How can you retire in Europe with Portugal's passive income D7 visa?

Highlights: How to plan your retirement in Europe with Portugal’s passive income D7 visa?

• Portugal D7 visa allows retirement plans in the Europe for applicants meeting passive income requirements.
• The spouse can be added to the application if the passive income requirement goes up by 50%.
• The income stream for the Portugal D7 visa depends on the applicant’s cost of living and lifestyle needs.
• Applicants must secure proof of accommodation in Portugal to be eligible for the D7 Visa.

 

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Portugal Passive Income Visa

The Portugal D7 Passive Income Visa can help you plan your retirement outside India. With a Portugal D7 visa, you can obtain residency in Portugal upon meeting passive income requirements.

 

The passive income requirement is based on the minimum wages offered to workers in Portugal. The source of income can be from various streams, such as pensions, rentals, dividends, or interest income.

 

What are the financial requirements for a Portugal D7 Visa?

The minimum wage in Portugal is set at €820 per month as of 2024. The minimum passive income requirement for D7 Visa applicants is €1000 per month as the minimum wage keeps changing. The annual income requirement for a D7 visa is €12,000.

 

The income requirement would increase by 50% for candidates applying with their spouses. The total passive income requirement for a couple would, therefore, be €1,500 per month or €18,000 annually.

 

The income requirement will further increase if you are applying with a minor or adult dependent. The income stream for the Portugal D7 visa may be higher depending on your cost of living and lifestyle needs. A higher income stream adds more weight to the D7 visa application.

 

Things to know before you apply for the D7 Visa

The Portugal D7 Visa can be applied via the Portugal Embassy. An application fee of €90 is charged for a single adult applicant.

 

 The following are the requirements to apply for a Portugal D7 Visa:

 

• A Portuguese lawyer to help you obtain a taxpayer identification number (NIF) in Portugal
• A Portuguese Bank Account with a minimum deposit of €12,000 if applying as a single applicant as per current wages
• Proof of accommodation in Portugal

 

The proof of accommodation can be obtained by taking a property on lease for at least 12 months or by signing a 'term of responsibility' with a local friend or relative in Portugal. The 'term of responsibility' must state that the person is willing to provide you accommodation for at least 12 months.

 

You would be given a four-month double-entry visa to Portugal upon approval. You must migrate to Portugal and apply for the final D7 residence visa by registering your biometrics and other documents.

 

Applicants must schedule an appointment with the Agency for Integration, Migration and Asylum (AIMA) for biometrics and visa interviews within four months of their arrival in the country. The documents to be carried to the AIMA include:

 

• Proof of passive income
• Accommodation details
• Police clearance certificate
• Health Insurance details
• Valid and original passport

 

What is the minimum stay requirement for the D7 Visa?

The minimum stay requirement for a D7 visa is 16 months, even though it is issued for a period of two years. A D7 visa holder must stay in Portugal for six consecutive months or 8 months in total.

 

After the initial two years, the visa can be renewed for three years. The minimum stay requirement for a renewed visa holder is 28 months. The visa holder has to stay in the country for a total of eight months or six months consecutively in this three-year period.

 

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Can I work on a Portugal D7 visa?

The Portugal D7 visa is usually issued to financially independent individuals who can support themselves without taking up employment in Portugal. Therefore, you are not allowed to work for a local Portuguese company on a D7 visa.

 

Note: You can work for Portuguese companies only after obtaining permanent residency in Portugal.

 

Can I apply for permanent residency or Citizenship on a D7 visa?

You can apply for Portugal permanent residency or Citizenship after completing five years of legal residence on a D7 visa. Besides residency rights, the D7 visa allows visa-free travel to 29 European countries across the Schengen Area.

 

The Portugal Citizenship offers easy access to the European Union. The Portugal passport allows you to live and work freely across the Schengen Area, along with visa-free travel or visa-on-arrival access to 188 countries.

 

What are the tax implications of a D7 visa?

India has a Double Taxation Avoidance Agreement (DTAA) with Portugal which enables NRIs to avoid paying double taxes on their income from their home country as well as their country of current residence. However, if your source of income does not fall under schemes approved by the DTAA, then you will get taxed as per Portugal taxation.

 

Who should apply for the D7 visa?

According to a Mumbai-based chartered accountant named Paresh Karia, the D7 Visa programme is suitable for traditional investors or senior professionals with rental income and real estate investments who are willing to relocate to Portugal in spite of the high income requirements.

 

Heavy equity investors or retired corporate officials who draw a significant dividend income from the stock market can also apply for the D7 visa program.

 

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