Portugal D2 Visa: All You Need to Know

The Portugal D2 Visa, also known as the Immigrant Entrepreneur Visa, is designed for non-European Union (EU) citizens seeking to either start a new business in Portugal or set up a Portuguese branch of their existing foreign business.

This residency visa was created by the Portuguese government to encourage foreign entrepreneurs, freelancers, and independent service providers to relocate to Portuguese territory to invest, create jobs, or engage in activities that can boost the country's economy.

With the D2, you can also choose to invest in an existing business in Portugal.

The Portugal D2 Visa has an array of advantages, such as the freedom to travel across other Schengen countries and the possibility of obtaining a permanent residence permit.

We've created this comprehensive guide to help you understand this visa category, ensuring a seamless application process.

Below, you'll find the most up-to-date information on the D2 Visa, including eligibility criteria, the documents required, step-by-step application procedures, and more.

 

Understanding the Portugal D2 Visa

What is the D2 Visa

The Portugal D2 Visa is an enticing prospect for individuals with entrepreneurial aspirations who are planning to establish a new venture in Portugal or are eager to extend their business to the country. Often referred to as the Entrepreneur Visa, the Portugal D2 Visa is intended for non-European Union and non-European Economic Area citizens.

It was created by the government to raise external financial resources to boost the Portuguese economy.

Compared to other visas such as the Portugal Golden Visa or the D7 Passive Income Visa, the D2 doesn't require a significant investment or a regular passive income. Instead, it focuses on business investment and having a viable business idea. This visa is versatile and can be used for various types of businesses, ranging from small cafes to large real estate agencies.

D2 eligibility criteria

You might be considered for a Portuguese Entrepreneur Visa if you’re a non-EU/EEA/Switzerland freelancer, entrepreneur, or independent service provider.

The Portugal D2 Visa requirements include:

• The acquisition of a Portuguese company
• Having a pre-existing company abroad
• Intending to open a branch in Portugal or proposing a comprehensive business plan for a new company in Portugal.

The applicant will be required to demonstrate their business’s potential economic and social contributions to Portugal.

 

Categories of the Portugal D2 Visa

The Portugal D2 Visa is segmented into two distinct categories, each catering to different types of entrepreneurs.

1. The entrepreneur route

This option is ideal for those wishing to either start a new business or extend an existing one into Portugal. Essential requirements include getting a NIF (Portuguese tax number), setting up a business bank account with a Portuguese bank, establishing a Portuguese limited company (LDA), and employing an accountant well-versed in the Portuguese tax system.

It's also necessary to demonstrate sufficient financial means to launch and manage the company, including paying annual corporation tax and social security contributions.

It's worth noting that employers in Portugal pay social security tax contributions for their employees, calculated as a percentage of the employee's salary. For most professions, this means paying 23.75 percent of an employee's monthly salary to cover social security costs.

For reference, most companies in Mainland Portugal pay corporate tax at a rate of 21 percent.

2. The independent service provider route

This alternative is designed for those offering services to local or global clients, with fewer requirements than the entrepreneur route. You don't need to create a Portuguese company or hire an accountant.

Instead, you must get a NIF, open a bank account in Portugal, provide proof of relevant experience or qualifications, and demonstrate that you have a contract with one or more clients. If your services are delivered remotely to clients outside Portugal, the D7 'Passive Income' Visa or the Digital Nomad Visa could also be viable options.

 

Advantages of the Portugal D2 Visa

The Portugal D2 Visa benefits include:

• Entrepreneurial opportunities: The D2 allows you to establish a business or work as an independent professional in Portugal, providing you with the opportunity to pursue your entrepreneurial aspirations.
• Schengen Area travel privileges: With the D2, you can freely enter and move within the Schengen Area, consisting of 26 European countries, without needing an additional visa. This grants you the same travel rights as European Union citizens, making networking and establishing business connections across Europe convenient.
• Family reunification: The D2 also enables family reunification in Portugal. Your family members, including partners, children, parents, or dependent siblings, can join you and live in the country.
• Path to permanent residency and citizenship: After five years of being a legal permanent resident in Portugal, you may qualify for permanent citizenship as part of the country's residency program. It's important to note that obtaining citizenship typically requires passing a basic Portuguese language and culture test.
• Residency rights and access to services: With Portuguese residency, you and your family will have access to the public healthcare system, and your children can enroll in the public education system, ensuring essential services for the well-being of you and your family members.

