Madeira’s D7 Visa – An alternative to the Golden Visa for retirees and those with passive income.
In 2007, the Portuguese government introduced the D7 visa, commonly known as the retirement visa or Passive Income Visa. Madeira’s D7 Visa is available to any non-EU/EAA/Swiss citizen who has a regular passive income or pension, to apply for temporary or permanent residency in Portugal and Madeira.
Since the United Kingdom of Great Britain and Northern Ireland voted in a referendum to leave the European Union in 2016, Portugal has seen a dramatic rise in applications for the D7 Visa, with young professionals capable of working remotely seeking to remain in Europe longer than the 90 days, short-stay Schengen Visa allows.
Whilst Madeira’s D7 Visa is primarily intended to attract retirees and those living on passive income to reside in Portugal and contribute to the economy, there is no barrier against having professional activity in Portugal or earning a salary abroad. This allows young professionals to take advantage of the D7 and choose Portugal and Madeira as a place to live and work.
The minimum annual income required to be eligible for the D7 Visa is €8,460. 50% of this amount is then required for a spouse and a further 30% for each dependent child. The relatively low-income requirement allows families to obtain legal residency in Portugal and Madeira, and benefit from all the resident’s rights under Portuguese law.
Permanent Residency and Citizenship
Once a successful application for the D7 Visa has been granted, you can obtain residency for 1 year, followed by two, two-year extensions. After five years of legal residency, you can apply for permanent residency, and then apply to become a Portuguese citizen through naturalisation.
Your rights as a Resident in Portugal and Madeira
All legal residents and citizens of Portugal and Madeira are entitled to certain benefits offered by the state. These include:
- Access to the National Health Service
- Access to education and schools in Portugal
- Formation of companies, businesses, and tax benefits through NHR and MIBC
- Access and Protection from the Portuguese Legal System
- Access to Vocational Training in Portugal
You can find more information on the tax benefits of the Non-Habitual Residency Scheme here.
More information on the Madeira International Business Center (MIBC) can be found here.
Once you have obtained your D7 Visa, your family is welcome to join you in Portugal. You must first request a Family Reunification appointment with SEF (Serviço de Estrangeiros e Fronteiras). You are legally required to prove your relationship with all the family members who wish to join you under your application. Family members who qualify for family reunification under the D7 visa are as follows:
- Your Spouse or Partner
- Children under the age of 18 who are dependent on you or your Spouse/Partner
- Children over the age of 18 who are dependent on your Spouse/Partner, meaning they are single and enrolled in an educational establishment.
- Your parents, or the parents of your Spouse/Partner, provided they are dependent on you.
- Your Minor siblings
What documents are required to apply for a D7 Visa?
To apply for a D7 Visa in Madeira, you are required to provide the following:
- D7 Application Form
- Valid Passport
- 2 Passport-sized photographs
- Proof of your passive income
- Proof of accommodation in Portugal or Madeira in the form of a lease agreement, valid for a period of 12 months or more.
- A criminal background check from your home country of origin, where you have resided for more than one year
- An application for a Criminal Record consultation with SEF
- Travel Insurance and Health Coverage
- 6 months’ worth of bank statements
How much does it cost?
In comparison to other residency schemes such as the Golden Visa, the D7 is very affordable. The initial application fee is around €90, then €160 for the cost of your resident permit. Obtaining the D7 visa in your home country can take up to 60 days, provided you supply allow the required documentation.
Can Madeira Company help with my D7 Application?
Madeira Company has experienced tax and accountancy professionals who can help you throughout your D7 Visa application and your relocation to Madeira. Contact a member of the team today and find out how we can help you with your personal requirements.