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Residence visa type D7 – pensioners and people who live on their own income

The approach might seem suspicious because we are referring to the country itself, but the data are clear and corroborate: according to the 2023 Annual Global Retirement Index, published at the beginning of the year by the International Living, Portugal consolidated its position as the main destination for retired people.

In addition to typical criteria such as gastronomy, cost of living, access to health care or housing, other equally relevant criteria were considered, such as affinity/empathy with the country or security in the governance system and where Portugal obtained an irreproachable classification, highlighting as the only European country on the podium.

Another criterion contributed to this brilliant performance, which reflects the perception of a safe and straightforward immigration process, a specific visa application for their specific circumstances, as well as the associated tax and social benefits.

We confirm: The Portuguese immigration law provides for the D7 residence visa, applicable to foreign citizens who, by proving their passive income, intend to establish their legal residence in the Country.

The main requirements are clear:

1. Proof of regular and continuous passive income in a monthly amount equal to or greater than €760.00 – in addition to retirement pensions, other sources of passive income may also be considered, such as shares, real estate income, foreign company dividends;
2. Proof the availability of means of subsistence in the national territory, through a bank deposit equal to or greater than €10,000.00;
3. Submit proof of accommodation in Portugal, either through a lease contract lasting one year or more, or through the purchase of a property.

In addition to the specific requirements, the D7 visa applicant must consider the other generic documentation for an application for a residence visa, such as the passport and criminal record certificate.

Once the visa is issued, its holder must travel to Portugal within its validity period, that is, within 120 days, and must attend an interview at the Foreigners and Borders Service for the request for the granting of the corresponding residence permit (card).

The first residence permit is valid for two years, renewable for three years and, after five years of legal residence, its holder may apply for permanent residence in Portugal and will be eligible for Portuguese nationality, provided that all remain requirements are met.

Once you are a temporary or permanent resident in our country, you can access public health and education services like any other national citizen.

Our experience tells us that the data from the survey referred to above does not only reflects an intention, but, increasingly, a fact: the request for this type of visa is increasingly popular among Portuguese consular entities.

Portugal continues to be an option for foreign investment, but it is also an increasingly valid and internationally recognized option for those who want to make of our country their home, and we Portuguese know how much we have to teach and learn.

Article author: Drª Sara Neves da Silva

1. Value equal to the National Minimum Wage, legally established.

Extension of validity of temporary protection permits granted to displaced persons from Ukraine

In the early hours of February 24, 2022, the President of Russia, Vladimir Putin, ordered a large-scale military invasion towards Ukraine, which led to many Ukrainian citizens leaving their country, as they were at risk.

The ongoing war between Ukraine and Russia has contributed to a large-scale humanitarian crisis, driving Ukrainian citizens to seek refuge in other countries.

The Portuguese State was not indifferent to the war scenario that has been taking place in Western Europe and promptly provided various services and means of support for Ukrainian citizens who were already in Portugal, just as it provided these same services and support to Ukrainian citizens who intended to move to our country.

On March 1, 2022, the Resolution of the Council of Ministers n. º 29-A/2022 was published in the Official Gazette n.º 42/2022, Supplement 2, Series I, in which we can find the specific criteria for granting temporary protection for people displaced from Ukraine as a result of the imminent armed conflicts in that country, a situation that does not allow them to return ‘home’ in a safe and lasting way.

In an initial phase, subsidiary protection was then granted to Ukrainian citizens, namely through the automatic attribution of a residence permit with a minimum duration of 1 (one) year.

Given that, after a year, the cessation of the armed conflict has not yet been seen, European Directive No. 2001/55/CE, of the Council of July 20, was created with the purpose of extending the residence titles granted to displaced citizens from Ukraine.

After the transposition of the Directive into the Portuguese Legal System, through Resolution of the Council of Ministers n. º 22-D/2023, it was defined that the aforementioned residence permits will thus be extended for another 6 (six) months.

It should also be noted that the European Commission aims to extend the period of temporary protection until March 2024.

The aforementioned Ministerial Resolution entered into force on March 1, 2023, so it is already producing effects since that date.

Dra Daniela Costa

Lawyer

Education in Portugal

We provide legal services to several foreign families who decide to reside in our country. In this context, we use this opportunity to convey practical information regarding access to education in Portugal.

Although public education in Portugal is considered of high quality, according to European norms and standards, there is no public educational offer in any language other than Portuguese. For this reason, for citizens from other countries, or simply for all those who intend to offer a bilingual education to their children, the choice will have to fall on the private offer.

All children, whatever their status under the law, have full access to education and, therefore, every right to attend school and enjoy everything like any other child.

To enrol in a school, it will be required:

• Passport or Identity Card, or birth certificate;
• Completed enrolment form, with a photograph. This document is provided by the school;
• Vaccination bulletin, health centre card and “connection form”. This form, filled in by the health Centre, makes it possible to detect, from the beginning, visual and hearing problems, for example. It is therefore very important that you register at the health Centre in your area of ​​residence;
• Copy of a Health Subsystem document (SNS Card – public health card or private health insurance).

