D2 vs D7 Visa Portugal: Which One is Right for You?

The D2 and the D7 Visa are two very popular residency visas for foreigners to relocate to Portugal.

Often referred to as the Entrepreneur or Startup Visa, the D2 Visa caters to budding entrepreneurs and business owners keen to invest in Portuguese companies or create Portugal-based businesses.

The D7 Visa, also known as the Passive Income Visa or Retirement Visa, is a type of residency permit designed for individuals who have a source of stable passive income (from pensions, investments, property, royalties, etc.) and wish to live in Portugal without having to engage in active employment or business activities.

While the D2 Visa and the D7 cater to different purposes and circumstances, both allow the holder to seek permanent residency or citizenship in Portugal after five years.

This article thoroughly compares the D2 vs. D7 Visa in Portugal and highlights their fundamental differences to help you choose which visa best suits your specific goals and circumstances.

D2 vs D7 Visa Portugal: An Overview

About the D2 Visa (Entrepreneur Visa)

What is the D2 Visa?

The Portugal D2 Visa is intended for non-European Union (non-EU) citizens who want to either start a new business in Portugal or extend their existing business to the country.

Holders of the D2 visa can also choose to invest in an existing business in Portugal.

Often referred to as the Immigrant Entrepreneur Visa or the Business Visa, the D2 was created by the Portuguese government to raise external resources and investments to boost the country’s economy.

Portugal’s D2 Visa has two categories: The entrepreneur route and the independent service provider route.

The entrepreneur route is ideal for those wishing to start a new business or extend an existing one into Portugal. Alternatively, the independent service provider route is perfect for those offering services to local or global clients.

Issued for

Entrepreneurs or independent service providers who are non-EU/EEA/Switzerland citizens.

Key benefits of the D2 Visa

• Entrepreneurial opportunities: D2 Visa holders can start a new business in Portugal, invest in existing businesses, or engage in entrepreneurial activities there.
• Visa-free travel within the Schengen Area: With the D2 Visa, you’ll have the same travel rights as European Citizens. You can freely enter and travel within the Schengen countries without an additional visa.
• Family reunification: The D2 Visa often allows for family reunions, meaning you can bring family members, including your partner, dependent children, parents, or siblings, to join you in Portugal.
• Pathway to permanent residency and Portugal citizenship: After five years of being a legal resident in Portugal, you may become eligible to apply for permanent Portugal residency. After five years, you can even become a Portuguese citizen, provided you meet the necessary requirements.
• Non-Habitual Resident (NHR) tax regime: As a D2 Visa holder, you can apply for Portugal’s NHR tax benefits. This program is available to individuals who have the right to reside in Portugal (EU/EEA/Swiss citizens or residence permit holders) and have not been a tax resident of the country in the previous five years. Foreign nationals legally residing in Portugal can benefit from fixed rates on income tax.
• Residency rights and access to services: With the temporary residency permit, you and your family will have access to Portuguese state healthcare, and your children can enroll in the public education system, ensuring essential services for your family’s well-being.

About the D7 Visa

What is the D7 Visa?

Introduced by the Portuguese government in 2007, the D7 Visa allows non-EU nationals to reside in Portugal legally, provided that meet the minimum passive income requirements.

The D7 is also called the Passive Income Visa or Retirement Visa because pension payments are also considered a viable, stable, passive income source for this visa.

Issued For

The Retirement Visa is for non-EU/EEA/Switzerland citizens who are retirees or have a stable passive income stream from pensions, investments, rental income, or other passive sources.

To learn more about living as a retiree in Portugal, make sure to read our article: Retire in Portugal 2024 A Guide to Retirement

Key benefits of the D7 Visa

• No active business involvement: Unlike other visa types, such as the D2 Entrepreneur Visa, the D7 Visa does not require individuals to establish or manage a business in Portugal.
• Access to Portuguese public services: D7 Visa holders have access to public services in Portugal, including healthcare and education.
• Free travel within the Schengen countries: The D7 grants you the travel rights of all European Union citizens. You’ll have free entry and circulation within the Schengen Area’s 27 European countries without a visa.
• Family reunification: Another significant benefit of the D7 Visa program is that the main applicant can bring their family members to live in Portugal. Spouses and children under 18 or dependent family members can also apply for the visa and reside in Portugal with the primary D7 Visa holder.
• Path to permanent residency: After five years of continuous residency in Portugal under the D7 Visa, visa holders may be eligible to apply for permanent residency and Portuguese citizenship, which can lead to the acquisition of a Portuguese passport.
• Non-Habitual Resident (NHR) tax regime: With the D7 Visa, you can benefit from the NHR (non-habitual residency) scheme, Portugal’s special program, which has several tax advantages. You qualify if you have not been a tax resident of the country in the previous 5 years.

