Portugal's D7 Visa
Portugal’s D7 Visa is going to be useful for many Britons seeking to spend more than 90 days in Portugal in 2021 onwards. It is categorised as a long-stay visa.
Unless any kind of extension/relaxation is made to the ’90 days in 180’ rule by the Portuguese government it will be the main mechanism for third-country citizens (the status of Britons post Brexit) including retirees and digital nomads.
The legal process is divided into two parts: the initial visa application in the country of origin, and obtaining your residency permit once you enter Portugal.
So how does it work? They first thing to note is that it is for non-working individuals - with a ‘passive’ ongoing source of income that is equal to or more than the Portuguese minimum wage (€750 per month).
This visa is also known as the ‘retirement’ and ‘passive income’ visa. It’s available to anyone who can prove they meet this minimum income requirement, which could take the form of a pension, salary from remote working for a company based in the UK, rental income or freelance work.
You are not permitted to work for a Portuguese company under this visa, so if you then get offered a job/professional activity within Portugal you would need to apply for a work permit after one year. Investigate the D2 Visa - the Immigrant Entrepreneur Visa - if you want to set up a business in Portugal.
With the D7 visa, unlike the golden visa, you do not need to invest in a property, but you do need to provide an address in Portugal, even if a long-term rental property.
Each member of a couple of family must apply for this, and on top of the main applicant’s income (see above), adult dependents will need to prove 50 per cent of this rate; with each child another 30 per cent each. You must also have private medical insurance.
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The D7 visa is an entry visa so is managed by SEF, the Immigration and Borders Service.
The application(s) must be started before you leave for Portugal, via the Portuguese Consulate in the UK (London, Manchester) and the application takes around 60 days to be approved. There is a non-returnable fee.
You can apply for a temporary D7 visa (which lasts four months), and once in Portugal, book an appointment with SEF who will approve your D7 visa. It might take longer to get an appointment for SEF in Lisbon or Porto.
Included in the documents needed for the application are your passport, proof of clean criminal record, proof of private medical policy, proof of income (bank statements).
Once you have received this visa, you can enter Portugal. Once you have also obtained your residency permit you will be able to access other Portugal residents’ rights, such as education, healthcare, social security. During the length of the visa you will have permanent free entry and circulation in the Schengen zone of 26 European countries.
The visa is valid for one year, after which it is renewable every two years. After five years, you can apply for permanent residency - subject to a language test - and then possibly citizenship. You do not give up your UK passport unless you become a Portuguese citizen.
If you stay over 183 days a year in Portugal, you will become a tax resident, and pay income tax on your worldwide income. You will have the option to become a non-habitual resident of Portugal for tax purposes - which means that pension and other sources of overseas sourced income income can be taxed at 10 per cent.
Find out more from the Consulates here:
