USA and the UK
- What Is the D2 Visa Portugal?
- What Are the Benefits of the Portugal D2 Visa?
- What Are the Portugal D2 Visa Eligibility Requirements?
- How Do I Apply for a Portugal D2 Visa?
- What Documents Do I Need to Provide for Portugal D2 Visa Application?
- What Are the Portugal D2 Visa Fees and Processing Times?
- How Can I Set Up A Company In Portugal?
- How Can IAS Help?
- Frequently Asked Questions
What Is the D2 Visa Portugal?
The D2 Visa Portugal is a long-term visa for entrepreneurs, freelancers, and independent service providers.
This startup visa is a viable route for you to immigrate to Portugal to start a business/startup, open a branch of an existing business in the country, or invest in one already existing in Portugal.
The Portuguese government started this visa to expand the country’s resources and investments externally to grow its economy. However, the immigrant entrepreneur visa is limited to non-EU/EEA/Swiss citizens.
This visa serves small and medium-sized business owners with viable business plans. The immigration office weighs your plan’s viability by evaluating its technological, economic, and cultural impact.
Once you get to Portugal, you can start any business within the given scope: from a restaurant to a technological startup.
Although the D2 Visa isn’t as popular as the other Long Stay Residency visas (Golden Visa and the D7), it’s a reliable pathway to a Portuguese residency permit and becoming a Portuguese citizen if you wish to work independently in the country.
1. Visa Exemption In The EU and Schengen Area
As a D2 Visa holder, you can enter and move around Portugal and 26 other EU countries (Schengen) without a visa.
Essentially, this visa gives you travel rights to all EU member countries. Hence, it’s an ideal route to travel around Europe for business connection purposes.
2. Family Reunification
The D2 Visa has irresistible family perks. You don’t have to leave your family behind. This visa reunifies your family by giving your family members residency rights like yours, including permanent residence to tax benefits.
The eligible family members include:
- Studying dependent children over 18 years
- Children under 18 years
- Minor siblings
However, you must prove your relationship for any family to be added to the program.
3. Permanent Residence
The D2 visa is a pathway to permanent residence. After receiving your D2 Entrepreneur Visa Portugal, you must also obtain a residency permit.
For that reason, you must book an appointment with Foreigners and Borders Service (SEF) once you get to Portugal.
The D2 Visa’s validity is 3 months. Hence, you must have proof that you have booked the appointment upon the expiry of the visa to continue staying in Portugal as you await the residency permit.
In the D2 Visa program, the initial Portuguese residency permits are renewable after the first year, then after every 2 years up to the fifth year.
After 5 years of stay in the country, you become eligible for a permanent residency application, which is renewable after every 10 years.
4. Citizenship Attainment
The D2 Visa is a reliable pathway to Portuguese Citizenship. You can become a Portuguese citizen if you reside legally for at least 6 years. In such a case, you must:
- Obtain an A2 Portuguese language certificate after learning how to speak Portuguese
- Provide necessary documents such as a Portuguese bank account proof
- Have a clean criminal history
5. Tax Incentives
You can become a non-habitual resident (NHR) as a Portugal D2 Visa holder.
Consequently, you benefit from the incentives associated with this fiscal regime. NHR allows you to transfer your tax residency to Portugal.
You mustn’t have been taxed in the country in the previous 5 years before the application to be eligible for this tax regime. Nonetheless, this condition doesn’t apply to corporate tax.
The fiscal regime tax benefits include the following:
- Eligibility for tax non-payment if you come from a country with a double taxation agreement with Portugal. Hence you enjoy tax exemption from real estate gains, rental income, pensions, and income from outside Portuguese territory. In such a case, you pay taxes in your country of origin.
- You’ll be charged a 10% flat rate tax on pension income if you’re taxed in Portugal. That includes insurance retirement savings.
- While ‘high value-added activities’ income is taxed at 20% in Portugal, you’ll be taxed as an ordinary tax resident for other domestic incomes under the NHR. This tax benefit covers employment and self-employment earnings from activities in Portugal’s artistic, scientific, and technical performances.
- Your worldwide income taxation will only apply after 10 years of residence in Portugal.
- The fiscal regime allows you to enjoy tax exemption on property capital gains, rents, dividends, and foreign interest.
- Wealth and inheritance are tax-free under the non-habitual resident tax regime.
Corporate Tax and Social Security Tax
The corporate tax (IRC) in Portugal applies to you as a resident but not a registered company.
