Many Americans are moving to Portugal from the US or seeking answers in the long discussions, not just for the lifestyle, but also to find social and political rest. According to the latest official data from AIMA (Portugal’s Agency for Integration, Migration, and Asylum), around 19,258 Americans live in Portugal, representing a 36.3% increase from the previous year. Similarly, Get Golde Visa’s data has witnessed almost 1 in 5 queries come from Americans relocating to Portugal or planning to do so.
So, how can you move to Portugal permanently as an American? Americans can stay in Portugal for up to 90 days without a visa. However, they need a residency permit to live in Portugal long-term. In the meantime, with the EU’s upcoming ETIAS system, the UK’s ETA requirements, and the growing use of electronic travel authorizations worldwide, many Americans are beginning to realize that easy global mobility can no longer be taken for granted. As a result, securing a residency in Portugal is becoming increasingly attractive to many.
Key Takeaways for Americans Moving to Portugal
- As an American, you do not need a visa to enter Portugal for stays of up to 90 days within any 180-day period for tourism or business purposes. If you plan to live in Portugal as an American, you must apply for a residence permit type that suits you and gather the necessary documents.
- The most common Portugal visas for US citizens are the D2 for entrepreneurs, the D7 for retirees, the D8 for digital nomads, and the Portugal Golden Visa for investors.
- The application process usually takes about 3-18 months, depending on the visa type.
- Most residence permits are initially valid for 1–2 years and can be renewed. (Golden Visa is valid for 5 years)
- US immigrants to Portugal can also obtain Portuguese citizenship through descent, marriage, and naturalization if they meet the legal requirements.
- Portugal and the US have a double taxation treaty, meaning that you may be exempt from taxes on your foreign income.
- You can continue receiving US Social Security benefits while living in Portugal. However, thanks to the double taxation treaty between the US and Portugal, your foreign income will not be taxed, although you may be required to file it.
- The cost of moving to Portugal can range from $9,000 - $13,000, depending on your needs. It requires a monthly budget of around €2,500- €3,000 for living expenses.
Why Americans Are Moving Portugal? Nancy’s Story Reveals
At Get Golden Visa, we have become one of the first to capture the rising number of Americans leaving the US. The increasing number of investor queries from the US has made us realize that Americans have been looking for homes overseas since 2022, as highlighted in the American Exodus Report Series. Some of them see it as a plan B, while others see it as an immediate relocation.
Building on the American Exodus Series, this year’s edition takes a more human-centered approach and identifies emerging clusters, including expats, retirees, and LGBTQ+ communities, leaving the US in record numbers. Accordingly, Portugal stands out for many reasons, thanks to its low cost of living, social and political stability, affordable healthcare, work-life balance, investment opportunities, and tax benefits.
An interesting life story comes from our The Great American Retirement Exodus Report. One of our clients, a 65-year-old retired lawyer from Washington, decided to get a Portuguese Golden Visa as she felt that the political and social unrest concerned her for both her and her family. She chose Portugal because access to countries like Canada and Ireland was difficult for her family. Additionally, moving to Portugal became a more attractive destination to her as her friends who had moved there were satisfied with it.
How To Move to Portugal From the USA: Portugal Visa Options
1. Portugal Golden Visa
Launched in 2012, the Portugal Investor Visa program allows applicants to invest in the country and obtain Portuguese resident cards. You can obtain a five-year residence permit with minimum-stay requirements and family-inclusion opportunities.
Besides, as a Portugal Golden Visa cardholder, you will have the chance to reside, work, and study in Portugal, and to travel freely across the Schengen Area, with only 7 days per year of full-time relocation. That’s why Americans become the top investors for the Portuguese Golden Visa, according to the latest statistics.
To be eligible for the Portugal Golden Visa program, you must make a qualifying investment for one of the options stated below:
- Investment Funds: €500,000
- Business and Job Creation: No fixed amount (create at least 10 full-time jobs for Portuguese nationals)
- Scientific or Technological Research: €500,000
- Cultural or Heritage Preservation: €250,000
- Capital Transfer: €1.5 million
Applicants who complete the process can apply to AIMA for Portuguese citizenship after ten years, subject to the nationality laws in force at the time of application.
