The Portugal D7 Passive Income Visa is the most accessible retirement visa in the EU in 2026. It requires just €920/month in verifiable passive income — the lowest threshold in Western Europe — and leads to permanent EU residency at the five-year mark, with a path to Portuguese citizenship at seven years. This is the complete 2026 guide to who qualifies, what documents you need, how long it takes, and what the NHR tax change means for your pension.
Portugal has been Europe's most popular English-speaking retiree destination since the early 2010s, and the D7 is the visa that makes it possible for most non-EU retirees (primarily Americans, Canadians, British, Australians and South Africans). The D7 isn't exclusively for retirees — it covers anyone with passive income including rental income, dividends, and royalties — but in practice, pension income is the most common qualifying source. Processing times, required documents and income thresholds have all shifted in 2025–2026; the information below reflects the current state.
What is the D7 visa?
The D7 (Visto D7 Rendimento Suficiente — 'sufficient income visa') is a Portuguese national visa that grants a one-year residence permit on arrival, renewable for two-year periods, with permanent residency available at the five-year mark. It is issued by Portuguese Consulates abroad and is distinct from the Golden Visa (which requires €280,000+ property investment). The D7 does not require property purchase — a rental agreement is sufficient.
D7 visa income requirements (2026)
| Applicant | Monthly income required (2026) | Annual equivalent |
|---|---|---|
| Primary applicant | €920/month | €11,040/year |
| Spouse/partner | +€460/month (50% of base) | +€5,520/year |
| Dependent child under 18 | +€276/month (30% of base) | +€3,312/year |
| Example: couple, no dependents | €1,380/month combined | €16,560/year |
The €920 figure is 100% of Portugal's 2026 national minimum wage (€1,020 gross in most sectors, with a different reference rate used for the visa). This threshold is updated annually and has increased from €760/month in 2022 to €920/month in 2026. Anyone currently applying or planning to apply should verify the current threshold at their nearest Portuguese Consulate, as the figure is reset each January.
Step-by-step D7 application process
- Step 1 — Open a Portuguese bank account. You need a Portuguese bank account to prove you can transfer funds to Portugal. NHR and most expats use Millennium BCP, Caixa Geral de Depósitos or Santander Portugal. You can open these remotely or in person on an initial visit. Some applicants use international services like Wise or Revolut for the initial account; Portuguese Consulates accept these but traditional bank accounts reduce friction.
- Step 2 — Get a Portuguese NIF (tax number). Your Número de Identificação Fiscal can be obtained at any Finanças (tax office) in Portugal or through a Portuguese Consulate with legal authorisation. It is needed for the bank account and all subsequent steps.
- Step 3 — Arrange accommodation. You need a rental contract or property ownership document showing Portuguese address. A 12-month minimum rental contract is standard. Short-term Airbnb listings are generally not accepted.
- Step 4 — Gather required documents. See the document list in the next section.
- Step 5 — Submit at the Portuguese Consulate in your country. The D7 is processed by Portuguese Consulates, not online. Appointment wait times range from 2–8 weeks depending on your consulate (Lisbon-area expats report London and Boston are currently 4–6 weeks).
- Step 6 — Travel to Portugal and register with SEF/AIMA. The D7 initially grants a 4-month entry visa. On arrival in Portugal, you must book an appointment with AIMA (formerly SEF) within 90 days to convert this to a one-year residence permit.
- Step 7 — Renew every 2 years. The one-year initial permit renews for 2 years, then 2 years again, reaching the 5-year permanent residency threshold.
Required documents (2026 checklist)
- Valid passport (at least 12 months validity beyond intended stay)
- Portuguese NIF (tax identification number)
- Portuguese bank account statement showing the required income transferred
- Proof of income: pension statement, Social Security award letter, or investment/dividend documentation (minimum 3 months)
- Portuguese accommodation proof: signed rental contract or property deed
- Criminal background check from your country of residence (apostilled)
- Travel or health insurance covering Portugal for the application period
- Completed D7 visa application form
- Two passport-size photographs
- Consulate application fee (currently €90 for most nationalities)
Documents typically need to be apostilled (certified for international use) and officially translated into Portuguese by a sworn translator. The apostille is particularly important for the criminal background check and pension documentation. Allow 2–4 weeks for apostille processing in the US; UK apostilles are generally faster (1–2 weeks).
Processing time and what to expect
Consulate processing after your appointment is typically 60–90 days, though some consulates are faster (London runs 45–60 days currently; Chicago and Toronto run 80–100 days). Total timeline from 'decide to apply' to 'arrive in Portugal with residence permit' is typically 4–8 months when you factor in document gathering, appointment availability and the initial visa-to-permit conversion in Portugal.
Taxes on your pension after the D7: what the NHR change means
This is the most important change for retirees since 2022. Portugal's Non-Habitual Resident (NHR) tax regime — which offered a flat 10% tax on foreign pension income for 10 years — was closed to new applicants in January 2024. Its replacement, the IFICI incentive, does not apply to retirees. If you apply for D7 now, you pay ordinary Portuguese income tax on your pension — the rates in 2026 run from 13.25% (income under €7,700/year) to 48% (income over €80,000/year), with a typical retired couple paying approximately 18–25% on combined income of €25,000–€45,000/year.
Important caveat: retirees who obtained NHR status before December 31, 2023 keep their 10% flat rate for the remainder of their 10-year period. If you were already on NHR, nothing changes. The change only affects new applicants from 2024 onward.
| Tax situation | Rate on foreign pension | Who it applies to |
|---|---|---|
| NHR (pre-2024 registration) | 10% flat for 10 years | Anyone registered on NHR before Jan 1, 2024 |
| Ordinary Portuguese tax (2026) | 13.25%–48% progressive | New D7 applicants from Jan 2024 onward |
| US–Portugal tax treaty | SS benefits taxed by US only | US Social Security recipients only |
Lisbon vs Algarve: which is cheaper for D7 retirees?
| Category | Lisbon city centre | Algarve (Tavira/Lagos) |
|---|---|---|
| 1-bed apartment rent | €1,200–1,800/mo | €900–1,400/mo |
| Couple total budget | €2,800–3,200/mo | €2,200–2,600/mo |
| Single total budget | €2,000–2,400/mo | €1,700–1,900/mo |
| Healthcare access | Excellent (major hospitals) | Good (regional + private clinics) |
| English spoken | Widely | Very widely |
| Climate | Atlantic, mild winters | 270–300 sunny days, mild |
D7 vs Portugal Golden Visa: which is right for retirees?
The Golden Visa requires a minimum €280,000 investment (€400,000+ in most Lisbon/Porto areas) and historically provided a path to residency without requiring you to live in Portugal for most of the year. The D7, by contrast, requires you to spend most of your time in Portugal (183+ days) but has no investment threshold beyond proving sufficient income. For retirees who actually want to live in Portugal — which describes most of them — the D7 is clearly the right choice. The Golden Visa makes more sense for investors who want Portuguese residency as an option without committing to primary residence.