The most cost-effective way to get EU citizenship: Portugal Entrepreneur Visa (D-2) |
Many foreign nationals are seeking new opportunities in the current economic climate, which may grow even more significantly and in which many nations are searching for ways to integrate themselves into their host countries. Portugal has been an appealing migration destination owing to its language, historical, and familial ties as well as a vibrant global community.
We receive a lot of questions about Portugal’s Freelancer/Retirement Visa and Golden Visa from clients at Liberto Global. Both routes are great and will lead you to Portugal, and both will eventually enable you to become a Portuguese citizen. However, they aren’t always the best option for everyone.
What is Portugal’s Entrepreneur visa?
The D2 visa, better known as the Entrepreneurial Immigrants Visa is a special immigration program that allows entrepreneurs who want to start their businesses in Portugal or run an existing company from there with ease. It’s one of those visas that many foreigners take advantage of because it offers them access not only to Europe but also gives these entrepreneurs greater freedom when starting their own companies due to free movement laws within member states. Portugal’s visa options include similar types but are designed specifically toward non-EU/EEA & Swiss citizens outside both regions; whereas EU member states do not need any additional permission beyond.
Unlike the Golden Visa, you won’t need to make a hefty investment in Portugal to get the Entrepreneur visa. Unlike the Freelancer/Retirement (D7 Visa), you do not need to demonstrate a consistent flow of passive income.
What exactly are you referring to when you say “investing activity”?
You’re probably thinking that you’ll need to start a huge business and hire hundreds of individuals, but this Visa isn’t one of them. The Portuguese government indeed can issue the Golden Visa Portugal for those who wish to invest a lot of money.
However, in this example, all you must do in this scenario is demonstrate to the Portuguese authorities that you intend to establish a firm and operate it in Portugal, which is either a small or medium-sized business with relevance in one of the following fields: social, economic, technological, scientific, or cultural development.
Who is eligible for Portugal’s Entrepreneur visa?
Entrepreneurs, Self-employed Professionals, Start-ups and Tech Professionals, Investors, Company & Branch Owners
Portugal’s Entrepreneur Visa (D-2) Application Procedure in Steps
Step 1. Research & Collaboration & Connection
Demonstrate your knowledge of the Portuguese market by simultaneously showing your connection to licensing and permit authorities. As a physical or virtual link to Portugal’s territory, establish the site of your planned business. Investigate your target audience and business partners as part of this study.
Step 2. Company or Branch Establishment
Create or establish a new firm, open a subsidiary operation of an international company, become a freelancer or shareholder in a Portuguese firm, or create a shell company. In addition to that, establish offshore or onshore legal status.
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Step 3. Permits and Licenses
The applicant should obtain the appropriate and correct licenses and permits for your company’s needs from reliable and trustworthy authorities in Portugal. Define planned commercial activities in the registration certification.
Step 4. Business Bank Account
To conduct financial transactions between his/her and his/her firm’s or customer’s other partners, contractors, consumers, or business affiliates in Portugal, the applicant must have a commercial bank account in Portugal. It’s not only for business; the tax authorities also need it.
Step 5. Capital Transfer
To cover direct expenditures and fixed costs, the applicant must first transfer an initial capital sum to a personal or business bank account in Portugal. To cover direct expenditures, the applicant must provide an initial resource amount to a personal or corporate bank account in Portugal.
Step 6. Contracts, Leases and Hiring
The applicant must submit a statement from your company’s service provider or receiver confirming that they performed services for you. Consultants, attorneys-in-law, accountants, and vendors must be paid at least the minimum wage to verify service engagement between the applicant’s firm and the services provider or receiver.
Step 7. Taxes & Social Contributions
For both personal and professional purposes, the applicant must pay any applicable sales, value-added, or other taxes and social contributions to the state government. Taxation & social contribution are dependent on your employment in Portuguese province.
Step 8. Solid Business Plan
The main thing to remember when applying for the Portugal Entrepreneur Visa (D-2) is that it’s all about showing a strong and driven business plan that is expected to succeed in Portugal. The Portuguese government wants to know that your business or service operations will be sufficient to cover your living expenses in Portugal. That income might come either from a locally incorporated company or from contracts with clients.
When applying, the applicant also has to show “proof of means of subsistence.” which typically implies that the applicant should have at least 12 months’ worth of savings in the bank, which is equivalent to the Portuguese minimum wage.
Step 9. Required Documents for Visa Application
Step 10. Submission of Visa Application
The visa application is compiled by the applicant and submitted to a Portuguese consulate in his/her home or resident country. When it’s submitted, they will send your documents on for processing with SEF-the country’s immigration department. The Portuguese consulate may request additional documents or invite you for an interview.
Step 11. Visa Application Decision
The “SEF” examines your application for the final decision on the communication tax and social security or other related bureaus in Portugal. It also performs an overview of your company concept, which is outlined in your visa application. In practice, analyses may take 3 to 6 months.
Step 12. Travel to Portugal to report to SEF Biometrics (Fingerprints)
The Portuguese consulate will stamp your passport with a D-2 visa valid for 120 days after you obtain a favorable decision from SEF. The applicant is obligated to inform Portugal’s immigration authorities ( SEF) of his or her arrival and stay within the visa’s validity.
Step 13. Collect Residency Card
The residence card will be delivered to your address in Portugal by regular mail, which is valid for the next two years. The primary applicant can now call family members under Portugal’s family reunification laws if they have a Portuguese residency card, which confers the right to be joined with their family.
The Entrepreneurial Visa and Portuguese Citizenship
To acquire Portuguese (and EU) citizenship, you must spend at least five years as a legal resident of the country. It’s critical to keep your residency status for the entire five-year period. Portugal must be your primary residence and country of tax residency, so you’ll have to spend at least six months in person in the country 183 days per year).
If you become a resident of Portugal with the Freelancer/Retirement Visa (D7) visa, you must follow the same rules and restrictions. Golden Visa holders, on the other hand, have greater freedom than other visas in terms of physical presence restrictions. They may stay in Portugal without ever becoming tax residents thereby spending two weeks each year there. A minimal understanding of the language is required to acquire Portuguese citizenship. Portugal now requires only an A2 level of Portuguese, which is lower than most other EU nations (which usually demand B1/B2).
What if you are unwilling to spend 183 days a year in Portugal?
Do you have an idea for a Portuguese business, but don’t want to be restricted by the Portugal D2 visa’s requirements?
Then there’s Portugal Highly Qualified Activity Visa, which may be worth a look.
The Portugal Hybrid Investor-Entrepreneur Residency Scheme (HQA visa) combines entrepreneurial investors with Portuguese institutions to establish and develop a research-driven start-up.
The investment amount for the HQA visa is €175,000.
In exchange for that amount, you get the most freedom imaginable. To maintain your residency status, you may only spend a maximum of seven days in Portugal each year.
Furthermore, the HQA is a low-risk investment. If your visa application fails or you’re denied visa, your whole investment will be returned.
The Golden Visa and the HQA Visa are similar in many ways, but the HQA Visa requires a considerably shorter processing time of just 30 days.
If you’re interested in these kinds of visas, please contact us for further information.