Passive Income D7 vs. Digital Nomad D8: a complete comparison of Portuguese visas

Portugal offers two popular visa options for non-EU nationals looking to settle long-term: the D7 Passive Income Visa and the D8 Digital Nomad Visa. The D7 is for those living off passive income, while the D8 is for remote workers.

Both visas allow foreigners to live in Portugal and require renting or buying a home. However, they’re designed for different types of applicants with distinct income and eligibility rules.

The D7 Visa is for financially independent individuals, such as retirees and investors, who earn passive income. To qualify, applicants need to show a stable income of at least €870 per month from sources like pensions, rental income, or dividends.

This visa is ideal for those who are not actively working but have enough funds to support themselves.

The Digital Nomad Visa, on the other hand, is for remote workers, freelancers, and entrepreneurs who earn an active income from foreign clients or companies. The income requirement is much higher—at least €3,480 per month.

This visa is best for professionals who want to keep working remotely while living in Portugal.

Both start with a four-month D-type visa, allowing entry into Portugal. During this period, applicants can apply for a two-year residence permit, which can later be renewed. The whole process, from gathering documents to securing residency, takes at least six months.

1. Income requirements. The D7 Visa requires a passive income of at least €870 per month, while the Digital Nomad Visa mandates an active income of at least €3,480 per month.

For family inclusion, only Passive Income Visa applicants must increase their required income—by 50% per spouse or parent and 30% per child under 18.

2. Documents. D7 Visa applicants must provide proof of passive income sources, such as pension statements, rental agreements, or investment earnings.

Digital nomads, on the other hand, must submit a work contract, service agreement, or proof of business activity with foreign clients, along with supporting financial records to verify remote income.

3. Obtaining process. D7 applicants are required to open a Portuguese bank account before applying for the visa, while D8 applicants can do so after arriving in Portugal.

4. Children’s age. The Digital Nomad Visa allows applicants to include children up to 30 years old, whereas the D7 Visa only permits the inclusion of children under 21.

5. Residency rights. Unlike D7 Visa holders, digital nomads cannot be employed or run business in Portugal.

Explore the benefits and requirements of the Digital Nomad Visa to Portugal

1. Easy way to settle in Portugal. Applicants for the D7 or D8 Visa do not need to secure a job in Portugal or submit a business plan. Renting or purchasing property and demonstrating sufficient income and savings is enough.

2. Budget-friendly route to long-term residency. Both D7 and D8 Visas provide a low-cost alternative to investment-based residency programs. Unlike the Golden Visa, which requires a significant financial investment of at least €250,000, the D7 and D8 Visas allow residency without purchasing real estate or making large financial commitments.

3. Family inclusion. Both visas allow applicants to include their spouse, children, and parents in the application. Disabled children have no age limit to qualify. Parents can also be included as dependents if financially supported by the main applicant.

4. Freedom of travel. Holders of both visas can travel freely within the Schengen countries without needing additional visas or permits.

5. Working and operating business in Portugal. D7 Visa holders can work in Portugal or establish a business within the country after obtaining residency. Digital Nomad Visa holders cannot be officially employed or operate a business in the country, but they are allowed to earn passive income from Portuguese sources, such as rental income from property they own.

6. Access to healthcare and education. Residents under both visas can access Portugal’s healthcare system. After registering for social security, visa holders can use public healthcare services at reduced costs.

For families, Portugal also offers high-quality education, including public, private, and international schools and universities.

7. Settling in without stress. Whether relying on passive income or remote work abroad, residents can enjoy life in Portugal without financial uncertainty, making it easier to settle.

Portugal ranks 7th globally for quality of life for expats, according to the Expat Insider 2024 report. Residents appreciate the affordable cost of living, welcoming atmosphere, and pleasant weather. With a mild Mediterranean climate, over 300 sunny days per year, and easy access to beaches, hiking trails, and cultural activities, Portugal offers a relaxed and fulfilling lifestyle.

8. Personal safety. Portugal is one of the safest countries in the world, ranking 7th on the Global Peace Index. Expat Insider Survey’s participants also highlight the country’s political stability and low crime rates which makes them feel safe and secure.

9. Citizenship prospects. Both visas offer a pathway to Portuguese citizenship after five years of legal residence. Portugal is considered one of the easiest countries in Europe to obtain citizenship by naturalisation due to its short residency requirement and lenient policies.

10. Fast-track citizenship for newborns. Children born to foreigners in Portugal can benefit from the quickest route to a Portuguese passport. They automatically become citizens at birth if their parents have held residency for at least a year.

Both the D7 Passive Income Visa and the D8 Digital Nomad Visa are available exclusively to non-EU and non-EEA nationals. To qualify, all applicants, including dependents, must have no criminal record.

Income. The D7 Visa requires a minimum passive income of €870 per month. If family members are included, the required income increases: an additional 50%, or €435, per spouse or parent and 30%, or €261, per child under 18.

For the Digital Nomad Visa, the minimum required income is €3,480 per month, but it does not increase when family members are added.

Source of income. The D7 Visa is intended for those with passive income, such as rental income, pensions, dividends, royalties, or interest. The Digital Nomad Visa is for individuals earning an active income through remote work, freelancing, or business activities outside Portugal.

Savings. Applicants for both visas must show at least €10,440 in savings. The amount increases with family members—by 50% per spouse or parent and 30% per child.

Passive Income Visa applicants must open a Portuguese bank account and transfer the required funds before submitting their visa request. Digital nomads can do that after arriving in the country.

Housing. Both visas require applicants to rent or purchase property in Portugal for at least one year to qualify. There is no minimum property price requirement, meaning applicants can choose housing that fits their budget.

Family members eligibility. Visa applicants’ spouses must be in an official marriage or registered partnership with the main applicant. Children over 18 must be unmarried, and for the D7 Visa, they must also be not employed. Parents of any age can be included in the application, but those under 65 must be financially dependent.

Residency validity. Both visas initially grant a two-year residence permit, which can be renewed for three more years. To maintain residency, one must not stay outside Portugal for more than six consecutive months or a total of eight months during the entire validity period of the permit.

Thus, the first residence permit is valid for two years, requiring at least 16 out of 24 months of stay in Portugal. The second residence permit is valid for three years, and the holder must spend at least 28 out of 36 months in the country.

Fees. The visa application fee for both visas is €90 per family member.

For the residence permit card, applicants must pay an €80—90 processing fee and a €70—200 issuance fee.

Housing. Average rental prices in Portugal range from €700 to 1,600 per month, depending on the location and size of the apartment. Price per square meter is around €2,600—3,600.

Applicants who purchase property also pay:

• stamp duty of 0.8% of the property value;

• property transfer tax ranging from 0 to 8%;

• annual property tax of 0.3 to 0.8% of the property value.

Medical insurance. Travel insurance required to apply for a D Visa at the Portuguese consulate costs at least €150. Health insurance needed for residency applications is around €400.

Income tax. Those who spend 183 or more days per year in Portugal are considered tax residents. Under the D7 and D8 Visas conditions, foreigners are required to spend more than 183 days per year in Portugal, which automatically results in a change of tax residency.

Portuguese tax residents must pay income tax on their worldwide earnings at progressive rates ranging from 13 to 48%:

• 13% for the income below €7,703;

• 16.5% for €7,703—11,623;

• 22% for €11,623—16,472;

• 25% for €16,472—21,321;

• 32% for €21,321—27,146;

• 35.5% for €27,146—39,791;

• 43% for €39,791—51,997;

• 45% for €51,997—81,199;

• 48% for over €81,199.

Portugal has Double Taxation Agreements with over 70 countries, including the US, UK, Canada, Brazil, India, UAE, and most EU nations. These agreements help prevent individuals from being taxed twice on the same income.

Both Portugal D7 and D8 Visas require the following documents:

1. Valid international passport.

2. Two colour photos 4.5 × 3.5 cm in size.

3. Bank statement showing proof of monthly income.

4. Tax return statements or tax receipts.

5. Bank statement showing a minimum balance of €10,440.

6. Certificate of no criminal record from the country of residence.

7. Proof of family relationship: marriage or birth certificates.

8. Rental agreement or property ownership certificate in Portugal.

9. Health insurance policy.

10. Flight tickets to Portugal for the expected arrival date.

11. Portuguese tax payer number certificate—Número de Identificação Fiscal, NIF.

Digital Nomad Visa applicants also provide a work contract or other agreements confirming that they work remotely. Those planning to take on subordinate employment must submit an employment contract along with a statement from their employer verifying the working relationship.

For those engaged in independent professional activities, a memorandum of association, service agreement, and proof of services rendered to one or more entities are required.

D7 Visa applicants prove passive income sources. Retirees are required to provide official documents certifying their pension amount. Individuals relying on personal revenue must submit evidence of income from movable or immovable property, intellectual rights, or financial assets.

Residence permit renewal. Before applying for permanent residency or citizenship, applicants must renew their residence permits at least once. To qualify for renewal, foreigners must have spent at least 16 months in Portugal over a two-year period.

They need to provide the following documents to the AIMA:

• valid residence permit or one that has been expired for less than 6 months;

• valid passport or travel document;

• proof of sufficient financial means;

• evidence of accommodation;

• confirmation of tax compliance;

• verification of social security status;

• authorisation for criminal record check.

Depending on the visa type, applicants also submit documents verifying their legal residency status. For example, proof of passive income sources for the D7 Visa holders and an employment contract showing remote work for digital nomads.

Getting permanent residency and citizenship. To apply for permanent residency or citizenship, a resident must have spent at least 28 months in Portugal within the three-year period of their second residence permit.

Additionally, applicants over 12 years old must pass a Portuguese language exam at the A2 level or complete a special online language course. If applicants attend all the classes, the course is considered complete, and participants receive a certificate valid for a citizenship application. The express course lasts just 4 months.

1. Both the D7 Passive Income Visa and the D8 Digital Nomad Visa are available to non-EU and non-EEA nationals.

2. Family members, including spouses, financially dependent children, and parents, can relocate to Portugal with the main applicant.

3. For the D7 Visa, applicants must earn at least €870 per month from passive sources such as pensions, rental income, or dividends. The required income increases by 50% per spouse or parent and 30% per child under 18.

4. The Digital Nomad Visa requires applicants to work remotely under an employment contract or service agreement with a foreign company, with a minimum income of €3,480 per month.

5. Applicants need to open a bank account in Portugal and transfer €10,440.

6. Along with proof of income and savings, they also rent or purchase a property in Portugal for at least one year. There are no minimum price requirements.

7. Both D7 and Digital Nomad residence permits require staying in Portugal for at least six consecutive months or a total of eight months during the entire validity period of the permit.