Portugal D2 Visa: how to get a residence permit for entrepreneurs

The D2 Visa is a Portugal residency visa for entrepreneurs. To get one, an applicant must open a new company there or buy an already working business or its share.

How to get a Portugal residence permit by investing in a business

No minimum investment threshold is defined for the D2 Visa. However, an applicant must prove to have funds to start and run their business. Also, housing and money to live in Portugal for a year are required.

The visa validity period is four months. At this time, an entrepreneur must enter Portugal and apply for a residence permit, which enables them to immigrate to Portugal, start a company and work there.

A Portugal residence permit after the D2 Visa is valid for two years, and then it can be renewed for three years. After five years of residency, one may apply for citizenship or permanent residence in Portugal.

An entrepreneur’s family members may immigrate to Portugal with a residence permit for family reunification. To retain residency, business people and their relatives must stay in Portugal for 6+ months each year.

An entrepreneur may apply for a D2 Visa if they fulfil one of the following conditions:

• buy a Portuguese company or a share in it;

• already have a company abroad and a plan to open its branch in Portugal;

• submit a comprehensive business plan for a new company in Portugal.

The business requirements are quite soft: an applicant can choose any sector, and there are no thresholds on profitability or the creation of jobs.

However, applicants must confirm that the businesses will be economically and socially beneficial for Portugal and that they have enough money for investment in their companies due to the business plans.

Other requirements for Portugal D2 Visa applicants include the following:

• age over 18 years;

• no criminal record;

• to have rented or owned housing in Portugal;

• to confirm they have money to live in Portugal for a year;

• to buy health insurance.

An entrepreneur’s spouse, the couple’s children and parents may apply for residence permits for family reunification. Adult children and parents must prove they depend on the D2 Visa holder to get residency. Also, the family has to confirm that they have housing and enough money to live in Portugal.

You’ll need to submit some business documents to apply for a D2 Visa. The list includes the following:

• a detailed business plan;

• if you have already started a company, submit constituent and registration documents, contracts, invoices, financial reports, and a bank statement on the company’s account balance;

• if you only plan to start a new company, submit documents to prove you have money for business investment, for example, a statement from a Portuguese bank.

Also, some personal documents and filled-in forms are required for visa and residence permit applications. Entrepreneurs prepare and submit the following:

1. An application form.

2. A passport and its copy.

3. A document to confirm sufficient funds to live in Portugal, for example, a bank statement.

4. A document to prove to have housing to live in Portugal, for example, a rental agreement.

5. A certificate of no criminal record from the country of residence with an apostille.

6. Permission to Agency for Integration, Migrations and Asylum of Portugal to check criminal records in Portugal.

7. Health insurance.

8. Two colour photographs, 3×5 cm.

Applicants have several costs; the most significant one is business investment. There’s no minimum threshold, but an entrepreneur must confirm to have enough money to run their company.

In addition, an applicant has to prove to have funds to live in Portugal. The necessary amount is counted due to the minimum salary in Portugal. Starting on January 1st, 2024, the national minimum wage will go from €760 to €820. For a year, the necessary amount is at least €9,840.

Renting or purchasing housing in Portugal is obligatory, too; however, there are no requirements for an apartment’s cost or square.

Government fees and health insurance are less significant in cost than the previous expense items. Also, you may need professional services to apply; the prices depend on the chosen provider.

Immigration to Portugal, a developed European country with a high level of safety, is one of the key aims of foreigners applying for a D2 Visa. The country attracts expats with a mild climate, an opportunity to live by the Atlantic Ocean, and access to affordable and still high-quality healthcare and education.

Running a business in Portugal. The country is considered a reliable jurisdiction with a stable economy and banking system. According to the Doing Business 2020 report, starting a business in Portugal and trading across borders while a company is registered there is easy.

Tax optimisation. Individuals may apply for a beneficial Non-habitual Resident status in Portugal to reduce their taxes in the first ten years of residency. This status allows one not to pay taxes on income earned outside Portugal and pay a 20% tax on income earned in the country.

Businesses can also optimise their taxes in Portugal, especially if they are registered in Madeira or the Azores.

Visa-free travelling to the Schengen Area. You may stay in this zone for 90 days out of 180; time spent in Portugal doesn’t count.

Citizenship application after 5 years. Suppose an entrepreneur maintains residency for five years and speaks Portuguese at the A2 level; then, they may apply for permanent residency or citizenship. These rules are among the mildest in the EU: in comparison, you must live for 7+ years in Greece or 10+ years in Italy or Spain to apply for a passport.

If your goal is to immigrate to Portugal, there are some options to consider apart from the D2 Visa. Some of them, like the D7 Visa, don’t require starting a business at all.

The D7 Visa is intended for financially independent foreigners. They prove to have funds and housing to live in Portugal to get a residence permit alongside all the rights the D2 Visa holders have.

The Startup Visa is for those who wish to open an innovative startup in Portugal. It’s one of the most affordable: applicants don’t need to invest in their businesses, and the amount of money for living to prove is about €5,200.

The Golden Visa is residence by investment in fund units, culture, science or businesses. It allows one to maintain residency without living in Portugal permanently. The minimum investment is €250,000.

To apply for Portugal citizenship or permanent residency, one must meet the following requirements:

• maintain residency in Portugal for five years;

• learn Portuguese for the A2 level;

• have no criminal records;

• prove to have housing and funds to live in Portugal.

Portugal allows its citizens to have several passports. If your country of origin does so, too, you won’t have to renounce your previous citizenship.

1. Buy a company in Portugal or create a detailed business plan for the future one. Represent the amount of investment you’ll make and the benefits that locals will get from your business — for example, new jobs.

2. Gather all necessary documents, including a business plan, bank statements and others.

3. Apply for a visa in a Portuguese consulate in your country of residence. Get the visa after about 60 days of processing.

4. Travel to Portugal and submit a residency application to the Agency for Integration, Migrations and Asylum of Portugal by appointment. You must do it in four months after obtaining a Portugal D2 Visa.

5. Get your residence permit, immigrate to Portugal and run your business. Remember that you must spend 1.5 consecutive years in the first two years of residency or 16 months in total over two years.

6. If you have family members who also wish to immigrate, apply for residence for family reunification.