FIRST A GREAT BIG CAVEAT! THIS INFORMATION IS FOR GENERAL UNDERSTANDING ONLY. ALWAYS BEST TO CONSULT A PORTUGUESE IMMIGRATION LAWYER FOR THE LATEST DEAILS. WE CAN RECOMMEND ONE IF YOU NEED ONE.

General facts regarding residency programs:

If you are a citizen of the EU, you just need to register at your local social security office. There is a separate window for this and is very simple and quick. Bring your passport. There are special programs for those from the ex-colonies. For others, the following rules apply for those who want to invest in Portugal: 

You do not pay taxes on your income in Portugal, but at source. Here you will pay the IMI (council tax on real estate), VAT, etc. taxes… but not on income. The following benefits apply to investment visas:

  • You and your children have access to the free education system in Europe.

  • You will be registered with the Schengen Area central system which will enable you to enter all European countries (except Ireland, UK, Cypress, and Malta) without the need for an additional visa (26 European countries) after your application has been approved by the SEF (Ministry of Immigration).

  • After five years, you can apply for Portuguese citizenship.

  • Family reunion is possible which means that certain dependent family members can also get Portuguese residency.

  • Access Portuguese healthcare.

 What is the investment option?

The following options meet the criteria for residency by investment in Portugal:

  • Capital transfer of at least 1 million EUR into Portugal.

  • The creation of at least 10 job positions in Portugal by founding a company.

  • The purchase of real estate (Golden Visa) in Portugal worth at least EUR 500.000 EUR (reduced to 400.000 EUR if it is located in a low-density area). You can achieve this option also with more than one property which is from an investment point of view even better because rental returns do not grow proportionally with the real estate value. Note: Several oversubscribed regions have been removed from the Golden Visa scheme altogether. This has mainly affected Lisbon, Porto, and some areas of the Algarve.

  • The purchase of real estate (Golden Visa) in Portuguese urban regeneration areas or that is at least 30 years old to the value of at least 350.000 EUR (reduced to 280.000 EUR if located in a low-density area). In this option you have to invest some part of the money into renovations. Such projects need to be approved by SEF as qualifying for the reduced investment amount and it is critical to ensure the right project and legal advice is obtained before embarking on such investment.

  • Investment of at least 350.000 EUR in scientific research in Portugal.

  • Investment of at least 250.000 EUR in Portuguese arts, culture and heritage.

  • Investment into private equity funds. A Golden Visa €350,000 minimum investment can be made to a private equity fund.

  • Investment of at least 500.000 EUR in small and medium businesses in Portugal.

A lower density area which gives you a 20% reduced investment complies to the NUT3 level with fewer than 100 inhabitants per square kilometer or GDP per capita less than 75% of the national average.

Note that you cannot get a bank loan or mortgage in Portugal to buy a property. You must prove that you bring the capital 100% to Portugal. Of course, you can apply for a mortgage in your own country.

The transfers to purchase the property as well as to deposit money in Portugal must come from accounts in your name. You cannot transfer money or make purchases from other peoples or company accounts. The main difference between the investment residency program and the others is that you only need to stay in Portugal only 7 days for the first year and 14 days every 2 years afterwards. For the other types, Portugal assumes you will reside in Portugal more or less permanently, leaving only for family or professional reasons.

For non-investment residency, there are several types. The rules are a bit murky on the requirements, but whatever they are for the various types, Portugal generally applies the most liberal interpretation of them. The easiest method is to demonstrate that you have annual income above the very low minimum (social security, rent received, etc.) or a significant amount of money in the bank. How much is enough? No one has a definite amount. I would show at least 10 or more years of the annual income minimums. Details are below:

Applying for a Residency Visa (D7)

The D7 Visa is intended for foreign citizens living off retirement or passive income. Applicants must provide evidence of a regular and steady inflow of pension or passive income, which can include dividends, real estate income, royalties, or financial investments. General and detailed requirements for applying for a resident visa: https://www.vfsglobal.com/Portugal/USA/residency-permit.html

  • Application form signed (the form is only in Portuguese, Google translate is fine from Portuguese to English, but not the reverse.)

