A Comparison of the D7 Visa and the Digital Nomad Visa

In recent years, Portugal has been striving to keep up with the evolving migrations trends and to align its migration policies with the rapidly changing world. The implementation of the Portugal’s Digital Nomad Visa has been a much-anticipated development.

Many remote workers and freelancers have already obtained their visas and residency permits before the establishment of the Digital Nomad Visa. In the past, remote workers and freelancers have found success in obtaining the D7 Visa, however, this program was originally intended for retirees and individuals who could support themselves with passive income, rather than for nomads.

Until recently, the D7 Visa was the favoured option for digital nomads, as it required proof of a steady income sufficient to support one's life in Portugal. Although not specifically designed for remote work, it was widely used by remote workers as it did not mandate a service agreement or employment contract in Portugal and allowed them to demonstrate their source of income, even without ties to a Portuguese company.

Recognizing the growing appeal of Portugal to remote workers, the government has established the new Digital Nomad Visa to cater to these cases. In this article, we will highlight the key differences between these two visa types, to help clarify which one is best suited to each individual situation.

The D7 Visa

The D7 Visa was originally created as a Residence Visa for retirees, those associated with religious organizations, and individuals relying on passive income sources such as pensions, dividends, rental income, or capital gains. Ideal applicants for the D7 Visa are those seeking Portuguese residency, who plan to live in the country for the majority of the year and make it their primary home, and become a tax resident of Portugal. 

The Residence Permit granted to successful D7 Visa applicants is valid for 2 years and can be renewed for an additional three years. Another significant benefit is that after legally residing in Portugal for 5 years under the D7 Visa, the applicant becomes eligible to apply for Portuguese citizenship, a desired outcome for many non-EU citizens.

The Digital Nomad Visa

Contrarily, the Digital Nomad Visa is specifically tailored to meet the needs of:

• foreign workers, self-employed professionals, or entrepreneurs, 
• those whose professional activities permit remote work, and 
• individuals or legal entities based or headquartered outside of Portugal.

The legislation provides digital nomads with two options: 

1. a Temporary Stay Visa or 
2. a Visa that leads to a Residence Permit. 

The distinction between these two options is based on the length of time the applicant plans to reside in Portugal.

The Digital Nomad Temporary Stay Visa is suitable for remote workers who want to carry out their work in Portugal for a limited time. These are the true nomads, individuals who move from place to place instead of residing in a single location. This Temporary Stay Visa, which is valid for a maximum of one year, enables the holder to live and work in Portugal for that brief time frame without having to establish residency, which was a requirement for remote workers applying through the D7 Visa. 

The Portugal government has created a Residence Visa option for digital nomads who are looking to reside in the country for an extended period of time. This type of Visa requires an application to be submitted at a Portuguese Consulate near the applicant's current place of residence. Once approved, the Visa will allow for two entries into Portugal and a stay of up to 120 days. During this time, the applicant can arrange a meeting with the SEF - Immigration and Border Service to convert their Visa into a Digital Nomad Residence Permit. This option is ideal for those who want to make Portugal their home in the future. 

The Residence Permit for Digital Nomads will have a validity of 2 years, with the possibility of renewal for an additional 3 years. Similarly to the D7 Visa, to maintain the Residence Permit, the holder must fulfil certain minimum residency requirements, such as spending a minimum of 16 months in Portugal during the initial 2-year period, and at least 28 months in each subsequent 3-year renewal period, as long as no absence exceeds 6 consecutive months.

While the introduction of the Digital Nomad Visa in two forms represents a significant step forward in modernizing migration policies and laws, it's important to note that the process of applying for and being granted these visas is still awaiting further regulation and clarification. 

As one of the most popular destinations for digital nomads, we firmly believe that the introduction of the Digital Nomad Visa will greatly simplify the immigration process for remote and self-employed workers to Portugal. This new visa will also be a valuable opportunity for foreign workers who want to maintain their connection with international companies while enjoying Portugal's sunny weather, cultural heritage, stunning beaches, protected natural parks, safe environment, and overall high quality of life at a reasonable cost that Portugal has to offer.