The Portugal D7 Passive Income Visa is the most accessible European residency program for retirees and financially independent individuals. With just €870 per month in passive income required—the lowest threshold among major European programs—the D7 provides a straightforward pathway to Portuguese residence, permanent residency, and EU citizenship after five years.
This guide covers everything you need to know about qualifying, applying, and succeeding with the D7 visa in 2026.
The D7, officially the "Passive Income Visa," grants residence permits to individuals supporting themselves through passive income sources without Portuguese employment. The program attracts retirees, early retirees, investors, and financially independent individuals.
The D7 provides initial two-year residence permits, renewable for three-year periods, with pathways to permanent residency after five years and Portuguese citizenship (including an EU passport) thereafter.
Unlike work visas requiring employment, the D7 focuses exclusively on your ability to support yourself through passive income streams.
The D7 serves individuals whose income doesn't require active work:
Retirees with pensions (Social Security, government pensions, military retirement, corporate pensions, private retirement accounts)
Early retirees on investment income from stock portfolios, bonds, dividend stocks, or diversified investment accounts
Real estate investors earning rental income from domestic or international properties
Trust fund recipients, annuity holders, and structured settlement recipients receiving regular passive payments
Royalty recipients earning from intellectual property, books, music, or patents
Interest and dividend earners with substantial savings generating consistent income
Non-qualifying: Active income earners (pursue D8 Digital Nomad Visa instead), anyone unable to demonstrate stable passive income, and those below €870/month.
The D7's defining advantage is its low income threshold: €870 per month (€10,440 annually), representing 100% of Portugal's national minimum wage.
Key income facts:
Qualifying income sources:
Non-qualifying income:
Critical distinction: D7 requires passive income (money received without working). Active income earners belong in D8.
Personal identification:
Income documentation (most critical):
For pensions:
For investments:
For rentals:
Accommodation:
Financial reserves:
Health insurance:
Portuguese requirements:
Critical: All non-Portuguese documents require official Portuguese translation by certified translators and apostille certification.
Months 1-3: Preparation Phase
Month 3-4: Pre-Application
Month 4-5: Submission
Months 5-7: Processing
Month 7-8: Approval and Entry
Cannot travel to Portugal while application processes—standard tourist visa rules apply (90 days in any 180-day period for most nationalities).
Insufficient income documentation – Provide 12-24 months showing consistent, recurring income. Gaps or fluctuations below threshold raise red flags.
Unregistered lease agreements – Since August 2025, leases must be formally registered with Portuguese tax authorities. Short-term rentals or informal letters don't qualify.
Inadequate health insurance – Travel insurance doesn't qualify. Must be comprehensive health insurance with €30,000+ coverage explicitly including Portugal.
Missing or improper authentication – Criminal records must be apostilled, recent (typically within 90 days), and professionally translated to Portuguese.
Insufficient financial reserves – Many overlook the €5,220 savings requirement beyond monthly income.
Unclear income sources – Vague pension letters, unclear investment distributions, or untraceable rental income raise suspicions.
Proof of genuine intent to reside – D7 authorities expect you to truly live in Portugal, not maintain a technicality while living elsewhere.
Pro strategy: Over-document everything. If 12 months are required, provide 24. Comprehensive documentation eliminates doubt.
FactorD7 Passive IncomeD8 Digital NomadIncome typePassive (pensions, rentals, investments)Active remote workMonthly requirement€870€3,480Work statusNot workingActively workingBest forRetirees, investorsRemote employees, freelancersComplexityLow-moderateModerate-highPhysical presenceHigher (genuine residence expected)Moderate (nomad-friendly)
Choose D7 if: Your income is passive, you meet €870+ threshold, you're retired or financially independent, you're not actively working.
Choose D8 if: You're actively working remotely, you meet €3,480+ threshold, your income requires active work.
Tax residency trigger: Spending 183+ days in Portugal in any 12-month period makes you a Portuguese tax resident, requiring worldwide income declaration.
Portuguese tax rates: Progressive system from 14.5% to 48% on highest income tiers (2026).
NHR program ended: The popular Non-Habitual Resident tax regime closed December 31, 2023. New D7 applicants in 2026 don't qualify.