 

D2 Visa Portugal Requirements: Business Documents

Securing the Portugal D2 Visa hinges largely on presenting a solid business plan.

Portuguese authorities must be assured that your venture or service activities will generate sufficient income to support your stay in Portugal. This income could come from a locally incorporated company or contracts with clients.

Alongside a detailed business plan, you must demonstrate "proof of means of subsistence." Usually, this implies having enough savings for at least 12 months, equivalent to the Portuguese minimum wage.

Let's delve deeper into the key documents required in your Portugal D2 Visa application:

Declaration of investment

You must submit a declaration stating that you have already made or plan to invest in Portugal, providing details about the nature, value, and duration of the investment. When evaluating your visa application, factors such as the investment's economic, social, scientific, technological, or cultural significance will be considered. Additionally, the creation of job opportunities in Portugal will significantly contribute to the strength of your application.

Solid business plan

You must submit a well-structured and detailed business plan that will undergo a thorough evaluation based on its social, economic, and cultural impact. A solid business plan should demonstrate how your business will flourish and contribute to economic growth in Portugal.

Financial capacity

You need to provide evidence that you have sufficient funds to support and sustain your company throughout the duration of your intended stay in the country (e.g., local bank statements).

It is essential to demonstrate that your business is financially viable and has the resources to thrive during your time in Portugal.

Share capital

The share capital represents the initial minimum investment amount required to ensure the functioning of the company, even in situations where it may not be generating profits. In Portugal, small companies typically have an average social capital of €5,000, a reference value to consider when submitting your application.

Company set-up

You are required to provide evidence of having established a company operating within Portuguese territory or possessing sufficient financial resources in Portugal and submit documents that demonstrate your capability to establish a company in the country.

Service contract

Independent service providers must submit a written contract or proposal detailing the provision of their services as part of their application.

 

D2 Visa Required Personal Documents

Personal financial means

You must provide evidence of having sufficient financial resources to sustain yourself and your accompanying family members for a year, regardless of your business income. As the main applicant, you are required to possess at least 100 percent of the Portuguese minimum wage, which is currently €10,640.00.

Additionally, a spouse requires an additional 50 percent of this amount (€5,320.00), and an additional 30 percent (€3,192.00) must be added for each dependent child. Therefore, a couple with one child would need approximately €19,152.00 per year to meet the financial requirements for the D2 Visa.

Criminal record check from previous countries of residency

You typically need a clean criminal record certificate from any country where you've resided for over a year. This criminal background check document should be less than three months old, and the timing is crucial for your application. Despite common misconceptions, prior criminal records do not automatically disqualify you from visa eligibility, depending on the nature and severity of the offense.

Tax representative

As part of the Portugal D2 Visa application process, non-EU citizens are obligated to designate a Tax Representative in Portugal.

Proof of accommodation in Portugal

It's necessary to provide proof of secure accommodation in Portugal. This could be in the form of a rental contract, property deeds, or an invitation letter from a friend or relative who is a legal resident of Portugal.

Health insurance for at least six months

You should ensure you purchase health insurance covering your initial four-month Portugal D2 Visa and the waiting period for registering as a resident with SEF (Portuguese Immigration and Borders Service). Once you receive your temporary residence permit, you'll qualify for Portuguese state healthcare. In Portugal, health insurance prices range from around €400 per year for basic coverage. More comprehensive health insurance packages are available from about €1,000.

Passport and pictures

To apply for the Portugal D2 Visa (Entrepreneur Visa), you must possess a valid passport that remains valid for a minimum of six months beyond the expiration date of the visa you are applying for, which itself has a duration of four months. You must also provide two recent passport-size color photos for your application.

Tax identification number and Portuguese bank account

Obtaining a tax identification number (NIF) and opening a business bank account in Portugal are crucial steps in the D2 Visa application process.

To apply for a D2 Visa, you must obtain a tax identification number (Número de Identificação Fiscal or NIF) from the Portuguese tax authorities. The NIF is a unique identification number assigned to individuals for tax purposes in Portugal. It is required for various financial and administrative transactions in the country.

Opening a bank account in Portugal is necessary to manage your financial affairs while residing in the country. It is recommended to choose a reputable bank and meet their specific requirements for account opening. You will likely need to provide your identification documents, address proof, and tax identification number (NIF) to complete the account opening process.

Having a bank account with a bank in Portugal will enable you to receive funds, make payments, and handle financial transactions related to your business and personal expenses during your stay in Portugal.

