Retirement visa for Portugal

The D7 visa for Portugal may be suitable for pensioners and other applicants who have a stable personal income and plan to live in the country permanently. The main condition for being granted such a permit is financial independence. This scheme is often referred to as ‘Portuguese residency for pensioners’, but legally, the applicant’s age is not the main criterion. What matters more is that you can prove a regular and lawful inflow of funds from abroad.

A typical source of financial means is pension payments from state or private funds. Immigration legislation also provides for other options: rental income from property, dividends from business or commercial activities, interest on bank deposits, licence or royalty payments, insurance annuity payments, or distributions from trust funds.

Legally speaking, a retirement visa for Portugal consists of two documents. The first is a 120-day Type D national residence visa with the right to two entries. The second is a residence permit (AR, Autorização de Residência). In practical terms, your status in the country under the Portuguese residence permit scheme for pensioners is formalised via a residence card – the Título de Residência.

The initial validity period of the residence permit is two years. Provided all the basic requirements are met, the residence permit is renewable. However, this is not automatic but must be applied for – each time for a further three years. You may live in the country on the basis of the AR without changing your legal status. However, by law, after 5 years you are entitled to apply to switch from a Portuguese residence permit based on passive income to permanent residence (ARP, Autorização de Residência Permanente). After 7 or 10 years, you become eligible to apply for citizenship.

What income is required for a pensioner to move to Portugal?

The financial requirements are based on passive income. Any form of active income is not prohibited, but it is not taken into account in the calculation. The income must be exclusively foreign and regular; occasional payments into your account are not considered in the calculations. Immediately after actually receiving a Portuguese residence permit for pensioners, you may work and run a business. However, if you intend to renew your immigration status after three years, you must fully meet the passive income requirements. Additional sources of income will be viewed favourably when the decision is made.

The basic assessment criterion is the guaranteed minimum monthly income index, known as RMMG (Retribuição Mínima Mensal Garantida), although in everyday language it is more commonly referred to as SMN (Salário Mínimo Nacional). Legally, these terms are identical. The minimum income you need to provide documentary evidence of is €920 per month, or €11,040 per year.

Moving to Portugal with your family is slightly more complicated.

You have two possible options:

• Submit a joint application to the consulate or visa centre, with your family joining you under the Family Member Accompaniment Scheme (Acompanhamento de Membros da Família). Immigration law permits this approach, but in practice it can be difficult to achieve.
• You move to Portugal on a pensioner’s visa, after which you apply for family reunification (Reagrupamento Familiar). In most cases, this can only be done after two years of residence in the country. There are exceptions, but their applicability is limited.

The passive income requirements for moving with your family will be higher. For a husband, wife or partner, you must add at least 50 per cent to the total – from €460 per month. For each child, a further 30 per cent is required, amounting to €276 per month. It is not advisable to base your application solely on the minimum requirements; it is better to demonstrate a higher income, as this will increase your chances of your application being approved.

In addition, you must prepare and provide documentary evidence of a financial safety net. Immigration law requires you to have a personal bank account – either in Portugal or in any other country from which a SWIFT transfer is possible. The minimum amount per person is €11,040; for a family of two, €16,560; and for a family with a child, €19,872.

What documents are required for a retirement visa to Portugal

Fully meeting the standard financial requirements is a mandatory condition. However, for the consulate to approve your application, you must prepare a basic set of documents. You must also ensure that you meet the three main criteria: good character, permanent accommodation and proven financial independence from the healthcare system.

What you need to pay particular attention to:

