Golden Visa vs. Portugal D7 Passive Income Visa: Which is Easier Now?

Reading time: 15 minutes

Table of Contents

• Introduction
• Understanding the Golden Visa Program
• The Portugal D7 Passive Income Visa Explained
• Comparing Eligibility Requirements
• Investment Options and Financial Considerations
• Processing Times and Bureaucratic Hurdles
• Residency Rights and Path to Citizenship
• Tax Implications for Golden Visa and D7 Visa Holders
• Recent Changes and Their Impact
• Pros and Cons of Each Visa Option
• Which Visa is Easier to Obtain in 2023?
• Conclusion
• FAQs

Introduction

As global mobility continues to evolve, investors and expatriates are increasingly seeking attractive residency options in Europe. Portugal, with its stunning coastlines, rich culture, and favorable climate, has emerged as a top destination for those looking to establish a foothold in the European Union. Two popular pathways to Portuguese residency have garnered significant attention: the Golden Visa program and the D7 Passive Income Visa. In this comprehensive analysis, we’ll delve deep into the intricacies of both options, examining recent changes, comparing their requirements, and ultimately determining which route might be easier for prospective applicants in the current landscape.

Understanding the Golden Visa Program

The Golden Visa program, officially known as the Residence Permit for Investment Activity (ARI), was introduced in 2012 as a means to attract foreign investment to Portugal. This program offers non-EU citizens the opportunity to obtain residency rights in exchange for significant investments in the country.

Key Features of the Golden Visa

• Minimum investment thresholds ranging from €250,000 to €1.5 million, depending on the type of investment
• Various investment options including real estate, capital transfer, job creation, and more
• Visa-free travel within the Schengen Area
• Minimal physical presence requirements (7 days in the first year, 14 days in subsequent two-year periods)
• Path to permanent residency and citizenship after five years

The Golden Visa has been particularly popular among investors from China, Brazil, and the United States, who seek to diversify their portfolios while gaining access to the European market. However, recent changes to the program have altered its landscape significantly.

The Portugal D7 Passive Income Visa Explained

In contrast to the investment-focused Golden Visa, the D7 Visa, also known as the Passive Income Visa or Retirement Visa, caters to individuals who can demonstrate a stable, passive income source. This visa option has gained traction among retirees, digital nomads, and those with regular income from rentals, pensions, or dividends.

Key Features of the D7 Visa

• No substantial upfront investment required
• Applicants must prove a regular passive income equivalent to the Portuguese minimum wage (currently around €705 per month)
• Requires holders to spend a minimum of 183 days per year in Portugal
• Access to Portuguese healthcare and social security systems
• Path to permanent residency and citizenship after five years

The D7 Visa has become increasingly popular due to its lower financial barriers and the growing trend of remote work and digital nomadism. Its appeal lies in the ability to live in Portugal without making a significant capital investment, provided one can demonstrate a consistent income stream.

Comparing Eligibility Requirements

When evaluating which visa option might be easier to obtain, it’s crucial to understand the distinct eligibility criteria for each program.

Golden Visa Eligibility

• Non-EU/EEA/Swiss citizens
• Clean criminal record
• Ability to make a qualifying investment
• Health insurance coverage in Portugal
• Proof of accommodation in Portugal

D7 Visa Eligibility

• Non-EU/EEA/Swiss citizens
• Clean criminal record
• Proof of regular passive income
• Health insurance coverage in Portugal
• Proof of accommodation in Portugal (rental agreement or property ownership)
• Demonstration of ties to Portugal (e.g., language proficiency, cultural integration)

While both visas require a clean criminal record and health insurance, the D7 Visa places a greater emphasis on the applicant’s ability to support themselves through passive income, whereas the Golden Visa focuses on the capacity to make a substantial investment in Portugal.

Investment Options and Financial Considerations

The financial requirements for these two visa options differ significantly, which can be a decisive factor for many applicants.

Golden Visa Investment Options

• Real estate investment: Minimum €500,000 (or €350,000 for properties in need of renovation)
• Capital transfer: Minimum €1.5 million
• Creation of 10 jobs: No minimum investment amount specified
• Investment in research activities: Minimum €500,000
• Investment in artistic production or national cultural heritage: Minimum €250,000

It’s worth noting that recent changes have restricted real estate investments in high-density areas like Lisbon, Porto, and parts of the Algarve, pushing investors towards less developed regions or alternative investment categories.