D2 vs D7 Visa Portugal: The Main Differences

Purpose

The main difference between the two visas is their purpose.

D2 Visa: This visa is for individuals who want to engage in entrepreneurial activities in Portugal. It’s a residency program for people looking to start a new business, expand their existing business, or invest in entrepreneurial ventures within the country.

D7 Visa: This visa is suitable for financially independent individuals, including retirees, who have a passive income and plan to stay permanently in Portugal.

So, if you come to Portugal with a job offer or the goal of setting up a company, you would have to choose the D2. If you have an existing passive income and are looking to live in Portugal without working, you must choose the D7.

Eligibility criteria

The Portugal D2 Visa requirements are:

• To be a non-EU national
• Acquire a Portuguese company or
• Have a pre-existing company abroad, or
• Intend to open a branch in Portugal, proposing a comprehensive business plan for a new company in Portugal, or
• Be a liberal professional

The applicant for the D2 Business Visa will be required to demonstrate their business’s potential economic and social contributions to Portugal.

To be eligible for the D7 Visa, you must:

• Be a non-EU national
• Have a passive income of €820.00 per month, plus 50 percent for a spouse and 30 percent for each minor dependent
• Provide proof of savings that could support you and any dependents for at least two years (i.e., through bank statements or savings accounts)
• Show proof of a place to live in Portugal

Want to know if you’re qualified for the D7 Visa? Take our free D7 eligibility test to find out. If you’re not eligible for the Portugal D7 Visa, the Portugal Digital Nomad Visa (D8) is a great alternative. We’ll talk more about this alternative visa option below.

Required time spent in Portugal

One similarity between the D2 Business Visa and the D7 is that both residency programs require you to live in Portugal for most of the year.  

Income requirements

D2 Visa income requirements: The D2 is popular because it has no minimum investment requirement. To qualify for this residence visa, the applicant must have a solid business plan and be able to demonstrate “proof of means of subsistence.” Usually, this implies having financial resources for at least 24 months, equivalent to the national minimum wage.

D7 Visa income requirements: One of the primary requirements for the D7 residency visa is that individuals must have sufficient income to support themselves while living in Portugal. This visa aims to attract people who have their own income. AIMA (former SEF, the Portuguese Immigration and Border Services) is looking for self-sufficient people who won’t become a burden on the state).

The main applicant must submit evidence of a regular income of at least €820.00 per month. The passive income total presented as evidence can come from various sources, such as pensions, investments, or rental income.

Please note that these minimum income requirements vary depending on the number of dependents accompanying the main applicant. The higher the income shown, the smoother the visa process may be, as it confirms your ability to sustain your life in Portugal without needing to work or produce additional income locally.

Another financial requirement of the D7 Passive Income or Retirement Visa is that the foreign citizen keeps a minimum balance of €19,680.00 in a Portuguese bank account throughout the application period (two years).

This balance increases with additional family members:

• An extra 50 percent (€9,840.00) is needed for a spouse or any other family member over 18,

• An extra 30 percent (€5,904.00) is needed for each family member under 18.

For example, a family of four with two adults and two minors must meet minimum income requirements and maintain at least €41,488.00 in their Portuguese bank account during the family reunification period.

Tax requirements

As a business visa holder and a D7 visa holder, you can be eligible to apply for the Non-Habitual Residency (NHR) scheme. The NHR program allows you to enjoy significant tax advantages for up to ten years.

Is NHR ending?

The State Budget Law for 2024 determined the end of the NHR regime from 1st January 2024. However, certain individuals can still apply up until 31st March 2025, and the scheme is being replaced by the Tax Incentive for Scientific Research and Innovation, which has now been implemented. To learn more, please refer to Is The Portugal NHR Ending?

