If you are considering retiring in Portugal or living there as a digital nomad, you may want to explore the Portugal Passive Income Visa (D7) or the Portugal Digital Nomad Visa (D8). Both visa options allow you to enjoy Portugal’s beautiful landscapes, access the Schengen area, and potentially become a Portuguese citizen.

In this comprehensive guide, we will explore a detailed comparison of the D7 and D8 Visa, covering essential aspects such as:

What is the D7 Portugal Visa?

The Portugal D7 Visa is for non-EU/EEA and non-Swiss citizens wishing to establish residency in Portugal. Also known as the Portugal Retirement Visa, it is designed for individuals who can demonstrate a stable source of passive income, which must come from abroad, such as pensions, rental income, or investments, rather than from employment within Portugal.

The primary advantage of the D7 Visa is that it provides a pathway from temporary to permanent residency in Portugal for those who meet the income requirements. By offering this option, Portugal aims to attract retirees and individuals with secure financial resources who seek to enjoy the country’s high quality of life, low cost of living, and scenic beauty.

What is the D8 Visa Portugal?

The D8 Visa, also known as the Portugal Digital Nomad Visa, is a residency permit introduced to accommodate remote workers and digital nomads who wish to live in Portugal while maintaining employment or business activities abroad.

Unlike other visa types, the D8 Visa is tailored for non-EU/EEA and non-Swiss citizens who work remotely for companies outside Portugal or run their own businesses. The D8 Visa Portugal provides a unique opportunity for digital nomads and remote workers to settle in Portugal temporarily, with the possibility of extending their stay or transitioning to permanent residency. To qualify, applicants must demonstrate that they have a reliable source of income and that their work does not involve employment within Portugal.

Key Considerations

D7 Visa Portugal

D8 Visa Portugal

Target applicants

Retirees, individuals with passive income

Remote workers, freelancers, self-employed individuals

Income Source

Passive income from investments, pensions, or property rentals

Active remote work income or freelance earnings

Minimum Income Requirement

€870 per month

€3,480 per month

Proof of Income

Documentation of passive income sources

Contracts, invoices, and bank statements showing active income

Visa duration

Visa is valid for four months, but converted to a 2-year residency permit

Up to 1 year with possibility of renewable

Processing time

Applications take up to 60 days, provided all required documents are submitted.

Applications take up to 60 days, depending on the country where the application is made.

Work Restrictions

Permits work for non-Portuguese companies

Must be self-employed or working remotely for a non-Portuguese company.

Eligibility Comparison for D7 vs Digital Nomad Visa

D7 Visa eligibility criteria

  1. digital nomad visa remote workers digital nomads long term application process intellectual property birth certificates rental properties business plan intellectual property private health insurance real estate minimum wage schengen area rental income average monthly income active income minimum passive income varies digital nomad visa portugal valid passport minimum passive income social security contributions digital nomad village non habitual resident national visas european country income requirements allowing remote workers clean criminal record necessary documents permanent residence other household adults social security education systems household adults residence card major decisions income of at least stay in portugal higher income requirement stay requirement citizenship reside in portugal pensions royalties companies portuguese tax valid for 4 months five years citizenship after 5 years visa requirements non habitual integration minimum residence visa pensioners note investors contract invest three years employer difference person job active savings vary clients advantages challenging lawyer extended suitable innovation expected number arrange visit article 4 months choosing join 3 months understand leave similar issued questions enjoy recommended holding books order ready perfect way residence permit portuguese minimum wage portugal digital nomad visa active income portuguese consulate d7 visa bank statements portuguese citizenship valid passport tax considerations required documents family reunification visa application eligibility criteria d7 passive income visa employment contract remote work visa types provide evidence police clearance individual circumstances recent utility bill self employed long term residency live in portugal non eu eea multiple entries work locally non eu accommodation in portugal five years citizenship after 5 years 8 non consecutive months per month visas allow four months 6 consecutive months 2 years application process remote workers digital nomads long term digital nomad visaStable Passive Income: Applicants must prove a steady source of passive income, such as pensions, rental income, or dividends, sufficient to cover living expenses in Portugal.
  2. Minimum Income Requirement: Applicants need to show an income equal to or above the Portuguese minimum wage of €870.
  3. Proof of Accommodation: Evidence of suitable accommodation in Portugal is required. This can be a rental agreement, property ownership documents, or a host’s letter.
  4. Health Insurance: Valid health insurance covering medical needs in Portugal must be provided. It should meet Portuguese standards.
  5. Criminal Record Check: A clean criminal record from the applicant’s home country or recent country of residence is needed to ensure good character.

Digital Nomad Visa eligibility criteria

  1. Stable Remote Income: Show a reliable income from remote work or freelance activities to support their stay in Portugal.
  2. Minimum Income Requirement: A monthly income equal to or more than €3,480 is required.
  3. Proof of Accommodation: Evidence of accommodation in Portugal is necessary. This can include a rental agreement, property ownership, or a host’s letter confirming your address.
  4. Health Insurance: Valid health insurance that covers you in Portugal must be provided
  5. Criminal Record Check: A clean criminal record from your home country or recent country of residence.