2. Portugal’s D7 Visa for Retirees
The D7 Visa in Portugal is also commonly referred to as the retirement visa. It’s a residence visa for retirees and passive income holders who wish to move to Portugal. Also known as the Portugal Retirement Visa, it is very popular among Americans retiring in Portugal. It requires a monthly income of €920, increasing by 50% for the spouse and 30% for each dependent child.
Through the D7 Visa, you can benefit from:
- Traveling around the Schengen Area visa-free.
- Obtaining a Portuguese residence permit for 1 year, with a renewal option that leads to permanent residency after 5 years.
- Having access to health and education services.
- Including your family members, as long as they meet certain criteria.
- Having a fast processing time
If you’re planning to retire in Portugal via a D7 Visa, you’ll be required to submit documents that show your passive income.
D8 Visa
Suitable for freelancers, remote workers, and entrepreneurs; D8 Visa or Portugal’s Digital Nomad Visa offers the chance to live and work in Portugal for a maximum of one year. This visa requires a monthly income of €3,280 and savings of €36,480. It allows the holder to apply for temporary residency and, after five years, for permanent residency.
Key advantages of this visa type include:
- You can live in Portugal for at least one year.
- You can visit other Schengen countries for 90 days in every six months.
- After 10 years, you can apply for Portuguese citizenship as long as you meet the criteria.*
- You can use Portugal’s public healthcare.
- There are good schools and universities. It is a good choice for families with children.
- The visa is not expensive. You just need to show you work online and have enough money.
- You may pay 0% tax on foreign income and 20% tax on income earned in Portugal. Note that you may potentially benefit from the New NHR tax regime, provided you meet specific criteria.
- Portugal has nice weather, fun culture, and cheaper living than other Western European countries. People care about work-life balance.
- Many Portuguese people speak English, especially in big cities.
3. D8 Visa for Remote Workers
Suitable for freelancers, remote workers, and entrepreneurs, the D8 Visa or Portugal’s Digital Nomad Visa offers the chance to live and work in Portugal for a maximum of one year. This visa requires a monthly income of €3,680 for the main applicant, with a 50% increase for a spouse and a 30% increase for each dependent child. It allows the holder to apply for temporary residency and, after five years, for permanent residency.
Key advantages of this visa type include:
- You can live in Portugal for at least one year.
- You can visit other Schengen countries for 90 days every six months.
- After five years, you can apply for Portuguese citizenship as long as you meet the criteria.
- You can use Portugal’s public healthcare.
- There are good schools and universities. It is a good choice for families with children.
- The visa is not expensive. You just need to show you work online and have enough money.
- You may pay 0% tax on foreign income and 20% tax on income earned in Portugal. You may benefit from the New NHR tax regime if you meet the specific criteria here.
- Portugal has nice weather, a fun culture, and a lower cost of living than other Western European countries. People care about work-life balance.
- Many Portuguese people speak English, especially in big cities.
4. D2 Visa for Entrepreneurs
The D2 Visa is a residence visa for Portugal as an alternative to Golden Visa. It is for people who want to start a business or work independently. You can apply if you want to work for yourself in Portugal or if a company in Portugal has hired you to provide a service.
In a nutshell:
- If you are not from the EU, EEA, or Switzerland, and you want to live in Portugal as a freelancer or business owner, you can apply for the D2 Visa.
- You must have a company in Portugal or plan to start one. You can also invest in a Portuguese company or open a branch of your own company.
- You should show that you have some money in a Portuguese bank.
- You must write a plan for your business. It must be clear and show how your business will help Portugal.
- You must buy health insurance for yourself. You must also buy it for your family if they come with you. It should work in all of Europe.
- You must stay in Portugal for at least 4 months in the first year. After that, you must stay at least 6 months each year.