D7 Visa Financial Requirements

• Proof of regular passive income equivalent to at least the Portuguese minimum wage (approximately €705 per month)
• Additional income requirements for family members (e.g., 50% more for a spouse, 30% more for each dependent child)
• Proof of sufficient funds to cover initial living expenses (typically around €7,000 for the main applicant)

The financial threshold for the D7 Visa is considerably lower than the Golden Visa, making it more accessible for retirees, pensioners, and individuals with modest but stable passive income sources. However, the requirement to actually reside in Portugal for a significant portion of the year means that applicants must be prepared for a more substantial lifestyle change.

Processing Times and Bureaucratic Hurdles

The ease of obtaining each visa is not just about financial requirements but also involves considering the application process, processing times, and potential bureaucratic challenges.

Golden Visa Processing

• Average processing time: 6-8 months
• Initial application can be done online
• Requires in-person biometrics appointment in Portugal
• Investment must be made before visa approval
• Annual renewal process with proof of maintaining the investment

D7 Visa Processing

• Average processing time: 3-4 months
• Initial application typically submitted at Portuguese consulate in home country
• Requires more extensive documentation of income sources
• Proof of accommodation in Portugal required at time of application
• Annual renewal process with proof of maintaining residence and income

While the D7 Visa generally has a faster processing time, it often requires more upfront preparation in terms of securing accommodation and providing detailed financial documentation. The Golden Visa, despite its longer processing time, offers more flexibility in terms of residency requirements during the application period.

Residency Rights and Path to Citizenship

Both the Golden Visa and D7 Visa offer paths to permanent residency and Portuguese citizenship, but with different residency requirements that can significantly impact an applicant’s lifestyle choices.

Golden Visa Residency Requirements

• Minimum stay of 7 days in the first year
• 14 days every two years thereafter
• Eligible for permanent residency after 5 years
• Can apply for citizenship after 5 years

D7 Visa Residency Requirements

• Minimum stay of 183 days per year
• Continuous residency required
• Eligible for permanent residency after 5 years
• Can apply for citizenship after 5 years

The Golden Visa’s minimal physical presence requirement is a significant advantage for investors who wish to maintain their primary residence elsewhere while still working towards Portuguese citizenship. In contrast, the D7 Visa requires a more substantial commitment to living in Portugal, which may be preferable for those seeking full immersion in Portuguese culture and lifestyle.

Tax Implications for Golden Visa and D7 Visa Holders

Understanding the tax implications of each visa option is crucial for making an informed decision. Portugal’s tax regime can be attractive for foreign residents, but there are important distinctions to consider.

Non-Habitual Resident (NHR) Tax Regime

Both Golden Visa and D7 Visa holders may be eligible for Portugal’s Non-Habitual Resident (NHR) tax regime, which offers significant tax benefits for the first ten years of residency. Key features of the NHR include:

• Flat 20% tax rate on income from high value-added activities
• Potential tax exemptions on foreign-source income
• 10% flat rate on foreign pension income

Tax Considerations for Golden Visa Holders

• Investment income may be subject to Portuguese taxation
• Capital gains from property sales may be taxed
• Minimal physical presence may impact tax residency status

Tax Considerations for D7 Visa Holders

• Likely to be considered tax residents due to 183-day presence requirement
• Passive income may be taxed in Portugal
• May benefit more fully from NHR regime due to continuous residency

It’s important to note that tax implications can be complex and may vary based on individual circumstances and international tax agreements. Consulting with a tax professional familiar with Portuguese and international tax law is advisable for both Golden Visa and D7 Visa applicants.

Recent Changes and Their Impact

Both the Golden Visa and D7 Visa programs have undergone recent changes that have altered their accessibility and attractiveness to potential applicants.

Golden Visa Changes

• Restrictions on real estate investments in high-density areas (effective January 2022)
• Increased minimum investment thresholds for certain categories
• Greater emphasis on investments in interior regions and autonomous islands

These changes have made the Golden Visa less attractive for those primarily interested in investing in prime real estate in major cities. However, they have also opened up opportunities in less developed areas and alternative investment categories.

D7 Visa Changes

• Increased scrutiny of passive income sources
• More stringent requirements for proof of accommodation
• Greater emphasis on demonstrating ties to Portugal

While the core requirements of the D7 Visa have remained relatively stable, there has been a trend towards more rigorous verification of applicants’ financial stability and genuine intention to reside in Portugal.

Pros and Cons of Each Visa Option

To better understand which visa might be easier or more suitable for different individuals, let’s summarize the key advantages and disadvantages of each option.

