Popular for all the right reasons, Portugal and Spain are still at the top of the list when you search for the best countries to live with passive income.
For those looking to relocate to Southern Europe, Portugal and Spain offer two popular residency options, both designed for retirees or/and individuals with passive income, providing a pathway to long-term residency or nationality:
- The D7 Visa in Portugal
- The Non-Lucrative Visa in Spain
However, despite their similarities, it’s crucial to understand these visas, their key differences in requirements, benefits, and long-term implications.
What is the Portugal D7 Visa?
The Portugal D7 Visa, also known as the Passive Income Visa, is a residency program designed for non-EU/EEA/Swiss nationals who have stable passive income. This visa is ideal for retirees, remote workers, and individuals with income from pensions, rental properties, dividends, or other passive sources.
Introduced as a way to attract financially self-sufficient individuals, the D7 Visa grants a renewable temporary residence permit, allowing holders to live in Portugal and benefit from its high quality of life, affordable cost of living, and favorable tax schemes.
What is the Spain Non-Lucrative Visa?
The Spain Non-Lucrative Visa is a long-term residency permit designed for non-EU/EEA/Swiss nationals who have the financial means to support themselves without working in Spain. It is particularly popular among retirees, financially independent individuals, and remote workers (although officially, it does not permit employment with a Spanish company).
This visa allows holders to reside in Spain for an initial period of one year, with the option to renew for two-year periods until they become eligible for permanent residency after five years.
However, you cannot work in Spain with the Non-Lucrative Visa. The visa is designed for those who can sustain themselves through passive income or savings, requiring applicants to demonstrate financial self-sufficiency without local employment.
Portugal D7 Visa vs. Spain Non-Lucrative Visa: Key Benefits Comparison
Portugal’s D7 Visa allows remote work, freelancing, and local employment, while Spain’s Non-Lucrative Visa does not permit employment, with remote work in a legal gray area. The income requirement is €870 per month for Portugal and €2,400 per month for Spain. Both visas provide Schengen travel, family inclusion, and public healthcare access.
Both visas offer permanent residency after five years, but Portugal allows citizenship after five years, while Spain requires ten years (or two for some Latin American nationals). Portugal requires a 6-8 month stay per year, while Spain requires 183+ days and automatic tax residency. Portugal’s visa is issued for two years, then renewed for three, while Spain’s starts at one year, followed by two-year renewals.
Breaking it down:
| Key benefits | Portugal | Spain |
| Path to permanent residency | After 5 years | After 5 years |
| Path citizenship | After 5 years of residency | After 10 years of residency |
| Work Permission | Allowed (remote work, freelancing or subordinated employment) | Not allowed any type of professional labor link |
| Visa-Free Schengen Travel | Yes | Yes |
| Healthcare Access | Must have health insurance covering their stay. Although you have access to free public healthcare | Must have private health insurance covering their stay |
| Family Reunification | Yes (spouse, children and dependents) | Yes (spouse, children and dependents) |
| Income Requirement | ~€ 870 per month the main applicant | ~€ 2400 per month the main applicant |
| Minimum Stay Requirement | 6 to 8 months per year | 183+ days per year |
| Renewal periods | Renewal after 2 years, then valid for another 3 years | Renewal after 2 years, then valid for another 2 years |
| Proceeding time | Portugal | Spain |
| Total Estimated Proceeding Time | 3 to 6 months | 2 to 4 months |
| Visa Application Proceeding Time at the Consulate | 1 to 2 months | 1 to 3 months |
| Validity of the Visa | 4 months | 3 months |
| Residency Permit Appointment (after arrival) | AIMA appointment automatically scheduled within the Visa period of validity - 4 months | TIE Appointment is scheduled by the applicant – must be scheduled until 1 months after the arrival |
Final Decision
If you’re torn between Portugal’s D7 Visa and Spain’s Non-Lucrative Visa, it all comes down to flexibility, cost, and work opportunities. While both visas offer a chance to enjoy life in Southern Europe, Portugal’s D7 Visa tends to be the more accessible and versatile option.
One of the biggest advantages of the D7 Visa is its lower financial requirement. You only need to show around €870 per month in passive income (€10,440 per year), whereas Spain requires a much higher €2,400 per month (€28,800 per year). This makes Portugal a far more affordable option, especially for retirees or digital nomads looking for a cost-effective European base.
Also, both visas allow family reunification. Portugal’s D7 Visa requires you to prove 50% additional income for a spouse and 30% per child, while Spain’s Non-Lucrative Visa requires an additional €7,200 per year per dependent. Both visas make it possible to relocate with family members, but Portugal’s requirements are slightly more lenient.
Speaking of affordability, Portugal also has a lower cost of living compared to Spain. Housing, groceries, dining out, and general expenses are cheaper in Portugal, especially in cities like Porto, Braga, or the Algarve compared to Madrid or Barcelona. If keeping costs manageable is a priority, Portugal offers a better quality of life for less.
Perhaps the biggest dealbreaker for many is the work restriction on Spain’s Non-Lucrative Visa. While Spain does not officially allow work, Portugal’s D7 Visa permits remote work, freelancing, and even employment in Portugal. This flexibility makes it ideal for digital nomads, entrepreneurs, or anyone wanting to keep earning while living abroad.
If you’re looking for a more affordable, flexible, and work-friendly residency option, Portugal’s D7 Visa is the clear winner. It allows you to settle in a beautiful, lower-cost country, maintain your income, and even pursue Portuguese citizenship in just five years—half the time required in Spain. Unless you have a strong preference for Spain’s culture or cities, Portugal offers a smoother and more budget-friendly path to European residency.