Portugal Visa Types Timeline Overview for Americans
| Portugal Visa Types Overview | |||
|---|---|---|---|
| Visa Type | Best For | Financial Requirements | Processing Time |
| D7 Visa | Retirees, passive income earners | €920/month minimum | 2-4 months |
| Digital Nomad Visa | Remote workers | €3,680/month minimum | 1-3 months |
| D2 Visa | Entrepreneurs, business owners | Business plan + sufficient funds | 3-6 months |
| Portugal Golden Visa | Investors | €200,000 (Donation) – €500,000 (Fund) | 12-18 months |
| Student Visa | International students | Tuition + €820/month living funds | 1-3 months |
| Family Reunification | Family members of residents | Sponsor’s income + Proof of relationship | 3-6 months |
How to Apply for a Portuguese Residence Permit?
As an American, you have a couple of options for obtaining the necessary visa or residence permit to move to Portugal long-term. above. Once you pick the one that suits you the best.
The Portuguese immigration and border service, known as Agência para a Integração, Migrações e Asilo (AIMA) in Portugal, handles the visa application process. The Portuguese government allows online applications via this platform. Residence permits can be automatically renewed, which is very convenient.
The process works as follows:
- Gather the essential documents and complete the visa application forms.
- Apply through the Portuguese Consulate or a service provider in the US. Please check the official government source here.
- Get your residence visa, which will be valid for 120 days with two entries.
- Enter Portugal and attend your residence permit appointment.
- Get your residence permit in Portugal
Required Documents
Becoming a Permanent Resident or a Citizen in Portugal
After you obtain temporary residence in Portugal and renew it within five years, you can apply for permanent residence.
Rights and Responsibilities of US Residents in Portugal
Once you become a legal resident in Portugal via one of the aforementioned residency visa types, you will have certain rights and be held responsible for certain obligations.
As a legal resident, you can:
- Work for an employer or be self-employed.
- Study and get professional training.
- Access public healthcare and legal help.
- Live with your family in Portugal (family reunification).
- Get fair treatment in social security, taxes, and public services.
- Have your US diplomas and qualifications recognized.
- Join labor unions and enjoy fiscal benefits.
You must also follow certain rules:
- Report any changes (like a new address or marital status) to the authorities within 60 days.
- Notify immigration services if you plan to leave Portugal for more than 6 consecutive months (or 8 months total if non-consecutive) while your permit is still valid.
- If you have a long-term residence permit, you can’t stay outside the EU for more than 12 months in a row, or outside Portugal for more than 6 years, or you may lose your permit.
- Students must tell immigration officials if they start a paid job and show their work contract. They must also register for taxes and social security.
Temporary residence permit holders must renew their permits within 30 days before they expire.
Portuguese Citizenship for Americans
European Citizenship Through Heritage
Any European Union citizen has the right to live and work in Portugal. So, research your heritage. In your genealogy, you may have some Europeans. If so, you can apply for citizenship in the corresponding country and get the chance to live anywhere across Europe.
Mind you, if you served in the US military, it may void your chances of taking citizenship in another country through heritage. Though even in that case, your spouse may be eligible and you use them to get a visa and relocate as a dependent.
Citizenship by Descent
If you can prove that you have a Portuguese descendant, you can apply for Portuguese citizenship by descent.
Citizenship by Marriage
To be eligible for Portuguese citizenship by marriage, you must:
- Be married to a Portuguese citizen for at least 3 years
- Live in Portugal with your spouse during that time.
- show basic knowledge of Portuguese.
After meeting these requirements, you can apply for citizenship.
Citizenship by Naturalization
For citizenship by naturalization, you must live in Portugal for at least ten years, according to the new law promulgated on May 3, 2026. The new law suggests that:
- The timeline for citizenship will extend to 10 years from 5 years for most applicants (7 years for EU and CPLP nationals).
- The counting period will start from the issuance of the first residency permit.
While not yet enacted, the law awaits publication in the official gazette. We will update this article as soon as there is an update.
Once you have completed these initial requirements, you can apply for citizenship. During this time, you must meet the A2 level Portuguese language requirement and have an understanding of Portugal’s culture and society.
