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Passive Income Visas: Who Reaps the Rewards?

August 2, 2023

Passive Income Visas: Who Reaps the Rewards?

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  • United KingdomUnited Kingdom

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Olga Nechita Porthole

Olga Nechita

Practice Leader

London, United Kingdom

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T:+44 (0) 20 3540 3249

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Olga Nechita Porthole

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Olga Nechita Porthole

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By: Olga Nechita, Maria Hutchings

Passive income visas are a captivating notion in the realm of immigration, gaining significant popularity in an increasingly deglobalised world. It is a unique offering that allows individuals, including British nationals, a new life abroad, and unlike traditional visas that often require active employment or investment, these visas offer a pathway for individuals who can sustain themselves through passive income streams.  

Who would benefit from applying for a passive income visa? 

This visa route is particularly attractive to entrepreneurs, investors and retirees who wish to relocate to a foreign country whilst maintaining their freedom and independence, the passive income visa route is built for those with a steady stream of income from investments, royalties, pension, or other passive means. They offer appealing flexibility over traditional visas and provide a much-needed option for British nationals who dreamt of retiring in Europe prior to Brexit, but then lost their right of free movement.  

What are the benefits of passive income visas? 

Passive income visas are popular for several reasons. One of the primary benefits is the opportunity to legally live in a foreign country with the freedom to pursue personal interests, be it setting up a new business, working, investing, studying, or simply retiring in a new country. 

Many countries offer favourable tax regimes with attractive exemptions. This, in addition to lower cost of living, excellent health systems and pleasant climates, are all important factors when choosing a country to relocate to. Applicants can maintain a comfortable lifestyle using financial means from established ventures without engaging in active employment or other types of activity. Passive income visas grant the freedom to do just that, opening the doors to a world of opportunities in a new country. 

What are the requirements? 

While the specific requirements vary from country to country, certain criteria are commonly seen. The basic requirement for applicants is to demonstrate that they are financially self-sufficient and can support themselves and their family members comfortably. The financial thresholds depend on the host country’s cost of living. 

For example, Portugal's passive income visa, known as the D7 visa, is the most popular visa in Europe for persons of independent means with a minimum passive income requirement of just EUR 9,120 per year and the possibility to apply by relying on many various types of income, including pensions, rental income, dividends, investments or royalties. 

Another popular destination is Spain, and its non-lucrative visa also offers an appealing route for applicants who are required to have an annual passive income of EUR 33,600.  

Some countries require a tangible commitment, such as investment in a local business or real estate or contribution to a government fund. A popular example is the passive income visa in Malta, known as the Global Residence Programme, which requires applicants to invest in real estate in the country. This can be satisfied by buying a property in which no one else other than the applicants and their family members can reside with a minimum value of €220,000 or €275,000, depending on where the property is located. Alternatively, applicants can rent a property at a required threshold criterion. 

As with many other visas, health and character checks are also required to ensure applicants pose no risk to public health and safety. 

There are several other countries in Europe and beyond offering attractive pathways to residence and retirement in this way. This visa route also generally leads to permanent residence upon completion of continuous residence which, in turn, may lead to citizenship.  

How can Fragomen help? 

Fragomen has a well-established, extensive footprint around the world, with the ability to advise in and across more than 170 countries on all immigration categories. Our professionals are well-versed in the intricate requirements and regulations of the various passive income visa programmes, ensuring that our clients receive accurate and up-to-date advice tailored to their unique circumstances. 

We diligently explore visa options that align with our clients' goals. With our in-depth knowledge of visa processes, options, and legal considerations, we can provide a seamless and effective pathway for our clients to realize their aspirations of living abroad. 

Need to know more?

For details or questions related to passive income visas, please contact Director Olga Nechita at [email protected].  

This blog was published on 2 August 2023, and due to the circumstances, there are frequent changes. To keep up to date with all the latest updates on global immigration, please subscribe to our alerts and follow us on LinkedIn, Twitter, Facebook and Instagram.   

Country / Territory

  • United KingdomUnited Kingdom

Related contacts

Olga Nechita Porthole

Olga Nechita

Practice Leader

London, United Kingdom

Email

[email protected]

T:+44 (0) 20 3540 3249

Related offices

  • London

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

Olga Nechita Porthole

Olga Nechita

Practice Leader

London, United Kingdom

Email

[email protected]

T:+44 (0) 20 3540 3249

Related offices

  • London

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Related contacts

Olga Nechita Porthole

Olga Nechita

Practice Leader

London, United Kingdom

Email

[email protected]

T:+44 (0) 20 3540 3249

Related offices

  • London

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

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