  • Valid passport

  • One (1) recent color photo, passport size

  • FBI record check

  • Declaration outlining the reasons for wanting to obtain residence in Portugal (for residence visas only)

  • Medical travel insurance valid for 6 months after arrival

  • Proof that applicant has guaranteed housing in Portugal

  • Proof of means of support while in Portugal (i.e. financial statement, pension, etc.)

  • Portuguese bank account statement (if applicable)

  • Proof of ownership of property in Portugal (if applicable)

  • Submission of a work contract approved by the Portuguese Ministry of Labor (for work visas only)

  • Submission of certificate of enrollment in a University or Educational Institution in Portugal (for study visas only)

  • Pay the appropriate fee.

Notes:
Children under 16 are exempt from presenting FBI record checks.

Visa application form can be downloaded at: https://vistos.mne.gov.pt/images/formulario_visto_nacional_en.pdf

Mail: Stamped, self-addressed envelope (certified or express mail, FEDEX, UPS, etc.). If the passport is to be mailed to you once the visa is ready.

All customers who need consular attention are required to timely contact the Consulate, requesting appointment for a date and hour available. All information about procedures and documentation to be submitted will be provided, as well as expected costs.

email: mail@washington.dgaccp.pt
tel: 202-332-3007

My Comments:

This visa allows you to enter Portugal and apply for a Residency Permit. The Residency Visa gives you 4 months to apply for your Resident Permit in Portugal. Seems that every Consulate in the US has somewhat different requirements. The varieties of residency types are too many to go into detail here. I found the Consulate in Washington DC very helpful (they answer the phone!) and the requirements very straight forward. Nothing is required to be apostilled. You can do your FBI background check online and have your finger prints done at any one of many post offices. It is all done online and takes about 2 weeks. The list of these post offices are on the FBI website. Go to https://www.fbi.gov/services/cjis/identity-history-summary-checks to learn more. The visa process takes about 6 to 8 weeks once you have submitted your documents to the Consulate. You have to send them your passport, so don't plan to travel anywhere during that time. If you cannot show the annual income requirements from any source (pensions, soical security, etc.), then you need to show you have that ammount in a bank account (in your home country or Portugal).

My Advice:

Come to Portugal first and do the following: get your NIF number from the local Finances office of where you want to live (you will need this to sign a lease or set up a bank account), find a place to stay and sign a one year lease, set up a local bank account and deposit 10,000 or more Euros. It would be even better to start living in your place and have utility bills, if you can do that within the 90 days you have on your tourist visa. Remember you are trying to create a case that you are serious about living long-term as a resident of Portugal. The things I mention above are a good way to demonstrate that.

The D2 residency is for people who want to start a business or run a business already in Portugal. There are two main route to getting residency with the D2 path. The first is the entrepreneur route, which will require you to incorporate a company in Portugal and hire a Portuguese accountant. You’ll also need to show evidence of having sufficient financial means to set up and run the company.  As you’re incorporating a company in Portugal, you’ll need to pay Portuguese corporation tax every year, along with social security contributions. 

The second route to the D2 is the independent service provider route. This option is a good fit for those who wish to provide services to domestic or international clients.  It has fewer requirements compared to the entrepreneur route. You don’t have to incorporate a Portuguese company, nor do you need an accountant.  You’ll need to show proof of having contracts with clients, along with proof of relevant experience and/or qualifications in your field of work.

A residency application for D2 residency is most likely to succeed if you have a strong business plan that shows how your firm will profit in Portugal. The Portuguese authorities want to know that your company or service activities will provide enough money to sustain you while you live in Portugal.

How much money do I need to satisfy an annual income requirement for residency?

