Citizens of Third Countries who intend to move to Portugal and have carried out investment operations, or prove that they have financial resources available in Portugal (including those resulting from financing obtained from a financial institution in Portugal), and demonstrate the intention to proceed with an investment. investment operation in Portuguese territory can apply for the D2 Visa.

 This right of civil residence can be accumulated, if it is convenient for the holder, with a special tax status (the NHR – Non-Habitual Tax Resident program) that grants an advantageous tax treatment in a period of 10 years in relation to personal income.

The D2 visa is a two-step process that begins at the Portuguese consulate of the applicant’s area of residence – to apply for a residence visa that allows a maximum of two entries and a stay in Portugal – and is completed in Portugal before the Immigration Office with an interview to obtain a residence card.

The granting or rejection of the application will take into consideration the relevance to the economic, social, scientific, technological, or cultural relevance of the investment.

The process to obtain a D7 visa is considerably quick, giving the holder the right to the main benefits of residing in Portugal, namely:

§ Security, democracy, and quality of life;

§ Free entry and circulation in the Schengen

§ Conjugation with the NHR tax program for tax purposes (low or taxation exception for 10 years on most foreign and national income within the scope of a high-value activity;

§ Family reunification;

§ Access to the right to education, recognition of diplomas and qualifications, healthcare, social security, justice, and courts;

§ Access to permanent residence or citizenship after 5 years, subject to proof the knowledge of Portuguese language, level A2.

This D2 Visa can be obtained through three different situations:

1) Contract or written proposal for a service provision contract within the scope of liberal professions;

2) Investment operations in Portugal through the constitution or participation in a company;

3) Development of an entrepreneurial project, including the creation of an innovative base company, integrated into a certified incubator –

Startup Visa. Startup Visa is a specific program to welcome foreign entrepreneurs who intend to develop entrepreneurship and/or innovation project in Portugal, through an integration process in a certified Portuguese incubator, upon application. These incubators will provide the necessary support for the creation and installation of technological/innovative companies allowing them to develop the project.

The main documents for a successful D2 Visa application are as follows:

§ Declaration with the reasons for the application;

§ Criminal background certificate;

§ Documentary proof of accommodation;

§ Proof of economic means available in Portugal for a period of 12 months;

§ Evidence related to the enterprise option:

 A. Promise or Contract to provide services for the exercise of a liberal profession:

• When applicable, statement issued by the respective professional order on the verification of the registration requirements;

• Document proving the academic qualification to practice the profession;

B. Proof of incorporation of a company under the terms of Portuguese law, or of an investment operation:

• Declaration of Beginning of Activity; or

• Investment Contract; and • Business plan;

• Curriculum. There is no minimum share capital

There is no minimum share capital subject to the D2 Visa application. In Portugal, companies can be incorporated with a share capital of € 1. However, the share capital must be appropriate to the activity, being relevant in the analysis of the request.

1. Documentary demonstration of the intention to carry out an investment operation in Portuguese territory, duly described and identified:

• Proof of availability of financial means in Portugal, including those resulting from financing obtained from a financial institution in Portugal;

• Business plan.

Residence D2 must be renewed at the end of the first year and thereafter every two years Except in duly justified cases, for personal or professional reasons, the D2 Authorization holder must not be absent from Portugal for more than 6 consecutive months neither for 8 interpolated months during the validity of each card.

Taxation in Portugal

Individual residents in Portuguese territory are subject to IRS for all income earned, including those obtained abroad, under progressive rates (14.5% to 48%), with the exception of beneficiaries of the RNH statute.

Regarding company taxation, the main applicable taxes are CIT, VAT, and TSU.

CIT: The CIT is 21%. In the first €, 15,000.00 taxable amount is subject to a 17% tax.

VAT: As a general rule, all products and services are subject to VAT which is subdivided into 3 rates: 23%, 13%, or 6% depending on the product or service. VAT does not necessarily mean a cost, since the tax to be handed over to the State, in simple terms, corresponds to the difference between the VAT charged by these to their customers and the VAT paid to suppliers.

TSU: Amount levied on the monthly salary of each worker for Social Security purposes. The worker is responsible for 11% while the employer is responsible for 23.75% of the monthly salary.