While the Portuguese regular corporate tax is 21%, you’ll pay 17% tax on the first €25,000 of taxable profit for small or medium-sized companies.
The corporate tax is even lower in Madeira and Azores at 20% and 16.8%. Respectively.
On the social security tax (TSU), you pay it when paying your employees’ salaries. You pay 23.75% for each employee’s monthly earnings as an employer, while another 11% is directly deducted from the salary.
1. Nominal business capitalisation
You must prove that you have an existing company in Portugal, have enough financial resources in Portugal to open a branch or invest in a Portuguese company.
You can provide proof of a loan from one of the country’s banks. Although there isn’t a set official amount, a minimum of €5,000 is recommended.
2. Personal upkeep Funds
The Portuguese authorities require you to prove you have sufficient funds to sustain yourself and your family in Portugal. Here’s the breakdown:
- You (principal applicant): 100% of the minimum salary (€8,460) annually.
- Your spouse: 50% of the annual minimum salary (€4,230).
- Dependent child: 30% of the annual minimum salary ((€2,538).
Therefore, if you’re a couple with one kid, you must have at least €15,228 per year to be eligible for the Portugal D2 visa.
3. Solid business plan
Your business idea must be achievable as evidence of your business viability and contribution to the country’s economic growth.
The officer reviewing your plan assesses its impact on Portugal’s economic, social, and cultural status.
To understand the eligibility criteria better, speak to our experienced attorneys today by calling: +1 844 290 6312
4. A substantial reason for choosing Portugal for your business
You must include an explanation in your D2 Visa application why you chose Portugal as your business location.
In addition to the favourable weather and cost of living, focus more on how your business will positively impact the country and satisfy the needs of its residents.
For instance, you can aim to provide a solution to an unaddressed need in Portugal.
5. Comprehensive health insurance
You’re required to purchase health insurance for you and your dependents, usable throughout the EU.
You should pay for such policies for the entire duration of your residency permit. Health insurance prices range between €300 and €1000 per year. the specific amount depend on the business and various personal factors like your age.
6. D2 residency minimum duration
You must meet the minimum stay requirement to qualify for your residency permit renewal under the Portugal D2 Visa.
Hence, you must remain in Portugal for at least 4 months in the first year and 6 months in the second, third, and fourth years.
How Do I Apply for a Portugal D2 Visa?
You can apply for a Portugal D2 Visa by following the steps below:
Step 1: Create a solid business plan that addresses the needs of Portuguese nationals and the country’s economy. You must have all the necessary documents for your plan, including:
- Personal tax number and corporate tax number (NIF)
- Portuguese bank account indicating your capital transfer
- Social contribution receipt for the previous 3 months
- Portuguese company certificate
- Employment contracts
- Proof of accommodation
- Social security number
Step 2: Gather all the supporting documents for the D2 Visa application.
Step 3: Fill out your application form and submit it to the Portuguese Embassy or consulate in your country of origin.
Step 4: If your application goes through, you obtain your D2 Visa after about 60 days. However, the process may take longer, depending on your case and home country. The visa’s validity is 120 days.
Step 5: Once you obtain your visa, you can travel to Portugal. Upon your arrival in the country, you must apply for a Foreigners and Borders Service appointment to obtain a residency permit.
The permit processing can take up to 6 months. If the D2 Entrepreneur Visa Portugal expires before you obtain a residency permit, you can use proof of your appointment booking until you get a permit.
Step 6: After residing in Portugal for 5 years, you can obtain permanent residency. If you continue staying in the country, you can become a citizen and can obtain a Portuguese passport after 6 years. The process can take up to a year.
What Documents Do I Need to Provide for Portugal D2 Visa Application?
There are several supporting documents you need for your Portugal D2 Visa application, including the following:
- Business plan: A viable business idea is a crucial determinant of the success of your D2 Visa application. Therefore, it must focus on developing the Portuguese economy.
- A valid passport: Your passport’s validity should be at least 3 months of your period of stay.
- Passport-sized photos: You must have 2 current passport photos of good quality.
- Insurance cover: You must have valid travel insurance with adequate medical coverage, including repatriation and emergency medical assistance.
- Proof of good stand: This document is evidence of your existing business and its authorisation to transact in Portugal. It shows that you have filed all reports and paid the required fees.
- Criminal record certificate: The certificate shows that you and your dependents aged 16 and beyond have a clean criminal record. It must have been issued within the past 3 months.