The tax identification number and the bank account in Portugal are essential documents demonstrating your commitment to establishing and maintaining financial ties in the country, supporting your business endeavors, and overall integration into Portuguese society.

 

Portugal D2 Visa Application Process

Wondering how to apply for the D2 Visa Portugal? To kick-start the visa application process, the following steps should be taken:

1. Acquiring a Portugal taxpayer identification number (NIF) from a tax office, consulate/embassy, or a registered intermediary
2. Opening a bank account in Portugal and transferring funds to it
3. Securing long-term accommodation in the country through either purchasing or renting a property for a recommended minimum duration of one year, even if an early termination clause is included.
4. Submitting the application online via the E-Visa Portal. This can be done either through the Portuguese Consulate or Portuguese Embassy in your home country or directly in Portugal if you are already present in the country.

The application process for the Portugal D2 Visa takes place in two distinct stages. Initially, you'll submit the majority of your documents, including your business plan, to the Portuguese Embassy or Portuguese Consulate in your home country. If your application is approved, you will be invited for an interview. If successful, you will be issued a four-month Portugal D2 Visa to travel to Portugal to apply for residency.

The second stage occurs in Portugal, specifically with the immigration authorities and borders service, known as SEF. Upon arrival in Portugal, you should schedule your SEF appointment as quickly as possible. Even if the only available dates exceed your visa duration, as long as you have secured an appointment, your legal status in Portugal remains intact beyond the four-month visa period.

Portugal D2 Visa Processing Time

The Portugal D2 Visa processing time is up to 60 days. After approval, the applicant receives the passport with a pasted visa.

D2 Visa Portugal Costs

The Portugal D2 Visa costs include government fees for visa application and a residency permit issue fee. You should also factor in living expenses for yourself as the main applicant, plus expenses for your spouse and children (if applicable). There are additional costs to consider, such as covering valid travel insurance and health insurance; you should also budget for the costs of any legal services your visa application entails if you seek professional assistance while navigating the Portugal's immigration law system. And while there's no specified D2 Visa Portugal minimum investment amount, demonstrating investment in your Portuguese business can strengthen your application.

 

How We Can Help

We can help you get your NIF and satisfy the mandatory tax representative requirements. Simply apply online, and we will send a NIF straight to your email inbox in two to three weeks.

This completely avoids having to fly to Portugal, wait for an appointment, or queue up for hours with your tax representative to get a NIF.

We additionally provide a service whereby you can open a Portuguese bank account with one of Portugal's leading banks from anywhere in the world. Simply apply online, and we’ll connect you with a Portuguese bank account.

 

Portugal D2 Visa and NHR: An Update

As of January 2024, a significant modification has reshaped the landscape for D2 Visa holders seeking Portugal's Non-Habitual Resident (NHR) tax benefits, tax incentives, and tax exemption policies. While previously accessible through a D2 Visa, obtaining NHR status now requires alternative pathways or pre-existing eligibility.

For existing NHR beneficiaries with D2 Visas, their favorable tax status remains uninterrupted for the full 10-year term. However, new applicants holding D2 Visas are no longer eligible for NHR as of December 31, 2023.

However, a few avenues remain open for enterprising D2 Visa holders to access NHR's attractive tax incentives, such as paying income tax in Portugal at a flat rate of 20 percent. These pathways involve substantial financial commitment and adherence to specific criteria.

Significant investments can unlock NHR benefits, such as €500,000 in high-value goods like art or €1 million in R&D/artistic production. Alternatively, €350,000 invested in a dedicated Portuguese startup VC fund offers another potential route.

Entrepreneurs with a talent for job creation can also navigate towards NHR by establishing a company generating at least five new jobs for Portuguese citizens.

 

D2 Visa and Portuguese Citizenship

The Portugal D2 Visa provides a pathway to Portuguese and EU citizenship after a minimum of five years of legal residency in the country. It is vital to maintain your residency status for the entire five years. Portugal needs to be your primary home and country of tax residency, requiring you to spend at least six months physically in the country each year.

Attaining Portuguese citizenship also necessitates a basic proficiency in the Portuguese language. The Portuguese language requirement to apply for citizenship is currently set at an A2 level.

See: How to Get Citizenship in Portugal: A Guide

 

What if I want to spend less than 183 days a year in Portugal?

If your business plan requires more flexibility than what the Portugal D2 Visa can offer, consider the Portugal Highly Qualified Activity Visa (D3 Visa). This visa type offers a unique investor-entrepreneur residency pathway, partnering entrepreneurial investors with Portuguese universities to develop a research-driven startup.