In accordance with article 2, number 2 and article 5, paragraph 6, letter b), of the Administrative Rule no. 1563/2007, of December 11, each application must have the following amount as means of subsistence for the 12-month period:
- first adult: 7,620 euros;
- second adult: 3,810 euros (married or a civil partner for at least 2 years);
- each child under the age of 18: 2,290 euros.
This should answer the income requirements for entering Portugal.

The New Digital Nomad visa path:

Option #1: Temporary Stay Visa

The Portugal temporary stay visa is valid for stays of up to 1 year and can be renewed. It allows you to work as a self-employed freelancer or online business owner, so it’s a good fit for digital nomads. You can travel freely in and out of Portugal on this visa (although you must follow other immigration requirements in the Schengen zone). To be eligible, the main factor is proving that you have sufficient income to support yourself during your stay in Portugal. The Portuguese government has set this threshold at four times the Portuguese minimum wage. So you’ll need at least €2820 per month.

You can show proof of the required minimum income by completing a statement of responsibility from the Ministry of Foreign Affairs of Portugal. You may also be asked to show your bank statements and invoices for further proof. The temporary stay visa is a great fit if you want to try out Portugal for a short time (but longer than the 90 day Schengen tourist allowance), without committing to becoming a long-term resident. You can find all required forms and documents for the application for the Portugal temporary stay visa at the official website of the Ministry of Foreign Affairs of Portugal. https://vistos.mne.gov.pt/en/national-visas/general-information/type-of-visa#work-and-investigation

Digital Nomad Visa Option #2: Residence Visa

This option is for remote workers who prefer a longer stay in Portugal, with the goal of getting residency. It’s also suitable for those who want to start their journey towards Portuguese citizenship.

Key requirements

  • NIF and Portuguese bank account

  • A salary from remote work that is at least four times the Portuguese minimum wage (that would be €2820 per month minimum)

  • Proof of personal tax residence in Portugal (a 12 month rental agreement registered with the tax authority)

  • An employment contract from an employer based outside of Portugal

  • For freelancers, you’ll need a contract that proves you’re working with clients

  • Bank statements and payslips (or invoices) to prove your monthly income

The digital nomad residence visa process involves two stages:

  • 1) The embassy stage, in which you submit your application for the digital nomad visa at your nearest Portuguese consulate in your country of citizenship or permanent residence.

  • 2) The residency permit stage, which happens at the immigration department once you enter Portugal using your digital nomad visa.

If successful, the consulate will grant you a double-entry visa valid for four months. In this timeframe, you’ll enter Portugal and complete the second stage – applying for a residency permit at SEF.

I recommend going the D7 route if at all possible. It is much simpler and straightforward.

What are the requirements to renew my residency?

www.imigrante.pt/PagesEN/DocumentosNecessarios/RenovacaoAR/01ARGeral.aspx

RENEWING A RESIDENCE PERMIT (GENERAL REGIME)

Article 78, paragraph 2, of the REPSAE, in conjunction with article 63, paragraph 1 of the RD 84/2007 as amended.

Documents Required:

  • Application delivered personally, (on a standard form) signed by the applicant (where the applicant is either a minor or legally disabled person the form shall be signed by his / her legal representative)

  • Two recent, identical photographs, in color with blank background, and easily identifiable, except in SIGAP Service Bureaus

  • Residence Title valid, or expired in the previous 6 months

  • Passport or any other valid travel document

  • Evidence of sufficient means of subsistence, as per the provisions of Order number 1563/2007, of 11/12

  • Evidence that the applicant has adequate accommodation

  • Permission for checking criminal records (see standard form) - except for under 16 years old

  • Document proving the regularized applicant’s tax situation

  • Document proving the regularized applicant’s Social Security situation

Notes:

  1. Residence Permit may be refused on grounds of public policy or national security reasons.

  2. A residence Permit shall be renewed only if its bearer has not been the object of custodial sentence (s) that individually or jointly exceed one year of imprisonment, even if, in case of sentencing for felonious crime set out in this legal framework, for crime of terrorism, for highly violent or highly organized crime, the enforcement of the sentence has been suspended.

