Acquiring residency & Portugal citizenship

Residency & Portugal citizenship

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If you're a wealthy person considering relocation to Portugal and obtain a residence permit, it is essential to understand the visa residency and citizenship options available to you alongside joining the countries highly incentivised NHR tax regime.

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Portugal offers various pathways for obtaining residency and citizenship, each with its own requirements and benefits. This uncomplicated guide aims to provide helpful information on what residency and citizenship in Portugal entail.

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Residency Options

- Portugal offers several residency's that may be of interest to wealthy individuals:

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Digital Nomad Visa (D8): is a special visa that allows remote workers to live and work in Portugal for up to one year. Eligible applicants must prove they can work remotely, have sufficient financial means to support themselves, and have valid health insurance coverage. Applicants must also have a clean criminal record and no outstanding debt or tax obligations in Portugal.

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Golden Visa: The Golden Visa is coming to an end to new entrants but under the old scheme it granted residency to non-EU citizens who invest in Portugal. By investing in real estate, creating jobs, or making capital transfers, you can qualify for residency.

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This offers various investment options, including real estate purchases exceeding a certain threshold. The D7 visa and NHR programme offers significant advantages to expats living in Portugal if structured correctly not just for the first 10 years but beyond that if planned within the first few years of your 10-year NHR.

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D7 Visa: The D7 Visa is designed for individuals with passive income, such as retirees or those with substantial savings. It allows for residency in Portugal by demonstrating sufficient financial means to support yourself without needing to work.

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D2 Visa: The D2 visa is a temporary residence visa for entrepreneurs who wish to start or invest in a business in Portugal. It allows holders to live and work in Portugal for up to two years, with the possibility of extension.

^{To learn more about the D2 Visa, read our article...}

Número de Identificação Fiscal (NIF)

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A Portuguese NIF, or Número de Identificação Fiscal, is a taxpayer identification number used in Portugal. It is a unique nine-digit number assigned to each individual or company. For affluent expats looking to apply for the Non-Habitual-Residency (NHR) tax regime, they must first have an NIF.

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The NIF is also used for a variety of other purposes, including:

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- Filing taxes

- Opening a bank account

- Buying or selling property

- Signing a rental agreement

- Applying for a social security number

- Registering a child for school

- Conducting any other type of official business in Portugal

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Having a Portuguese bank account

A Portuguese bank account is essential for affluent expats seeking residency and tax benefits in Portugal. It demonstrates financial ties for NHR status, facilitates investment for Golden Visa, and simplifies receiving foreign income. It also streamlines tax compliance and provides access to wealth management services.

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Residency Application Process

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- The application process for residency in Portugal generally involves the following steps:

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A. Gathering Documents: visa requirements such as the necessary documentation, which may include proof of income, bank statements, health insurance, criminal record certificates, birth certificate, and a valid passport.

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B. Application Submission: as part of your residency requirement, submit your visa application to the immigration authorities known as Portuguese Immigration and Borders Service (SEF) or through a designated service provider, depending on the visa program you're applying for. You may need to provide biometric data and attend an interview.

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C. Waiting Period: processing time for residency applications can vary. It's advisable to consult with an immigration lawyer or service provider to get an estimate of the processing time for your specific.

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Citizenship and Naturalization

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- Obtaining Portuguese citizenship offers several benefits, including the right to live and work anywhere within the European Union. The general requirements for naturalization include:

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A. Residency Period: you must be a legal resident of Portugal for a certain period, typically five years, before being eligible to apply for citizenship.

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B. Language Proficiency: basic knowledge of the Portuguese language is required. Some exceptions exist for individuals over a certain age or with special circumstances.

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C. Integration: you should demonstrate integration into Portuguese society, culture, and way of life.

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D. Good Character: a clean criminal record and compliance with Portuguese law are essential.

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E. Knowledge of Portugal: you may need to demonstrate knowledge of Portugal's history, culture, and civic values.

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Dual Citizenship

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- Portugal allows for dual citizenship, meaning you can maintain your current citizenship while acquiring Portuguese citizenship. This provides you with the benefits and privileges of both countries.

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Conclusion:

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Residency and citizenship in Portugal offer wealthy new residents numerous advantages. These include favourable tax regimes where you can pay as little as 10% on Non-Portugal derived pensions and 0% tax on overseas income under the Non-Habitual Residency (NHR) tax system, alongside the residency visa programmes which give you access to the European Union, and a high quality of life.

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By understanding the different residency options available, following the application process diligently, and meeting the requirements for naturalization, you can successfully obtain residency and, potentially citizenship, in Portugal.

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- It's recommended to consult with one of our experts to guide you through the process and ensure compliance with the relevant laws and regulations.

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