Living In Portugal as an American: The Expert Guide for Expats

Living in Portugal as an American is an exciting change of scenery, offering expats the opportunity to explore the country's beautiful landscapes, seamlessly integrate into the unique Portuguese culture, and enjoy the significantly lower cost of living and high quality of life.

In recent years, scores of Americans have seized the opportunity to call this southwestern European country home, and with good reason.

In this article, we'll discuss:

- Why Americans are moving to Portugal
- How to move to Portugal from America
- Portugal Visa types for Americans
- Which Portuguese areas do they opt for
- The cost of living in Portugal

Why are so many Americans moving to Portugal?

Many American expats are moving to Portugal from the USA for several compelling reasons, including a high quality of life, an affordable cost of living, and a welcoming culture. The country has been a popular tourist destination for years, but there’s now a significant rise in long-term immigration, particularly among retirees, foreign investors, students, and digital nomads.

In the following section, we'll delve deeper into these factors and explore why Portugal is becoming an increasingly attractive destination for Americans seeking a new home.

The Benefits of Living in Portugal as an American

Living in Portugal offers a range of advantages for American expats, including:

1. The affordable cost of living

Portugal is considerably more affordable than cities like New York and San Francisco. Rental prices, daily essentials, public transportation, and dining cost significantly less than in the US and other Western European countries. This allows expats to cover their essential bases and afford leisurely items and experiences without breaking the bank.

2. A higher quality of life

Despite its more affordable cost of living, Portugal offers its residents and visitors a high quality of life. The country's slower pace and laid-back approach allow for great work-life balance. American expats appreciate this, as the US is considerably more fast-paced and demanding than Portugal.

3. Safety

In addition to its breathtaking landscapes, pleasant climate, and strategic location in Western Europe, Portugal ranks seventh globally in the 2023 Global Peace Index. This high ranking reflects its safety and stability, making it an attractive destination for migration, tourism, and investment. Portugal is a safe country and presents a welcoming environment that stands out compared to other countries, especially for Americans living abroad.

4. Visa-free access to the Schengen Area

Living in Portugal as an American allows you to explore the European Union and navigate the Schengen Area without producing additional visas and travel permits. This added advantage is a highlight that makes holding Portuguese residency worth the move.

5. The stable investment environment

Portugal continues to cement itself as a leading business hub in Europe, with the start-up scene showing great potential. This is highlighted by the annual Web Summit hosted in Lisbon, which brings business leaders and innovators to Portugal's shores. Foreign investors looking to extend their existing businesses or start new ventures and retirees looking to invest in and buy real estate will benefit greatly.

6. High-quality healthcare

The highly ranked Portuguese healthcare system gives residents and expatriates access to high-quality medical care without the financial burden often associated with receiving medical attention in America. While Americans may be required to have private healthcare insurance, when moving to Portugal, they can benefit from Portugal's national health services.

6. Internationally-ranked education system

American expats with school-going children will be glad to know that moving to Portugal doesn't mean compromising the quality of education their children receive. Portugal was ranked 24th in the 2023 Best Countries for Education rankings by U.S. News, and families are spoilt for choice regarding international schools, vocational academies, and tertiary education institutes.

7. Beautiful weather and scenery

Portugal is known for its lovely weather and stunning landscapes. With mild winters and sunny summers, it's perfect for year-round visits. Expats can enjoy beautiful beaches along the Algarve, explore historic towns like Sintra, and taste the world-renowned wines of the Douro Valley. The combination of natural beauty and rich culture makes Portugal a captivating destination.

8. Rich cultural heritage

Portugal has a rich cultural heritage featuring beautiful architecture, lively Fado music, and delicious cuisine. Its long history of exploration and discovery is reflected in its art and literature, adding depth to the country’s unique identity. This vibrant culture and warm and welcoming Portuguese people appeal to American expats seeking a welcoming community and plenty of opportunities to learn about local traditions.

How To Move To Portugal From the US

Thanks to the visa waiver bilateral agreement between the US and some European states, including Portugal, US citizens can explore the Schengen area visa-free for 90 days. However, Americans looking to stay longer or remain in Portugal permanently must apply for a Portuguese residence permit.