This visa requires a work contract with a salary of at least 1.5 times the average gross national wage. As of 2024, that's at least €1,500 per month. It also provides the holder with access to various public services, like healthcare and education, and the freedom to travel within the Schengen area without restrictions.

Alternatively, the Portugal Golden Visa program might be another option. It requires a significant investment in Portugal, such as investing €1 million in research activities or artistic production or creating at least ten jobs through a €250,000 investment in a qualifying company. While the Golden Visa requires a higher financial commitment than the D2 or the Highly Qualified Activity Visa, it also has a lower residency requirement of just seven days in the first year and 14 days in subsequent two-year periods.

The D2 Visa vs. the Golden Visa: A Brief Comparison

 

Further Reading

If you're considering moving to Portugal with the D2 Visa, you might find the following blog posts useful for further reading:

• Portugal Immigration Guide – Your Visa Options 
• Register a Company in Portugal Online
• Self-Employment Registration for a Freelancer in Portugal

 

Final Thoughts

The D2 Portuguese Visa is an excellent opportunity for entrepreneurs and self-employed professionals looking to establish themselves in Portugal. It offers a straightforward pathway to Portuguese and EU citizenship.

Like any immigration process, it requires careful planning and preparation. Building a strong business plan and gathering all the necessary documentation to support your application is crucial. And remember, the process can take some time, so start early and be patient.

Whether you're attracted to the vibrant culture, the Portuguese economy, the rates of corporate tax, or the Portuguese business community - the D2 Visa could be your ticket to a residence permit or even permanent residency in this beautiful country.

 

Frequently Asked Questions about the D2 Visa (Immigrant Entrepreneur Visa)

What is a D2 Visa in Portugal?

The Portugal D2 Visa, or the immigrant Entrepreneur Visa, is designed for non-EU individuals who intend to establish a business in Portugal or move there to run an already existing business. It is a residency visa that can be the first step toward obtaining a Portuguese residency permit. If the D2 Visa holder stays in Portugal for five years to maintain residency, they can qualify for permanent residence. Following a five-year period of permanent residency, they can then apply to become a Portuguese citizen and can subsequently benefit from EU citizenship.

What are the benefits of the D2 Visa Portugal?

The D2 Visa Portugal offers several benefits. It doesn't require a large investment or proof of passive income, making it a popular choice for entrepreneurs and company owners. It is a pathway to Portuguese citizenship after five years.

Finally, it provides a pathway to a Portuguese passport as it gives you a residency permit that can be renewed until you qualify for permanent residence.

How long does it take to get a D2 Visa for Portugal?

The time taken to process a D2 Visa for Portugal can vary, but it typically takes between one to four months, depending on the specific circumstances and the workload of the Portuguese consulate or embassy processing the application.

What is the difference between D2 and D7 Visa Portugal?

The D2 Visa is aimed at entrepreneurs and those intending to start a business in Portugal, whereas the D7 Visa, or the Passive Income Visa, is intended for individuals who have a regular income from sources such as pensions, rental income, or dividends. The D7 Visa is a popular choice for retirees or remote workers, while the D2 Visa targets active business professionals.

What are the advantages of the D2 Visa?

The D2 Visa offers the chance to establish and run a business in Portugal, a country with a stable economy and a high standard of living. It provides the opportunity to enjoy the favorable Portuguese tax regime and potential access to the wider European market. After five years of residency, it also offers a pathway to Portuguese and EU citizenship.

What type of visa is the D2 Visa?

The D2 is a type of Portuguese residency visa. It's designed specifically for non-EU/EEA/Swiss entrepreneurs or self-employed individuals who want to start a business or invest in Portugal. It's also known as the Entrepreneur Visa or the 'Start-Up Visa'.

Who is eligible for D2 visa in Portugal?

You are eligible for a Portuguese Entrepreneur Visa if you’re a non-EU/EEA/Switzerland freelancer, entrepreneur, or independent service provider seeking to live in Portugal and pursue a business idea. You will need to provide documents such as a rental agreement or property deeds and demonstrate a viable business plan that contributes to Portugal's economy.

What is the difference between D1 and D2 Visa?

The D1 visa is designed for foreign citizens who already have a job contract in Portugal that lasts at least 12 months. The D2 is a Portuguese entrepreneurship visa for non-EU individuals who intend to start a business in Portugal or move there to run a business that already exists.

How long does it take to get D2 Visa?

The Portugal D2 visa processing time is up to 60 days.