With its sunny climate, affordable cost of living, high quality of life, and welcoming atmosphere, Portugal has become a popular destination for Americans looking to make a new home in Europe. To many, Portugal offers a more relaxed lifestyle, allowing them to live a more balanced life.
Whether you are a retiree or remote worker, moving to Portugal could be on your mind. Let’s explore why Portugal has become a hotspot for American expats, what visa and residency options are available, and some of the challenges that come with such a move for an American.
There are several reasons why Portugal has become an attractive destination for Americans looking to live abroad. One of the main factors is Portugal’s warm Mediterranean climate, which offers over 300 days of sunshine a year, making it an ideal location for those looking to escape the harsh winters of the Northeast.
In addition to the climate, Portugal is known for its affordable cost of livingand high quality of life. While locals are likely to disagree,Forbes ranked Portugalas one of the best places to live due to its arguable affordability. The cost of living in Portugal is around 40% lower than in the United States.
Furthermore, Portugal offers a variety of visa and residency programs that make it easy for Americans to establish residency in the country.
The Non-Habitual Resident (NHR) program, for example, offers tax incentives to those who establish residency in Portugal, while the D7 visa allows for residency and is a popular path for retirees and freelancers who have a stable income.
Another reason for the increasing number of Americans living in Portugal is the country’s healthcare system, which is highly regarded and offers affordable and accessible care to all residents.
Portugal is also considered to be one of the safest countries in Europe, making it an attractive destination for those looking to raise a family or retire.
Overall, Portugal’s combination of warm weather, affordable cost of living, high quality of life, welcoming culture, and attractive visa and residency programs make it an ideal destination for Americans looking to live and work abroad.
Today, American expats live all over Portugal. Where you want to live depends heavily on your needs. If you are a young American working in tech, Lisbon or Porto will make more sense. However, if you are a retiree, the Algarve near the beach or even somewhere more rural might be better suited. The main places American expats live in Portugal are Lisbon, Cascais, Porto, Algarve, and Coimbra.
Lisbon: Lisbon is Portugal’s capital city and offers a vibrant cultural scene, a bustling nightlife, and easy access to the rest of Europe. Many American expats choose to live in neighborhoods such as Chiado, Principe Real, and Bairro Alto.
Cascais: Cascais is a coastal town located just outside of Lisbon. It offers beautiful beaches, a mild climate, and a relaxed lifestyle. Many American expats choose to live in Cascais for its proximity to Lisbon and its high quality of life.
Porto: Porto is Portugal’s second-largest city and offers a rich cultural heritage, a thriving arts scene, and excellent food and wine. Many American expats choose to live in neighborhoods such as Ribeira, Miragaia, and Foz do Douro.
Algarve: The Algarve region in southern Portugal is a popular destination for American expats looking for a warm climate and a relaxed lifestyle. Many expats choose to live in towns such as Lagos, Albufeira, and Faro.
Coimbra: Coimbra is a historic university town located in central Portugal. It offers a high quality of life, a low cost of living, and easy access to other parts of the country. Many American expats choose to live in neighborhoods such as Baixa and Santa Cruz.
The most famous Long Stay Residency visas in Portugal are the D7 Visa and D2 Visa.
D7 Visa
Retirees, remote workers and digital nomads can take advantage of this opportunity to live and work in Portugal hassle-free. Introduced in 2007, the D7 Visa requires no investment and is perfect for non-EU/EEA/Swiss citizens who want to make Portugal their home.
To be eligible, you just need to show that you have a reasonable passive income coming from sources such as real estate, a retirement pension, or a salary. The minimum required income for the main applicant is €8,460 per year, with additional amounts for spouses and dependent children.
Once you’re approved for the D7 Visa, you’ll need to spend at least 16 months in Portugal during the first 2 years. And don’t forget to bring a clean criminal record and proof of address in Portugal when applying. The best part? Your family can come with you, and they’ll have the same residency rights as you do.
