Whenever someone finds out that I live in Portugal, they always ask me about the number of Americans living here. The news and magazines make it seem like Americans are moving to Portugal in unprecedented numbers.
Debunking the Hype
The most commonly talked about program for moving to Portugal is called the Golden Visa. It’s been eleven years since Portugal’s golden visa launched, and in that time 713 Americans have been granted the visa.
The number of people granted a Portuguese visa is likely substantially different than the actual number of people who actually follow through with moving and staying long term. So, would I say that Americans are moving to Portugal in droves? No.
Warnings for the US Expat Moving to Portugal
Beware of the Tax Situation- Although Portugal offers favorable tax schemes like the NHR regime, it’s crucial to understand your tax responsibilities both in Portugal and the U.S. Most Americans are shocked to learn that they still must file and pay taxes in the United States while living abroad.
Language Barriers- While many people in cities speak English, rural areas might be different. Learning some Portuguese can help you integrate and ease daily interactions.
Healthcare and Bureaucracy- Portugal has a good healthcare system, but navigating it may be challenging at first. Finding the right documentation and understanding procedures can be slow, requiring patience.
Job Market Realities- If you’re planning to work in Portugal, be aware that the job market can be competitive. Salaries are substantially lower compared to the U.S., and high-value jobs are limited.
Cultural Differences- Life in Portugal is slower-paced, which some may find frustrating. Social norms and customs can differ, so adaptability is key for Americans moving to Portugal.
Weather Variances- Although Portugal is sunny, it has diverse climates. Winters can be rainy in the north, which might surprise you if you’re expecting year-round sunshine.
Staying informed can help you have a smoother transition and enjoy your new adventure in Portugal.
Our Story of Moving to Portugal
I chose Portugal because of its lower cost of living and faster path to obtaining a European Union passport. We qualified for the D7 visa, often called the retirement visa.
I know you’re wondering how a 38-year-old mom of two qualifies as retired. The truth is, I’m not retired. Rental income is considered passive income, which satisfies the visa’s income requirements.
The primary applicant must demonstrate income equivalent to at least the Portuguese minimum wage, while a spouse must show 50% of that amount, and each child requires 30%. For a family of four, this means proving a total annual income of €20,644 from passive income.
You must apply for the D7 visa while outside Portugal, either through an embassy or a VFS Global office. Since we were living in Japan at the time, we applied through the Portuguese embassy in Tokyo. Here’s a helpful tip for anyone in a similar situation: the Japanese embassy required our Japanese visa to extend beyond the validity date of the D7 visa being granted.
A D7 visa is valid for four months. I wanted to use the final month of our Japanese visa to complete the process. But, Japan required me to extend my visa for an additional year. If my Portuguese residence application was denied at my AMIA appointment in Portugal, they said I would be deported back to Japan.
What the embassy didn’t account for was that once you notify Japan of your intention to leave, they punch a hole in your residency card, effectively canceling the remainder of your visa. Before departing Japan, I had to terminate my health insurance, close my bank account, and inform my ward office that I would no longer be a resident. Extending my Japanese visa was unnecessary—but bureaucracy doesn’t care about practicality.
What We Love About Portugal
Pros of the Move:
- Lower living costs: Many everyday expenses, like groceries and entertainment, are cheaper than in the US.
- Healthcare savings: Private health insurance in Portugal is a fraction of what it costs in America.
- Chill vibe: There is an air of a relaxed approach to live which is a stark contrast to the constant stress culture in the United States.
Challenges to Consider:
Expectations about your rights are very different. I see a lot of moms moving here with neurodiverse kids or children who only speak English, and they expect Portuguese schools to accommodate them. Support specialists and IEP’s are not a matter of standard practice and certainly aren’t provided free of charge.
The Portuguese love their seafood. Ask anybody where the best places to eat are and they will rattle off a dozen seafood restaurants. Grocery stores have a heavy smell of fish also.
As with any foreign country there is a different world of services available to expats versus locals. Only the more expensive home rentals and western standard beauty salons will fit your requirements and you’ll be paying a premium for them.