Application Process: D2 Startup Visa vs D7 Passive Income Visa Portugal

D2 Visa application process

To apply for the D2 Visa, you must:

1. Gather the necessary documentation related to the business, as well as criminal record certificate, health insurance, and bank statements
2. Acquire a Portuguese tax number (NIF)
3. Open a Portuguese bank account and transfer funds to it
4. Secure long-term accommodation in the country through either purchasing or renting a property for a recommended minimum duration of one year, even if an early termination clause is included
5. Submit documents and apply online via VFS or the E-Visa Portal. This is done at your local Portuguese Consulate or VFS.

The Portugal D2 Visa processing time is up to 60 days. Upon approval, you will be issued a four-month Portugal D2 Visa to travel to Portugal to apply for a temporary residence permit valid for two years.

This temporary residence permit can be subsequently renewed for three years. After five years of legally living in Portugal, you can apply for a permanent residence permit and Portuguese citizenship.

Acquiring Portuguese citizenship usually involves passing a basic test in the Portuguese language.

D7 Visa application process

To apply for the D7 Visa, you’ll have to follow the steps below:

1. Gather the necessary documents (including criminal record certificate, health insurance, and bank statements)
2. Secure a Tax Identification Number (Número de Identificação Fiscal or NIF) from the Portuguese tax authorities
3. Proof of income or financial resources
4. Secure long-term accommodation in Portugal
5. Submit your application online via either VFS or the E-Visa Portal

If your visa application is approved, the Portuguese Consulate will issue a D7 Visa, valid for four months from the issue date.

The temporary D7 Visa allows you to enter Portugal, after which you’ll need to attend your appointment with AIMA (former SEF, the Portuguese Immigration and Border Service), where you’ll enroll your biometric data and formalize the residence permit request.

A temporary residence card will then be granted for a two-year period. After this period, the Portuguese residence permit must be renewed and valid for three years.

After five years, you can exchange this for a permanent Portuguese residency.

D2 vs D7 Visa Portugal: Visa Costs & Fees

The government fee for both the D2 Business Visa and the D7 Visa is approximately €90.  

For your residence permit, you can expect to pay around €160.

D2 vs D7 Visa: Which One to Choose?

When comparing the D2 and D7 visas in Portugal, it’s crucial that you understand their distinct purposes. The D2 Visa is the choice if you plan to come to Portugal with a job offer or intend to establish a company. On the other hand, the D7 Visa is ideal if your primary source of income is passive. Both visas grant residence and work permits, but your choice should align with your specific circumstances and goals.

Below is a clear comparison between these two Portuguese visas.

Portugal D2 Visa is the right choice for you if

• You plan to start and manage a business or invest in an existing one in Portugal
• You have a well-defined and detailed business plan outlining your investment and job creation goals
• You are willing to reside in Portugal for a significant portion of the year to manage your business actively

Portugal D7 Visa is the right choice for you if

• You have a stable and regular source of passive income, such as pensions, investments, or rental income
• You are seeking to reside in Portugal without the need to engage in active employment or business activities
• You are willing to live in Portugal for a significant portion of the year
• You value a peaceful and self-sufficient lifestyle, as the D7 Visa does not require active management of a business in Portugal

Alternatives to D7 and D2 Visas

D8 Visa Portugal

The Digital Nomad Visa, or the Freelancer Visa, is specifically designed for remote workers who can work anywhere. It allows you to work for a foreign company while residing in Portugal.

To be eligible, you must prove that you have a minimum monthly income of €3,280.00 (four times Portugal’s minimum wage) and comprehensive health insurance that meets Portuguese standards. Additionally, you must prove that you have a contract with a foreign company or are self-employed.

How We Can Help

Why choose Global Citizen Solutions for your Immigration Visa?

GLOBAL APPROACH BY LOCAL EXPERTS

• GCS has offices located across Portugal.
• Members of the US-Portugal and UK-Portugal Chambers of Commerce in Portugal, and the Investment Migration Council (IMC).
• Our expert team can help you throughout your journey to secure your Visa. 

100% APPROVAL RATE

• Our successful track record in applications provides reassurance to applicants. 
• We have helped clients from more than 35 countries secure residency in Portugal.

ALL-ENCOMPASSING SOLUTION

• With a single channel of communication, our approach ensures that you have complete clarity on your application. 
• Our BeGlobal® Onboarding System allows for a total flow of information.

TRANSPARENCY AND PRIVACY

• Our pricing is clear and detailed, you will not face any hidden costs.
• All data is stored within a GDPR-compliant database on a secure SSL-encrypted server.