Cost of Moving to Portugal from the USA
The Portuguese government welcomes expats from the US, and the move is generally straightforward. Before getting into details on a visa, there are a few things you need to know about Portuguese law when it comes to foreigners entering the country.
1. Customs
Getting through customs in Portugal is easy if you follow a few simple rules. Before you move to Portugal, you need to go to your local Portuguese consulate, or diplomatic mission, and ask for a Certificado de Bagagem (Luggage Certificate). You can obtain this by giving a complete inventory of your possessions and household goods, which you’re planning to take with you to Portugal.
Remember that your items on your Certificado de Bagagem will arrive within 90 days of your arrival in the country.
2. Shipping and Flying Goods
Luckily, you’ll find that shipping your belongings to Portugal is easy. Because the country has a very advantageous geographical position, you have a wide variety of options, such as air freight and sea freight. Road freight is not available from the US, but sea freight is an affordable alternative to air freight, though slightly slower.
Below is a table showing the average cost of sea freight for a 20ft container of furniture when moving to Portugal.
| Departing | Destination | Price | Duration |
|---|---|---|---|
| New York City, USA | Lisbon, Portugal | $759.00 | 10 days |
| New York City, USA | Figueira Da Foz, Portugal | $775.00 | 11 days |
| Los Angeles, USA | Lisbon, Portugal | $2,995.00 | 25 days |
| Los Angeles, USA | Figueira Da Foz, Portugal | $3,010.00 | 26 days |
If you’re in a hurry, you can choose to ship your belongings by air freight. It typically takes about two-four business days with express shipping and five-eight days with standard shipping. Keep in mind that for large quantities, sea freight is easier.
In the table below, you’ll find the average prices for shipping a single m3 250KG container of household items. Landing anywhere in Portugal costs about the same as landing in Lisbon.
| Departing | Destination | Price |
|---|---|---|
| New York, USA | Lisbon, Portugal | $2,650.00 |
| Los Angeles, USA | Lisbon, Portugal | $3,250.00 |
Storage in Portugal requires some preparation in advance. A quick online visit to storage companies near where you’re planning to move will be enough. Most storage companies work 24 hours a day and are very helpful to expats. Keep in mind that exact pricing is hard to find online and you might need to do that via email or a phone call.
4. Moving to Portgual from US with Pets
Over 64 percent of all US households own pets. If you have pets, then rest assured that your four-legged family members are more than welcome in the eyes of Portuguese customs.
All you need for your pet is a rabies vaccination, which also means they must be older than three months. For some breeds that may be considered “dangerous”, you might need to sign a liability term and have a local vet examine them to get a special permit.
5. Vaccinations
There are no official Portuguese laws for vaccinations, though it’s always recommended to make an appointment with your local doctor before visiting anywhere new. Better safe than sorry.
6. Getting a Driver’s License
As a US citizen, you can use your driver’s license for up to six months in Portugal. Once this period expires, you need to change it to a Portuguese driver’s license. At this point, some states only want from you paperwork and translation, while others need a driving test.
American Expat Life in Portugal
Before moving, you must be wondering what it is like to live in Portugal as an expat. The Portuguese are world-renowned for their hospitable attitude towards foreigners. According to Expat-Insider, 83% of expats find moving to and settling in Portugal very easy and straightforward, compared with a worldwide average of 59%. Besides, the Portuguese culture is so welcoming that 82 percent of expats living in Portugal say that they feel largely at home.
If you’re a US citizen thinking about immigrating to Portugal with your family, you’re making the right choice. Portugal ranks ninth out of 50 destinations according to the family life index. The index takes into account the availability of child care and the level of education in the country.
Portugal boasts a competitive economy thanks to its tourism and real estate sectors, which are amongst the strongest in Europe. Over 72% of expats rate their work-life balance as very good.
How Much Money Do You Need to Live Comfortably in Portugal?
One of Portugal’s most attractive qualities is its affordability. When it comes to the exact cost of living in Portugal, you can expect to spend around €2,500- €3,000 ($2,700- $3,200) per month if you are living as a couple. The same cost can rise to $7,400 per month in the USA. If you are a single person, you can spend around €1,600-€2,000 ($1,700-$2,100) per month, whereas you need $3,500- $5,000 per month in the USA.
