How does the D7 Visa work with the NHR tax regime in Portugal?

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." The NHR is a tax regime in Portugal that provides certain tax advantages to individuals who become tax residents in the country. The D7 visa and the NHR tax regime should be used in conjunction to gain maximum benefit. The NHR tax regime however, will end to new entrants on the 31st of December. The Portuguese government announced in their state budget for 2024, that anyone who has applied to secure NHR tax status in Portugal by December 31st, 2023, must be able to prove they have taken serious steps to prove intent to reside and pay tax in Portugal under NHR tax regime.