Portugal D7 Visa: The Untold Realities Not Often Discussed on the Internet

The Portugal D7 Visa is a residence visa specifically designed for passive income holders and retirees, allowing applicants to live long-term in Portugal. Unlike people planning to move to Portugal with investment or active commercial activities, the D7 visa is primarily aimed at individuals with regular and passive income.

Although it is based on laws and regulations, there are some important facts about the D7 visa that are not widely known on the internet and play a crucial role in the application process. Here are some of those key facts:

Legal Foundations of the D7 Visa:

• Lei n.º 23/2007 (Foreigners Law)

• Decreto Regulamentar n. º 84/2007

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This legal framework defines Portugal's D7 visa as a residence right for retirees and those with passive income, such as rental income or investment earnings.

1. Minimum Wage Level Income May Not Be Considered Sufficient

The laws for the D7 visa state that the applicant’s annual income must be equivalent to 12 times the Portuguese minimum wage (gross minimum wage for 12 months). However, according to Article 25/d of Decreto Regulamentar n. º 84/2007, consulates and SEF (AIMA) have discretionary power regarding the sufficiency of this amount.

What does this mean? While the official minimum wage is used as a threshold, in regions of Portugal with high living costs (such as Lisbon, Porto), this amount may be deemed insufficient. Based on our extensive experience, declaring a regular passive income at least 1.5 times the minimum wage increases the likelihood of a positive outcome for the application.

2. Strict Distinction Between Passive and Active Income

The D7 visa does not accept active income (freelance work, project-based freelance activities, etc.) under any circumstances. According to Portuguese regulations, only passive income sources (such as pensions, rental income, dividends, bond, or investment earnings) are considered valid.

There are frequent misunderstandings regarding this matter. Regardless of how high your active income is, the D7 visa only takes passive income types into account. If you have active income sources, you will need to consider another residence permit option, such as the D8 (Digital Nomad) visa.

3. Rental Contract is Not Initially Required for Applications from Turkey

Another common misconception is that applicants from Turkey must present a 12-month rental contract during the application process. However, this is not required. The rental contract only becomes mandatory after receiving the visa approval, when entering Portugal, and during the AIMA appointment.

However, even if you do not have a good rental contract in your application file, it may be helpful to have one ready to ensure a smooth process during the AIMA appointment after visa approval.

4. You Have the Right to Work with a D7 Residence Permit

Although the D7 application is aimed at passive income holders, once you obtain the residence permit after settling in Portugal, you gain the right to work.

According to Article 83 of Lei n. º 23/2007, foreigners with a valid residence permit can work or engage in freelance activities in Portugal without requiring an additional work permit.

This is an advantage for many applicants who wish to continue their careers after moving to Portugal under the D7 visa.

5. Increased Income Requirement for Family Members

You can include your spouse and children in the D7 visa application. However, the minimum income requirement increases for each dependent family member:

• For a spouse, an additional 50% of the annual minimum wage is required.

• For each child, an additional 30% of the income must be declared.

For example, for a family of three, the minimum income requirement is calculated to be much higher than for an individual applicant.

Conclusion:

The Portugal D7 visa is an attractive opportunity for individuals with passive income and retirees. However, the application criteria may be stricter in practice than what is written in the books. It is crucial to ensure the income type is passive, meet the minimum income requirement, and manage the post-application process correctly.

To avoid wasting time and resources, it is recommended to consult a professional advisor to solidify your financial and legal conditions.

Frequently Asked Questions (FAQs)

1.    Can I work full-time in Portugal with the D7 visa?

Yes. Although the D7 visa is mainly for passive income holders, once your residence permit is approved, you can work or engage in freelance activities in Portugal without needing an additional work permit.

2.    Can I apply for the D7 visa with freelance or self-employed income? 

No. Portuguese regulations strictly distinguish between active and passive income. The D7 visa is intended only for those with passive income (such as pensions, rental income, investment income, etc.). Active income sources are not considered for D7 applications. Freelancers or remote workers should consider the D9 (Digital Nomad) visa. This visa grants the right to reside in the country for over a year, offering various advantages like access to the healthcare system and the option for family reunification.

3.    Is it required to present a rental contract in Portugal when applying from Turkey?

No. When applying from Turkey, you are not required to present a 12-month rental contract during the application phase. However, after receiving the visa approval and entering Portugal, presenting the rental contract during the AIMA (Immigration Office) appointment will be mandatory.

4.    Do I have to open a bank account in Portugal?

A Portuguese bank account is not mandatory during the application phase. However, opening an account in Portugal and transferring savings or income into it can help improve the chances of a positive evaluation and make the AIMA process easier. We complete this process for our clients before submitting the visa application.

5.    Can I bring my family with me on the D7 visa?

Yes. You can include your spouse and children in your D7 visa application. However, additional income requirements apply for each dependent (50% of the minimum wage for a spouse, 30% for each child).

6.    When can I apply for citizenship with the Portugal D7 visa? 

After living in Portugal for 5 continuous years with the D7 residence permit, meeting language proficiency (usually at the A2 level in Portuguese), and fulfilling integration conditions, you become eligible to apply for citizenship. However, this is not an automatic right but an application right. When the application conditions, such as minimum stay periods, language proficiency, and a clean criminal record, are met, your citizenship application will be approved when the time comes.

7.    Can I open my Portuguese bank account before coming to Portugal?

Yes. It is possible to open your bank account in Portugal without being physically present in the country. This process can be completed remotely through your authorized lawyers.

Although opening a bank account in Portugal is not mandatory during the application stage, transferring an amount equivalent to the annual minimum wage into your Portuguese account increases the chances of your application being positively evaluated and sends a strong signal to the Portuguese authorities regarding the seriousness and financial preparedness of your application.