Of course, the cost of living in Portugal can change depending on where you live. The average monthly cost of living for a couple in Lisbon is about $2,500. In smaller cities, it’ll drop to €1,500 a month. At this point, we should also note that many American expats can easily afford the inflated prices that locals cannot.
Real Estate and Rent
Rents in Portugal are more affordable. For example, in Lisbon, you can find a one/two-bedroom apartment for around $1,750 a month, while similar properties in the US will cost around $4,150. But that’s not all, remember that in a city like Porto or even smaller cities, you can find such property for the competitive price of $750 a month.
If you’re planning to relocate to Portugal for the long term or for retirement, then it’s a great value option for you to buy real estate in Portugal. Portugal has minimal restrictions on foreigners buying property, and the government encourages non-Portuguese residents to invest in real estate through programs such as the Portuguese Golden Visa.
Food and Drink
The food and drink scene lies at the heart of Portuguese culture. The country’s long coastline provides a rich seafood cuisine. There is also an abundance of cheeses and smoked meats. A regular grocery list should run you about $300 a month.
Keep in mind that many items Americans consider luxuries, such as almond milk, olive oil, and wine, are produced locally in Portugal. You can find a tasty local bottle of wine for about $5.40.
Portuguese Cities
Compared to US cities, all Portuguese cities are small. The biggest city in Portugal is the capital, Lisbon. It’s home to only about half a million people. But don’t for a second think that you’ll give up the bustling city lifestyle in Lisbon.
However, you might want to move away from the noise and enjoy an idyllic lifestyle somewhere along the coast of the Algarve. Wherever you decide to move, you’ll find that most cities in Portugal are quite affordable. Below is a table comparing various items and services between Lisbon, and New York According to Numbeo as of April 2025:
Healthcare in Portugal
Portugal’s healthcare system is not entirely free, but unlike in the US, you won’t fall into debt paying your medical bills. The government funds healthcare generously; those under 18 and over 65 receive free healthcare.
You cannot access public healthcare as a temporary resident, except in emergency cases. Until you obtain your permanent residence, you’ll need to sign up for private health insurance. Luckily, private health insurance is affordable, costing about €360 and €1,800 per person annually.
The Job Market in Portugal For Americans
The Portuguese job market is competitive and growing, much like the country itself. Portugal, and more specifically Lisbon, has become home to many tech companies and start-ups. So if you’re a professional in the IT sector or the online business field, Portugal will welcome you with arms wide open.
For more traditional sectors, you may need some knowledge of Portuguese. However, if you’re a polyglot, then you can most likely find an excellent job in the tourism sector.
All workers are required to contribute to social security, and that is taxed at 11 percent of their income, which in return offers the following benefits:
- Unemployment Benefits
- Maternity And Paternity Benefits
- Old Age Pension
- Disease and Sickness Benefits
- Death Benefits
- Invalidity Benefits
- Work Injuries and Other Health Conditions Benefits
The Most Common Jobs in Portugal
Portugal’s economy is ever-growing, which is why the job market is always looking for professionals to join from all around the world. However, keep in mind that average Portuguese salaries may not support rent in major cities.
Here’s a table of the most in-demand professionals and their monthly average salary.
| Average Annual Salaries by Job in Portugal (2026 Updated) | |
|---|---|
| Job | Yearly Average Salary |
| Accountant | €35,000 |
| Architect | €45,700 |
| Doctor, General Practice | €85,000 |
| Help Desk Technician | €27,800 |
| Hotel Manager | €63,200 |
| Marketing Manager | €39,100 |
| Nurse | €31,400 |
| Product Manager | €47,000 |
| Receptionist | €17,000 |
| Software Engineer | €52,500 |
| Teacher | €32,700 |
| UX Designer | €30,000 |
| Web Developer | €43,700 |
Minimum Wage and Average Salary
The average salary in Portugal ranges from $1,650 – $1,850, depending on the worker’s qualifications and experience. The minimum wage is approximately $ 1,069.31 (€920) per month, but keep in mind that it is not taxed. You only start paying taxes if you earn more than €8,342.