Are you an entrepreneur, freelancer, or independent service provider looking to start a business or invest in Portugal? If so, you might want to consider the Portugal D2 Visa.
The D2 Visa is geared towards small and medium-sized businesses, aimed at raising foreign investment to develop the Portuguese economy. The best part? You can set up any business you want – from a restaurant to a tech startup – and you’ll be evaluated based on its economic, technological, and cultural impact.
The D2 Visa requires you to invest in your business’s share capital. While immigration firms advise investing at least €50,000, the more you invest, the better your chances of getting your visa. You’ll also need to show that you have the financial ability to support yourself while living in Portugal.
And, just like the D7, the D2 Visa allows for family reunification, with your family members granted the same residency rights as you. After 5 years, you can apply for permanent residency and citizenship after 6 years, as long as you spend at least 6 consecutive months in Portugal within those 5 years.
Guide to D2 Visa
The largest benefit of the NHR Tax Regime is that your personal income tax is taxed at a flat rate. Those who work in Portugal (freelance or regular employment) under the NHR tax regime only pay a 20% flat rate on personal income tax (IRS). To be considered “high value”, the job must be related to activities of scientific, artistic, or technical character. Below, you can see how much you would be paying otherwise.
You will also not pay any tax on dividends, interest, royalties, capital gains, rental income from real estate outside Portugal, and income from employment in another country. These will be paid in the source country if your country has a Double Taxation Agreement (DTA), which is the case for the United States.
There are a couple of eligibility requirements to become a non-habitual resident. The three main ones are:
You cannot have been taxed in Portugal during the five years before the application.
You must request a tax residence certificate which means you must live in Portugal for more than 183 days (doesn’t need to be consecutive) for 12 months, lived in Portugal for less than 183 days but has bought property in Portugal during those 12 months, or performs public functions in the name of the Portuguese state for the last 12 months.
You must have the right to be in Portugal through a long residency visa such as D7 Visa or D2 Visa.
Although many Americans are moving to Portugal, there are also a few challenges you should be aware of. One major obstacle is the language barrier.
Portuguese is not an easy language to learn, and many locals don’t speak English fluently. This can make everyday tasks, such as going to the bank or the doctor, more difficult. But don’t worry, you can always take language classes or find an interpreter to help you out.
However,Portuguese is actually quite a difficult language to learn. It is particularly difficult if you just speak English.
Navigating Portugal’s bureaucracy can also be challenging. Getting things done, such as registering your car or obtaining a driver’s license, can be a lengthy and frustrating process.
Another major downside to living in Portugal is finding a well-paying job. Whether you are making minimum wage or the average salary, do not expect to make a lot of money. The average person makes around €1,000 per month.
However, if you are getting a top-level job, you can still make very good money. The best salaries are given to top management positions in Lisbon. For example, a general manager can make between €110,000 and €170,000.
Public transport is also not as good as in other European countries. While major cities like Lisbon and Porto have a more modern subway and tram system, many others only rely on bus routes. These often only come in long intervals and arrive late. If you live in the interior of the country, waiting for an hour for the bus is commonplace.
Lastly, if you’re an American moving to Portugal in the summer, time to purchase some fans. Most houses do not come equipped with air conditioning. Only 7.9% of homes nationwide have AC.
Temperatures can get quite high, particularly during the recent heat waves they reached over 40 degrees Celsius.
With its sunny climate, affordable cost of living, high quality of life, and welcoming atmosphere, Portugal has become a popular destination for Americans looking to make a new home in Europe. To many, Portugal offers a more relaxed lifestyle, allowing them to live a more balanced life.
Many people who move to Portugal seek a more affordable and easygoing culture and are attracted by its relatively seamless visa process. Remote workers, digital nomads, and retirees from the US flooded the Western European country during the early stages of the pandemic.
Portugal's mild climate – with more than 300 days of sunshine per year – ranks among the top reasons Americans decide to move to the country. Some Americans also opt to retire in Portugal since the pace of life and affordable living costs are big draws.
