D7 visa versus Digital Nomad Visa for Portugal
Portugal has become one of the most wanted spots on the world for people who want to live abroad. The food, the culture, the good weather and the cost of living are some of the attractive thoughts that come in mind when people decide to move. After deciding to move to Portugal it's necessary to choose a visa. After the creation of the Digital Nomad Visa for Portugal it's very common to have some questions about which visa is more suitable for the case and that's why we decide to talk a little bit more about it.
D7 Visa - Passive Income
The D7 Visa is recommended for people who are retired or who have guaranteed monthly income (such as real estate rental or financial investments). The law shows the visa under the article 58 paragraph 1 of Law no. 23/2007 of July 4 and article 24 d) of Regulatory Decree no. 84/2007 of November 5. The D7 visa is for obtaining a residence permit and is valid for 2 entries and for 4 months, during which the holder must apply to the SEF for a residence permit.
For whom?
To apply for this visa, you must present documents that prove the origin and continuity of the passive income. The monthly amount to be proven is, as law, 1 minimum wage in force at the time of the request, but this amount will vary according to your family structure (addition of 50% per adult and 30% for each child). If you are a non-EU citizen and intend to move to Portugal on your own funding, the D7 Visa is the perfect option.
What's the benefits?
Among the main benefits of the D7 Portugal Visa, we can highlight: Permanent free entry and movement within the Schengen Area; Possibility to live, work and study in Portugal; Tax advantages via NHR (Non-Habitual Resident); Ability to benefit from the Portuguese health system; Fast visa process; Entire family is eligible.
What are the requirements?
The main document to be presented when applying for this visa is the proof of the monthly passive income required according to your case. In addition, documents such as:
- Passport
- Proof of income origin considering your case.
- Health Insurance
- Proof of accommodation
- NIF
- Police report
- Others
Digital Nomad Visa for Portugal
The Portuguese Government made a lot of changes on the Immigration Law recently. One of the changes was the regulation of the new type of visa for Digital Nomads.
Remote work model is already a reality all over the world. With the last pandemic, this work model grew and the digital nomads that were once rare, increased in number of adepts. According to website survey FlexJobs, 76% of North American workers said they prefer to perform their tasks outside the office. In addition, 86% of workers interviewed by the SurePayRoll said they achieve "maximum productivity" when working alone. Most of the managers ensure that their employees who are working remotely increase their productivity.
Digital nomads can choose the place they want to live because working remotely also brings territorial freedom. At the time to decide where to live, Portugal can be a great attraction for the digital nomads. The warm climate and an average low cost of living make Portugal a hot spot for a change. But to have the right to work, which type of visa could the digital nomad choose?
New Digital Nomads Visa:
On the past a good visa choice for digital nomads in Portugal was the D7 visa. This type of visa is traditionally used by people who are retired, but it would also be applied for those who have guaranteed monthly income (such as remote work), and many expacts took that route.
But now, because of the recent change in the law, there's a specific visa for the Digital Nomads (remote workers). To apply for this visa as a remote worker it's required a list of documents and it will vary according to your work status.
If you're an independent worker, you'll need to present as a main document the following:
- The Articles of Association (if you have a registered company)
- Contract for the provision of services
- Document demonstrating services provided to one or more entities
If you work for a company, you'll need to present the following:
- Work contract
- Letter from the entity allowing you to work remotely
Additionally, the applicant needs to present:
- Proof of average monthly income earned in the exercise of professional activity subordinated or independent in the last three months of a minimum value equivalent to four minimum wage (4x705€)
- Document that proofs the fiscal residence
- Some other personal documents
Other documents can be required by the Consulates, as proof of accommodation and health insurance. It will depend on each Consulate and you'll need to confirm on the Consulate of your jurisdiction or with your responsible lawyer.
Conclusion
After the law changes, the type of visa will depend on you work or income status. If you work independently, like a freelancer, and don't want to open a company here in Portugal, the Digital Nomad Visa for Portugal is the recommended visa for you. If you live from your own income, which means that you don't have to work to gain money, as a pension, or an income from rentals, for example, the best option for you will be the D7 Visa.
To learn more about these two types of visa, and decide which one it's the most suitable for your case and the amount of passive income to consider, fill out the form here and we'll contact you.