Comparing Portugal's Digital Nomad Visa and D7 Visa: Understanding the Distinctions

Portugal has become a popular destination for digital nomads and foreign investors alike, offering two visas that cater to different needs: the Digital Nomad Visa (D8) and the D7 Visa. Here's a breakdown of each visa, their requirements, and who they are suitable for.

The Portugal Digital Nomad Visa (D8)

Launched in late 2022, the Portugal Digital Nomad Visa is designed for remote workers who earn their income by working for companies or clients based outside of Portugal. To apply, you'll need a valid passport, international health insurance, a clean criminal record, a 12-month lease in Portugal, and a minimum income of €3,480 per month (or more depending on family members).

The Digital Nomad Visa allows you to legally relocate to Portugal, with the potential to lead to permanent residency after five years of living in the country. It's important to note that you must actively earn your income while working remotely as an employee, freelancer, or business owner.

The Portugal D7 Visa

The D7 Visa, a long-standing option, is reserved for individuals with passive income, such as retirees or people with income from pensions, real estate rental, or investments. To be eligible, you must earn a minimum income of 870€ per month (or more depending on family members) and deposit 12,000€ in a Portuguese bank account.

Unlike the Digital Nomad Visa, the D7 Visa is not intended for active workers or direct investors. Instead, it's for retirees and investors who do not actively work to earn their income. Just like the Digital Nomad Visa, the D7 Visa also leads to permanent residency after five years of living in Portugal.

Making Your Choice

To choose between the two visas, consider your eligibility. If you work remotely and earn at least 3,280€ per month, the Digital Nomad Visa is right for you. If you are retired or earn a passive income of at least 900€ per month and can deposit 12,000€ in a Portuguese bank account, the D7 visa is right for you.

It's also worth mentioning that living in Portugal makes you a tax resident, and it's recommended to speak to a professional tax advisor when determining your taxes. Additionally, the NHR Program, a tax incentive program for foreigners, has been modified and changed to be more selective.

Both visas allow foreigners to legally relocate to Portugal, offering a unique opportunity to live and work in this beautiful European country. Whether you're a remote worker or an investor, Portugal has a visa that could suit your needs.