Portugal is a desirable destination for remote workers as it offers a low-cost lifestyle, moderate weather conditions, excessive working spaces, the use of English, and coordination with important European cities. D7 visa or passive income visa for Portugal has been used by foreign nationals since the pandemic as its the most affordable one.
It's affordable because to qualify for a D7 visa, a visa applicant has to make just 7200 euros or $ 7011 for a whole year. Recently, Portugal introduced digital nomad visas for remote workers and interested overseas can apply after 30th October 2022. The difference between a D7 visa from regular digital nomad visas is that the income of applicants must be from some passive investment rather than the monthly income. In golden visa programs, Portugal has been a leading demand for wealthy European investors.
After opening e-gates for Britons, Portugal has now introduced a digital nomad visa for those who want to work remotely. When the digital nomad visa for Portugal is compared with the other European visas, there is a difference in the income requirements. Countries such as Malta, Spain, Italy and Hungary, these countries are also in the process to introduce digital nomad visas for people having an income between 2000 - 3000 euros per month.
Digital nomad visa for Hungary, initially referred to as a white card, has a low-income requirement (2000 euros per month) and visa holders can visit Schengen areas without further need for visas. Malta's digital nomad visa (also known as remote work visa) requires a minimum monthly income of 2700 euros. Malts digital nomads have the benefit of exemption from local income taxes.
Requirements for the much-awaited “Digital Nomad Visa” have been recently released. According to these requirements, remote workers who earn 4 times the minimum wage in their country are allowed to come and live in Portugal. This income is approximately $2,750 per month. Interested digital nomads can apply from 30th October and can go for a temporary visa (up to one year) or a long-term residence visa (having a renewal for up to 2 years).
For a digital nomad visa for Portugal, you can apply on two bases:
In this type, an applicant has to show that the income is stable (especially if it's non-passive) and as proof, you may have to submit a bank statement for the last three years. In this case, an applicant can show the income generated by pensions, royalties, or long-term rents.
For a D7 visa applied on the basis of savings, applicants have to prove that they support themselves with an ample amount of savings.
Those who are interested in digital nomad visas for Portugal must keep in mind that they won't be exempted from the taxes. As a Portugal resident, you have to pay the local taxes according to the tax rules. In case, you have a US passport, you have to report your income not only in Portugal but also to IRS even if you have abandoned the USA.
Because of FATCA - Foreign Account Tax Compliance Act - Portugal has to report the financial activities of US citizens to the states. But for visa applicants’ relief, they don't have to pay twice but they can take benefits from the tax relief programs.
For D7 Portugal digital nomad visa, you can contact a visa consultancy to be clear that you should apply at the Portuguese embassy serving your home country or Portugal's immigration agency. For applying, you need to submit proof of income for the last three months, including tax residency documents & a contract of employment or proof of self-employment. For application, you have to follow the following steps:
Schedule the appointment with the embassy
While applying through a Portuguese consulate, you have to schedule an appointment. If there is no Portugal embassy in your region, you can contact the nearest one serving your region.
Application form submission
While filling out the application form, make sure all the credentials are right and completely filled in. You have to enter your mailing address, contact number and email address too.
Document submission
After the application form submission, the next step is the submission of documents. Depending upon the embassy’s policy, you can apply by hand or by courier.
Wait for visa processing
If all the documents are correct and complete, a Portugal digital nomad visa can take 3 to 4 months. But the requirements must be completed to avoid visa delays. However, travel restrictions can affect the processing and it can take up to 6 months.
Yes, getting a D7 visa is quite easy and with the updated requirements, remote workers can apply after 3 October with relatively low income.
Yes, for a golden visa or a D7 visa for Portugal, you have to hold a Portuguese bank account.
By getting a residence permit by investment, a foreign national doesn't have to get a job in Portugal and it's the best way to get a residence there.