applicants must demonstrate a steady passive income that exceeds the Portuguese minimum wage. As of January 1st, 2025, that means showing at least €870 per month, or €10,440 annually. This ensures that you can meet the cost of living in Portugal without needing local employment.

If you’re planning to bring family members, you’ll need to demonstrate additional monthly income. For a spouse or a dependent parent, you must show 50% of the main applicant’s required income — that is, an extra €435 per month. For each dependent child, you need to prove 30% more — or €261 per month.

The simplest way to confirm your financial eligibility is by submitting recent bank statements.

Confirming kinship. When applying with family, you’ll have to prove your relationship to each accompanying person. Eligible relatives include:

• legally married spouse or long-term partner;

• children under the age of 18;

• dependent children up to age 21 who are in full-time education;

• dependent parents.

To verify these relationships, you’ll need official documentation — such as a marriage certificate, birth certificates, or legal documents confirming dependency or guardianship. These documents should be current, officially translated into Portuguese or English if required, and may need to be legalised or apostilled depending on where they were issued.

Presenting a clean criminal record. Applicants aged 16 and over must submit a recent criminal record certificate or background check from their current country of residence. If you’ve lived in any other country for more than a year, you’ll also need a report from there. These certificates must be issued within the past 3 months and appropriately legalised.

While a completely clean record is preferred, a minor or non-violent criminal record won’t automatically disqualify you. Each case is considered individually.

Renting or buying a place to live in Portugal. Another key requirement is demonstrating where you’ll live in Portugal. This can be done by showing a long-term rental contract or proof that you own property. The lease must last at least 12 months and clearly state the full address, rental terms, and names of tenants. You’ll also need to provide evidence of payments — such as receipts or bank transfers.

Although temporary lodging like hotels or Airbnb may be accepted during the initial visa process, you must secure a more permanent home before your residence permit is approved.

Opening a Portuguese bank account and transferring funds. Before submitting your application, you’ll need to get a Portuguese tax ID number, known as a NIF, and open a local bank account. Into that account, you must transfer enough money to cover one full year of living expenses — at least €10,440 for the main applicant.

If you’re including family, the required savings increase: €5,220 for a spouse and €3,132 per dependent child. This money proves you can live comfortably without needing public support.

Taking out travel and health insurance. You must also have travel and health insurance when applying. Your travel insurance must be valid for the entire duration of your visa. At your immigration appointment, you’ll need health insurance that’s valid for at least 1 year, provides a minimum of €30,000 in medical coverage, and includes care within Portugal or the Schengen Area.

After receiving your residence permit, you can enroll in Portugal’s public healthcare system, known as the SNS. This enrollment is essential for renewing your permit in the future.

Submitting biometric data. Once in Portugal, you’ll attend an appointment with the immigration office to provide biometric data, including fingerprints and a photograph. These are used to issue your residence card.

Moving to the country. To maintain your residence permit, you must actually live in Portugal. This is a key difference between the D7 Visa and Portugal’s Golden Visa, which requires far less time in the country and is geared toward investors.

The D7 Visa has become especially attractive for Americans looking to retire in Europe. It offers an affordable path to residency without the need to invest large sums of money. As long as you can demonstrate stable income, secure housing, and a clean legal and financial record, the D7 Visa can be a great gateway to living in Portugal.

The key requirement for the Portugal D7 Visa is that your income must come from passive sources — in other words, earnings that do not require active daily work.

Pensions are among the most widely accepted forms of income for the D7 Visa. This includes both public and private retirement pensions, whether from a government, an employer, or a private pension fund. Many retirees use this as their primary proof of financial independence.

Rental income. If you own property and rent it out — whether residential or commercial — this income qualifies as passive income. You’ll need to provide lease agreements and bank statements or tax returns that show regular rent payments being received.

Dividends. Earnings from investments in stocks or mutual funds that pay out dividends are also eligible. These payments must be consistent and well-documented, often supported by brokerage statements and tax filings.

Dividends received from a company in which the applicant is a shareholder qualify as well.

Royalties. If you receive royalties from books, music, patents, or other intellectual property, this too counts as passive income. Again, you’ll need documentation showing the source and frequency of these payments.