Required Documents for D7 vs D8 Visa

e2 visa document checklist average monthly income active income minimum passive income varies digital nomad visa portugal valid passport minimum passive income social security contributions digital nomad village non habitual resident national visas european country income requirements allowing remote workers clean criminal record necessary documents permanent residence other household adults social security education systems household adults residence card major decisions income of at least stay in portugal higher income requirement stay requirement citizenship reside in portugal pensions royalties companies portuguese tax valid for 4 months five years citizenship after 5 years visa requirements non habitual integration minimum residence visa pensioners note investors contract invest three years employer difference person job active savings vary clients advantages challenging lawyer extended suitable innovation expected number arrange visit article 4 months choosing join 3 months understand leave similar issued questions enjoy recommended holding books order ready perfect way portuguese minimum wage portuguese tax identification number portugal passive income visa portuguese consulate bank statements investment income portuguese digital nomad visa steady passive income tax considerations medical insurance payments underage and dependent children western european countries tax advantages initially valid tax obligations visa application visa expires minimum wage sufficient funds long term visa holders d7 passive income visa minimum threshold employment contract demonstrate income non eu citizens bring family members non eu nationals visa options permanent contract borders service independent professional non eu countries visa types provide evidence individual circumstances recent utility bill self employed long term residency key points comprehensive guide rented properties apply for permanent residency multiple entries other expenses Although the income requirements differ, the documents required for the D7 and the D8 are the same.

Proof of Income: For the D7, documentation such as bank statements, pension statements, or rental agreements showing stable and adequate income. For the D8, documents such as contracts, bank statements, or invoices showing a stable and sufficient income from remote work.

Accommodation Proof: A rental contract, property ownership documents, or a host’s confirmation letter indicating the address and suitability of accommodation.

Health Insurance Policy: A valid health insurance policy covering the applicant in Portugal, meeting local requirements.

Criminal Record Certificate: An official certificate or police clearance from the applicant’s home country, translated into Portuguese if necessary.

Valid Passport: A passport with at least six months’ validity beyond the intended stay in Portugal and enough blank pages.

Completed Application Form: The completed D7 Visa or D8 Visa application form with personal details, proof of payment, and other information that may be required for the Portuguese consulate.

Discover more details about the D8 Visa Portugal

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Application Process Compared for D7 vs Digital Nomad Visa

D7 Visa application process

  1. Gather Documentation: Prepare all required documents, ensuring they are up-to-date and meet Portuguese standards.
  2. Submit Application: Submit the application form and documents to the Portuguese consulate or embassy in your home country.
  3. Attend an Interview: An interview at the consulate may be needed to discuss your application and clarify any details.
  4. Processing Time: The processing time can range from several weeks to a few months, during which your application will be reviewed.
  5. Receive Visa: If approved, you’ll receive the D7 Visa to enter Portugal. Schedule an appointment with AIMA upon arrival to finalize your residency permit.

Digital Nomad Visa application process

  1. Gather all required documents and submit the application
  2. Attending an interview at the consulate may be required
  3. Processing time: Processing times typically range from a few weeks to a couple of months, during which your application will be reviewed.
  4. Receive visa: If approved, you’ll receive the D8 Visa to enter Portugal. Schedule an appointment with AIMA upon arrival to finalize your residency permit.

Tax Implications for D7 and D8 Visa Holders

For D7 Visa Holders

Previously, the Non-Habitual Resident (NHR) regime offered substantial tax benefits to new residents, including favorable rates on specific income types and exemptions on foreign income.

However, since the Portugal NHR ending and a transitional regime now in effect, new applicants who did not secure their NHR status but qualify, may do so until 31 March 2025 if they meet specific requirements.

Therefore, D7 visa holders are now subject to Portugal’s standard income tax rates, which are progressive and range from 14.5% to 48%, depending on income levels. This change means all income from pensions, investments, or other passive sources will be taxed according to these standard rates.

D7 visa holders also typically do not have social security obligations unless they engage in business activities or self-employment. However, those involved in any form of active work must contribute accordingly.

For D8 Visa holders

The cessation of the NHR regime also affects D8 visa holders, who often work remotely or freelance. Under the former NHR regime, they benefited from reduced tax rates on certain types of income and exemptions on foreign-sourced income.

With the new regulations, D8 visa holders are subject to Portugal’s progressive tax rates, like D7 holders. Income tax now ranges from 14.5% to 48% based on the total income earned from Portuguese and international sources.

D8 visa holders must contribute to Portugal’s social security system based on their income from remote work or freelance activities. These contributions are mandatory and are calculated based on the income reported, covering health, retirement, and other social benefits.

