Passive Investor: Move to Europe & Apply for D7 Visa Portugal

In 2021, I applied for a D7 visa Portugal. This year, I was accepted and am currently living in Portugal after almost all my life living in the US.

But was all the story behind it? Let me tell you why I’ve decided to move to Portugal and why the D7 Visa was the most appealing option for me.

First of all, according to the passive investor definition and from this little context. Thankfully, during my late 20s, I was able to invest most of my income from a successful start-up exit I had and started to live almost only from the money such passive income was generating. If you heard of the FIRE movement (Financial Independence, Retire Early), let’s say I’ve been living such a lifestyle for four years now. 

On the other hand, I love being able to travel around Europe without having to worry about visas. With strong family connections to Europe, even though I still love(d) living in America, I reached a point where there was something missing. And I’ve found that the missing part was being able to live in a continent with so many different and rich cultures within just a few hours of traveling.

The European Move Was Decided. Now What?

Once my European move was decided, there was a big question as a passive investor: how many facilities am I going to get: to which country? And would I be able to get any sort of residence permit and not worry about visa-travel paperwork while visiting the continent?

A quick search through the web and in community forums specific to the FIRE movement made my shortlist of countries easier. And there was one extra part quite appealing to me. The so-called golden visa programs that some EU countries have had for the last decade. 

Namely, Spain, Portugal, Greece, and Malta have been trying to attract investors with a special type of residence permit that allows the holder to live and work in those countries for an unlimited period of time, provided they meet certain criteria and investments.

The D7 Visa Portugal. I Never Heard Of It (but I’m hooked!)

But there was one specific for passive income citizens. The D7 Visa Portugal. In short, the D7 Visa was introduced by the Portuguese government back in 2007. As is also known as the D7 type visa, this is a Retirement Visa, the other name for it is the Passive Income Visa. Similar to the golden visa, it allows any non-European Union/ European Economic Area citizen to apply for residency within the EU.

In fact, it is an affordable and attractive option for retirees, entrepreneurs who wish to settle down in Portugal, retired foreign nationals, or other experts who are looking to move to Portugal and make use of the generous social welfare system offered by the country.

I was both surprised and hooked at the same time. Some more research led me to find other benefits:

1. Tax Benefits: 

If you hold a residence card, you are entitled to benefit from Portugal’s Non-Habitual Income Regime. This regime is one of the most generous worldwide, offering tax-free incentives on several categories of income for the passive investor.

The Portuguese government allows taxpayers to exclude from foreign taxation earnings earned outside Portugal and residing in Portugal during the tax year. The types of income that apply are mostly related to Real estate income, Occupational pensions, Royalties, and Dividends. Apart from Occupational pensions, all other incomes made my portfolio. Obrigado Portugal!

2. Family Reunification: 

Once you have a D7 type Visa for your family, this is entitled to follow you to Portugal. You will also need to process the request for the Family Reunification or in SEF. For an active-passive investor summit, the preeminent hedge funds are designed for every type of inventor. These types of options are very few available.

You’ll have to submit the legal proof of your relationship to all and anyone else you want to include under this program. Such as your parents, siblings, grandparents, and grandchildren. 

Too Good To Be True? The Portugal D7 Visa Requirements

Applicants must meet certain requirements, including having sufficient funds to support themselves while living in Portugal, being able to prove that they have a residential address there, and having no criminal convictions.

Non-Europeans wishing to enter Portugal under the D7 visa scheme must also show that they will be able to live in the country for at least 16 consecutive months during the first two years of their stay.

In terms of income proof, who needs to get a D7 visa? The applicants will also need it. This is also proof that they have enough funds for 12 months:

To be eligible for the D7 visa, applicants must show proof that they have sufficient funds for at least 12 months for the following amounts:

Is Portugal A Good Place For Retirement?

If you are in your retirement days and looking for a country with low taxes, high quality of life, and a great climate, then Portugal may be right for you. It has been ranked as one of the best countries for retirees by numerous publications.

This is a group of passive investors and their incomes that Portugal is willing to attract through the D7 visa option. While enjoying their golden retirement years, I’ve met several elderly couples that have chosen Portugal due to the reasons pointed out above.

What About Crypto Traders?

Portugal also offers great opportunities for those who live as passive investors and their income generated by cryptocurrencies.

Portugal is one of the European countries where bitcoin is most popular among investors looking to trade cryptocurrencies without paying taxes. And due to that, many have been deciding to move the country in the last few years.

However, it is important to note that the country does not offer banking facilities for crypto exchanges, meaning that investors must find another way to transfer funds. 

Also, the country does not recognize bitcoin as a legal tender, so it cannot be used in purchases (although there have been some real estate transactions lately, always with a bank as an intermediary).

Conclusion: Does the Portugal D7 Visa Lead to Citizenship?

Not directly. But it will shorten the path to citizenship after five years. This is similar to the golden visa residence permits that allow you to apply for citizenship after the first five years. What types of passive investors everyone has queries like this? Hence no one loses the good options for making large profits. 

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