Live in Portugal with passive income: UAE expats eye D7 visa for Schengen access

Dubai: If you're a UAE expat earning passive income — from pensions, property, or investments — and dreaming of a European base with Schengen access, Portugal’s D7 Visa might be just what you need.

While Portugal’s better-known D2 visa targets entrepreneurs and business investors, the D7 visa, often dubbed the Passive Income Visa or Retirement Visa, caters to non-EU citizens looking to settle in Portugal without having to run a business or take up a job.

And yes — that includes many UAE residents: retirees, freelancers, remote earners, and even those living off rental income.

Why UAE Residents Are Exploring Portugal’s D7 Visa

Portugal’s D7 visa is especially attractive to UAE expats who:

• Want EU residency without starting a company

• Need visa-free Schengen access (for travel or relocation)

• Are planning early retirement or remote work from a more relaxed location

• Are seeking a cost-effective alternative to expensive Golden Visas

• Prefer a pathway to permanent residency and EU citizenship

Once approved, the visa grants you and your family the right to live in Portugal and travel across the 27-country Schengen zone visa-free. You can also eventually apply for Portuguese citizenship after five years of residence.

How much passive income do you need?

You must show proof of regular passive income (not salary-based), such as:

• Pension or retirement income

• Rental income from real estate

• Dividends from investments

• Royalties or intellectual property earnings

As of now, the minimum required income is:

• €8,460 per year for a single applicant (~AED 33,500)

• 50% more for a spouse

• 30% more for each dependent child

This income must be documented through bank statements for at least six months. A Portuguese bank account is required, and you'll also need to show a residential address in Portugal.

Legal residency rights and family inclusion

With the D7 visa, you gain access to:

• Portugal’s public healthcare and education

• The ability to work or freelance if you wish

• Legal protection under Portuguese law

• Family reunification rights

Eligible family members include your spouse or partner, dependent children (even adult students), dependent parents, and minor siblings.

Can you eventually get a Portuguese passport?

Yes. After getting the D7 visa:

• You first receive a 1-year residence permit

• Then you renew it for two-year periods

• After 5 years, you can apply for permanent residency or citizenship

• To become a citizen, you’ll need to pass a basic Portuguese language test

What about taxes for non-EU applicants?

Once you spend more than 183 days in Portugal in a year, you become a Portuguese tax resident, which means your global income may be taxed.

Portugal used to offer a generous Non-Habitual Residency (NHR) scheme with reduced tax rates, but this ended in 2023. A new version of the NHR — more focused on high-skilled workers — is expected to launch, possibly in 2024. Passive income earners may still find tax breaks under specific conditions, so getting professional tax advice is highly recommended.

What's the cost of living like in portugal?

Living expenses vary by region, but overall, Portugal remains one of the most affordable Western European countries.

Compared to the UAE, basic costs such as rent, healthcare, and groceries are lower. Still, careful financial planning is essential — especially if you’re living entirely on passive income.

Estimated monthly living costs:

• Single person: €900–€1,200

• Couple: €1,500–€2,000

Keep in mind: Portugal's minimum wage is just over €820/month — the baseline used to assess visa income requirements.

Final thoughts: Is the D7 right for you?

If you’re a UAE-based remote worker, investor, or retiree looking for a long-term European lifestyle option without breaking the bank, Portugal’s D7 visa offers a relatively accessible and rewarding pathway.

You get:

• Residency in an EU country

• Visa-free travel across the Schengen area

• A route to citizenship

• Lower cost of living compared to Dubai or Abu Dhabi

• Access to top-quality healthcare and a peaceful retirement or remote-working base

And the best part? You don’t need to buy property or run a business to qualify.