Depending on their immigration purposes and eligibility, American expats can choose from various temporary residence pathways, such as the Portugal Golden Visa, Portugal D2, D7, and D8 Visa.

These temporary residence visas have varying eligibility criteria, requirements, immigration procedures, timelines and renewal processes.

1. Apply for the correct visa

As highlighted, American expats moving to Portugal must assess their eligibility, gather the required documents and apply for a Portugal visa that aligns with their immigration purposes.

2. Get a NIF (Portuguese tax identification number)

One of the first steps you'll need to take before your move is getting a Portugal NIF number (Número de Identificação Fiscal). This number is essential for various financial and legal activities, such as opening a bank account, signing a lease, or engaging in business transactions.

You can apply for your NIF at a local tax office in Portugal or conveniently obtain it through our website. Your NIF is crucial for establishing your presence in the country and ensuring you can manage your finances and legal obligations smoothly.

Contact us to find out how our team of experts can help you get your NIF online from the comfort of your home in America. 

3. Open a Portuguese bank account

Opening a Portuguese bank account simplifies managing your finances and paying bills while living in the country. You can save money by avoiding the hefty fees associated with international transactions and transfers with a local account.

Additionally, many shops in Lisbon, especially in smaller towns, only accept payments made with a Portuguese bank card or cash. Having a local bank account means you’ll have easier access to your money and avoid hassle when making everyday purchases. It’s a practical step for Americans moving to Portugal to ensure smooth financial transactions.

4. Find accommodation

Use credible online property portals or ask friends or family in Portugal to secure accommodation. You have various housing options, from family homes to apartments.

5. Look into transportation for your goods

Find reputable logistics service providers that offer cross-border goods transportation.

Portugal Visa Types for Americans

Portugal Golden Visa Program

The Portugal Golden Visa Program is one of non-EU citizens' most attractive residency options, particularly for American expats interested in investment opportunities. Launched by the Portuguese government in 2012, this program allows individuals to obtain residency in Portugal through significant financial investments, starting from €250,000, making it a popular choice for those looking to relocate.

The Golden Visa grants residency to the investor and their immediate family members, allowing for a smoother transition to life in Portugal.

Key features

• Investment Options: The program offers various investment pathways, including cultural donations, scientific research, job creation, and business investments. While direct real estate purchases are no longer eligible, American applicants can explore and contribute to these qualified investment fund options.
• Residency Benefits: Holders can live and work in Portugal, travel visa-free within the Schengen Area, and access a high standard of living. The Golden Visa also allows for minimal physical presence in the country, making it flexible for those who may need to split their time between multiple locations.
• Pathway to Portugal Citizenship: After five years of residency, participants can apply for permanent residency and, eventually, Portuguese citizenship and hold a Portuguese passport, subject to acceptable fluency in the Portuguese language and integration into Portuguese society.

Portugal D7 Visa

The Portugal D7 Visa, also known as the Portugal Retirement Visa, is a popular option for non-EU nationals, especially retirees and individuals with passive income sources. This visa allows applicants to relocate to Portugal based on their ability to support themselves financially without engaging in active business operations.

Key features

• Eligibility criteria: Applicants must demonstrate a steady income that meets or exceeds the €820 Portuguese minimum wage, sourced from pensions, rental income, or investments. This makes the Portugal D7 Visa particularly suitable for Americans retiring or those with a stable financial portfolio.
• Residency and work rights: Holders can live and work in Portugal. However, the passive income requirements must be maintained despite the applicant's decision to engage in active employment. Family members can also be included in the application and enjoy benefits similar to those of the primary applicant.
• Long-term residency: After obtaining a temporary residence permit, you can apply for a two-year residence permit, which can be renewed for three additional years. After five years, you may qualify for permanent residency and Portuguese citizenship.

Portugal D2 Visa

The Portugal D2 Visa is specifically designed for entrepreneurs and business owners looking to establish or invest in a business in Portugal. This Portuguese visa allows American citizens to pursue their entrepreneurial ambitions while enjoying the benefits of residing in an EU country.

