How to Retire in Portugal: What Americans Need to Know About the D7 Visa

Beautiful, affordable, and culturally rich, Portugal is often ranked as the top choice for Americans who want to move abroad. And while its golden and digital nomad visas are a popular residency pathway for international investors and remote workers, if you’re a retiree dreaming of spending your golden years between the Algarve’s sun-soaked beaches and Lisbon’s mosaic-lined streets, Portugal’s D7 visa—also known as the “Passive Income Visa"—may be a better fit.The southwestern European country was named Global Citizen Solutions’ (GCS) best destination for retirees in 2025, in part because of the D7 visa. The program serves as a residency gateway for foreigners with steady passive income: After five years, visa holders can apply for permanent residency; and after 10 years, they can pursue Portuguese citizenship, according to GCS.Thanks to Portugal’s European Union membership, D7 visa holders can also travel freely across the 28 other Schengen Area countries. But travel benefits aside, the visa is popular, in part, for its relative affordability. To qualify, your passive income must be equivalent to Portugal’s minimum monthly salary, which is currently 920 euros (about $1,055 per month), according to the government’s Ministry of Foreign Affairs. That threshold increases by an extra 50% for additional adult applicants and 30% for every child or dependent.As for what qualifies as “passive income”, think of avenues like pension, rental income, and investment dividends—but not a traditional 9-to-5 salary or freelancing gigs. In addition, you’ll also need at least €11,040 (about $12,659) in savings in a Portuguese bank. If you want to bring another adult, you’ll need €16,560 (about $18,939); add a kid, and it’ll be €19,872 (about $22,728).By comparison, Portugal’s golden visa requires at least 250,000 euros (about $286,573) in investments, while its digital nomad visa requires a monthly income that’s at least four times Portugal’s monthly minimum wage, or about $4,218.Interested applicants can begin the D7 application process by obtaining a temporary four-month visa at a local Portuguese embassy or consulate. From there, D7 visa holders can then enter Portugal and apply for a two-year residency permit at the Agency for Integration, Migration, and Asylum (AIMA), a process that will require documents such as proof of passive income (you can view the full application form here). The permit lasts for two years but can be renewed for an additional three. And after the five years have passed, you’ll be eligible to apply for permanent residency.Not leaning towards the Med for your golden years? Consider Costa Rica’s Pensioner Visa, which requires a monthly pension of $1,000. Prefer the French countryside? Retirees often opt for the country’s long-stay visa, a one-year pathway to a residence card with an annual income requirement of €17,317.39 (about $19,856).