Portugal has become a top-choice European country for Americans Expats, Nomads and Retirees in recent years for many reasons. Portugals fast and straightforward pathway to citizenship certainly plays a factor.
In which area of Portugal do most expats reside? Expats tend to flock to Portugal's bigger cities – particularly Lisbon and Porto. Both of these cities are renowned for their rich history, vibrant culture, and fairly relaxed lifestyle.
In comparing the cost of living between Portugal and the USA, Numbeo found that the consumer prices (including rent) in Portugal are 74.9 percent lower than in the USA. Rent prices in Portugal are 112.3 percent lower, restaurant prices are 78.7 percent lower, and grocery prices are 96.6 percent lower than in the USA.
Portugal has long been a top location to retire to. With dreamy sunsets over beautiful beaches, an affordable cost of living, excellent seafood, and attractive tax benefits, it is understandable why so many retirees are turning their attention to Portugal.
In short, yes!Both Portugal and the United States of America allow for dual citizenship. If you reside in Portugal for five years, you can apply for citizenship. You'll need to prove you speak some Portuguese, just like you do for permanent residence.
Non-residents are liable to income tax only on Portuguese-source income, which includes not only that portion of remuneration that can be allocated to the activity carried out in Portugal but also remuneration that is borne by a Portuguese company or permanent establishment (PE).
You need to apply for residency in order to retire in Portugal as an American. The process is straightforward, but it may take a while. You need to provide (1) your passport, (2) proof of income, (3) proof of health insurance, (4) criminal background check, in order to apply.
The Algarve is the most popular choice for expats and tourists alike. It too, has some stunning beaches and coastlines, with some beautiful rock formations to marvel at. The weather is always a few degrees warmer than Lisbon which makes it a popular place for retirees.
Combined with its relatively warm temperatures, plentiful recreational activities, widespread knowledge of English among many locals, and relatively low cost of living, Portugal is a natural destination for Americans looking to relocate.
Ethnically, the Portuguese people form 95% of the total population in Portugal. The Portuguese people are mainly a combination of ancient paleolithic populations, and the proto-Celtic, Celtic and Iberian tribes, para-Celtic Lusitanians.
The thriving digital nomad community in the country has started a buzz among millennials who are looking for more freedom along with many opportunities. Portugal, especially Lisbon, offers many coworking spaces where they can meet fellow nomads.
This agreement ensures that US expats working in Portugal will not be subject to dual Social Security taxes. Instead, expats will only have to pay into the Social Security system of their home country.
Where do American expats live in Portugal? American expats live all over Portugal. While Lisbon has the most American expats, other popular landing spots include the Algarve, Porto and the Silver Coast. There are even vibrant expat communities on the Portuguese islands in the Azores and Madeira.
Lisbon has the most expats in Portugal. The Lisbon metropolitan area has almost three million residents as of 2022, of which over 555,000 people are expatriated.
The similarities between Portugal and California are astounding, right from the climate, beaches, and even nature. You will find plants and hills that are almost identical in both places. While California is relatively larger than Portugal as a country, there are so many similarities that they share.
As part of the Non-Habitual Resident (NHR) tax scheme, D7 visa holders pay just a 20% tax on Portuguese-sourced income and a 10% tax on foreign-sourced income (which would include foreign retirement and social security payments).
You can live comfortably with an estimated €1,300-€1,500 (US$1,500-1,700) per month in small towns or €1,700 ($2,200) in larger urban areas such as Lisbon or Porto. Groceries, eating out, rent, utilities, and health care are especially affordable in Portugal.
How much money do you need to retire in Portugal? Depending on location and lifestyle, the cost of living in Lisbon can range from $2,000–$3,500 per month. Outside of the bigger cities, you can expect to spend less.
Portuguese Americans (Portuguese: português-americanos), also known as Luso-Americans (luso-americanos), are citizens and residents of the United States who are connected to the country of Portugal by birth, ancestry, or citizenship.