Golden Visa Pros

• Minimal physical presence requirements
• Potential for significant return on investment
• Visa-free travel within Schengen Area
• Family inclusion in the visa

Golden Visa Cons

• High initial investment requirement
• Longer processing times
• Restrictions on real estate investments in popular areas
• Annual renewal and maintenance of investment

D7 Visa Pros

• Lower financial threshold
• Faster processing times
• Greater integration into Portuguese society
• Access to public healthcare and social security

D7 Visa Cons

• Strict residency requirements (183 days per year)
• Need for continuous passive income
• More extensive documentation of financial stability
• Less flexibility for those maintaining business interests abroad

Which Visa is Easier to Obtain in 2023?

Determining which visa is “easier” to obtain depends largely on individual circumstances, financial resources, and lifestyle preferences. However, based on recent trends and changes, we can make some general observations:

For High Net Worth Individuals

The Golden Visa may still be the easier option for those with significant capital to invest, especially if they’re interested in diversifying their investment portfolio and maintaining flexibility in terms of physical presence in Portugal. Despite recent restrictions, there are still attractive investment opportunities, particularly in emerging regions and alternative categories like venture capital funds.

For Retirees and Remote Workers

The D7 Visa is likely the easier and more accessible option for retirees, pensioners, and digital nomads with a stable passive income. The lower financial threshold and faster processing times make it an attractive choice for those ready to commit to living in Portugal for a significant portion of the year.

Considering Long-Term Goals

For those primarily interested in obtaining EU citizenship with minimal disruption to their current lifestyle, the Golden Visa’s lenient residency requirements may make it the easier path. However, for individuals seeking full immersion in Portuguese culture and society, the D7 Visa’s requirements align better with these goals.

Conclusion

In 2023, the landscape of Portuguese residency visas continues to evolve, with both the Golden Visa and D7 Visa offering unique advantages and challenges. The “easier” option ultimately depends on individual circumstances, financial resources, and long-term objectives.

The Golden Visa remains an attractive option for high-net-worth individuals seeking investment opportunities and flexibility, despite recent restrictions. Its minimal residency requirements and potential for investment returns make it appealing for those who want to maintain their primary residence elsewhere while working towards EU citizenship.

On the other hand, the D7 Visa has emerged as a more accessible and streamlined option for retirees, pensioners, and digital nomads with stable passive income. Its lower financial threshold and faster processing times make it an attractive choice for those ready to embrace the Portuguese lifestyle fully.

As global mobility trends continue to shift and Portugal refines its immigration policies, both visa programs are likely to undergo further adjustments. Prospective applicants should carefully consider their financial situation, lifestyle preferences, and long-term goals when choosing between these two pathways to Portuguese residency.

Ultimately, the “easier” visa is the one that aligns most closely with an individual’s unique circumstances and aspirations. Whether seeking investment opportunities, retirement haven, or a new cultural experience, Portugal offers compelling options for those looking to make Europe their home.

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FAQs

1. Can I switch from a D7 Visa to a Golden Visa or vice versa?

While it is technically possible to switch between visa types, it’s generally not recommended due to the complexities involved. Each visa has specific requirements and switching may reset the clock on your path to permanent residency or citizenship. It’s best to choose the most suitable visa from the outset based on your long-term plans.

2. Are there any language requirements for the Golden Visa or D7 Visa?

Neither visa requires Portuguese language proficiency at the application stage. However, to obtain citizenship after five years, applicants must pass a basic Portuguese language test (A2 level). D7 Visa holders may find it easier to meet this requirement due to their longer stays in Portugal.

3. How do the recent changes to the Golden Visa program affect existing visa holders?

Existing Golden Visa holders are generally grandfathered under the rules that were in place when they obtained their visa. However, future renewals may be subject to new regulations. It’s advisable for current visa holders to consult with legal experts to understand how changes might affect their specific situation.

4. Can I bring my family with me on either visa?

Yes, both the Golden Visa and D7 Visa allow for family reunification. This typically includes spouses, minor children, and in some cases, dependent parents. However, additional documentation and financial requirements may apply for family members.

5. Is it possible to work in Portugal with a Golden Visa or D7 Visa?

Golden Visa holders have the right to work in Portugal, although many choose not to due to the minimal residency requirements. D7 Visa holders are also permitted to work, either as employees or self-employed individuals. However, the primary source of income for D7 Visa holders should remain passive (e.g., pensions, rentals, dividends) to maintain visa eligibility.

Article reviewed by Sophia Georgiadou, Global Expansion Consultant | Market Entry Strategist | Breaking Into Emerging Markets with Tailored Localization Plans, on April 1, 2025