Are the D7 Visa and the Non-Habitual Residency (NHR) programme the same thing?

The D7 visa and the Non-Habitual Residency (NHR) programme are not the same thing!

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The D7 visa: is a long-term residence visa designed for individuals wishing to live in Portugal without engaging in specific employment. It is often called the: "Passive Income Visa" or "Retirement Visa."

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The NHR programme: is a tax regime in Portugal that provides certain tax advantages to individuals who become tax residents in the country.  

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Both work together to maximise benefits and advantages for those looking to relocate to Portugal.

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While it is possible for individuals with a D7 visa scheme to take advantage of the NHR programme, they are distinct and separate entities.  The D7 visa focuses on residency requirements, while the NHR programme is related to tax benefits for qualifying individuals.

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Recent update regarding the NHR tax regime:

The Portuguese government announced in their state budget for 2024, that the NHR tax regime closes to new entrants on the 31st of December 2023, and only those that have applied before this date and have taken serious steps to prove intent and meet the grandfathering items laid out by the government can be eligible to receive NHR tax status in 2024.

If these requirements are not in place, it is borderline impossible for the professional supply chains in Portugal to be able to grandfather your NHR tax status application, early in 2024.

Things to keep in mind:

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It is important to note that immigration and tax laws can change overtime, so it is advisable to consult with our team or seek professional advice from one of our lawyers or tax experts to obtain accurate and up-to-date information regarding the D7 visa and the NHR programme in Portugal.

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Disclaimer: The guidance above should not be fully relied upon and does not constitute formal instructed professional advice. In relation to tax advice in Portugal, please engage and instruct a regulated professional for all tax advice and structured financial planning. Please contact Portugal Pathways if you would like an introduction to one of our professional advisors.

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