On average, housing in Portugal costs around 1,100 EUR (1,200 USD) in rent per month. This number grew considerably from the 800 EUR (880 USD) registered just a year before. Rent prices will vary greatly depending on the part of the country in which you choose to live and the type of housing you seek.
Resident individuals are subject to income tax on their worldwide income while nonresidents are liable to income tax only on income sourced in Portugal. Residence is determined by physical presence in Portugal for 183 days or more in any tax year.
Mainly yes, Portugal has a free healthcare system. It's free for all Portuguese citizens and residents. Citizens and residents of the country who contribute to the Social Security Fund can receive free medical care through the National Health Service, SNS.
The tax rate is determined annually and varies between 0.3% and 0.8%. This tax is due by anyone who owns the property on the last day of December of the previous year. For example, if you own a property on 31 December 2021, you will have to pay the Portuguese IMI tax in 2022.
Health Insurance in Portugal is affordable and averages somewhere between €40 and €100 per month, depending on multiple factors like age and pre-existing conditions. To visit a private Doctor in Portugal, you would typically pay around €50 to €100 per appointment. With insurance you can pay only a fraction of that.
Greece and Malta are some of the easiest and best places to retire in Europe, as they have large English-speaking communities. Other European destinations that are also suitable for retirement are Portugal, Spain, and Turkey.
Last year, nearly 10,000 American citizens lived in Portugal, an impressive 239% increase over 2017, according to data provided by the Portuguese government. In 2019, the number of Americans attending the Carlucci American International School of Lisbon increased by 60%, The New York Times reported.
Rainfall. In Lisbon rainiest months of the year are December and November during which monthly rainfall average reaches 128 mm. On the other side, driest months are August and July when the average rainfall is reduced to 4 mm per month.
Security. As mentioned before, one thing that contributes to the overall quality of life in any particular country is safety. While both countries are considered generally safe, Portugal is by far safer than Spain.
Central heating is rare in Portugal, but air conditioning is in almost all modern properties. Usually it will come with a reverse cycle feature for heating.
Where does Portugal rank in healthcare? Portugal ranks 25th in the 2023 Health Care Index by Numbeo, meaning that it has one of the best healthcare systems in the world. Healthcare in Portugal is under a hybrid system with excellent public and private services.
The primary reason for people abandoning their houses and investments is the lack of potential buyers. Even if people wanted to sell their houses, not many had the necessary funds to make a purchase, and foreign investors were also scarce.
According to the Annual Global Retirement Index 2022, Portugal is the fourth best country to retire to after Panama, Costa Rica, and Mexico. The changes made in the retirement tax laws of Portugal made it yet more attractive for foreigners to relocate to Portugal for retirement.
Moving to Portugal is relatively straightforward for US citizens. There are a number of different ways for Americans to get a Portuguese visa, through work, marriage, or the Golden Visa investment program.
That would not include the amount of money you need to have in your Portuguese bank account. So if you're getting the D7 visa (the most common one) and you need about 8,000 euros in your bank account, then you would need about $19,000 total to move to Portugal.
Everyone agrees that one of the biggest cons of living in Portugal is the bureaucracy. Most things in Portugal can take quite a bit of time and paperwork is also pretty slow. It may take months to apply for a driving license or get it issued.
If you have social security credits in both the United States and Portugal, you may be eligible for benefits from one or both countries. If you meet all the basic requirements under one country's system, you will get a regular benefit from that country.
Mainly yes, Portugal has a free healthcare system. It's free for all Portuguese citizens and residents. Citizens and residents of the country who contribute to the Social Security Fund can receive free medical care through the National Health Service, SNS.
First, you must hold a temporary residence permit to become a permanent resident in Portugal. The temporary residence permit is valid for a year and can be renewed for up to five years. Then after five years of temporary residency, you can switch to a permanent residence permit.
Introduction: My name is Tyson Zemlak, I am a excited, light, sparkling, super, open, fair, magnificent person who loves writing and wants to share my knowledge and understanding with you.
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