Key features

• Business opportunities: The D2 Visa allows you to start a new business, invest in existing companies, or engage in various entrepreneurial activities. Applicants must present a solid business plan demonstrating how their venture will contribute to the Portuguese economy.
• Family reunification: This visa promotes family unity, allowing family members to join the primary applicant in Portugal. This feature particularly appeals to those looking to settle down with loved ones.
• Residency benefits: Holders can live and work in Portugal, enjoy visa-free travel within the Schengen Area, and access the local healthcare and education systems. After meeting residency requirements, you can apply for permanent residency and citizenship.

Portugal D8 Visa

The Portugal D8 Visa, also known as the Portugal Digital Nomad Visa, caters to remote workers and digital nomads seeking to live and work in Portugal while maintaining employment with non-Portuguese companies. This visa is ideal for those with a stable income source - who want to experience the Portuguese lifestyle.

Key features

• Remote work eligibility: The D8 Visa allows individuals to work remotely from Portugal while supporting themselves financially. Applicants must show that they earn at least four times the €820 national minimum wage.
• Family inclusion: Like other visas, the D8 Visa permits family members to join the primary applicant, allowing them visa-free travel to other Schengen countries, integration into the Portuguese culture, and overall high quality of life.
• Pathway to residency: After securing the temporary D8 Visa, holders can apply for permanent residency and citizenship after five years. This option allows remote workers to enjoy the benefits of living in Portugal without sacrificing their professional commitments.

Note about the general Portugal Visa application process: American expats must submit their forms to the local Portuguese consulate for all visa applications. Each visa type has specific requirements, but standard documentation includes:

• Two passport-sized photographs
• A valid passport and copies of previous visas
• Travel insurance covering the Schengen Area
• Proof of accommodation plans in Portugal
• Evidence of sufficient funds for your stay

Becoming a Permanent Resident in Portugal as an American

If you’ve held a temporary residency in Portugal and renewed it for five years, you can apply for permanent residency and/or Portuguese citizenship by naturalization.

Steps for permanent residency

To secure permanent residency, you’ll need to pay a fee of approximately $240 and submit the following documents to the AIMA (Agency for Integration, Migration and Asylum):

• A valid passport
• A completed application form
• Two recent identical color photos
• Your valid temporary residence permit
• Proof of sufficient financial means
• Evidence of suitable accommodation
• AIMA's authorization to check your criminal record in Portugal
• Proof of basic Portuguese language knowledge, which can be demonstrated through:
  • A certificate from an accredited institution
  • Completion of language studies at a recognized school
  • A certificate recognized by the Ministry of Education and Science

Citizenship Routes for Americans

Apart from applying for a visa, US citizens can move to Portugal legally if they obtain a Portuguese passport through one of the following routes:

1. Citizenship by descent: If you have Portuguese ancestors (e.g., grandparents), you may qualify for citizenship by proving your lineage with the necessary documentation.
2. Citizenship through marriage: If you’re married to a Portuguese citizen, you can apply for citizenship after three years, with no minimum residency requirement. You’ll need proof of your relationship, such as a marriage certificate.
3. Citizenship by naturalization: After living in Portugal for five years on a valid visa (like the D7, D8, or Golden Visa), you can apply for a permanent residency permit and/or Portuguese citizenship. After becoming a Portuguese citizen, you can request a Portuguese passport, granting you the right to live, work, and study in any EU country. As a Portuguese citizen, you will also enjoy the benefits of European citizenship.

Please note that Portugal allows dual citizenship, meaning you can hold onto your US passport while becoming a Portuguese citizen.

Navigating the citizenship application process can be complex, so partnering with experts like Global Citizen Solutions can help ensure a smoother experience.

Moving to Portugal opens up a world of opportunities, and understanding the residency and citizenship pathways can make your transition smoother for American citizens looking to become Portuguese residents.

