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As of October 2023, real estate investments and capital transfer investments no longer qualified as suitable investment types. Applicants must now select from 5 investment options:
Portugal also has visas for non-EU citizens who wish to become residents by investing in Portugal (in an existing companyt or a specific business etc)establishing a company or working as a self-employed individual. Self-employed workers must ear at least the equivalent of the monthly minimum salary to maintain their residence. This visa requires a minimum stay of four months/year in Portugal, with allowancers for up to six consecutive months or eight months in total/year away from the country. The D3 is a specialist visa for professionals with advanced skills or qualifications.
For most British and other non-EU citizens wishing to retire or live in Portugal without working, the D7 visa is usually the best route for obtaining residency – Holders of a D7 visa may not be employed in Portugal.
Key to eligibility is having an income from outside of Portugal (such as pension or rental income, investments or even working remotely for a foreign company) that is equal to or more than the Portuguese minimum wage (approx. €700-€750). Add a further 50 per cent of the minimum wage for an accompanying spouse or adult dependent. Applicants must also have an approved level of private medical insurance valid for a year.
The process for gaining residency is in two stages. First is the visa application, which typically is done through the Portuguese Consulate in your country of origin. Once the D7 has been granted, the applicant can travel to Portugal where they must apply for their residency permit within four months of arriving. Residency through a D7 visa is renewable and after five consecutive years holders can apply for permanent residency.
The D8 Visa serves as a temporary residence card for individuals who work remotely for themselves or a company outside of Portugal. It provides the felxibility to work remotely while enjoying life in Portugal.
Requirements:
- Statement from Foreign Clients: Affirming the services they provide.
- Labour Contracts with a Foreign Employer: The applicant should possess legally binding labour contracts with a foreign employer, clearly stating the terms of their professional engagement.
- Proof of monthly income: this must be equal to or greater than 4x the Portuguese min. salary, currently set at €3,040/month.
- Proof of Tax Residency: to showecase the applicant´s compliance with tax regulations in their home country.
Options & Duration:
- Temporary Residence (Up to 1 year)
This grants individuals temporary residence in Portugal for a duration of up to one year and offersthe chance to experience life in Portugal whilst working remotely.
- Residence/D8 Visa (similar to D7)
This enables individuals to obtain long-term residence in Portugal. Under this option, individuals can pursue their remotes careers in Portugal.
This is an appealing tax regime for individuals becoming Portuguese tax residents under the NHR status, applicable to those who were not tax residents in Portugal in the preceding 5 years. The scheme provides several advantages over a fixed period of 10 years.
Due to the recent introduction of much stricter qualifying criteria we recommend you speak to a tax advisor.
- A special flat tax rate of 20% for labour and self-employment income sourced within Portugal, specifically for activities with high-value added.
- Labour income earned outside Portugal remains untaxed in Portugal if it´s already taxed in the source country.
- Self-employment income from high-value activities outside Porugal is exempt from taxation in Portugal, provided it´s taxed at the source country under a tax treaty.
- Interests, dividends and royalties sourced outside Portugal are taxed at a zero rate in Portugal, with taxed imposed int he source country not exceeding the reduced rates established in tax treaties, typically 5%, 10% or 15%.
- Foreign pensions received by NHR inficiduals, including schemes with capital or lump sum payments are subject to a special flat rate of 10%.
Recent Changes
Those who started the process of moving to Portugal in 2023 may still qualify under the old rules. Proof would need to be shown in the form of either:
- A promise or contract of employment signed until 31/12/2023 where the duties are to be carried out in Portuguese territory.
- A lease agreement or other agreement granting the use of possession of real estate in Portugal signed before 10/10/2023.
- A reservation contract or promissory contract (CPCV) for the acquisition of real estate in Portugal.
- Enrolment or registration for dependents in Portuguese educational establisments in Portugal.
- Residence visa or residence permit valid until 31/12/2023.
- Procedure initiated by 31/12/2023 for the granting of a residence visa/permit through the request of an appointment or submission of the application itself.
After acquiring NHR status, a tax return must be filed annually in Portugal detailing worldwide income and expenses and social security contributions are required.
We recommend seeking tax advice to determine if you qualify for the scheme and it it suits your tax situation.
email: sales@silverholidays.com