Portugal D7 visa 2026: the retirement visa income requirement and a lifetime annuity
Written by Hans Goldstein, licensed insurance agent · CA 4273294Short answer: Portugal’s D7 visa, the usual Portugal retirement visa, requires €920 a month in 2026 for a single applicant (about $1,076 at $1.17 per euro) and €1,380 for a married couple (about $1,615), because a second adult adds 50% and each child 30%; consulates commonly also want 12 months of the bar (€11,040 for one person) in a Portuguese bank account. The rules ask for “stable and regular” resources, which a life-only annuity documents cleanly at application and at every renewal. At 62, covering the single bar takes roughly $163,000 to $185,000 of premium at September 2026 survey rates (illustrative, not a quote), less once Social Security counts. Since NHR closed, annuity income is taxed at Portugal’s progressive rates, but only the income part of a life annuity, not the return of capital, and Portugal has no wealth tax.
Free guide: Moving abroad on a fixed income
Income rules and taxes by country: Norway, Switzerland, Sweden, Italy, Spain, Malta and more, plus how a lifetime annuity fits.
The Portugal D7 visa income requirement in 2026
The D7 is the Portugal retirement visa most Americans use: a residence visa for retirees and for people who live on passive income: pensions, rent, dividends, interest. The bar is not a fixed euro amount. Portaria 1563/2007 ties it to the national minimum monthly wage (RMMG), which Decreto-Lei 139/2025 set at €920 from January 1, 2026. The household is weighted: 100% for the first adult, 50% for each additional adult, 30% for each child under 18 or dependent adult child.
Single or married: how much D7 income you need
| Household (2026) | Monthly | About USD a month | 12 months (Portuguese account) | Whose income |
|---|---|---|---|---|
| Single applicant (100%) | €920 | $1,076 | €11,040 | The applicant |
| Married couple (100% + 50%) | €1,380 | $1,615 | €16,560 | Set for the household as a whole |
| Each dependent child (+30%) | +€276 | +$323 | +€3,312 | Added to the household bar |
USD figures assume €1 = $1.17, a planning rate; the ECB reference rate was $1.1225 on 2 October 2026, so these dollar figures include about 4% of headroom. The Portaria refers to the minimum wage net of social security contributions (“líquida de quotizações para a segurança social”), so the strict figure can be slightly lower, but plan on the full €920 for the first adult because that is the figure the visa portal shows.
When only one spouse has income. The visa portal sets the bar per household (first adult 100%, second adult 50%), but it does not spell out whose name the income must be in. The usual approach is for the spouse with the income to apply as the main applicant and show €1,380 for both, with the other spouse joining as a family member; confirm with your consulate whether your spouse files alongside you or through family reunification. If neither of you has enough, buy the lifetime annuity in the name of the spouse who will be the main applicant, priced on that spouse’s age and sex, while you are both still US residents. A wife’s annuity pays slightly less per dollar than a husband’s at the same age because women live longer.
A US tax note (general information, confirm with a tax adviser): paying for a spouse’s annuity with your own money is a gift. Gifts between two US-citizen spouses are unlimited. To a spouse who is not a US citizen, the 2026 annual exclusion is $194,000; above that you file Form 709, and generally no tax is due because the excess uses your lifetime exemption.
What counts as income, and where an annuity fits
Portaria 1563/2007 defines means of subsistence as stable and regular resources (“recursos estáveis e regulares”, article 2) and, for a residence visa, requires them for at least 12 months (article 5(6)). It gives two routes that matter here:
- Retirees: a document proving the amount of the retirement income and that its receipt is assured, or that other income is available in Portugal.
- Passive income: a document proving the existence and amount of income from movable or immovable property, intellectual property or financial investments, and its availability in Portugal.
Portugal’s immigration agency, AIMA, lists how each is proven: a pension by a certificate from the paying entity, and income from financial investments by a document from the entity that pays it. A life-only SPIA from a US insurer produces exactly that kind of paper: a contract and a letter stating a fixed monthly amount payable for the lifetime of the annuitant. Portugal does not publish a rule naming private annuities, so ask your consulate which category it files them under, but a lifetime payment schedule is about as “stable and regular” as income gets.
