The passive income visa (also known as “Type I Visa” or “D7 Visa”) is a residence permit that can be applied for by a third-country citizen who intends to relocate to Portugal and has a reasonable net regular passive income. The subsequent residence permit does not preclude the holder from having a professional activity in Portugal and it therefore is generally the best alternative to the Golden Visa for someone who actually intends to live in Portugal.
The application for this type of permit must be preceded by a special residence visa applied for at a Portuguese Consulate by the main applicant. Once this visa is obtained, the main applicant should then apply in Portugal for the residence permit. Once this is issued, his/her immediate family members become also entitled to residence permits under the “family reunification” rules, with no need for them to previously apply for the special visa (i.e. they may enter Portugal as tourists), although they may do so.
The residence permit must be renewed at the end of the first year and then every two years. Subject to passing a language test of “basic Portuguese”, the holder of a residence permit may apply for permanent residency or citizenship at the end of 5 years.
- Opening a banking account in Portugal
- Securing long-term accommodation in Portugal (by either buying, renting or borrowing a property)
- Health insurance policy in case you bought it in Portugal
- Is considerably faster and less costly to obtain than a Golden Visa
- Permanent free entry and circulation in the Schengen Space, comprising 26 European countries.
- Freedom to live in Portugal and, if so wished, to have a professional activity in this country.
- Option to become a “non-habitual resident” of Portugal for tax purposes (little or no tax for 10 years on most foreign-source income).
- Access to other Portugal residents’ rights, such as education, recognition of diplomas and qualifications, healthcare, social security, trade union protection, the law and the courts of law.
Relevant contacts of the Portuguese Immigration and Borders Service (SEF) can be accessed here: https://www.sef.pt/en/Pages/sea-contacts.aspx