Portugal Golden Visa vs D7 Visa

Portugal Golden Visa vs D7 Visa

Portugal offers two popular residency options: the Golden Visa and the D7 Visa. Both provide a pathway to residency, but they cater to different types of applicants. The Golden Visa is for investors, while the D7 Visa is for financially independent individuals. Understanding the key differences helps in choosing the right option. Both visas lead to permanent residency and citizenship, but the requirements and benefits vary.

Alina Mishurenko, editor-in-chief, content creator, Investment Programs Expert at Immigrant Invest, explains Portugal D7 Visa compared to the Golden one.

What Is Portugal Golden Visa

Portugal Golden Visa Program allows non-EU citizens to obtain residency by investment. It is designed for those willing to invest in the country’s economy through real estate, investment funds, or business creation.

Investment options. Applicants must make a qualifying investment, such as:

• Investing at least €500,000 in investment funds;
• Contributing €250,000 to cultural or heritage preservation;
• Investing at least €500,000 in scientific research;
• Creating ten jobs for Portuguese citizens;
• Making a capital transfer of at least €1.5 million.

Residency requirements. The program offers a flexible residency requirement, with only seven days of physical presence per year. This makes it an attractive option for those who do not want to relocate permanently but want to retain the benefits of Portuguese residency.

Path to citizenship. After five years, Golden Visa holders can apply for permanent residency or citizenship, provided they meet basic requirements such as language proficiency. The process does not require full-time residency, making it ideal for global investors and entrepreneurs.

What Is Portugal D7 Visa

Residency for passive income earners. The D7 Visa is for financially independent individuals who can sustain themselves without working in Portugal. It suits retirees and those with passive income from pensions, rental properties, or dividends.

Income requirements. The applicant must demonstrate stable passive income of at least:

• €10,440 for a single applicant;
• €5,220 for a spouse or parent;
• €3,132 for a child.

Residency requirements. Unlike the Golden Visa, D7 Visa holders must spend at least six consecutive months in Portugal each year. This requirement ensures that applicants genuinely integrate into the country, making it a suitable option for those looking to establish long-term residence.

Path to citizenship. After five years, D7 Visa holders can apply for permanent residency or citizenship, subject to language and integration requirements. Since the D7 Visa requires actual residence in Portugal, applicants have a smoother path to meeting citizenship requirements.

Key Differences Between Portugal Golden Visa and D7 Visa

1. Eligibility criteria:

• the Golden Visa requires an investment in Portugal;
• the D7 Visa requires proof of passive income.

2. Residency requirements:

• the Golden Visa requires only seven days per year in Portugal;
• the D7 Visa requires at least six consecutive months of stay.

3. Financial commitment:

• the Golden Visa involves a minimum investment of €250,000;
• the D7 Visa requires proof of stable passive income without investment.

4. Work rights:

• Golden Visa holders can work in Portugal;
• D7 Visa holders can work or run a business.

5. Tax implications:

• Golden Visa holders can maintain non-resident tax status if they live outside Portugal;
• D7 Visa holders must become tax residents, which may require paying taxes on worldwide income.

6. Citizenship path:

• both visas offer a path to citizenship after five years;
• the D7 Visa requires more physical presence in Portugal.

7. Cost of application:

• the Golden Visa has high processing and investment costs;
• the D7 Visa has significantly lower fees.

8. Family reunification:

• both visas allow family members to apply for residency;
• dependents must meet financial or education requirements.

9. Suitable candidates:

• the Golden Visa is ideal for investors and business owners;
• the D7 Visa is best for retirees and remote workers with stable income.

How to Apply for Portugal Passive Income Visa

1. Meet income requirements. Provide proof of stable passive income that meets the minimum threshold.
2. Obtain health insurance. Private health insurance covering Portugal is mandatory.
3. Secure accommodation. Present proof of residence, such as a rental agreement or property ownership.
4. Submit application. Apply through the Portuguese consulate in the applicant’s home country.
5. Attend an interview. Portuguese authorities assess the applicant’s financial stability and ties to Portugal.
6. Receive residence permit. If approved, the applicant receives a one-year residence permit, renewable for two years at a time. The ability to renew depends on compliance with residency requirements.

How to Apply for Portugal Residence by Investment

1. Choose an investment option. Select a qualifying investment, such as real estate, investment funds, or business creation.
2. Obtain a tax identification number. A Portuguese tax number is required to complete financial transactions.
3. Open a Portuguese bank account. The investment must be made from a Portuguese bank account.
4. Make the investment. Provide proof of investment before applying.
5. Submit application. Apply through AIMA, Agency for Integration, Migrations and Asylum of Portugal.
6. Attend a biometrics appointment. After pre-approval, applicants provide biometric data.
7. Receive residence permit. If approved, a residence permit valid for two years is issued, renewable for three more years.

7 Benefits of Living in Portugal

1. High quality of life. Portugal offers a warm climate, beautiful landscapes, and a relaxed lifestyle.
2. Affordable living costs. Compared to other Western European countries, Portugal has a lower cost of living.
3. Access to EU benefits. Residents can travel visa-free across the Schengen Zone.
4. Business-friendly environment. Portugal supports entrepreneurs with various incentives and business programs.
5. Safety and security. Portugal consistently ranks as one of the safest countries in the world.
6. Education opportunities. The country has international schools and reputable universities.
7. Path to citizenship. Both the Golden Visa and D7 Visa lead to Portuguese citizenship after five years.

Conclusion

Both the Portugal Golden Visa and D7 Visa provide residency options, but they serve different needs. The Golden Visa is best for investors who prefer minimal residency requirements, while the D7 Visa is suitable for retirees and passive income earners willing to stay in Portugal longer. Understanding the key differences helps in making the right choice.

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Sara Essop is a travel blogger and writer based in South Africa. She writes about family travel and experiences around the world. Although she has been to 50 countries thus far, she especially loves showcasing her beautiful country and is a certified South Africa Specialist.