Residency in Portugal: Key Information for Individuals Living on Passive Income

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Temporary Residence Permit for Passive Income

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If you have regular passive income from investments and wish to establish residency in Portugal, you may qualify for a temporary residence permit. To be eligible, you typically need to demonstrate a monthly income of at least €1,070. This permit allows you to include your direct dependents in the application, providing a pathway for the whole family to settle in Portugal.

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Tax Benefits for Portuguese Residents

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Once you establish tax residency in Portugal—by either spending at least 183 days a year in the country or maintaining a permanent residence with the intent to make it your habitual home—you may qualify for the Non-Habitual Resident (NHR) status. This regime is available to those who have not been taxed as Portuguese residents in the previous five years.

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The NHR program offers significant tax benefits, including:

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• A full exemption on foreign-source pensions, dividends, royalties, interest, and other investment income for up to 10 years.

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Temporary to Permanent Residency

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The temporary residence permit is initially valid for one year and can be renewed for subsequent two-year periods, provided the eligibility criteria are still met. After five years of legal residency in Portugal, you may apply for a permanent residence permit, which grants the right to live and work in Portugal indefinitely.

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To qualify for permanent residency, you generally need to:

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• Have a stable abode in Portugal.

• Demonstrate sufficient means of subsistence.

• Show basic knowledge of the Portuguese language.

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Permanent residency has no minimum stay requirements, but it can be revoked if you are absent from Portugal for 24 consecutive months or 30 non-consecutive months over three years, without a valid reason.

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Path to Citizenship

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After six years of legal residency in Portugal, you may become eligible for naturalization. The requirements typically include:

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• Attending an interview.

• Demonstrating ties to Portugal.

• Proving proficiency in the Portuguese language.

• Showing knowledge of the country’s history, culture, and values.

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By following this pathway, individuals living on passive income can enjoy Portugal’s lifestyle and potentially become full citizens, benefiting from the country’s favorable tax regime and quality of life.

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Requirements

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Income from movable property

- Photocopies of a document authorizing the transfer of private capital to Portuguese banks, issued by the Central bank (Banco de Portugal or an equivalent) of $3,000 per person.

- Document confirming having deposited in Portuguese banks a sum equivalent to at least the minimum monthly wage of your country of origin.

Income from immovable property
- Document of ownership.
- Authenticated photocopies of updated leases and documents proving that the income is deposited in Credit Institutions in Portugal.

Proof of health/accident insurance is also required. Holders of domestic insurance without travel insurance need to provide a declaration from the insurer that their coverage is valid in all Schengen states equal to €30,000.

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Restricted Nationalities

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European Economic Area

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Dual Citizenship​

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Dual citizenship is recognized in Portugal. You are not required to renounce your previous nationality to become a citizen of Portugal.

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Documents Required

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• Evidence of Health Insurance

• Original Police Clearance Certificate

• Receipt of payment of fees

• Bank Statement

• Original Bank Reference Letter (Not older than 6 months)

• Original and photocopy of passport

• Original or Certified copy of Birth Certificate (if applicable)

• Original or Certified copy of Marriage Certificate (if applicable)

• Proof of income

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