D7 vs Golden Visa in Portugal: which one is better?

The D7 visa is also known as the Passive Income Visa. It is issued to financially independent foreigners who can prove a monthly passive income from sources outside Portugal. Starting on January 1st, 2024, the minimum income rises from €760 to €820 a month.

This program is not suitable for digital nomads, as their income is not considered passive. For them, Portugal launched a Digital Nomad Visa.

The Portugal Golden Visa is an opportunity to obtain a residence permit in the country by investment. The minimum investment is €250,000 for a donation to restore cultural heritage and support the arts. Alternatively, one can invest at least €500,000 in investment fund units, research activities, or business. The latter option allows applicants to return their money in 6—10 years.

Buying real estate is no longer an option to participate in the program after the recent law changes.

1. Application procedure

Applying for a Passive Income Visa is a more complicated process. Even before applying at the Portuguese Consulate in your home country, you will need to obtain your Portuguese taxpayer number, bank account, and accommodation in Portugal. After receiving a visa for an initial four-month term, the applicant needs to travel to Portugal to apply for a residence permit.

The process of obtaining the Golden Visa is a bit simpler, as there’s no need for investors to provide proof of accommodation. The application could be submitted after making the required investment. The procedure can be done remotely, except for a short trip to Portugal to open a bank account at a local bank.

2. Stay requirement

The D7 visa holders get residence permits valid for 2 years and are required to reside in Portugal for at least 1.5 years in a row or 16 months in total within these 2 years to be eligible for residence permit renewal.

Three years later, they can apply for permanent residence or citizenship if they still live in the country for the required amount of time.

The rules are not so stringent for Golden Visa holders. They only need to spend 7 days a year in Portugal to maintain residency, and they are also eligible for permanent residence or citizenship after five years.

3. Proof of income or investment

As mentioned above, D7 visa applicants need to prove a legal regular passive income of at least €820 per month. Passive income can be of any nature, including intellectual property income, dividends, interest, property rental, or pension.

At the same time, they are not required to make any investment in the Portuguese economy, apart from buying or renting residential property. That’s not the case for Golden Visa applicants, who need to invest at least €250,000 but aren’t required to provide any proof of income.

4. Tax requirements

As D7 visa holders are required to reside mostly in Portugal, which might lead to becoming tax residents in the country.

The holders of the Portugal Golden Visa aren’t required to move to Portugal immediately. In that case, they would only need to pay taxes on local sources of income.

5. Fees

The cost of D7 visa issuance is significantly lower. The applicants only need to pay €90 for the visa application per family member and €155 for the residence permit card. For the Golden Visa applicants, the fees are €605 and €6,045, respectively.

Receiving a D7 visa can be a completely remote procedure. After that, the applicant will need to travel to Portugal for a residence permit:

1. Preliminary Due Diligence (1 day). Immigrant Invest’s Compliance Department checks the client against international legal and criminal databases to establish that the applicant will be eligible for the visa. The confidential procedure reduces the risk of rejection to 1%.

2. Getting a Portuguese Taxpayer Number (up to 5 days). The taxpayer number (NIF) is necessary to open a bank account and purchase or rent housing in Portugal. The procedure is remote for the applicant.

3. Opening a bank account in Portugal (2+ weeks). The applicant provides the taxpayer number, the passport, and proof of the legal origin of the funds. This procedure is also remote.

4. Buying or renting housing (up to 2 months). The applicant chooses the property options provided by the real estate experts. This process can be remote as well, but the client can also travel to Portugal to see the property in person.

5. Applying for a D7 visa (up to 4 months). Immigrant Invest lawyers help the client collect all the necessary documents for the application, including:

• an international passport;

• a medical insurance policy;

• two colour photos;

• a police clearance certificate;

• proof of accommodation;

• marriage or birth certificates for family members;

• a Portuguese bank statement;

• a NIF registration certificate.

6. Visiting Portugal with the D7 visa (1 day). The visa is issued within 60 days of the application date. It is valid for 4 months, during which the applicant must travel to Portugal to apply for a residence permit at an immigration office.

7. Applying for a residence permit (1 day). Immigrant Invest book an appointment for their client, with our representative accompanying them to the immigration office.

8. Receiving a residence permit card (2+ weeks). The card is sent to the applicant’s registered address in Portugal. It is valid for two years and can be renewed for three years if the applicant remains in compliance with the terms of the program.

The D7 visa will not be renewed if the holder fails to meet the residence requirement. Fortunately, they will be able to apply for the Golden Visa on the usual terms.

Both the Passive Income Visa and the Golden Visa offer a path towards Portuguese citizenship within five years.

In both cases, it starts with an initial residence permit for two years. The D7 visa holders will be eligible to renew it for three years if they reside in Portugal for 1.5 years in a row or 16 months in total under the previous 2-year permit.

Obtaining permanent residence or citizenship after a three-year residence permit requires to spend in Portugal 2.5 years in a row or 28 months in total within 3 years.

The Golden Visa can be renewed for two years, meaning that its holders need to update it twice. They don’t need to permanently reside in Portugal throughout this period, with the minimum stay requirement set at just 7 days a year.

1. The D7 visa, or Passive Income Visa, requires proof of accommodation and a legal passive income of at least €820 per month, as well as a permanent residence in Portugal for 1.5 years in a row or 16 months in total within two years if the applicant wants to renew the residence permit. After receiving the D7 visa in their home country, the applicants travel to Portugal to apply for a residence permit there.

2. The Portugal Golden Visa can be obtained through a minimum investment of €250,000. The whole procedure is remote, except for a short trip to open a local bank account. They are not required to be present in the country for more than seven days a year to retain their residence permit.

3. The D7 visa holders become tax residents in Portugal if they maintain their stay requirements. Investors who receive the Golden Visa, however, are not obliged to be tax residents in the country.

4. Both programs offer a path towards obtaining Portuguese citizenship five years after obtaining the initial residence permit.