  3. Residence Permit shall not be renewed if the holder has been judged by default, unless he / she is able to present evidence that he / she is no longer deemed as having been judged by default

  4. The residence permit held by a foreign citizen convicted to a custodial sentence shall only be renewed if that same citizen has not been subject to a decree of expulsion

  5. The renewal of a Temporary Residence Permit shall be applied for by the respective beneficiary up to 30 days before the expiry date

  6. Residents shall communicate to SEF any changes in their marital status, or in their home address, within 60 days from the date those alterations occur

  7. A receipt attesting submission of an application for renewal of a residence permit, replaces the Residence Permit, in all its effects, for a period of 60 days, renewable

Note that "IRS" doesn't mean the IRS of the United States. "IRS" means the Portuguese IRS; they want to include your NIF number on your Permit card.

The Residency (Titulo) Card is sent to your address, or your post office might send you a notice to come pick it up. It usually arrives within a couple of weeks.

Further Renewals and Permanent Residency

The residency laws changed on January 1, 2021. You will renew your Titulo de Residencia 30 days prior to each expiration. It expires after 2 years and is renewed for successive periods of 3 years. At the 5 year renewal, you may apply for a ‘permanent' residency that is renewed every 5 years. To learn more, visit https://imigrante.sef.pt/en/solicitar/residir/art80/ EU countries must recognize long-term resident status after five years of continuous legal residence. Absences from the EU country for periods of less than six consecutive months (and not exceeding ten months in total within the five-year period) or for specific reasons provided for by national law (e.g. military service, secondment for work purposes, serious illness, maternity, research or studies) will be regarded as not interrupting the period of residence.

Portuguese Citizenship

You can apply after 5 years of residency or after 3 years of living with a Portuguese significant other, in which ase you would not need to take a languague exam. I am in the process of doing it and will post updates.

Advantages: 
1) No need for residency permits or to to renew them;
2) Have dual nationality, as Portuguese law allows you to keep your other nationality;
3) Be able to compete in any national competitions, as a Portuguese athlete;
4) Be a European Union citizen and freely move and live in any other European Union country (currently 27);
5) Be able to vote in Portugal and in the European Union elections;
6) According to The Henley & Partners Visa Restrictions Index of 2016, and again in 2017, the Portuguese Passport ranks 6th worldwide (together with the countries of Canada, Ireland, Luxembourg, Norway, Switzerland and South Korea) and offers visa-free or visa-on-arrival travel to 183 countries. 

Disadvantages:
1) Need to apply for passport and ID citizen´s card (two different ID documents), which have to be renewed in a period of 5 years each;
2) You will need to know enough Portuguese to pass a language test at the A2 level, unless you have been living with a Portuguese significant other for 3 years;
3) Cannot dispose freely of assets, upon death. Becoming a Portuguese national and living in Portugal, your estate will be subject to national inheritance law, which is very strict on the way you can distribute your estate. Under 'forced heirship', legitimate heirs including the spouse, biological and adopted descendants, and ascendants of the deceased are entitled to a minimum percentage of the whole estate. So leaving the entire estate to the surviving spouse, which is permitted by other jurisdictions, will no longer be allowed, under Portuguese law.

NOTE: To apply for Portuguese citizenship, you will need to do an FBI background check and have it translated with the translator’s certification page. Your birth certificate also needs to be translated. You can have your finger prints done at the US Embasshy in Lisboa. You would need to mail them to the FBI in the US. As long as you have a US address (friend or family) to receive the formal report duly stamped, you do not need to return to the US and have them done. Go to https://www.fbi.gov/services/cjis/identity-history-summary-checks and https://pt.usembassy.gov/u-s-citizen-services/additional-resources-of-u-s-citizens/criminal-records-checks/ to learn more. You will also need to pass an official Portuguese language exam at the minimum of an A2 level. https://www.iclp.letras.ulisboa.pt/lape-flul/