The D7 VS the Golden Visa VS the D2 – Which Portuguese Residency Visa is Right For You?

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Portugal’s Golden Visa is probably its most famous visa, but it’s definitely not the only residency visa that the country offers. Two other popular visas include the D7 and the D2.

All 3 allow you to live in Portugal, apply for NHR (Portugal’s popular tax regime), travel within the Schengen Area, and not only obtain permanent residency but Portuguese citizenship after 5 years. But they’re also all quite different and all aimed at different people.

So, what’s the difference between the D7, the Golden Visa, and the D2 and, more importantly, which one is right for you?

The Golden Visa

The Golden Visa is a visa and residency permit given to those that invest in Portugal. There are lots of different ways that you can invest in Portugal, from investing in the Portuguese arts and culture sector to buying into a venture capital fund, but the most common option is to buy a property here. An eligible property needs to cost €500,000 or more, but in some cases that’s reduced to €350,000 or even €280,000.

Pros

  • Only required to spend an average of 7 days per year in Portugal (although you can spend more if you want to).
  • 7-day residency requirement make it easy to maintain tax residency somewhere else.

Cons

  • High fees (€10k-15k per person).
  • High investment costs (€250k – €1,000,000).
  • Requires you to come to Portugal for biometrics & interview with SEF before your residency card is granted.

Essentially, the Golden Visa is aimed at those that want a pathway to permanent residency and Portuguese citizenship but don’t want to spend the majority of their time in Portugal. If you’re still working in another country, or plan to travel a lot, but want an “EU passport,” this could be the right visa for you.

Read more about the Golden Visa here.

The D7

The D7 is aimed at those that have their own income, particularly passive. It’s often called the passive income visa, but has also been referred to as the retirement visa and freelancer visa as well). For a person to be eligible, your income needs to be equal of greater than the Portuguese monthly minimum wage, which is around €700 per month.

Retirees are particularly successful in applying for this visa as a pension is seen as a stable, regular source of income. If your pension equates to more than €700 per month, you could be eligible for the D7.

Other sources of income that are accepted include income from rental properties, dividends, and a salary from a remote job (a job you can do online). Freelancers are often accepted on the visa as well although, because freelance work is less regular and reliable than say a pension, they don’t always get approved as easily.

Even though you are allowed to apply for jobs in Portugal while on the D7, the aim of this visa is to attract people that have their own income. Essentially, SEF is looking for people who are self-sufficient and who won’t become a burden on the state. For this reason, the higher your income is above the minimum threshold and the more reliable it is, the better chance you have of getting accepted.

Pros

  • No need to spend 500k on a property.
  • Much lower fees.
  • Not having to purchase a property (the most popular investment option) means you can rent and experience Portugal before making any big financial commitments.
  • Cheaper to bring spouse/partner and children than Golden Visa.

Cons

  • Not everyone can meet the own income requirements.
  • Requires you to live in Portugal for the majority of the year.
  • Requires to to be tax resident in Portugal.

The D7 is a type-1 visa aimed at those that have their own income and want to spend the majority of the year in Portugal. It doesn’t have the same flexibility as the Golden Visa, but it makes up for that with significantly cheaper fees.

Read more about the D7 here.

The D2

The D2 (sometimes called the entrepreneur or freelancer visa) is aimed at those who want to start a business in Portugal or relocate an existing business here. Entrepreneur visas are common in Europe, but the D2 is becoming popular because it has no minimum investment requirement (although around €5k of startup cash is recommended).

Although the D7 and the D2 both require you to meet certain income requirements, the D2 is often seen as harder as you have to submit a business plan for your proposed business. Whether or not it’s seen as good is somewhat subjective, but it is assessed based on its economic, social, scientific, technological, and cultural relevance.

Pros

  • An option for those that don’t have a source of stable passive income or a remote job.
  • Investment amount is minimal compared to Golden Visa and other European entrepreneur visas.
  • Cheaper to bring spouse/partner and children than Golden Visa.

Cons

  • Requires you to start a new business, which could be a big undertaking.
  • Suggested investment of around €5k essential.
  • Requires you to be tax resident in Portugal.
  • Requires you to live in Portugal for the majority of the year (unless your business requires you to travel).

This visa is really aimed at those that want to start a business in Portugal, and so isn’t ideal for investors or those with a pension.

Read more about the D2 here.

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8 thoughts on “The D7 VS the Golden Visa VS the D2 – Which Portuguese Residency Visa is Right For You?”

  1. What visa would be applicable for a family of four where the wife runs a successful online coaching business, and the husband is a stay at home dad that aides in his wife’s business unofficially and doesn’t earn any income outside of this arrangement.

    Reply
    • Hi AJ,

      Probably the D2, although I’ll get a lawyer to confirm whether that’s the better option than the D7 in this instance.

      On either the D2 or D7, you can add other family members to the application. The main applicant needs to meet the requirements (typically around €700 per month but more better) + 50% for a spouse or partner and 30% of that for each child.

      It might also be good to speak to an accountant once you get here to make sure the unofficial husband employee is still the best setup.

      Reply
  2. Hi there, is there any way of living in Portugal for 1 year + but not being a tax resident? I have a business in the UK and will be working remotely in Portugal, my primary residence will be in Portugal but I don’t want to be double taxed in both the UK and Portugal. Is there a visa for this? Does it tie in with the NHR programme? Thanks.

    Reply
    • Hi Jon,

      I don’t think so. If someone moved to the UK, they’d also have to pay taxes there.

      If you do become resident in Portugal, and aren’t considered resident in the UK anymore (you need to check their residency test), you likely won’t pay taxes in both countries. There are double taxation agreements to prevent that. NHR is a separate thing, but can also help.

      Reply
  3. I have a retirement salary of about 1200 Euro. Is It Ok to ask for a D7 visa for me and my wife? I have some investments in my country, is It neccesary to move these investments to Portugal?. Thanks a lot in advance

    Reply
    • Hi Edgard,

      The minimum amounts for the D7 is around €700-800 per month for the main applicant and another 50% of that for a spouse, so it would be cutting is a bit close but possible. Besides qualifying for the visa, I think you should also take into account the cost of living here. €1200 for two people would doable if you own a house but if you’re renting as well, there won’t be a lot of money leftover.

      As for the investments, it depends and it’s really hard to say as just saying investments is a bit vague, but you probably won’t have to move them here. It’s possible that by moving to Portugal you would have to pay taxes on them here however rather than in that country.

      Reply
  4. When buying property for 500k euro for Golden Visa purposes, can that property be mortgaged or do you need to pay the full amount in cash?

    Reply
    • Not really.

      If the threshold is €500k, that has to be paid in cash. If the property costs €600k, you can take a mortgage for €100k on the difference.

      Hope that makes sense.

      Reply

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