In the public school in the area of ​​residence, no enrolment can be refused, as long as it is within compulsory schooling age, unless all vacancies are filled. In this case, the school itself will try to refer the student to another school in the area and, ultimately, it is up to DGESTE (Ministry of Education) to find the solution.

In the case of a child who has already attended school in the country of origin, it is possible to obtain equivalence and there is specific legislation for this purpose. Equivalence must be requested from the Director of the school in the area of ​​residence or the one you intend to attend, which is regulated by DL nº 227/05, of December 28th. Interested parties must always present, among other documents, the qualification certificate translated into Portuguese and authenticated by the Consulate or Embassy of the country of origin in Portugal, or by the Portuguese Consulate or Embassy in that country, or with the Hague Apostille.

If the choice falls on an international school, there are several possibilities to consider from North to South of the country. Below is a list of the main ones.

Lisbon

1. British School of Lisbon – Location: Central Lisbon/ Ages: 3 to 10 years old/ Curriculum: English/ Languages ​​of Instruction: National Curriculum of England;
2. Park International School – Location: Alfragide, Cascais, Praça de Espanha, Restelo/ Ages: 1 to 18 years old/ Curriculum: IGCSE International Baccalaureate (IB) Program/ Languages ​​of instruction: English and Portuguese;
3. Germany School of Lisbon – Location: Central Lisbon and Estoril / Ages: 1 to 18 years old / Curriculum: German / Instruction languages: German and Portuguese;
4. Lycée Français Charles Lepierre – Location: Central Lisbon/ Age: 1 to 18 years old/ Curriculum: French National Curriculum/ Instruction languages: French and Portuguese;
5. International Sharing School Taguspark – Location: Central Lisbon/ Ages: 1 to 18 years old/ Curriculum: International Baccalaureate Diploma Program (IB)/ Languages ​​of instruction: English;
6. International Preparatory School – Location: Alcabideche/ Ages: 1 to 11 years old/ Curriculum: National Curriculum of England/ Languages ​​of instruction: English;
7. Saint Dominic’s International School – Location: Cascais/ Ages: 3 to 18 years old/ Curriculum: International Baccalaureate (IB) Diploma Program (DP)/ Languages ​​of Instruction: English;
8. Oeiras International School – Location: Oeiras/ Ages: 6 to 18 years old/ Curriculum: International Baccalaureate (IB) Diploma Program (DP)/ Languages ​​of instruction: English;
9. Carlucci American International School of Lisbon – Location: Sintra/ Ages: 3 to 18 years old/ Curriculum: American Curriculum and International Baccalaureate (IB)/ Languages ​​of Instruction: English;
10. International Christian School of Cascais – Location: Cascais/ Ages: 3 to 18 years old/ Curriculum: American Curriculum and International Baccalaureate (IB)/ Languages ​​of Instruction: English;
11. St. Julian – Location: Carcavelos/ Ages: 3 to 18 years old/ Curriculum: International Baccalaureate (IB), British National Curriculum and Portuguese National Curriculum/ Languages ​​of instruction: English and Portuguese;
12. Prime School International – Location: Sintra and Estoril/ Ages: 3 to 18 years old/ Curriculum: Cambridge Curriculum/ Languages ​​of instruction: English and Portuguese.

Porto

1. Lycée Français International Porto – Location: Porto/ Ages: 3 to 18 years old/ Curriculum: The French National Curriculum/ Languages ​​of instruction: French;
2. Oporto British School – Location: Porto/ Ages: 3 to 18 years old/ Curriculum: British National Curriculum and International Baccalaureate (IB)/ Languages ​​of instruction: English;
3. CLIP – Oporto International School – Location: Porto/ Ages: 3 to 18 years old/ Curriculum: National Curriculum of England/ Languages ​​of instruction: English;
4. German School – Location: Porto/ Ages: 3 to 18 years old/ Curriculum: German Curriculum/ Instruction languages: German and Portuguese.

Algarve

1. Nobel Algarve British International School – Location: Lagoa and Almancil/ Ages: 3 to 18 years old/ Curriculum: National Curriculum of England and National Curriculum Portuguese/ Languages ​​of Instruction: English and Portuguese;
2. International School Vilamoura – Location: Vilamoura/ Ages: 3 to 18 years old/ Curriculum: Cambridge International Curriculum and Portuguese National Curriculum/ Instruction Languages: English and Portuguese;
3. Aljezur International School and Barlavento International Primary School – Location: Aljezur/ Ages: 3 to 18 years old/ Curriculum: Early Years Foundation Internship (EYFS), National Curriculum England/ Languages ​​of Instruction: English;
4. Santiago International School – Location: Tavira/ Ages: 5 to 18 years old/ Curriculum: National Curriculum of England/ Languages ​​of Instruction: English and Portuguese;
5. Eufeeu Algarve International School – Location: Loulé/ Ages: 3 to 14 years old/ Curriculum: Early Years Foundation Internship (EYFS), Cambridge International Curriculum and England National Curriculum/ Instruction Languages: English;
6. International School Vale Verde – Location: Burgau/ Ages: 5 to 18 years old/ Curriculum: National Curriculum of England/ Languages ​​of instruction: English and Portuguese;
7. Eden Montessori International School – Location: Albufeira/ Ages: 3 to 9 years old/ Curriculum: Montessori/ Languages ​​of instruction: English and Portuguese.

