Portugal D7 Visa or Spain Non-Lucrative Visa: Which is the Best?

Portugal’s D7 Visa and Spain’s Non-Lucrative Visa are residency programs designed for non-EU nationals seeking to live in either country without engaging in local employment. Both require proof of sufficient passive income or savings, though their financial thresholds and documentation processes differ.

In this article, we’ll examine the key differences, eligibility, and long-term benefits of the Spain vs. Portugal retiree visas to help you decide which is best suited.

You’ll also find out more about:

• What is the Portugal D7 Visa?
• What is the Spain Non-Lucrative Visa?
• Benefits of the D7 vs. Non-Lucrative Visa
• D7 vs. Non-Lucrative Visa Income Requirement
• Eligibility Requirements

What is the Portugal D7 Visa?

The Portugal D7 Visa is designed for non-EU citizens who wish to establish residency in Portugal based on stable passive income, such as pensions, rental income, dividends, or savings.

This program is particularly suitable for retirees looking for a lower cost of living in a temperate climate, and investors seeking long-term EU residency without engaging in direct economic activity in the country.

Additionally, the visa provides a clear pathway to permanent residency and citizenship after five years, which is a significant advantage for those interested in EU mobility or dual citizenship.

What is the Spain Non-Lucrative Visa?

Spain’s Non-Lucrative Visa is a residency permit for non-EU nationals who want to live in Spain without engaging in any work or professional activities, including remote employment for non-Spanish entities.

It is tailored for individuals who can prove they have sufficient financial means to support themselves and any dependents indefinitely without needing income from Spanish sources.

Spain’s program explicitly prohibits any form of employment, including freelance or remote work for non-Spanish companies, making it less flexible for digital nomads but ideal for those fully retired or financially independent.

Benefits of the D7 vs. Non-Lucrative Visa

Since Portugal and Spain are part of the Schengen Area, the benefits of the D7 Visa and the Non-Lucrative Visa are similar.

Visa-free travel across the European Union: Holders of the D7 Visa or the Non-Lucrative Visa can explore the Schengen area and move freely across the European Union without producing additional visas or travel permits.

Family reunification: Portugal and Spain allow the main applicant to bring family members, including spouses, children under 18, dependent parents, siblings, or children over 18, who can enjoy similar benefits.

Apply for citizenship: After five years, if legally living in Portugal, you can apply for either permanent residency or citizenship. However, while you can apply for citizenship in Spain, you can only do so after 10 years.

Access to public service: As a legal resident holding the appropriate visas, you are entitled to access the national healthcare services and educational systems available in the country.

Pathway to permanent residency: After a duration of five years, individuals holding either the D7 Visa or the Non-Lucrative Visa become eligible to apply for permanent residency.

D7 vs. Non-Lucrative Visa Income Requirement

The D7 Visa stands out due to its relatively accessible financial requirements, which is equivalent to Portugal’s minimum wage of €870 per month. For dependents, this increases by 50% for a spouse and 30% per child.

Savings can supplement income if applicants provide proof of accessible funds (e.g., 12 months of income shortfall held in a Portuguese bank account).

On the other hand, Spain requires proof of passive income or savings exceeding 400% of the IPREM (Spain’s monthly public income indicator), set at approximately €2,400 per month for a single applicant.

Savings must cover the annual income gap, with a common benchmark being €30,000–€35,000 in savings for a single applicant, plus €7,500–€10,000 per dependent.

Unlike Portugal, Spain’s financial thresholds are stricter and less flexible, as consulates often demand consistent, guaranteed income rather than savings-based applications.

Portugal D7 Visa or Spain Non-Lucrative Visa: Eligibility Requirements

A few eligibility requirements must be met to apply for the Portugal D7 Visa or Spain’s Non-Lucrative Visa – even if you qualify just through the financial requirement alone. Here are some of the requirements for both visa options:

Nationality: You are a third-country national (not an EU citizen).

Financial self-sufficiency: You must demonstrate enough financial resources to support yourself in Portugal or Spain.

Clean criminal record: A background check is required to ensure you have no criminal history.

Physical presence: You must spend at least 183 days (6 months) a year in the country. In Portugal, you must be in the country for 16 months during the initial two-year period.

Health insurance: For Portugal or Spain, you must have health insurance in the respective country. Additionally, for Spain, you must prove that you’re free of any illnesses listed under the World Health Organization (WHO) International Health Regulations 2005.