Additional resources

Do you want to move to Portugal with the D2 or the D7 Retirement Visa? Then, make sure to check out the following guides:

• Opening a Bank Account in Portugal: Your Essential Guide
• The Portugal Healthcare System: An Expats Guide
• Is Portugal Safe? What You Need To Know Before Moving
• Living in Lisbon: Everything You Need To Know Before Moving
• Americans Moving to Portugal: All You Need to Know
• Buying Property in Portugal: Making the Right Decision

Frequently Asked Questions about the D2 vs D7 Visa Portugal

What is the difference between D2 and D7 in Portugal?

The primary difference between these Portugal visas lies in their respective purposes and eligibility criteria. The D2 Visa, also known as the Entrepreneur or Startup Visa, is designed for individuals who wish to start, manage, or invest in businesses in Portugal. It requires active involvement in business operations within the country. On the other hand, the D7 Visa, often referred to as the Passive Income Visa, is tailored for individuals with stable sources of passive income, such as pensions or investments. It doesn’t necessitate active business engagement and is ideal for those seeking a more relaxed lifestyle in Portugal.

What are the disadvantages of D7 Visa in Portugal?

While the Portugal D7 Visa offers several benefits, it also has some potential disadvantages, depending on individual circumstances and preferences. One of the disadvantages is that D7 Visa holders must make Portugal their primary country of residence. This requirement may not align with the travel or residency preferences of some individuals.

Who is eligible for D7 Visa?

To be eligible for the D7 Visa, you must be a non-EU national and earn a passive income of at least €820.00 per month (your passive income can come from pensions, transferable equity, rental income, intellectual property, or financial equity). You also must show proof of a place to live in Portugal.

How does Portugal D7 Visa work?

D7 Visa applicants must meet certain eligibility criteria, including having a stable source of passive income. Once the application is approved, applicants receive the D7 Visa, allowing them to enter the Portuguese territory and reside in the country legally. Once here, they’ll get a temporary Portugal residency permit valid for two years, which can be renewed for a three-year period.

How much tax do I pay on a D7 Visa in Portugal?

D7 Visa holders who have not been tax residents in Portugal in the past five years can apply for the Non-Habitual Resident (NHR) tax scheme. This regime has several advantages. One of them is a tax exemption for ten years if you receive your income in dividends, trust, and royalties. However, the NHR tax regime is now closed to new applicants, apart from a select few who meet certain criteria.

What are the rules for D7 Visa Portugal?

You must be a non-EU national and prove that you have a source of passive income. The amount must exceed the Portuguese minimum wage (€820.00). You also must show that you have sufficient funds to support yourself and any dependents if that’s the case.

Is there an income requirement for the D2 Visa?

The financial requirement for the D2 Visa typically involves demonstrating that you have the necessary capital to establish or invest in a business, as well as sufficient financial means to cover your living expenses in Portugal.

What is the difference between the D2 and the Portugal Golden Visa?

The Portugal D2 Visa is primarily intended for individuals who want to engage in entrepreneurial activities in Portugal. The Portugal Golden Visa is an investment-based residency program for foreign citizens wishing to obtain temporary residency in Portugal or Portuguese citizenship by investing in the country.

What is the difference between D7 and D2 visa Portugal?

The D7 Visa is a residence visa for foreigners who earn a stable passive income. Your passive income can be from pensions, investments, rental income on property, royalties, etc. The D2 Visa is for those looking to invest in Portuguese companies, create Portugal-based businesses, or expand their businesses to Portugal.

How do the application processes for the D2 and D7 visas differ?

The D2 and D7 Visa application processes diverge in demonstrating your financial resources. The D7 Visa requires proof of stable passive income, while the D2 Visa is also part of an entrepreneur visa that focuses on business investments or creation plans.

Are there any restrictions on property ownership for D2 and D7 Visa holders?

No, there are no restrictions on property ownership for D2 and D7 Visa holders in Portugal. You are free to buy property while holding either visa type. However, it does not guarantee Portuguese citizenship. A common misconception is that purchasing property guarantees citizenship in Portugal, but this Golden Visa law has since been changed.

Is a remote job suitable for the Passive Income Visa?

No. In 2024, to qualify for this visa, your income should come from sources such as rental properties, dividends, royalties, and/or pensions. If you want to work remotely in Portugal and apply for a residency permit, your best option is the D8 Digital Nomad Visa. For the D8 Visa, you must have and prove your current income, which must be four times the monthly minimum wage.