The education system in Portugal is both excellent and affordable. The country offers free education for its residents and citizens up to the age of 18. If you live in or around Lisbon, you can easily find an international school in Portugal with a global, American, or British curriculum.
Some of the most popular ones are:
- TASIS Portugal
- United Lisbon International School
- International Preparatory School
- British School Lisbon
Annual private school fees in Portugal range from €6,000 to over €25,000, depending on the school and curriculum.
Accommodation for Americans in Portugal: Rent or Buy?
You first need to decide whether you want to rent or buy a home when you move to Portugal. Each has pros and cons.
Climate in Portugal
The warm sun and cool ocean breezes are what you have to look for when moving to Portugal from the USA. Portugal is probably on your list thanks to its Mediterranean weather.
There is rarely any snow in Portugal. Throughout the whole year, the weather is rather warm. Even the winter is usually colder than really cold. Of course, if you venture further north, you might find some slightly colder winters.
Portuguese Culture
Moving to Portugal from the US often stands out with its vibrant lifestyle. People love being together, creating a strong sense of community. They love spending time with their families and friends, whether it is an ordinary meeting or a special occasion. Thus, we can say that they will welcome you warmly when you start to live in Portugal.
Along with this rich culture, English is widely spoken in Portugal. This allows you to integrate yourself into everyday life. Of course, learning a basic level of Portuguese will make things easier for you, especially if you prefer living in rural areas.
Internet and Telecommunications
The internet and telecommunication have become inseparable parts of our lives. It gains more importance if you are considering moving to another country while your whole life is in another.
In Portugal, ANACOM regulates telecommunication services and aims to improve its digital services with improvements. Besides, Portugal ranks 21st in the worldwide internet speed test.
Here are some of the providers and their speed:
| Internet Provider | Download (Mb/s) | Upload (Mb/s) |
|---|---|---|
| Vodafone | 229,6 | 103,8 |
| MEO | 195,4 | 128,0 |
| NOS | 188,7 | 95,5 |
Learning Portuguese
Language is the key to human connection. Therefore, it matters a lot to survive in this world, especially when you are new in a country. Although there are many English speaking people in Portugal, learning Portuguese can put you in a more comfortable place and even open the doors for citizenship after ten years of residency.
To do that, you can enroll in a Portuguese language course and learn the everyday language. Similarly, you can opt for using language learning apps or watch movies or tv shows. To engage with locals or expats like you, you can even join a speaking club.
Renting a Property in Portugal
Renting property in Portugal will give you flexibility and it’ll let you adjust to the country, the neighborhoods, and life in general. You can also rely on your landlord for maintenance fees, repairs, and upgrades. Unlike the United States, landlords are responsible for paying the maintenance and condo fees of their units, not the tenants.
However, you should also be aware that in major cities like Lisbon and Porto, it is becoming harder to find a long-term rental property. Also, many people complain about poor insulation, humidity, noise, and minimal heating in rental properties. So, check it before making a final decision.
Additionally, you may encounter poor-quality housing in isolated areas and scammers who can request documents before arranging a viewing. So, make sure you have seen the house and work with a reliable real estate agent.
Buying Property in Portugal
Buying the property in Portugal can save and even earn you money in the long turn. However, you’ll be responsible to deal with all the maintenance issues, fees, and taxes related to the property.
Nevertheless, you’re allowed to take a mortgage with competitive terms when moving to Portugal.
6 Steps to Get a Mortgage in Portugal
There are two types of mortgages available in Portugal. The first one is fixed-rate mortgages, while the second is variable-rate mortgages. Fixed-rate mortgages are more stable and available for a set period. On the other hand, based on EURIBOR rates, variable-rate mortgages can change with market conditions.
- Step 1: To obtain a mortgage in Portugal as an American expat, you can start by talking to a broker or bank and filling out forms online. They will assist you through the mortgage process, telling you the likelihood of getting a mortgage and under which circumstances.
- Step 2: After a quick, careful review within two days, you will receive a quote.