Proof of residence: While both countries require proof of residence, there is a difference. For Portugal, you must have a confirmed address in the national territory (proof of accommodation). This can be shown with a rental agreement or a document from a Portuguese resident confirming that you will live in their home.

This contrasts with Spain, as you need to prove your place of residence is within the jurisdiction of the Spanish Consulate where you are applying. For example, if you apply at the Spanish Consulate of Los Angeles, you must prove that you live in LA.

Tax Considerations

You’ll legally be considered a tax resident after spending 183 days in Portugal or Spain. In both countries, a few administrative tasks go with that.

Portuguese tax number

Securing a Portugal tax identification number (NIF – Número de Identificação Fiscal) is essential for living in Portugal, as it allows you to engage in various fiscal activities, such as opening a bank account, signing lease agreements, or opening utility accounts. You can authorize someone to obtain this number on your behalf before your arrival.

Paying Portuguese taxes

In Portugal, the tax rate for foreigners is 25 percent and applies to all annual income derived from a Portuguese source. Non-residents must also pay a flat percent rate on income earned from interest or dividends.

As per the tax laws, some income, such as capital gains tax from selling shares, may be exempt from this rate.

Personal income tax rates (IRS) apply to the incomes of Portuguese residents and non-residents currently working or employed. Tax is automatically deducted from pay slips, but you must complete an annual tax return.

The Portugal tax rates for individuals are as follows, ranging from 14.5 percent to 48 percent:

• Employment income
• Self-employment income
• Investment income
• Rental income from properties let in Portugal
• Capital gains tax, calculated from selling properties, assets, or shares
• Pensions in Portugal, including private pension plans

Spain tax number

An NIE number, or Número de Identidad de Extranjero, is an identification and tax number assigned to foreign residents in Spain. It serves as a form of national ID and is essential for engaging in various legal and official activities within the country.

Obtaining an NIE number is necessary for tasks such as opening a Spanish bank account, registering as an international student, fulfilling tax obligations, and participating in any other legal or professional matters in Spain.

Paying Spanish taxes

If a foreigner living in Spain holds a non-lucrative residency visa and spends more than 183 days in the country, they will automatically be considered a Spanish tax resident.

Tax residents are obligated to pay income tax to Spanish authorities on their worldwide income, including annual income from abroad, such as rental income and earnings from foreign businesses.

Additionally, non-EU citizens with Spanish residence permits—whether they hold an initial temporary residence permit or a permanent one—are required to pay the Spanish government’s capital gains tax and wealth and inheritance tax.

Spain has several double tax treaties with other countries, so individuals may be eligible for tax relief as Spanish tax residents depending on their country of origin.

Opening a bank account

To conduct any financial business, opening a local bank account is often required. While the process and available banks differ between countries, the required documents are generally the same.

• Proof of ID (e.g., passport)
• Proof of address (e.g., recent utility bill)
• Confirmation of NIF or NIE
• Proof of income
• A local phone number (may vary by bank)
• Minimum cash deposit (typically €250-300)

D7 Visa vs. Non-Lucrative Visa Costs

There are several costs associated with the D7 Visa and Non-Lucrative Visa, other than the stipulated financial requirement.

For example, the visa application for Portugal is about €80 at the Portuguese consulate in your home country, and the fee for AIMA to handle your application is about €170 per submission. Then, when you arrive in Portugal for your AIMA appointment, there is another €156 fee, and the issuing of the residence card costs €160.

In Spain, the overall fees are considerably lower. Citizens of the United States need to pay €123, while Canadians need to pay €507. For other citizens, there is a €80 fee. Once arriving in Spain, visa applicants must apply for a Foreigner Identity Card within 30 days, which is about €12.

D7 Visa vs. Non-Lucrative Visa Processing Time

In Portugal, obtaining a temporary four-month visa in your home country can take up to 60 days, provided you submit all the required information.

When you receive your visa, you will also have an appointment with AIMA, which the Portuguese Consulate books when they issue your visa.

Once AIMA has collected your documents and biometric data, it will take about three weeks for them to send your residence card to your Portuguese address. The legal deadline for this is 90 days.

In Spain, the legal period for deciding on a Non-lucrative Visa after applying is typically 90 days. However, this may be extended further if the Consular Office is busy or the required documents are missing.

Like Portugal, you will have an appointment with immigration agents to capture your biometrics for the Foreigner Identity Card after arriving in the country. The card should be sent to your address in Spain within a few weeks.

