Expat
Guide

Residence Visas for Foreigners

Portugal offers several routes for foreigners to live in the country. The right choice depends on your profile, nationality and objectives.

Golden Visa (Visto Gold)

The Residence Permit for Investment Activity (ARI) programme allows you to obtain residency through investment.

• Minimum investment: €500,000 in investment funds or €400,000 in property in the interior
• Mandatory stay: Just 7 days per year
• Family reunification: Spouse, children and parents included
• Path to citizenship: After 5 years of residency
• Note: the rules changed in 2024 — property in Lisbon, Porto and along the Algarve coast no longer qualifies; the interior and the islands remain eligible

Visto D7 (Passive Income)

For retirees, digital nomads and anyone with sufficient passive income.

• Minimum income: around 100% of the national minimum wage for the main applicant; +50% for a spouse; +30% per child
• Accepted sources: pension, rental income, dividends, remote work
• Mandatory stay: 16 consecutive months within the first 2-year period
• Permits work: yes, including self-employment

Visto D8 (Digital Nomad)

Created specifically for remote workers employed by companies outside Portugal.

• Minimum income: around 4x the national minimum wage
• Proof required: a remote work contract or documents for your own company
• Permits residency: yes, with a path to permanent status

Portuguese Citizenship

After 5 years of legal residency, you can apply for Portuguese nationality — one of the shortest periods in the EU. You will need:

• A genuine connection to the Portuguese community (A2 level of Portuguese)
• A clean criminal record in Portugal and in your country of origin
• No conviction for a crime punishable by 3 or more years of imprisonment

Tax Regime for New Residents

The former Non-Habitual Resident regime (NHR) offered significant tax benefits over 10 years. It has been abolished for new applicants and replaced by the Tax Regime for Expatriates (IFICE).

What has changed

• Those who already held NHR keep the benefits until the end of the 10 years
• New residents may qualify for IFICE, with a reduced rate of IRS (personal income tax)
• High-value-added professions (engineering, IT, medicine, among others) retain benefits
• Foreign pensions: the exemption is kept only for those who already held NHR

IFICE — Tax Incentive for Research and Business Innovation

The current regime offers:

• Reduced IRS rate: 20% on income from employment and self-employment
• Tax exemption: on certain employment income, provided you have not been resident in Portugal in the previous 5 years
• Eligible professions: executives, IT specialists, engineers, doctors, researchers, among others

Tax rules change frequently — the FOZ VILLA team always confirms the up-to-date position with a tax adviser before any decision.

The Property Buying Process

1. Search and Selection

Work with a FOZ VILLA consultant to identify properties that match your criteria. We arrange in-person or virtual viewings.

2. Offer to Purchase

We present a formal offer to the seller, normally accompanied by a deposit of 5–10% of the value. The offer can be conditional (on financing, on the sale of another property, etc.).

3. Promissory Contract of Purchase and Sale (CPCV)

A legal document that binds both parties. It includes:

• The purchase price and payment terms
• The deadline for the final deed (escritura)
• Penalties in the event of default (typically double the deposit)
• Typical deposit: 10–30% of the value

4. Due Diligence

We check the tax register (matriz predial), the land registry certificate (certidão do registo predial), the use permit and the certificate of condominium debts (where applicable).

5. Public Deed (Escritura)

Executed at a notary's office. It requires:

• A Portuguese NIF (mandatory in order to buy)
• A valid identity document
• Proof of payment of IMT and Imposto de Selo
• Approved credit (if financed)

6. Registration and Possession

After the deed, the property is registered at the Registo Predial and can be occupied.

Taxation on Purchase

IMT — Municipal Property Transfer Tax

A tax paid by the buyer at the deed, on a progressive scale according to the value and intended use of the property (permanent own residence, second home/investment, or rural property — the latter at a fixed rate of 5%).

Imposto de Selo (Stamp Duty)

0.8% on the deed value, paid together with IMT.

IMI — Municipal Property Tax

Paid annually, between April and November. The rate varies by municipality:

• Urban property: 0.3% to 0.45% of the taxable asset value (VPT)
• Rural property: 0.8%
• Real-estate funds: exempt from IMI

Capital Gains (Mais-Valias)

On a sale, part of the capital gain is taxed under IRS. Exemptions may apply in specific circumstances — to be confirmed case by case with a tax adviser.

Tax figures and brackets change regularly. The numbers above serve as general guidance — always confirm the rates in force with our team or an accountant before deciding.

Bank Financing

For Residents in Portugal

• Maximum LTV: up to 90% of the valuation or purchase price (whichever is lower)
• Term: up to 40 years
• Rates and spread: vary with the Euribor and the risk profile — we always compare several offers before proceeding

For Non-Residents

• Maximum LTV: typically 65–70% (some banks go up to 80% for high-income profiles)
• Documents: income tax return from your country of origin, proof of income, sworn translations
• Initial deposit: generally from 30% of the value

Banks that Finance Foreigners

Millennium BCP, Novo Banco, Banco Santander, Caixa Geral de Depósitos, Banco BPI, Bankinter, among others. We work with credit intermediaries who seek the best conditions for each profile.

FAQ — Frequently Asked Questions