- Step 3: Once you receive the quote, carefully review the mortgage terms and conditions. If it aligns with your interest and budget, you can sign a terms and conditions document.
- Step 4: You must pay the application fees. Then, they must assist you through the application process on your behalf.
- Step 5: As soon as you get approval, they will provide you with the terms and conditions.
- Step 6: On condition that you confirm, you must open a Portuguese bank account and pay the necessary fees, such as deposits. Eventually, you will have a property in Portugal.
The Portuguese Tax Number
The tax number is known as the NIF or Número de Identificação Fiscal. Obtaining this number is essential and should be at the top of your checklist when moving to Portugal.
Applying for a tax number is relatively easy if you know the steps.
- Please go to the nearest tax agency (Finanças).
There are two types of tax numbers, a non-resident and a resident one.
- If you’re applying for the former, you need proof of address of your last country of residence and a tax representative. This person must be a Portuguese citizen and will be responsible for ensuring you pay your taxes.
- If you’re applying as a Portuguese resident, then you need your proof of address in Portugal. You will need to have an ID in both cases.
Opening a Bank Account in Portugal as a US Citizen
Opening a Portuguese bank account is generally quite easy when moving to Portugal. As one of the best countries Americans move to, you need to bring these documents:
- The Portuguese tax number, NIF
- A valid ID
- Proof of address
- Proof of employment
You then need to choose one of the banks that allows Americans to open an account in Portugal. Due to the strict regulations enforced by the IRS under the Foreign Account Tax Compliance Act (FATCA), some banks will refrain from accepting US citizens as clients.
Taxes for American Expats in Portugal
Essentially, you need to pay taxes on your American earnings in America and taxes on your Portuguese earnings in Portugal. American expats living in Portugal are required to file tax returns in both the United States and Portugal. To do this, you must complete the forms below:
- Foreign Earned Income Exclusion (FEIE): If you qualify, you can exclude up to $130,000 of income earned abroad from US taxes for the 2025 tax year. That means the US may not tax that part of your income.
- Foreign Tax Credit (FTC): If you already pay taxes in Portugal, you can often use those taxes to lower or even eliminate the US taxes you owe on the same income.
- FBAR: You must report your foreign bank and financial accounts if their aggregate value exceeds $10,000 at any point during the year.
- FATCA / Form 8938: If you have foreign assets above certain limits, you may also need to file extra IRS forms.
Nevertheless, there is a double taxation agreement between the US and Portugal. This is to prevent double taxation on the same income for American dual citizens or expats. Assume you are living in Portugal and receiving social security from the USA. In the worst scenario, you will be double-taxed on the same income you make in Portugal. However, thanks to this treaty, the taxation of your social security income will be based on your residence.
Pros and Cons of Relocation to Portugal from USA
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Pros of Moving to Portugal
- You can gain many benefits such as access to social security, healthcare, and education in European standards.
- You can travel freely around the Schengen area with a Portuguese passport.
- As a permanent resident, you can also apply for family reunification and bring your family to Portugal.
- There is a balance between work and life, offering flexibility for freelancers and digital nomads. For example, you can go to the beach within a short amount of time after work in Lisbon.
- You can adapt yourself to the country’s friendly atmosphere and enjoy the sense of Portuguese community easily.
- With a 1.372 Global Peace Index in 2025, Portugal stands out as one of the top 10 safest countries in the world.
- With its historical architecture and natural beauties, there are lots of things to discover in the city.
Cons of Moving to Portugal
- You may experience culture shock and miss your family once you start to reside there.
- Even though many people know how to speak in English, you may need to learn Portuguese to join the everyday life, especially in rural areas.
- As one of the tourist centers, the city’s population can be overwhelming from season to season.
- Dealing with Portuguese bureaucracy can be frustrating as the processes can take longer than expected.
- Traveling to rural areas can be hard, especially if you do not have a car as there is a lack of transportation.
- Xenophobia is mild but present specifically towards newcomers.
- Rent and property prices have risen 60-100% in recent years.