Interest from savings or investments. Regular interest earned from savings accounts, bonds, or other financial instruments may also qualify. Proof of this income might include bank statements or investment account summaries.

Cryptocurrency and digital assets. Income from crypto assets is a gray area. Portuguese authorities do not explicitly exclude crypto income, especially if it’s derived from long-term holdings or staking rewards.

However, because of the volatility and evolving regulations around cryptocurrencies, applicants should approach this source with caution. It’s crucial to demonstrate that any crypto-derived income is stable, predictable, and well-documented.

Célia Castilho,

Head of the Portuguese office of Immigrant Invest

Active income — such as wages from remote work, freelancing, or running a business — is not considered eligible for the D7 Visa. If you earn money by working actively, even if it's online or for a foreign company, this income type falls outside the D7 scope. 

In such cases, you may want to consider applying for Portugal’s Digital Nomad Visa, which is specifically designed for remote workers and sole proprietors.

Applying for a D7 Visa and relocating to Portugal involves several types of costs. These include housing expenses, government fees, and other legal or administrative charges.

Housing costs. One of the main expenses when applying for a D7 Visa is securing a place to live in Portugal. You can either buy or rent property, and fortunately, real estate prices in Portugal are generally more affordable than in many other Western European countries.

If you prefer to rent, the average monthly cost for a one-bedroom apartment ranges from €800 to €1,000, depending on the city and neighborhood.

If you choose to buy rather than rent, the average cost to buy property in Portugal is around €2,750 per square meter, and there are additional registration and legal costs involved in the property purchase. These include:

• stamp duty;

• real estate agent’s commission;

• legal fees;

• notary and registration fees.

Altogether, these costs typically amount to 9—10% of the property’s purchase price.

Government fees. To apply for and receive the D7 Visa and residence permit, you’ll need to pay a range of state fees. These include:

• visa application fee;

• residence permit application fee;

• residence permit issuance fee.

The total cost is around €200—300 per person.

To apply for the D7 Visa, you will need the following documents:

1. Completed visa application form.

2. Valid international passport.

3. Two recent colour photographs.

4. Valid health insurance policy.

5. Criminal record certificate from your country of residence.

6. Proof of accommodation in Portugal — either property ownership documents or a long-term rental agreement.

7. Proof of sufficient financial means to support yourself.

8. Proof of family relationships, if applicable, such as a marriage certificate or birth certificate.

9. Proof of registration for a Portuguese tax identification number.

While the D7 Visa is relatively straightforward, certain common mistakes can lead to rejection.

Insufficient or unclear proof of passive income. The financial documents submitted must clearly demonstrate a stable and regular income that meets Portugal’s minimum requirements. Inconsistencies or vague sources of income often raise concerns during the evaluation process.

Incomplete or incorrect documentation is another frequent cause of rejection. Missing health insurance, outdated criminal background checks, or unsigned application forms are common errors.

At Immigrant Invest, every client receives a tailored list of required documents, specific to their situation. All official government forms are completed by our legal team, so applicants only need to review and sign them. This helps ensure applications are accurate, complete, and submitted without unnecessary delays.

One of the key conditions for keeping your D7 residence permit active is that you must actually live in Portugal for most of the year. If you spend too much time outside the country, you could risk losing your residency status.

The Portuguese immigration rules are very specific about how long you can be away from the country. If you hold a D7 Visa residence permit:

1. You cannot be outside Portugal for more than 6 consecutive months at a time.

2. You cannot spend more than 8 months in total outside of Portugal during the entire validity period of your residence permit.

In practical terms, this means the following:

1. If your residence permit is valid for 2 years, you must live in Portugal for at least 16 out of those 24 months.

2. If your permit is valid for 3 years, you need to spend at least 28 months in Portugal during that time.

These minimum stay requirements show that the D7 Visa is designed for long-term residents — not part-time visitors. Portugal wants to ensure that D7 visa holders are integrating into the country and contributing to local life.

RP renewal. When your initial 2-year permit is about to expire, you can apply to extend it for another 3 years. To do this, you’ll need to submit updated documents to the Agency for Integration, Migrations and Asylum of Portugal.