Which annuity counts. A life-only SPIA, a joint and survivor SPIA, or an existing deferred annuity or MYGA converted to lifetime payments. A period-certain annuity, an income rider (GLWB) where an account value can still be cashed out, or an annuity still accumulating reads as savings, not lifetime income. Portugal also accepts other passive income, so this is about filing the strongest proof, not a legal requirement.
Be clear-eyed about Portugal: the bar is low and other passive income also qualifies. If you already collect Social Security or a pension above €920 a month, you may not need an annuity at all. Where a SPIA earns its place:
- You retire before Social Security starts and your income is a portfolio, not a paycheck. Dividends and interest move around; a SPIA payment does not.
- Your consulate or AIMA officer reads “stable and regular” strictly and a savings balance alone is not enough. Advisers commonly report that savings by themselves are not a reliable basis for a D7.
- You want renewals to be boring. The same monthly deposit shows up on every statement.
The Portuguese bank account
On top of the income itself, consulates commonly ask for a statement from a Portuguese bank showing 12 months of the bar on deposit, along with your Portuguese tax number (NIF). One consulate checklist from 2025 asked a single applicant for at least €10,440, which was 12 months of the 2025 wage; at the 2026 wage that becomes €11,040. Requirements vary by consulate, so download your own consulate’s current D7 checklist before you plan cash flows. Keep the annuity itself paying into your US account (more on that below) and fund the Portuguese account separately.
Why I write about this. My mom is Norwegian, my dad is American, and they’re planning the move from the US to Norway. My mom is the sponsor (the host, or “reference person” in UDI’s words), so Norway’s income test falls on her income, not my dad’s. UDI told us in writing that money in an account does not count as income, and only lifelong income does. Their savings were not the problem; the paperwork wanted a monthly number in the host’s name. The rules in Portugal are different, but the problem is the same one many retirees hit: the income test, not the net worth. I’m writing this to help others in the same boat as my parents. Read how we worked through the Norway income requirement.
In the same boat? Let’s run your numbers
See roughly what a lifetime annuity would cost to close your income gap, then get my personal read by email. I can help while you still live in the US.
Estimates use the September 9, 2026 ImmediateAnnuities.com payout survey (life only) and a 15% cushion. Illustrative, not a quote.
Renewals and a rising bar
After the visa, you apply to AIMA for a residence permit, and the permit is renewed periodically (law firms describe two years for the first permit and three years after that; confirm current terms with AIMA). Each renewal looks at your means again. Two things make that easier with a SPIA:
- The income is the same at every renewal, with no market drawdown and no shrinking balance to explain.
- The bar rises with the minimum wage. It went from €870 in 2025 to €920 in 2026, and a government agreement targets €1,020 by 2028. Size with 10 to 25% headroom so a level annuity still clears the bar years from now.
Example: a 62-year-old American moving to Portugal
Payout at age 62 from the ImmediateAnnuities.com survey of September 9, 2026, life-only, per $100,000 per month: man $603 average ($660 best quote), woman $582 average ($637 best quote). Premium = monthly bar / payout per $100,000 x $100,000, rounded. Illustrative, not a quote.
| Age 62, no other income | Monthly bar | Premium, average payout | Premium, best quote |
|---|---|---|---|
| Single man | $1,076 | $178,000 | $163,000 |
| Single woman | $1,076 | $185,000 | $169,000 |
| Couple (single-life annuity on the husband) | $1,615 | $268,000 | $245,000 |
Social Security can start at 62, and it counts toward the bar; a pension or rent does too, so most people only need a SPIA for the shortfall, and some need none. A joint and survivor annuity for a couple pays less per dollar than single life, so get a quote. Add 10 to 25% headroom because the bar rises with the minimum wage: at +20% the single man’s figure becomes about $214,000 at the average rate.