There are also international schools in the region of Setúbal, in the centre of the country and on the islands. If the household is made up of university students, below are the 10 best universities in Portugal, according to different International Rankings:

• Catholic University of Portugal
• NOVA University of Lisbon
• University of Porto
• University of Lisbon
• ISCTE – University Institute of Lisbon
• Aveiro University
• University of Beira Interior
• Coimbra University
• University of Algarve
• Minho’s university

Measures to be applicable in Portuguese Housing Market

Housing has been a topic that has been discussed for several years, both in relation to leasing of assets and in relation to the purchase of those. Prices are inflated and wages do not cover expenses and even so, there are no properties to rent. Therefore, the Portuguese Government proposed several measures to be taken in the so-called Program “Mais Habitação” which promises to bring solutions.

This program aims to increase the supply of residential properties, making state properties available and converting the use of commercial properties or services, such as shops, for residential use, since there are several properties of this type available. This is a measure that we think is advantageous, on a positive note the fact that it encourages the rehabilitation of degraded and abandoned properties, motivating the maintenance of properties that may not be ideal for commerce, due to several factors, such as location, but ideal for housing purposes.

Another measure that the government intends to adopt is the simplification of licensing processes, even if this does not occur on the part of public services involved, but by the designers. These must sign a term of responsibility, licensing being almost automatic. This means an increased responsibility for them, as they may be held responsible for something that does not go according to plan. The Government also proposes that default interest be applied for non-compliance with the licensing deadlines, considering that sometimes this delay is very significant.

The third measure is the increase of houses on the rental market. And it is intended to do so by reinforcing the confidence of landlords, thus intervening the State as tenant who subleases the property and guarantees payment after 3 months of non-compliance, charging, supporting or evicting the tenant.

We then began to focus on the measures that best fit the existing housing crisis and that will certainly make a difference in the market and in everyone’s lives. One of them is the exemption of capital gains, when the property is sold to the State. This is beneficial for both sides, considering that capital gains are, as a rule, 50% of the profit obtained.

Another measure is the mandatory leasing of vacant houses, considering thar works here are necessary and a must be, which will give more life quality to the localities in which these buildings are located. Also, the incentive to transfer to habitational purposes houses in local accommodation (AL), but the truth is that the income obtained in a local accommodation is, as a rule, much higher than that obtained with an annual/permanent lease, and what is intended as a rule is to obtain the highest possible financial benefit. However, there is an intention to apply a rate of 35% to the taxable amount, which will harm this financial benefit in forcing the transfer of AL to housing. There is also the issue of paying capital gains in the allocation of the property in local accommodation for the personal sphere, so if this is mandatory, it will be an added expense that will not help to convince the owners.

The Government also proposed tax exemption for affordable rent. One of the best proposed measures. But again, considering that most landlords want a higher rent, one has to evaluate which option is more advantageous, affordable leasing, with lower rents and tax exemption, or managing to rent, opting for a higher value that ends up offset the tax exemption and maybe still increase the profit?!

It is also intended to end the Golden Visas Program, which as basic requirements had the possibility of investing between 400 to 500 thousand euros, among others, to acquire a property. Now, it is not easy for a mere Portuguese citizen, who earns the minimum wage, to acquire a property worth 250 thousand euros, let alone 500 thousand euros. Considering that some of these investors buy the property and rent it out, or make investments in the business sector, putting an end to Golden Visas means cutting off a considerable slice of the Portuguese external economy, not being effectively linked to the housing crisis that the country is going through.

The government also intends to guarantee a fair income in new contracts. Although this is appreciated, the truth is that it is not easy to determine what “fair income” is, in addition to the fact that this could eventually sacrifice the contractual freedom provided for by law.

Finally, we have the banking institutions, where the Government intends to exempt capital gains for the amortization of mortgage loans and also in this matter, that banks are obliged to offer a fixed rate and protection against interest rate rises.

This concludes, in essence, the measures presented by the Government on the 16th of February, which will be discussed again on the 30th of this month.

We agree with some, we don’t understand others, but we hope that, if not all, at least some of the measures can make a difference in the lives of citizens residing in Portugal and that our country remains attractive as an investment and tourism destination.

We will follow this issue closely and will once again publish more factual and legal material relating to it.

Dra Lucia Costa

Trainee Lawyer