The Cost of Living in Portugal

One of the biggest attractions for American expats moving to Portugal is the low cost of living compared to other European countries. While major cities like Lisbon can have higher prices, smaller towns and villages offer very affordable living options. Here’s a closer look at the costs you can expect in Portugal:

Rental and property prices

As the capital city, Lisbon is a popular choice for expats. Rental prices in the city center can be steep, but more budget-friendly options are available in the surrounding areas. According to Numbeo's latest statistics, there’s an average difference of over 100 percent between rent in Portugal and the United States. The average rental in Portugal is €15 - €18 per square meter, and American expats can expect to pay an average rent of €900 - €1,800 per month for a one-bedroom apartment and between €1,400 and €3,500 per month on average for a three-bedroom apartment - making the country a more economical choice for many.

Daily essentials and dining Out

Food and drink in Portugal are generally quite affordable, allowing you to enjoy meals at a fraction of the cost compared to major American cities. For instance, a three-course meal for two in a mid-range restaurant averages around €40 in Porto, while it would typically cost about €80 in Washington, DC. This significant price difference makes dining out a delightful experience without breaking the bank.

Transportation

Public transportation in Portugal is both widely available and economical. Renting a car is also reasonably priced if you want to explore more remote areas. A monthly pass for public transport costs around €40 in Portugal, compared to about €66 in the US. Additionally, taxi fares are over 89 percent more expensive in the States, further emphasizing the cost advantages of living in Portugal.

Finding a Job as an American Citizen Living in Portugal

The job search for Americans living in Portugal can be exciting, especially with the recovering job market and growing foreign investment. Major cities like Lisbon and Porto are particularly promising, offering a variety of job openings in sectors such as:

• Technology
• Tourism
• Healthcare
• Engineering

As the unemployment rate continues to fall, the demand for English speakers remains strong, especially within international companies. Many businesses highly value English proficiency, which can lead to roles in:

• IT
• Marketing
• Customer service

Lisbon, in particular, has emerged as a hub for tech startups and innovation, attracting talent worldwide.

A visa or residence permit is usually required for Americans looking to work in Portugal unless you hold Portuguese citizenship. Some popular options include:

• Highly Qualified Activity Visa (HQA)
• Digital Nomad Visa

With a welcoming culture and vibrant job market, finding work in Portugal can lead to a fulfilling career and a wonderful life abroad.

Taxes for American Expats Living in Portugal

As an American living in Portugal, you must file taxes with the local financial authority, Finanças. While this might sound daunting, programs are available to help you manage your tax obligations.

Tax Representation

Non-EU, EEA, or Switzerland citizens must have a fiscal representative who resides in Portugal to help navigate the tax system.

Your representative will assist you in obtaining an NIF and serve as your point of contact with Finanças. It’s wise to hire a knowledgeable lawyer or accountant, as they will understand the specifics of Portuguese tax law. At GetNifPortugal, we can help you find a reliable fiscal representative.

Non-Habitual Residence (NHR) Scheme

The Non-Habitual Residence (NHR) scheme was introduced in 2019, offering tax exemptions on certain types of income for expats, such as rental and investment income. However, significant changes came into effect in January 2024, leading to stricter eligibility criteria.

• For those who became tax residents before December 31, 2023: You can still enjoy the scheme's benefits, including a ten-year tax exemption.
• For new applicants: Only those meeting the updated Tax Incentive for Scientific Research and Innovation requirements can qualify for the current regime, often called NHR 2.0.

Where do Americans Live in Portugal?

Portugal is a small country but offers many living options for American expats. Here are some of the most popular Portuguese cities where Americans live in Portugal:

Lisbon 

Lisbon is Portugal's capital city and is one of the most popular destinations for American expats. This vibrant and cosmopolitan city center offers a unique blend of traditional and modern architecture, a rich cultural scene, and a thriving economy. 

As one of the big cities in Portugal, Lisbon offers modern co-working spaces, gigs, festivals, internationally renowned art galleries such as the MAAT, and easy access to beaches such as Carcavelos. Humberto Delgado Airport also offers direct flights to US airports such as Newark, Boston Airport, Chicago, Miami, and San Francisco. 

Compared to other Portuguese cities, the city has a large expat community, with plenty of opportunities to meet other Americans. Many neighborhoods offer affordable housing. Keep in mind that Lisbon, however, is more expensive than other parts of the country.