- Financial stability proof: The document proves your means of subsistence. That means you have enough money to sustain yourself and your dependents in Portugal (100% Portuguese minimum wage per year for yourself, 50% for your spouse, and 30% for each dependent child).
- Proof of registered address: The Portugal Residence Permit is a widely accepted document by the Portugal tax office. It’s proof of registered address.
D2 Visa Fees
The Portuguese government fee for the visa is significantly low, ranging between €50.63 and €158.15 per applicant.
Although there‘s no minimum investment capital set for the D2 visa, most immigration firms recommend at least €50,000 worth of investment. They aim to demonstrate the viability and credibility of your business plan.
Note that the more your company’s share capital you invest, the higher the chances of getting a visa. It also indicates that you’re financially stable to sustain yourself and your dependents in Portugal.
You’ll also incur direct costs, including relocation and immigration professional consultation fees.
Even so, the D2 Visa is relatively cheaper than other residency acquisition routes.
D2 Visa Processing Time
The entire Portugal Entrepreneur Visa application process takes about 6 months on average.
If you meet the eligibility requirements, you’ll receive the decision on your application 2 months after you submit it.
Nonetheless, the processing time may vary depending on the number of applications at the moment and your country of origin.
After obtaining the visa, you book an appointment with the SEF, which may take about 1 month to receive a residency permit.
How Can I Set Up A Company In Portugal?
You can set up a public or private liability company in Portugal by following the steps below:
- Visit the Portuguese Trade register, confirm your business’s name and make reservations.
- Appoint your company’s legal representative in the country.
- Prepare the Article of Association, including information like the owners’ details and business activities.
- Open a bank account and deposit the €1.00 minimum share capital.
- Apply for permits and licenses in line with your company’s activities.
- Register for social contributions and tax purposes in Portugal.
Who Qualifies for the Portugal Tech Visa?
Under this visa programme, international startups and companies registered in and operating in Portugal are allowed to hire employees from other countries to work in Portugal.
The list of certified organizations can be found on the Portuguese immigration website.
The Portugal Tech Visa, like the StartUp Visa programme, is not open to anyone permanently resident in the European Union region. Highly qualified and skilled workers from outside the Schengen area are all eligible for this visa.
To qualify, workers must also have a minimum of level VI educational qualifications in line with the requirements of the ISCED 2011. Alternatively, employees must have a level V educational qualification with a minimum of 5 years of specialized practice or experience.
How can IAS help?
The D2 Visa Portugal is a startup visa and a reliable route to residency permits and Portuguese citizenship. It’s an ideal route if you wish to move to the country as an entrepreneur, a freelancer, or an independent service provider.
You must prove that your business will add value to the Portuguese citizens and the country’s economy. The Portuguese government will assess your business plan to examine its viability.
This visa lets you bring your spouse and dependent children to Portugal by applying for the Family Reunification Visa. However, you can only do so after obtaining a residency permit.
While the application process and support documents may be challenging, we’re here to ensure that the process is smooth and successful.
Our specialist immigration lawyers will help draft a viable and compelling business plan and acquire all the necessary documents for your visa application.
For more information on our services and how we can assist with your immigration issues, call us on +1 844 290 6312. In person, via phone, or online, we’re here to help you.
Last modified on August 16th, 2023 at 4:15 am
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Yes, you can set up a company online in Portugal. It takes 1-2 business days to start specific Portuguese businesses and register them online at about €360. After 2 days, you’ll receive your registration, and your business will be fully established in the country.
It’ll take around 24 hours to incorporate a company in Portugal. Once the immigration office receives your passport copy, criminal records, proof of address, and power of attorney signed and legalised, they’ll approve the company and the VAT within 24 hours. The duration is considerably shorter compared to the previous 10-day period.
No, you can’t apply for a Portugal D2 visa with your family. This visa is primarily for business owners and partner shareholders. However, it allows you to apply for a Family Reunification Visa to bring your family to Portugal after obtaining your residency permit. You must prove that you have sufficient funds for yourself and your family.
No, you mustn’t be a company owner to obtain a D2 Visa. If you have specialisations such as IT, medicine, plumbing, carpentry, technicians, or other freelance certifications and credibility, you can apply for this visa. However, you must prove that you have substantial experience in your field to be eligible.
Yes, you can open a company when residing outside Portugal. You can do so through a Portuguese consultant/lawyer/representative with the legal power of attorney or a person residing in the country. You can obtain a power of attorney from the Embassy or Consulate in Portugal.