For those looking to relocate to Southern Europe, Portugal and Spain offer two popular residency options: the D7 Visa in Portugal and the Non-Lucrative Visa in Spain. Both are designed for retirees and individuals with passive income, providing a pathway to long-term residency in two of Europe’s most desirable destinations.
However, despite their similarities, these visas have key differences in requirements, benefits, and long-term implications. Whether you prioritize lower financial thresholds, easier paths to permanent residency, or tax advantages, understanding how the D7 Visa and the Non-Lucrative Visa compare is essential.
In this article, we’ll break down the key distinctions between these two residency programs to help you determine which one best suits your needs.
What is the Portugal D7 Visa?
The Portugal D7 Visa, also known as the Passive Income Visa, is a residency program designed for non-EU/EEA/Swiss nationals who have stable passive income. This visa is ideal for retirees, remote workers, and individuals with income from pensions, rental properties, dividends, or other passive sources.
Introduced as a way to attract financially self-sufficient individuals, the D7 Visa grants a renewable temporary residence permit, allowing holders to live in Portugal and benefit from its high quality of life, affordable cost of living, and favorable tax schemes.
What is the Spain Non-Lucrative Visa?
The Spain Non-Lucrative Visa is a long-term residency permit designed for non-EU/EEA/Swiss nationals who have the financial means to support themselves without working in Spain. It is particularly popular among retirees, financially independent individuals, and remote workers (although officially, it does not permit employment with a Spanish company).
This visa allows holders to reside in Spain for an initial period of one year, with the option to renew for two-year periods until they become eligible for permanent residency after five years.
However, you cannot work in Spain with the Non-Lucrative Visa. The visa is designed for those who can sustain themselves through passive income or savings, requiring applicants to demonstrate financial self-sufficiency without local employment.
Portugal D7 Visa vs. Spain Non-Lucrative Visa: Key Benefits Comparison
Portugal’s D7 Visa allows remote work, freelancing, and local employment, while Spain’s Non-Lucrative Visa does not permit employment, with remote work in a legal gray area. The income requirement is €870 per month for Portugal and €2,400 per month for Spain. Both visas provide Schengen travel, family inclusion, and public healthcare access.
Both visas offer permanent residency after five years, but Portugal allows citizenship after five years, while Spain requires ten years (or two for some Latin American nationals). Portugal requires a 6-8 month stay per year, while Spain requires 183+ days and automatic tax residency. Portugal’s visa is issued for two years, then renewed for three, while Spain’s starts at one year, followed by two-year renewals.
Portugal D7 Visa vs. Spain Non-Lucrative Visa: Processing Time Comparison
Portugal D7 Visa vs. Spain Non-Lucrative Visa: Cost Comparison
Portugal’s D7 Visa has an application fee ranging from €90 to €120 per applicant, while Spain’s Non-Lucrative Visa application fee varies between €80 and €150 per applicant. The residence permit fee for Portugal is approximately €160 to €180, whereas in Spain, the TIE card fee for the residence permit is €16 to €22.
For visa renewals, Portugal’s D7 Visa renewal fees range from €160 to €180 per renewal, while Spain’s Non-Lucrative Visa renewal fees are €16 to €22 per renewal. Fees for both visas may vary depending on location and administrative costs.
Portugal D7 Visa vs. Spain Non-Lucrative Visa: Tax Comparison
Portugal’s D7 Visa and Spain’s Non-Lucrative Visa have different tax implications based on residency requirements and applicable taxes. In Portugal, tax residency is optional unless the individual stays 183 days or more per year, whereas in Spain, all Non-Lucrative Visa holders must become tax residents if they meet the same threshold. Both Portugal and Spain have double taxation agreements, allowing residents to avoid being taxed twice on the same income.
Regarding specific taxes, Portugal does not impose a wealth tax, while Spain applies a wealth tax based on assets above certain thresholds. Inheritance and gift taxes in Portugal are low or non-existent for close family members, whereas Spain applies inheritance and gift taxes depending on the region and family relationship. Capital gains tax on non-property gains in Portugal is 28%, while in Spain, it ranges from 19% to 26%, depending on the amount of the gain.
Portugal D7 Visa vs. Spain Non-Lucrative Visa: Which One Should You Choose?
If you’re torn between Portugal’s D7 Visa and Spain’s Non-Lucrative Visa, it all comes down to flexibility, cost, and work opportunities. While both visas offer a chance to enjoy life in Southern Europe, Portugal’s D7 Visa tends to be the more accessible and versatile option.
One of the biggest advantages of the D7 Visa is its lower financial requirement. You only need to show around €870 per month in passive income, whereas Spain requires a much higher €2,400 per month. This makes Portugal a far more affordable option, especially for retirees or digital nomads looking for a cost-effective European base.