How the annuity is taxed: Portugal and the US
This is where Portugal is weaker than its reputation for American retirees. The non-habitual resident (NHR) regime, with its 10% rate on foreign pensions, was revoked from January 1, 2024 for new arrivals. Its replacement, IFICI, exempts several kinds of foreign income but leaves out pensions and annuities (category H). So a new resident’s annuity is taxed at Portugal’s ordinary progressive rates (article 68 of the income tax code, 2026):
| 2026 taxable income (EUR) | Rate on that slice |
|---|---|
| Up to 8,342 | 12.5% |
| 8,342 to 12,587 | 15.7% |
| 12,587 to 17,838 | 21.2% |
| 17,838 to 23,089 | 24.1% |
| 23,089 to 29,397 | 31.1% |
| 29,397 to 43,090 | 34.9% |
| 43,090 to 46,566 | 43.1% |
| 46,566 to 86,634 | 44.6% |
| Over 86,634 | 48%, plus a solidarity surcharge of 2.5% from €80,000 to €250,000 and 5% above |
The Portuguese side: only the income part is taxed
Portugal treats life annuities (“rendas vitalícias”) as pension-category income, and article 54 of the income tax code adds a helpful rule: when the payments include a return of capital, the capital part is deducted, and when it cannot be separated, 85% of each payment is set aside and only the remaining 15% is taxed. A SPIA bought with your own after-tax savings is largely a return of capital, much like the US exclusion ratio. Purchased annuities do not get the standard pension deduction (article 53(7)). How the tax office splits capital and income on a contract from a US insurer is a question for a Portuguese tax adviser, in writing, before you move.
The US side
As a US citizen you stay taxable on worldwide income wherever you live. A US single premium immediate annuity bought with after-tax savings is taxed under IRC 72: an exclusion ratio makes part of each payment a non-taxable return of your premium until the premium is recovered. If you bought it with IRA money, every payment is taxable. The foreign earned income exclusion does not cover annuities (IRC 911(b)(1)(B)(i)). Foreign tax on the payments can be credited on Form 1116, through the treaty’s relief article where there is one. Since January 1, 2026, a US citizen with a foreign residence address cannot opt out of federal withholding, even if payments go to a US account (IRC 3405(e)(13), Treas. Reg. 31.3405(e)-1). Withholding is a prepayment, not extra tax. An annuity from a US insurer is not reported on FBAR or Form 8938, and it is not a PFIC.
The treaty
Article 20(2) of the US-Portugal treaty says annuities paid to a resident of one country are taxable only in that country, so Portugal taxes first. The saving clause (in the treaty’s protocol) lets the US tax its citizens anyway, and Article 25 relieves double taxation, treating the income as arising in Portugal to the extent needed so the Portuguese tax can be credited on Form 1116. US Social Security is covered separately by Article 20(1)(b).
Net result
Because Portugal taxes only the income part of a purchased life annuity, the Portuguese tax on a SPIA bought with after-tax savings is often small, and the US tax is usually the binding one. Compared with drawing down savings, a SPIA in Portugal is close to tax-neutral, not the tax shelter NHR once was. See how European countries tax a US annuity for the side-by-side.
Does Portugal have a wealth tax?
No. PwC’s tax summary says plainly that there are no net wealth taxes in Portugal. High-value Portuguese real estate carries a separate additional property tax, which looks at property in Portugal, not at a US annuity. So in Portugal the annuity is about passing the D7 income test and renewals, not about wealth tax.
Checklist
- Buy the life-only SPIA while you still have a US address; US insurers generally will not issue to someone already living abroad.
- Keep a US bank account for the deposits. Since January 1, 2026, a US citizen with a foreign residence address cannot opt out of federal withholding even when payments go to a US account (IRC 3405(e)(13)); withholding is a prepayment, not extra tax.
- Start payments 3 to 12 months before applying so your statements show a track record.
- Ask the insurer for a letter stating the monthly amount payable “for the lifetime of the annuitant” with no cash value, then apostille and translate it as your consulate requires.