Here’s everything you need to know about residency in Portugal

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D7 Passive Income Visa vs the D8 Digital Nomad Visa: Which One is Better?

passive income visa d8 visa portuguese bank account bank account family reunification monthly income temporary stay visa remote work country spouse retirees valid visa free entrepreneurs expats average visas allow period pay january cities entries card type open higher taking places digital nomad tax benefits passive income visa d8 visa portuguese bank account bank account family reunification monthly income temporary stay visa remote work country spouse retirees valid visa free entrepreneurs expats average visas allow period pay january cities entries card type open higher taking places tax resident dependent children portuguese citizenship schengen countries remote workers and freelancers long term visa non eu eea non consecutive months dividends passport lifestyle visa caters outside portugal validity renewable consecutive months or 8 services appointment 8 non consecutive months two years reside age consulate per month relocating funds eligible language renewed parents path 6 consecutive months education rent procedure months or 8 non employed 90 days package adult one year 2 years 3 years caters designed choice madeira decision couple things offering find start experiences passive income visa d8 visa portuguese bank account bank account family reunification monthly income temporary stay visa remote work country spouse retirees valid visa free entrepreneurs expats average visas allow period pay january cities entries card type open higher taking placesChoosing between Portugal’s D7 Passive Income Visa and the D8 Digital Nomad Visa depends on your income sources and lifestyle preferences. The D7 Visa requires a stable, passive income to support yourself.

While not necessary, work is permitted for D8 holders, but they must prove they have the minimum required passive income.

The D8 Visa is ideal for those with investments or retirement funds. It requires proof of active income from remote work and has a minimum monthly threshold of approximately €3,480.

The purpose of both visas is also different. The D7 Visa is ideal for retirees or individuals with stable passive income, allowing them to live in Portugal without engaging in local employment.

In contrast, the D8 Visa is tailored for digital nomads or remote workers. This option is better for those seeking employment flexibility while living in Portugal.

According to our Global Intelligence Unit’s report on digital nomads, Portugal ranked 7th, thanks in part to the longevity of the visa, as with other countries.

Of the 65 jurisdictions researched, three grant direct access to citizenship for time spent as digital nomads (Spain, the Netherlands and Czechia), while 15 offer pathways to permanent residency, paving the way to eventual citizenship. This is particularly relevant for individuals from countries with weaker passports, as they can use digital nomadism as a strategy to acquire a second citizenship and enhance their international mobility. – Global Intelligence Unit, Global Digital Nomad Report (2024)

Both visas can lead to permanent residency and citizenship after five years, but the D7 is more convenient for individuals focusing on a stable lifestyle, while the D8 fits those who wish to continue working remotely.

Family reunification is generally easier under the D7, with less stringent requirements than the D8, which demands more proof of financial support.

Why choose Global Citizen Solutions for your Immigration Visa?

GLOBAL APPROACH BY LOCAL EXPERTS

  • GCS has offices located across Portugal.
  • Members of the US-Portugal and UK-Portugal Chambers of Commerce in Portugal, and the Investment Migration Council (IMC).
  • Our expert team can help you throughout your journey to secure your Visa. 

100% APPROVAL RATE

  • Our successful track record in applications provides reassurance to applicants. 
  • We have helped clients from more than 35 countries secure residency in Portugal.

ALL-ENCOMPASSING SOLUTION

  • With a single channel of communication, our approach ensures that you have complete clarity on your application. 
  • Our BeGlobal® Onboarding System allows for a total flow of information.

TRANSPARENCY AND PRIVACY

  • Our pricing is clear and detailed, you will not face any hidden costs.
  • All data is stored within a GDPR-compliant database on a secure SSL-encrypted server.

FAQs

What are the disadvantages of the D7 Visa in Portugal?

The D7 Visa requires proof of a stable and sufficient passive income, which may be difficult for some applicants to meet. It does, however, allow professional activity.

The application process can be lengthy and requires substantial documentation. Additionally, it may not offer the same flexibility as other visa types.

What is the minimum income requirement for the D7 and D8 visas?

For the D7 Visa, the minimum income requirement is approximately €870 per month.

For the D8 Visa, applicants must demonstrate an income of around €3,480 per month from remote work or freelance activities. These amounts are subject to change and may vary with dependents.

Can I bring my family to Portugal under the D7 and D8 visas?

Yes, both the D7 and D8 visas allow family reunification. You can bring your spouse and children, provided you can prove sufficient income to support them. Specific documentation and financial requirements apply to both visa types.

Can I apply for permanent residency or citizenship with the D7 and D8 visas?

Yes, both the D7 and D8 visas can lead to permanent residency or citizenship. After five years of residency, visa holders can apply for permanent residency.

Citizenship can be pursued after five additional years, subject to meeting specific requirements.

What's the difference between a digital Nomad Visa and Golden Visa?

Digital Nomad Visas are for individuals who work remotely and want to live in a country while maintaining their remote employment.

This visa requires proof of ongoing remote work and a stable income. The Golden Visa, on the other hand, is a residence-by-investment program for those making substantial financial investments, such as real estate or business investments.

It provides a pathway to residency or citizenship and typically has fewer restrictions on employment or income sources.

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