|
Retire Early
Lifestyle
Retirement; like your parents, but way cooler
|
In 1991 Billy and Akaisha Kaderli retired at the age
of 38. Now, into their 4th decade of this
financially independent lifestyle, they invite you
to take advantage of their wisdom and experience. |
|
Retire
Smart: Move to Portugal and Live off Your Passive Income
Fresh Portugal
If
you're dreaming of sunshine, affordability, and a peaceful lifestyle in Europe,
Portugal may be calling your name. This scenic, friendly country has become a
top choice for early retirees and digital nomads alike — especially for those
with passive income who want to settle down without the hustle of working
abroad. Enter the D7 Visa: a game-changer for expats who want to live in
Portugal on their own terms.
What Is the D7 Visa?
Often referred to as the “Passive
Income Visa,” Portugal’s D7 Visa is ideal for people who can support
themselves financially without needing a job. Think: retirement income, rental
income, dividends, royalties, or even income from your LLC (which is often
treated as passive under Portuguese law — even if it’s not in your home
country).
It’s perfect for early retirees, investors, or anyone living off steady income
streams. The visa allows you to live in Portugal full-time, access healthcare,
and even travel within the Schengen Zone.
Why Choose Portugal?
-
Low Cost of Living:
One of the lowest in Western Europe.
-
Mild Climate: Sunny
winters and beautiful coastal summers.
-
Healthcare: Quality
public and private systems available.
-
Community: A growing
network of expats makes integration easier.
-
Lifestyle: Laid-back
and culturally rich.
D7 Visa Income Requirements
To
qualify, you need proof of passive income that meets or exceeds the Portuguese
minimum wage (around €850/month). If you're bringing a spouse, add 50%. Each
dependent child adds another 30%. That means a couple would need approximately
€1,275/month in passive income to apply.
What Counts as Passive Income?
-
Rental income from real
estate
-
Dividends or returns from an
investment portfolio
-
Royalties and licensing
income
-
Retirement income (Social
Security, pensions, annuities)
-
Earnings from businesses
where you're not actively involved
It’s crucial to show this income is regular and stable — not a one-off or
lump-sum payment.
The Tax Angle: What Retirees Need to Know
Portugal previously offered the NHR (Non-Habitual Resident) tax regime, which
provided generous exemptions for foreign pension income. While that program has
evolved, there are still significant tax planning opportunities:
-
Government pensions
from countries like the U.S. are generally not taxed in Portugal due to tax
treaties.
-
Social Security may be
taxed in both countries, but Portugal provides a foreign tax credit to avoid
double taxation.
-
Insurance Wrappers:
U.S.-friendly investment products in Portugal now allow expats to reduce tax
exposure on retirement accounts like IRAs or 401(k)s, with rates as low as
11.2% after eight years.
-
Capital and Pension
Planning: Strategic withdrawals and proper structuring can make a huge
difference in what you pay.
Final Thoughts: Is the D7 Visa Right for You?
If
you have steady passive income and a taste for adventure, the D7 Visa is your
ticket to a relaxed European lifestyle. With its welcoming culture, solid
infrastructure, and wealth of tax-savvy planning strategies available, Portugal
offers a golden opportunity to live richly without spending a fortune.
For more on
Retirement Topics,
click here and
here and don't forget to signup for
our free Newsletter.
About the Authors
Retire
Early Lifestyle appeals to a different
kind of person – the person who prizes their
independence, values their time, and who doesn’t
want to mindlessly follow the crowd.
HOME
Book Store
Retire Early Lifestyle Blog
About Billy & Akaisha
Kaderli
Press
Contact
20 Questions
Preferred
Links
Retirement
Country Info
Retiree
Interviews
Commentary
REL
Videos
|