- Get a NIF, open a Portuguese account and fund 12 months of the bar.
The trade-offs, once
A SPIA is irrevocable, pays a level amount unless you add a cost-of-living rider, pays in dollars against a euro bar, and pays less per dollar the younger you start. It is backed by the issuing insurer’s claims-paying ability. Size it to the gap plus headroom and keep the rest of your savings flexible.
Married? Make the income outlive either of you. In Portugal the main applicant shows the income and the spouse joins as a family member, so the annuity sits with the main applicant. If a single-life annuity is on one spouse and that spouse dies first, the payments stop, and the surviving spouse may have to show income of their own at the next renewal. A joint and survivor annuity, which keeps paying until the second death, or a separate annuity on each spouse closes that gap. Joint and survivor pays less per dollar than single life, so ask for both quotes and compare.
Experts we point readers to
- Portugalist (James Cave): a detailed, regularly updated guide to Portugal's D7 visa
- Greenback Expat Tax Services: US expat tax preparers; Portugal retirement visa and tax overview
- Expatsi (Brett Andrews): a country-by-country guide to retiring abroad
We link to these because their guides are among the most useful we found. We receive nothing for listing them and are not affiliated. All experts by country.
Frequently asked questions
Free annuity gap analysis for Portugal. Tell me your ages, your Social Security or pension, and whether you are single or a couple. I will show how far your income is from the Portugal requirement and what a lifetime annuity would cost to fill the gap, in the sponsor’s or main applicant’s name where that matters.
Related reading
- Moving abroad on a fixed income: hub
- How European countries tax a US annuity
- Spain non-lucrative visa
- Greece financially independent person visa
- Cyprus Category F permit
- Retirement visa income requirements compared
- Immediate annuity calculator
Sources
- Portugal visa portal: D7 residency visa for retirement or passive income
- Portugal visa portal: means of subsistence (EUR 920 in 2026)
- Portugal visa portal: residency visa documentation
- Portaria 1563/2007 (means of subsistence), via AIMA
- AIMA: Meios de subsistencia
- Jornal de Negocios: EUR 920 minimum wage for 2026 published (Decreto-Lei 139/2025)
- Consulate General of Portugal in Manchester: D7 checklist (Portuguese bank statement)
- Codigo do IRS, article 54 (capital part of life annuities)
- Codigo do IRS, article 68 (2026 rates, Lei 73-A/2025)
- Codigo do IRS, article 11 (life annuities are category H)
- US-Portugal income tax treaty (IRS text), Articles 20 and 25 and Protocol
- DGERT: minimum wage EUR 920 for 2026 (Decreto-Lei 139/2025)
- PwC Worldwide Tax Summaries: Portugal, taxes on personal income
- PwC Worldwide Tax Summaries: Portugal incentives (NHR, IFICI)
- PwC Worldwide Tax Summaries: Portugal, other taxes (no net wealth tax)
- IRS Rev. Proc. 2025-32, section 4.42 (2026: $194,000 gifts to a non-citizen spouse)
- 26 U.S.C. 2523 (gift tax marital deduction)
- 26 U.S.C. 3405 (withholding on pensions and annuities)
- Treas. Reg. 31.3405(e)-1 (no withholding opt-out with a foreign residence address)
- ImmediateAnnuities.com: immediate annuity rates by age (survey of September 9, 2026)
Goldstein & Co. LLC dba Goldstein Insurance Services · Hans Goldstein, licensed insurance agent, CA lic. #4273294 · NPN 20602398 · 213-414-2808 · hans@hansgoldstein.com
Education, not tax, legal or immigration advice. Rules, thresholds and exchange rates change; confirm with the consulate or immigration authority and a local tax adviser before you act, and get answers in writing. Hans Goldstein is a licensed insurance agent (CA 4273294) and can only offer annuities to residents of states where he is licensed. Annuity payments are guaranteed by the issuing insurer’s claims-paying ability, not by any government. Payout figures are illustrations from a published survey, not quotes. Immediate annuities are generally irrevocable.