- It can be hard to find accommodation, especially in Lisbon and Porto. Landlords often demand 2 months’ rent + 2 months’ deposit, and a “fiador” (a Portuguese guarantor who’s legally responsible if you can’t pay). Without a fiador, many landlords ask for 6-12 months of rent upfront.
- Apartments are often of poor quality, usually cold in winter, have no insulation, are noisy, and are not like the photos online.
- Local salaries are very low compared to other European countries. So, unless you work remotely or have savings, it is hard to live well on a local income.
Before making your move to Portugal from the US, you should first visit, learn even basic Portuguese, and explore smaller cities.
Where to Live in Portugal as an American: 6 Best Cities
1. Lisbon
Lisbon is a cosmopolitan city with a vibrant culture that is ideal to live and retire in Portugal from the US. The hustle of a huge metropolis combined with a lovely historic center and proximity to gorgeous beaches makes Portugal’s capital city a great choice for retirees seeking the best of both worlds. Many individuals in Lisbon know English which makes it a favorable city for American retirees.
2. Porto
Porto, Portugal’s second city, is frequently disregarded by expats relocating to Portugal because of its northern position, but this magnificent city on the banks of the Douro should not be overlooked. Porto is a very safe city. It is also less expensive than Lisbon, making Portugal retirement for US citizens affordable.
3. Braga
Braga is one of Portugal’s oldest cities and a wonderful alternative to Porto and Lisbon for Americans retiring in Portugal from the USA. It is known for its vibrant nightlife as well as its rich history since the city is home to one of Portugal’s oldest cathedrals. It is in a great location, only 30 minutes from the beach, 15 minutes from the mountains, and 40 minutes from Spain.
4. Madeira
Madeira isn’t the first place that comes to mind when Americans dream of retiring in Portugal from the USA. Funchal, the island’s largest city, is on the rise and offers a magnificent location with mild weather all year. The island is not swamped with tourists and is less crowded than mainland Portugal.
5. Coimbra
Another Portuguese city for everyone thinking of moving to Portugal is Coimbra. Once was the capital of Portugal, it is a laid-back city with a low cost of living. It is home to Portugal’s oldest university, providing the city with a vibrant atmosphere.
Coimbra is a safe city with loads of interesting architecture and culture to see, making it a good location to retire in Portugal from the USAfrom USA. Also, it is a city that is well connected by train to other parts of the country.
6. Portimão
Sunny Portimao is a popular destination to retire to Portugal from the USAfrom USA, with a laid-back vibe and plenty of trendy beach cafés and spots to soak in the ambiance in the ancient town center.
It is crucial to remember that transportation in the Algarve is often poorer than in the rest of Portugal, and you may need to rent a car. Still, Portimao is well connected to other major locations such as Lagos and Faro.
Frequently Asked Questions on How To Move to Portugal
Is Portugal a safe country?
Yes, it is. Portugal remains one of the safest countries in the world. It is always in the Top 10 list of Annual Global Peace Index released by the Institute for Economics and Peace.
Is it safe to drive in Portugal?
Commonly it’s safe to drive anywhere in Europe. Portugal nationals do have a reputation for going slightly faster than other countries. The road system has seen a drastic improvement in recent years, especially with some incredibly safe motorways. Lisbon is the only city with relatively dense traffic, while most other cities in the country offer a smooth ride.
How long can a US citizen live in Portugal?
US citizens may enter Portugal for up to 90 days for business or for tourism without the need for a Portuguese visa. If you would like to move to Portugal and spend more than three months there, then you’ll need to get an appropriate visa or a residence permit.
How many American expats live in Portugal?
Data shows that the number of registered American expats in Portugal is roughly 6,600. It looks like the number will be growing in the coming years with more and more people looking for a way to work remotely.
Do you have to pay taxes in the US even if you live in another country?
Yes, you need to pay taxes in the US as a tax resident. However, the US and Portugal have tax treaties that prevent double taxation.
Is it possible to move to Portugal without a job?
Yes, it is possible to move by having a residence permit through options such as D7 and Golden Visa. For a Golden Visa, you need to make a qualifying investment while D7 requires passive income.