Cascais 

Cascais is a beautiful coastal town just outside of Lisbon, and the Silver Coast, known for its picturesque villages, seafood, and stunning beaches. 

Cascais is just a forty-minute drive or train ride from the capital, making it an ideal destination for those who want to escape the hustle and bustle of city life while having easy access to all Lisbon offers.

Porto 

Porto is Portugal's second-largest city and one of the most vibrant cities in Europe. It's known for its historic city centre, Port wine, and stunning bridges. Porto is smaller and tends to be cheaper than Lisbon, but it still offers a city feel. 

As one of Portugal's oldest cities, Porto has a growing community of expats, including many American retirees. While Porto traditionally attracted expats looking to retire there, its startup scene has successfully attracted a younger expat population.

The Algarve region

The Algarve region in southern Portugal is home to some of the country's most popular tourist attractions. It is known for its beautiful beaches, warm climate, and stunning golf courses.

It's a popular destination for retirees, families, surfers, and other water sports and beach enthusiasts. There are several American expat communities throughout the region.

Ways To Find Accommodation in Portugal

One of the first tasks American expats face when moving to Portugal is finding a place to live. You’ll need to decide whether to rent or buy, each offering unique benefits.

Renting in Portugal

Renting is a great option for newcomers who want flexibility. You can choose from various accommodations, including cozy studios, one-bedroom (T1), two-bedroom (T2), and even larger homes. Rental prices are generally lower than in many parts of the U.S., especially in smaller towns compared to bigger cities like Lisbon, where prices can be higher.

Remember that most rental apartments may not have central heating, so preparing for cooler months is wise. Renting allows you to explore different neighborhoods, helping you find the perfect area before committing to property ownership.

Buying Property in Portugal

Buying property can be a smart long-term investment if you're considering a permanent move. Owning a home provides stability and the potential for financial growth. Prices vary widely based on location, with urban areas typically being more expensive than rural settings.

Many American expats appreciate the convenience of living in cities like Lisbon, where public transport is readily available, and many locals speak English, making it easier to settle in.

Finding professional assistance

Whether you decide to rent or buy, seeking professional guidance is essential. A knowledgeable real estate agent can be invaluable, especially if you’re unfamiliar with local regulations or don’t speak Portuguese. They can assist with legal matters, help you navigate the rental or buying process, and ensure you find a property that meets your needs.

Acquiring a Mortgage in Portugal

If you plan to buy a home in Portugal, understanding how to secure a mortgage as a non EU citizen is crucial. Here’s a simple guide to help American expats navigate the process and make your dream of living in this beautiful country a reality.

Pre-application

Start by contacting a mortgage broker or filling out an online inquiry form. They can help you understand whether you will likely get approved for a mortgage and under what conditions. If all goes well, you’ll receive a quote within a day or two.

Terms and conditions

Once you receive a quote that fits your budget, your broker will ask you to sign a terms and conditions document and pay a fee of around €495. Don’t worry too much if your mortgage is declined; this fee is usually refunded.

Mortgage application

Your broker will assist you with the mortgage application and submit it on your behalf. They'll also guide you on any necessary documents, such as financial statements, that you must provide.

Approval and deposit

Once your mortgage is approved, you'll be one step closer to your new home in Portugal! Your broker will review the terms again and ask if you want to proceed. If you say yes, you must open a Portuguese bank account and deposit enough funds to cover the valuation fee.

To Cut a Long Story Short

In conclusion, Portugal offers an attractive destination for Americans seeking to live abroad. It offers retirees and investors a relaxed, laid-back lifestyle and tax benefits.

As an EU member state, Portugal allows American citizens to apply for permanent residence and, eventually, dual citizenship.

Moreover, the country's warm climate, affordable living costs, and diverse cultural offerings make it a popular destination for Americans who want to explore new cultures and enjoy a higher quality of life.

With Portugal's welcoming attitude towards expats, rich history, and vibrant Portuguese culture, it is no wonder why more and more Americans are choosing to make Portugal their new home.