The key requirement is to show that you still meet the visa’s financial criteria — that is, you continue to have sufficient passive income and savings to support yourself and any dependents.

After 5 years of legal residence in Portugal, you become eligible to apply for either permanent residence or Portuguese citizenship.

Permanent residency gives you the right to live in Portugal indefinitely. While the status is lifelong, the residence card itself must be renewed every 5 years. To qualify, you must show continued legal residency and prove your integration into Portuguese society.

Another key requirement is language proficiency. You’ll need to demonstrate knowledge of the Portuguese language at A2 level, which is a basic, beginner level.

To apply for citizenship by naturalisation, the requirements are similar to those for permanent residence, but with a few additional steps. You must:

1. Show basic knowledge of the Portuguese language — also at the A2 level.

2. Prove you have no serious criminal record in Portugal.

3. Demonstrate that you have been legally residing in the country for at least 5 years.

Once granted, Portuguese citizenship gives you the right to a Portuguese passport, as well as freedom to live, work, and travel throughout the European Union.

If you move to Portugal under the D7 Visa and spend 183 days or more per year in the country, you’ll be considered a Portuguese tax resident. This means that you must declare your worldwide income in Portugal and pay taxes according to the country’s tax system.

Income tax. Portugal’s income tax rates start at 13% and go up to 47.17%. However, there’s good news: you don’t pay tax on the first €12,180 you earn each year — this is known as the tax-free allowance.

To get a D7 Visa, you only need to show passive income of at least €10,440 per year. That’s less than the tax-free threshold. So, in some cases, you might legally pay 0% income tax.

Families can also benefit from low tax rates. Take a couple with one child — to qualify for the visa, their combined passive income must be at least €18,792 per year. Thanks to the tax-free allowance, their effective tax rate could be as low as 6.7%, which is about half the standard starting rate.

If you choose to live in Portugal’s island regions, you could pay even less: tax rates range from 11.6% in Madeira and 10.5% in the Azores.

Special tax regime. D7 Visa holders may qualify for certain tax benefits that can help reduce the amount of tax you pay. If you take up employment in specific qualified professions — particularly in areas such as scientific research, technology, innovation, and other fields that are considered strategic for Portugal’s economy — you may be eligible for a special flat tax rate of 20% on your Portuguese-sourced income.

Under this special tax regime, income earned outside of Portugal may be exempt from Portuguese taxation. The exact treatment depends on both the nature of the income and whether a relevant tax treaty is in place.

The Digital Nomad Visa allows remote workers and freelancers who earn income from abroad to legally live and work in Portugal. Unlike the D7 Visa, which targets passive income earners, this visa is designed for those with active income — whether employed by a foreign company, self-employed, or running an online business.

To qualify, applicants must show a monthly income of at least €3,480, proving that they can support themselves without relying on the Portuguese job market.

The Golden Visa is another popular alternative for obtaining legal residency in Portugal. It’s specifically designed for non-EU investors who are willing to contribute to the Portuguese economy.

To qualify, applicants must make an eligible investment starting from €250,000. This can include options such as:

• purchasing units of an investment fund;

• starting a business and creating jobs in Portugal;

• investing in scientific research or technological innovation;

• supporting the preservation of Portuguese cultural heritage.

One of the main attractions of the Golden Visa is its flexibility. Unlike other visa types, it does not require you to live in Portugal full-time. You only need to spend an average of 7 days per year in the country to maintain your residency status.

1. The D7 Visa suits non-EU citizens with stable passive income, like pensions, rent, or investments.

2. To meet the Portugal D7 visa requirements, you must demonstrate an annual income of at least €10,440, secure housing in Portugal, have valid health insurance, and provide a clean criminal record from your country of residence.

3. The D7 Visa leads to a 2-year residence permit, renewable for 3 years, with permanent residency or citizenship possible after 5 years.

4. Family members such as spouses, children under 21, and parents can join, and you all gain visa-free travel within the Schengen Area.

5. Unlike the Golden Visa, the D7 doesn’t require large investments, making it budget-friendly.