Portugal D2 Visa (Entrepreneur Visa)

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
• Spouse
• Minor siblings
• Parents

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.

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.