• Good character. This is confirmed by a certificate of no criminal convictions. You must obtain this from every country where you have lived for more than one year. Requirements regarding apostille certification and translation into Portuguese depend on the country where the D7 visa for Portugal is issued.
• Accommodation. Standard tourist options involving short-term rentals through specialist services such as Airbnb are not acceptable. You must provide documentary evidence that you are in fact guaranteed accommodation for at least 12 months. The standard option is a long-term tenancy agreement, which must be registered with the tax authorities; this is the landlord’s responsibility. You may also provide a title deed or a property sale and purchase agreement; there are no restrictions regarding the type of accommodation, year of construction or market value of the property.
• Insurance. The minimum cover is €30,000, and the policy must be valid for at least 120 days. However, it is advisable to allow for extra time, as some consulates require a period of 6 months or more rather than the standard 4 months. You can only switch to the state insurance scheme after receiving your residence card or a paper certificate from AIMA (Agência para a Integração, Migrações e Asilo, Agency for Integration, Migration and Asylum) confirming that your documents have been accepted and that your Portuguese residence permit based on passive income has been approved.
• Letter of Motivation (Carta de Motivação). This can be written in any format. It is best to use it to demonstrate the seriousness of your intentions, describe your sources of income, and outline your plans for integrating into society and participating in community life. If you do everything correctly, the likelihood of a positive decision will increase.

The main requirements are proof of sufficient passive income, a certificate of no criminal record, health insurance and proof of accommodation. In addition, you will need to prepare a standard application form, a passport valid for at least 3–4 months after the expiry of your national D visa, two standard photographs and a NIF (Número de Identificação Fiscal) tax certificate.

Timeframes and additional conditions

Portugal is a comfortable and convenient country for pensioners. One factor to bear in mind during the planning stage is that government departments do not make decisions particularly quickly. The timeframe for processing an application is set out in the Aliens Act (Lei de Estrangeiros) — up to 60 days. This period is counted from the date on which the complete set of documents is submitted to the consulate or visa centre. In practice, delays of up to 3 months are possible, and sometimes longer.

The situation is similar when visiting an office in Portugal itself. Legally, the decision-making period should not exceed three months, with a further month required for the production of the plastic card itself and its dispatch by post. If staff are overloaded with work, there is a shortage of forms, or it is the peak of the holiday season, the wait for your Título de Residência may be extended to 6–8 months. Your immigration status will be confirmed, but you will have to wait for the plastic card itself.

Taxes in Portugal

The NHR tax relief scheme was completely abolished on 1 January 2024, and the transition period officially ended on 31 March 2025. However, this does not mean that a visa to Portugal based on passive income has become any less attractive to pensioners. There is no tax in the country on the transfer of property by inheritance (Transmissão de bens por herança) or by gift (Doação). Close relatives are also exempt from stamp duty (Imposto de Selo).

Tax resident status (Residente para efeitos fiscais) is granted in two circumstances. The first is where a foreign national spends at least 183 days a year in Portugal. The second is where property has been purchased for use as a permanent residence. The taxable base includes worldwide income, including foreign pensions, dividends, annuity payments, etc. To reduce the financial burden, the provisions of the ADT (Acordo para Evitar a Dupla Tributação, double taxation agreement) may be applied.

The main personal taxes applicable in Portugal are:

• Income tax (IRS, Imposto sobre o Rendimento de Pessoas Singulares). Rates are progressive — ranging from 12.5% to 48%. The actual amount of tax depends on the amount and type of income, applicable deductions and international agreements. It is payable annually.
• Property Transfer Tax (IMT, Imposto Municipal sobre as Transmissões Onerosas de Imóveis). Rates range from 0% to 8%, depending on the property’s value, its intended use and the region. It is payable once upon the conclusion of a sale and purchase agreement.
• Stamp duty (Imposto de Selo). Rates depend on the type of transaction and are payable upon the conclusion of formal contracts. For example, for the sale and purchase of property — 0.8% of the market value; for the signing of a tenancy agreement — 10% of the monthly rent; and for obtaining a mortgage — between 0.5% and 0.6%.
• Property tax (IMI, Imposto Municipal sobre Imóveis). This is calculated on the basis of the property’s taxable value (VPT, Valor Patrimonial Tributário). The rate is set by the local council, with national limits ranging from 0.3% to 0.45%. It is payable annually.
• Tax on passive income. Shares, dividends and interest on deposits — 28% excluding ADT; preferential rates may apply in some cases.
• Vehicle tax (IUC, Imposto Único de Circulação). The amount depends on the engine capacity, the year of manufacture and the level of carbon dioxide emissions. For example, owners of older cars pay an average of between €200 and €400 per year, whilst owners of modern small cars pay between €30 and €100.

If you require further assistance with a specific situation, please contact our specialists in whatever way is most convenient for you.