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Originally Posted On: https://smartcitizenship.com/golden-vs-d7-visa-which-portuguese-immigration-route-is-right-for-you/
Portugal has become one of the most popular second residency destinations for foreign investors, thanks mainly to its advantageous Golden Visa program. However, another immigration route has recently caught the eye of investors – the D7 Visa.
This article offers an overview of the Portuguese Golden vs D7 visas, presenting the key differences between both programs.
Advantages of Immigration to Portugal
Not only is Portugal a well-known destination for holiday-goers, international students, and pensioners, it is becoming a place of choice for foreign investors looking for a second home in Europe.
The country is safe and politically stable. Its residents enjoy an excellent quality of life, benefitting from a comfortable climate year long, and access to good and affordable infrastructure to cater to their education and healthcare needs.
In addition, since Portugal is part of the European Union and the Schengen Area, its residents are allowed to travel freely throughout most of the continent. The country is thus a remarkable base for foreign investors looking to travel within Europe, whether for business or leisure, easily.
Finally, qualifying residents have the possibility of taking advantage of the Non-Habitual Resident Taxation regime, allowing for substantial tax savings.
The Golden Visa remains the primary – and most popular – route for global migrants to land on Portuguese shores, but as the D7 visa gathers momentum, we should take a closer look at golden vs D7 visa.
What is the Golden Visa?
The Golden Visa offers a fast-track for foreign investors looking to obtain a Portuguese residency permit by realizing an approved investment in the country.
After five years, Golden Visa participants can elect to apply for permanent residency and naturalization. The participants benefit from a streamlined immigration process and the possibility to include their family members.
The program has been very successful since its inception. As of June 2021, close to 10,000 families have benefited from the program, investing close to six billion euros in the country, most of them opting for real estate investment.
Eligibility for the Golden Visa
To participate, applicants must hold no criminal record, make a qualified investment, and prove that the investment funds do not originate from Portugal.
Then, the applicants must make an eligible investment satisfying one of the following criteria:
- Purchase of real estate property with a value equal to or above €500,000
- Purchase of real estate property, with construction dating back more than 30 years or located in urban regeneration areas, for refurbishing, for a total value equal to or above €350,000.
- Capital transfer of €350,000, or higher, for the acquisition of units in an existing venture capital fund.
- Capital transfer with a value equal to or above €350,000 for investing in research activities
- Capital transfer of €250,000 in activities supporting the arts, culture, and the national heritage.
- Capital transfer of €350,000 in an existing Portuguese company, creating alongside five permanent jobs for a minimum of three years.
- A capital transfer with a value equal to or above €1,000,000.
- Creation of, at least, 10 job positions.
The investment in real estate property or in a venture fund must be held for a minimum of 5 years, or until naturalization, would the participant elect to apply for it.
Golden vs D7 Visa; Advantages of Portugal’s Golden Visa
The Golden Visa offers a second residency in stable European democracy and a simple path to Portuguese citizenship and passport.
Following the investment, the program requires little else from the applicants. Participants must only spend an average of 7 days per year in Portugal.
The Golden Visa also accurately aligns with the requirements of the Non-Habitual Resident regime, which allows investors to gain astonishing tax incentives in Portugal.
What is the D7 Visa?
The D7 visa allows foreign citizens and their families to settle in Portugal if they can show sufficient passive income.
The visa enables the holder to enter Portugal and obtain a residence permit in Portugal. This permit is valid for one year, and participants can renew it for successive periods of two years. After five years, the holder can apply for permanent residency and subsequently to citizenship, granted they continuously lived in Portugal for a minimum of 5 and 6 years.
D7 Visa Requirements
While the D7 visa route does not require the applicant to invest in the country, it requires that the applicant successfully demonstrates that he receives a regular stream of passive income that can be documented and sufficient to maintain a livelihood for the family. The passive income can come from a combination of pension benefits, investment income, or other business income.
This immigration path requires that the participant lives in Portugal for 6 to 8 months annually. By spending more than 183 days in the country, the participant becomes a tax resident of Portugal.
Golden vs D7 Visa; What are the Benefits of a D7 Visa?
The D7 visa’s main advantage is the absence of the investment requirement, making it highly cost-effective for those who manage to meet the criteria.
The recent rise in the D7’s popularity is no fluke, as it provides a multitude of benefits for its holder and their family members such as:
- The right to reside year-round in Portugal
- The right to work as an employee or as a self-employed person
- The right to own real estate, invest in share capital, establish a business, and more economic activities
- The right to open a bank account
- The right to study in Portugal as a local student
Two Great Options, But Different in Nature
In essence, we can summarize the choice between the Golden Visa or the D7 Visa as a trade-off between costs and flexibility.
Residency requirementQualification for Non-Habitual ResidencyRequires initial investmentLeads to permanent residency & citizenshipLiable for taxGolden Visa7 days a yearYesYesYesOnly for income derived from rentD7 Visasix months a yearYesNoYesYes
While the D7 visa requires the applicant to live in Portugal for a minimum of 6 to 8 months annually, the Golden Visa requires the applicant to make a significant investment.
To know more about the Golden vs D7 visa, contact us today.
Golden vs D7 Visa; Frequently Asked Questions
1. Can I include my spouse and kids on the visa?
Yes, you can include your spouse and dependent children below 18 on the visa. Dependent children who are enrolled. regardless of age, can also be added.
The golden visa also allows you to add dependent parents to the application.
2. What is the minimum income I need for the D7 Visa?
To qualify for the Portuguese D7 visa you need an annual income that at least meets the minimum wage in Portugal (7,980 euros per year).
3. Can I travel to other Eu countries with my D7 or Golden Visa?
Yes, a holder of a residency permit in Portugal can travel visa-free to the rest of the Schengen Area countries.
4. Does D7 turn into citizenship at the end of a 5-year stay?
After five years of continuous residency a person can apply for permanent residence then citizenship, so if the requirements are met then yes a D7 Visa can lead to citizenship.
