Everywhere you look, people are labeling yet another country as the “next Portugal.”
But what if the next Portugal for you is… Portugal?
The country that some refer to as “Little California” remains one of Europe’s most attractive destinations for those seeking residency, offering multiple visa pathways to suit different circumstances and goals.
It’s true that Portugal’s Golden Visa program has lost some of its luster due to the elimination of the residential real estate investment option. And a substantial change to taxation for new residents has diminished that aspect of gaining residency.
That said, the country’s strategic location, favorable climate, relatively affordable cost of living, and welcoming immigration policies make it an appealing choice for retirees, investors, remote workers, and entrepreneurs alike.
Let’s take a look at the options for residency, all of which can lead to citizenship.
Golden Visa (Investment)
Portugal’s Golden Visa program is one of Europe’s most popular investment-based residency schemes, though it underwent significant changes in October 2023. Real estate investments and capital transfers of €1.5 million are no longer qualifying options under the program.
Current investment pathways include:
Investment Funds: A minimum €500,000 investment in qualifying venture capital or private equity funds that have no direct or indirect real estate ties. These investments must be maintained for at least five years.
Job Creation: Creating at least 10 new full-time jobs in Portugal (or eight jobs in low-density areas), or investing €500,000 in an existing Portuguese business that creates at least five new jobs.
Cultural and Scientific Contributions: €250,000 contribution to cultural heritage projects or €500,000 contribution to research conducted by public or private scientific institutions.
The Golden Visa offers significant flexibility, requiring only seven days of physical presence in Portugal during the first year and 14 days in subsequent two-year periods. After five years, holders can apply for permanent residency or citizenship. Family members, including spouses, dependent children, and parents over 65, can be included in the application.
Passive Income Visa (D7)
The D7 visa caters to individuals with passive income sources such as pensions, rental income, dividends, or other non-employment income. Applicants must demonstrate a regular monthly income equivalent to Portugal’s minimum wage (€870 per month as of 2025) plus additional amounts for family members (50% for a spouse, 30% per child). This visa is particularly popular among retirees and those with investment income.
Unlike the Golden Visa, the D7 requires applicants to spend at least six months per year in Portugal and establish genuine ties to the country. After maintaining this status for five years, holders can apply for permanent residency and eventually citizenship.
Entrepreneur/Self-Employment Visa (D2)
The D2 visa targets entrepreneurs and self-employed individuals planning to establish or invest in a business in Portugal. Applicants must present a viable business plan, demonstrate sufficient funds to support themselves and any dependents, and show that their business will contribute positively to the Portuguese economy.
This visa requires active involvement in the business operations and regular residence in Portugal. The investment threshold is generally lower than the Golden Visa, but applicants must be prepared to actively manage their business ventures.
Work Visa (D1)
The D1 visa applies to individuals who have secured employment with a Portuguese company or organization. The employer typically initiates the process by obtaining authorization to hire a non-EU worker. This visa requires a valid employment contract and proof that the position couldn’t be filled by an EU citizen.
D1 visa holders must maintain their employment status and can apply for permanent residency after five years of continuous legal residence. Family reunification is possible after the primary applicant establishes residency.
Digital Nomad Visa (D8)
Recognizing the growing trend of remote work, Portugal introduced the Digital Nomad Visa in 2022. This visa targets remote workers, freelancers, and digital entrepreneurs who can work location-independently. Applicants must demonstrate a minimum monthly income of €3,480 (four times the Portuguese minimum wage) and provide proof of accommodation in Portugal.
The Digital Nomad Visa is initially granted for one year and can be renewed. It allows holders to live in Portugal while working for foreign companies or clients, bridging the gap between short-term tourism and long-term residency.
Student Visa (D4)
Students accepted into Portuguese educational institutions can apply for a D4 visa. This covers enrollment in universities, polytechnics, or other recognized educational programs. Applicants must provide proof of acceptance, demonstrate financial means to support their studies, and show accommodation arrangements.
Student visa holders can work part-time during their studies and may transition to other visa categories upon graduation, particularly if they secure employment in Portugal.
Family Reunification Visa
This visa category allows family members of Portuguese residents or citizens to join them in Portugal. Eligible family members include spouses, minor children, dependent adult children, and dependent parents. The sponsoring resident must demonstrate sufficient income and housing to support the family members.
The process involves proving the family relationship through official documentation and meeting specific financial requirements. Successful applicants receive residence permits that align with the sponsor’s status.
Application Process and Requirements
Most Portuguese residency visas follow a similar application process. Applicants typically apply at Portuguese consulates in their home countries, though some visas allow for in-country applications. Common requirements include a clean criminal background check, health insurance, proof of financial means, and accommodation evidence.
Processing times vary by visa type and consulate, ranging from a few weeks to several months. The current word is that things are backed up across all visa types, so inquire and plan accordingly. Many applicants choose to work with immigration lawyers or consultants to navigate the complex documentation requirements and ensure compliance with all regulations.
NHR 2.0 (IFICI) Tax Regime Changes
Portugal underwent significant tax changes in 2024 with the end of the original Non-Habitual Resident (NHR) program and the introduction of the new Tax Incentive for Scientific Research and Innovation (IFICI), commonly referred to as NHR 2.0.
The original NHR program, which offered a 10-year tax holiday on most foreign-sourced income to new residents, closed to new applicants in January 2024. The new IFICI regime replaced it with much more restrictive eligibility criteria.
Key Benefits of IFICI: The framework offers a 20% flat tax rate on qualifying Portuguese-sourced employment and self-employment income for up to 10 years, compared to standard progressive rates that can reach up to 48% for high earners. It also provides 0% tax on foreign-sourced dividends and capital gains.
Eligibility Requirements: Applicants must be new tax residents who haven’t been Portuguese tax residents in the previous five years, hold relevant academic qualifications (at least a bachelor’s degree) or have three years of professional experience in qualifying fields, and work in eligible activities such as scientific research, technology, innovation, or other highly qualified professions.
Application Process: Applications must be submitted by January 15th of the year following the establishment of tax residency. For those who became tax residents in 2024, there was a transitional deadline of March 15, 2025.
Important Limitations: Unlike the previous NHR system, foreign pension income is now fully taxable in Portugal under IFICI, and the program excludes individuals who previously benefited from the old NHR or Return Program.
This change represents Portugal’s shift toward attracting highly skilled professionals and innovation-focused individuals rather than general retirees and passive-income earners. But if you’re more interested in relocating to a spectacular new home base over finding favorable tax treatment, Portugal is waiting with open arms.
Path to Permanent Residency and Citizenship
Most temporary residence permits in Portugal can lead to permanent residency after five years of continuous legal residence. Permanent residents enjoy nearly all the rights of Portuguese citizens except voting rights. After six years of legal residence (including one year as a permanent resident), individuals can apply for Portuguese citizenship, which provides EU citizenship benefits.
Portugal’s residency visa options reflect the country’s commitment to attracting diverse international residents while maintaining appropriate oversight and integration requirements. Whether seeking investment opportunities, retirement destinations, or new career prospects, Portugal’s various visa pathways accommodate a wide range of circumstances and aspirations.
The key to success lies in carefully matching your specific situation with the most appropriate visa category and ensuring meticulous preparation of all required documentation. Given the complexity and evolving nature of Portuguese law and bureaucracy, consulting with qualified immigration professionals is advisable to maximize your chances of success and ensure compliance with all requirements.