D7 Portugal Visa or Spain Non-Lucrative Visa: How to Choose

Choosing between Portugal’s D7 Visa and Spain’s Non-Lucrative Visa ultimately depends on your financial situation and long-term goals. The D7 Visa is ideal for retirees with modest passive income.

Its lower income requirements make it accessible, and it allows for remote work or managing passive income streams, which is a major advantage over the Spain Non-Lucrative Visa.

Portugal also offers a lower cost of living, particularly in housing and daily expenses, making it attractive for those seeking affordability. Additionally, after five years of residency, you can apply for citizenship, granting EU mobility and other benefits.

On the other hand, Spain’s Non-Lucrative Visa suits retirees with higher passive incomes who wish to immerse themselves fully in Spanish culture.

However, its higher income requirements and prohibition on any work make it less flexible than the D7 Visa. While the Non-Lucrative Visa also leads to permanent residency and eventual citizenship, Spain’s process requires ten years of continuous residency and greater integration.

If you value affordability, flexibility, and a peaceful lifestyle, Portugal’s D7 Visa is likely the better option. If you prefer cultural variety and a bustling environment and don’t need work options, Spain’s Non-Lucrative Visa may be the right fit.

How Can Global Citizen Solutions Help You?

Global Citizen Solutions is a boutique migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments. 

We guide you from start to finish, taking you beyond your citizenship or residency by investment application. 

Frequently Asked Questions About the D7 vs. Non-Lucrative Visa

Is it better to retire to Portugal or Spain?

Retiring to Portugal or Spain depends on priorities. Portugal offers lower living costs, tax benefits, and a quieter lifestyle. Spain provides vibrant cities, cultural variety, and excellent healthcare. Portugal suits retirees seeking tranquility and affordability, while Spain appeals to those preferring diverse activities and urban life.

How does the D7 Visa differ from the Spain Non-Lucrative Visa?

The D7 Visa for Portugal allows retirees or individuals with passive income to live in Portugal and apply for residency, with relatively low-income requirements​. In contrast, Spain’s Non-Lucrative Visa requires higher income thresholds and emphasizes not engaging in any work while in Spain.

Which visa is easier to obtain, the D7 Portugal Visa or the Spain Non-Lucrative Visa?

The D7 Visa is generally easier to obtain, thanks to its lower income threshold and simpler application process​​. Spain’s Non-Lucrative Visa requires proof of higher income and more extensive documentation, which may pose a challenge for some retirees​​.

Do the D7 Visa and Non-Lucrative Visa allow work?

The D7 Visa allows individuals to engage in remote work or passive income activities, making it suitable for retirees or digital nomads​​. In contrast, Spain’s Non-Lucrative Visa strictly prohibits work, requiring applicants to rely solely on passive income​​.

Which visa is better for retirees, the D7 Visa or the Non-Lucrative Visa?

The D7 Visa might be better for retirees looking for flexibility and affordability​​. It permits work under certain conditions and aligns well with Portugal’s lower cost of living. However, if retirees are drawn to Spain’s cultural diversity and higher income is not a constraint, the Non-Lucrative Visa is also an excellent option​​.

Can I convert the D7 Portugal Visa or Spain Non-Lucrative Visa into permanent residency?

Yes, both visas offer a pathway to permanent residency. The D7 Visa allows applicants to apply for permanent residency or citizenship after five years​​. Similarly, the Non-Lucrative Visa leads to permanent residency in Spain after five years, provided continuous residency requirements are met​.

Are there different income requirements for the D7 Visa and Non-Lucrative Visa?

Yes, the D7 Visa has lower income requirements, making it more accessible​. The Non-Lucrative Visa in Spain requires a higher income, reflecting the country’s stricter economic requirements for non-EU residents​​.

Which visa offers more benefits for digital nomads, the D7 Portugal Visa or Spain Non-Lucrative Visa?

The D7 Visa is better suited for digital nomads due to its allowance for remote work and passive income activities​​. Spain’s Non-Lucrative Visa prohibits work, making it less suitable for digital nomads​.

How do the healthcare benefits differ between the D7 and Non-Lucrative Visa?

Both visas provide access to excellent healthcare systems, but Portugal’s healthcare is generally more affordable​​​. Spain, however, has one of the most highly ranked healthcare systems globally, with extensive networks and specialists​​. Your choice will depend on your budget and healthcare preferences.