IFICI regime: New tax incentive program (20% flat rate on Portuguese-sourced professional income) targets high-value professionals and scientists—most D7 passive income recipients won't qualify.
Double taxation treaties: Portugal has tax treaties preventing double taxation. For example, US Social Security is typically exempt from Portuguese taxation; pension taxation depends on treaty provisions between Portugal and your country.
Foreign pension taxation: How Portugal taxes your pension depends on treaty provisions between Portugal and your home country—often taxed only in the source country.
US citizen considerations: Americans owe worldwide income tax regardless of residence. Foreign Tax Credits offset Portuguese taxes against US liability—most pay little additional US tax if Portuguese rates exceed US rates.
Critical action: Consult Portuguese tax advisors (contabilistas) and home-country tax professionals before becoming tax resident. Tax planning can optimize your situation significantly.
Initial residence permit (2 years):
Upon arrival with D7 entry visa, schedule AIMA appointment for physical residence card. You'll need proof of Portuguese accommodation, NIF, social security enrollment (NISS), valid health insurance, and biometric data. Card arrives within 2-4 weeks.
First renewal (after 2 years):
Before expiration, apply for renewal (extends three additional years). Requirements: continued passive income meeting €870+ threshold, valid health insurance, accommodation proof, clean criminal record, evidence of ties to Portugal (bank accounts, utility bills, tax filings).
Permanent residency (after 5 years):
After five years of legal residence, apply for permanent residency, eliminating renewal requirements.
Portuguese citizenship (after 5 years):
Also after five years, pursue Portuguese citizenship by meeting:
Major advantage: Portugal allows dual citizenship—no need to renounce original nationality. Portuguese citizenship provides EU passport with indefinite residence/work/study rights in 27 EU countries.
Physical presence expectations: While not explicitly required to spend specific time annually, D7 holders face higher scrutiny about genuine residence. Renewal applications require evidence of actual Portuguese presence through utility bills, bank activity, tax filings, and community integration.
Cost of living: €1,200-1,800/month per person in smaller cities; €1,500-2,500/month in Lisbon/Porto; €1,800-2,800/month per couple on Algarve coast.
Healthcare: Excellent Portuguese National Health Service (SNS) for residents enrolled in social security. Private healthcare also widely available at €40-80 per doctor visit; comprehensive private insurance €50-150/month.
Safety: Portugal consistently ranks top 10 safest countries globally with low violent crime and high political stability.
Climate: 300+ sunny days annually, mild winters, warm summers—Mediterranean lifestyle supporting outdoor activities.
English proficiency: Widely spoken in major cities and healthcare services, easing transition for English speakers.
Expat communities: Established international communities throughout Lisbon, Porto, Algarve, and Silver Coast provide social connection and practical support.
EU access: Portuguese residence permits allow Schengen travel; citizenship grants full EU rights.
Start document gathering early: Require 12 months of passive income history—don't delay.
Obtain NIF immediately: Portuguese tax number unlocks bank accounts, lease registration, utilities, and demonstrates commitment.
Visit Portugal first: Spend weeks exploring regions before committing. Lisbon differs from Algarve beaches and interior villages.
Plan accommodation strategically: Registered lease requirement creates challenges (landlords want visa approval first; some provide conditional agreements). Solutions: short-term rentals during processing, immigration-experienced landlords, or property purchase.
Budget realistically:
Join expat communities: Facebook groups, forums, and local organizations provide invaluable advice from recent applicants.
Consider professional assistance if:
Demonstrate genuine intent: Show authentic commitment to Portuguese life through application materials, cover letter, and accommodation choices.
Individual circumstances vary. Complex income structures, multiple passive income sources, tax implications, or family situations can benefit from specialized guidance.
During your consultation, you'll receive:
The D7 Passive Income Visa offers one of Europe's most accessible residency pathways for retirees and financially independent individuals. With the lowest income requirements among European programs, straightforward documentation for pension earners, and a clear five-year path to EU citizenship, the D7 enables thousands to retire in one of Europe's most attractive, affordable, and welcoming countries.
Whether approaching traditional retirement age, achieving early financial independence, or seeking better quality of life in a safer, sunnier, more affordable location with excellent healthcare and European access—the D7 visa makes it possible.
Schedule a complimentary Portugal visa consultation to discuss your specific situation:
