Portugal D7 Visa for retirees to have a calm life after years of hard work

Nayana is originally from Sri Lanka, and Joshua is from the USA. They are bio-engineers who have lived and worked in different countries for the past 30 years. Five years ago, they moved to South Korea on work contracts.

While working, they saved money and contributed part of their salaries to a private pension fund so that they could retire comfortably in the future. Joshua also owns real estate in the USA, which he is renting out.

How to get a Portugal Passive Income Visa

When Nayana and Joshua’s work contracts came to an end, they decided it was time to retire. They didn’t want to stay in South Korea, as it didn’t feel like home, and they were also not interested in moving to the USA because life there was expensive.

Joshua comes from the city of Boston, where the minimum monthly expenses for a couple are €2,700—3,000 without rent. If the couple moved to the USA, they would also lose their rental income and would have to live solely on money from the pension fund, which was not an option for Nayna and Joshua.

Nayana and Joshua started considering where to relocate. The couple was used to a high level of safety and security while living in South Korea, so that was one of the most important criteria when selecting a country.

Europe seemed the most suitable option in general, though some countries didn’t feel safe enough.

Nayana,

Former bio-engineer, retiree

We love Europe, but some places, especially big cities, lack security. For example, in Barcelona, we were robbed. In Prague, Munich, and Berlin, locals drink so much alcohol, and there are so many drunk people that sometimes it feels really scary to walk even in the city centre.

In the end, the spouses considered Portugal to be the best choice. They have already visited it twice and appreciated the laid-back lifestyle and calm atmosphere. They walked the streets at night and felt completely safe several times: no drunk or homeless people, and cameras surveilled public places.

The couple also enjoyed the pleasant climate, closeness to the sea, and friendly people who were always ready to help them.

At the same time, in Portugal, two people would need half the amount as in the USA or South Korea to maintain the same standard of living.

There were two options Nayana and Joshua were choosing from: the Golden Visa and the D7 Visa.

To qualify for the Portugal Golden Visa, foreigners must invest at least €250,000 in the country’s economy. However, since October 2023, obtaining the Golden Visa by purchasing real estate has been impossible. So, as the couple planned to move to Portugal, they needed to buy or rent real estate in addition to the investment.

The Portugal D7 Visa requires fewer expenses: the applicant must have a monthly income of at least €820. This income can come from dividends, interest, royalties, pensions, or rentals.

Nayana and Joshua didn’t want to invest. The most suitable option under which they could recoup contributed money is the purchase of investment fund units but it requires a minimum of €500,000. The couple didn’t have that much money.

At the same time, they had passive income exceeding the required sum: €1,050 per each from the pension fund and another €2,300 from renting out the property in the US. It was enough to qualify for the D7 Visa.

In addition, the D7 Visa requires its holders to permanently reside in Portugal. Nayana and Joshua had already decided to move to the country, so this requirement didn’t bother them.

To obtain the Portugal D7 Visa, foreigners must meet several requirements:

• be over 18;

• come from a non-EU country;

• have no criminal record;

• prove a passive income of at least €820 per month from sources outside Portugal;

• rent or buy real estate.

The documents applicants must provide are international passports, health insurance, police clearance certificates, a lease agreement or title documents for real estate, a marriage certificate, a document proving the source of income, and a certificate of obtaining a Portuguese taxpayer number.

The main applicant must also open an account in a Portuguese bank and transfer funds for a year’s subsistence there. It is done after getting a D7 Visa but before applying for a residence permit.

When obtaining the D7 Visa, applicants rent or buy any residential property — there are no requirements regarding its size or cost.

The couple has already moved to Portugal and is now in the process of minor renovations to their new apartment. When they finish, they plan to take several trips within the EU.

For now, they explore Porto and neighbouring towns like Guimarães and Aveiro. Each evening, they try to take a stroll along the avenue de Dom Carlos I, located close to their apartment. It feels safe to go for a walk even in the late evening, as the streets are well-lit and patrolled.

Nayana appreciates the friendliness of the locals. She recalls the moment when she and Joshua got lost on one of the first days, and one of the Portuguese persons walked them right to their apartment.

The couple also enjoys local cuisine and likes to buy food at the Bolhão Market, which has fresh fruit, vegetables, local fish, and meat.

With D7 Visas, Nayana and Joshua can later apply for Portuguese citizenship. They don’t know yet whether they will do it, but they like having such an opportunity. They must hold residence permits for at least five years to be eligible.