Speaking of affordability, Portugal also has a lower cost of living compared to Spain. Housing, groceries, dining out, and general expenses are cheaper in Portugal, especially in cities like Porto, Braga, or the Algarve compared to Madrid or Barcelona. If keeping costs manageable is a priority, Portugal offers a better quality of life for less.
Perhaps the biggest dealbreaker for many is the work restriction on Spain’s Non-Lucrative Visa. While Spain does not officially allow work, Portugal’s D7 Visa permits remote work, freelancing, and even employment in Portugal. This flexibility makes it ideal for digital nomads, entrepreneurs, or anyone wanting to keep earning while living abroad.
If you’re looking for a more affordable, flexible, and work-friendly residency option, Portugal’s D7 Visa is the clear winner. It allows you to settle in a beautiful, lower-cost country, maintain your income, and even pursue Portuguese citizenship in just five years—half the time required in Spain. Unless you have a strong preference for Spain’s culture or cities, Portugal offers a smoother and more budget-friendly path to European residency.
How Can We Assist You?
As a relocation and investment company, Portugal Residency Advisors® provide end-to-end services for individuals, families, and businesses looking to relocate or invest in Portugal. Our team of experts assists with the Portugal D7 Visa, Golden Visa, and other residency programs, ensuring a smooth and efficient process from start to finish.
We offer comprehensive support, including visa application assistance, document preparation, financial proof guidance, NIF registration, bank account setup, and accommodation solutions. Additionally, we handle business setup, real estate investment, and legal compliance, tailored to your needs.
With our expertise in Portuguese immigration and investment laws, we help simplify the process, reducing delays and ensuring a successful transition to life or business in Portugal.
Frequently Asked Questions About Portugal D7 Visa vs. Spain Non-Lucrative Visa
Which visa has lower financial requirements, Portugal’s D7 Visa or Spain’s Non-Lucrative Visa?
Portugal’s D7 Visa has significantly lower financial requirements, requiring around €870 per month (€10,440 per year), while Spain’s Non-Lucrative Visa demands €2,400 per month (€28,800 per year). This makes Portugal’s D7 Visa a much more affordable option for retirees and financially independent individuals.
Can I work in Portugal with the D7 Visa or in Spain with the Non-Lucrative Visa?
With Portugal’s D7 Visa, you are allowed to work remotely, freelance, or even take employment in Portugal. In contrast, Spain’s Non-Lucrative Visa does not permit local employment, and while some visa holders work remotely for foreign companies, this remains a legal gray area.
Which visa has a lower cost of living, Portugal’s D7 Visa or Spain’s Non-Lucrative Visa?
Portugal’s D7 Visa generally offers a more affordable cost of living. Portugal has cheaper housing, healthcare, and lower daily expenses compared to Spain, particularly when looking at major cities like Lisbon versus Madrid or Porto versus Barcelona. If cost savings are a priority, Portugal is the better choice.
How long does it take to get Portugal’s D7 Visa or Spain’s Non-Lucrative Visa?
Spain’s Non-Lucrative Visa is typically processed faster, taking around 2 to 4 months, while Portugal’s D7 Visa can take between 3 and 6 months due to delays in scheduling SEF residence permit appointments. If speed is a factor, Spain’s visa might be the better option.
Which visa leads to citizenship faster, Portugal’s D7 Visa or Spain’s Non-Lucrative Visa?
Portugal’s D7 Visa offers a faster path to citizenship, as you can apply after just 5 years of residency. With Spain’s Non-Lucrative Visa, the requirement is 10 years, unless you are from a Latin American country, in which case it is reduced to 2 years.
Do I need private health insurance for Portugal’s D7 Visa or Spain’s Non-Lucrative Visa?
Yes, both visas require private health insurance. For Portugal’s D7 Visa, the cost is typically €300-600 per year, and after becoming a resident, you can access Portugal’s public healthcare system. Spain’s Non-Lucrative Visa requires comprehensive private coverage, which usually costs €800-1,500 per year, making it the pricier option in terms of healthcare.
Do I need to buy property to qualify for Portugal’s D7 Visa or Spain’s Non-Lucrative Visa?
No, neither visa requires property ownership. You can rent a home in both Portugal and Spain to meet the accommodation requirement, so buying property is completely optional.
Can I bring my family with me on Portugal’s D7 Visa or Spain’s Non-Lucrative Visa?
Yes, both visas allow family reunification. Portugal’s D7 Visa requires you to prove 50% additional income for a spouse and 30% per child, while Spain’s Non-Lucrative Visa requires an additional €7,200 per year per dependent. Both visas make it possible to relocate with family members, but Portugal’s requirements are slightly more lenient.
How often do I need to renew Portugal’s D7 Visa or Spain’s Non-Lucrative Visa?
With Portugal’s D7 Visa, the first residence permit is valid for 2 years, followed by a 3-year renewal before applying for permanent residency. Spain’s Non-Lucrative Visa starts with a 1-year permit, then renews in two-year increments until you reach 5 years of residency.