Why Portugal? What’s Drawing Americans?
Portugal has become a hot spot for American expats. Many people are attracted by the mild climate that boasts over 300 days of sunshine a year. The beautiful beaches and landscapes offer a perfect environment to relax and enjoy life.
One reason people are moving here is the affordable cost of living. Compared to the United States, you might find that your money goes further. This factor appeals to digital nomads and remote workersseeking a laid-back lifestyle while working abroad.
You might consider moving for its vibrant culture and warm weather. Renting a home is usually affordable, with prices like €1,207 for a one-bedroom in Lisbon’s city center. If you prefer quieter areas, apartments outside the city are less expensive.
Portugal is known for its high quality of life. It ranks highly on the Global Peace Index, making it one of the safest countries to live in. Its rich history and vibrant culture add to its charm, providing plenty to explore and experience.
Recent years have also seen favorable moves by the Portuguese government. They offer various visa options and tax incentives. These benefits make it easier for foreign residents to settle in.
You will discover that Portugal is a great place to connect with other US expats. The growing community of new residents creates an inviting atmosphere. All these elements combine to make Portugal a popular destination for those looking to embrace a new lifestyle overseas.
Visa Options for Americans Moving to Portugal
When considering a move to Portugal, exploring your visa options is the first step. Various visas are uniquely designed to suit different lifestyles and goals. If you aim to invest, work, or retire, there are both simple and flexible options available.
Portugal Golden Visa Program: This is an investment program enabling you to gain a Portuguese residence permit through financial investment. It requires a minimum investment of €250,000 and offers free movement within the Schengen Area. It’s suitable for those looking to make a significant financial commitment and attain permanent residency.
D7 Visa: Known as the passive income visa, this is ideal for retirees or individuals with passive income sources. It is perfect if you want to settle in Portugal without working, relying on income streams like pensions. This visa is particularly popular among American citizens living off pensions or rental income.
D2 Visa: The D2 is tailored for entrepreneurs. If you’re looking to start a business in Portugal, this work visa helps you get a Portuguese residency by establishing a viable business plan. It encourages innovation and business growth in the country.
Digital Nomad Visa: This is commonly referred to as the E-visa for remote workers. For US citizens who work remotely, the digital nomad visa is a great match. It allows you to live in Portugal while working for an employer outside the country. This recent introduction is a way to attract remote workers and digital nomad entrepreneurs.
Each visa brings you one step closer to achieving Portuguese citizenship or at least dual citizenship. Picking the right visa for your is the most easiest step towards making Portugal your new home. After deciding on your visa type the next steps are what make moving to a foreign country so difficult, dealing with the bureaucracy.
Logistics of Moving to Portugal
When moving to Portugal, there are several important steps to consider. First, you’ll need to secure a residence visa. Options like the Golden Visa or D7 Visa are popular. Planning ahead can help streamline the process.
Finding a new home is crucial. Decide whether to buy or rent. In major cities, a one-bedroom apartment might cost around €1,000 per month. Real estate varies based on location, so explore your options.
Set up a Portuguese bank account early. This account is necessary for paying bills and managing finances. It’s also essential when renting or buying property.
Before the move, you should acquire a Portuguese tax number. This number is required for legal transactions, such as opening a bank account or signing a lease.
Transporting household goods can be easier with professional moving services. They handle international shipping, ensuring your belongings arrive safely.
If you’re planning on living off rental income, you can manage properties in the U.S. or invest in Portuguese real estate for additional earnings.
Organizing your move will also involve family. Have plans ready for your family members, including schooling if necessary.
Consider your budget and lifestyle needs before relocating. Living costs can vary, so budgeting is key. As Americans moving to Portugal, a monthly budget can help you adjust smoothly. Planning these logistics early can make the transition easier and enjoyable.
Day-to-Day Life in Portugal
Life in Portugal offers a blend of modernity and tradition. If you are one of the Americans moving to Portugal, you’ll find a rich cultural heritage alongside the conveniences of contemporary life. Public transport is efficient and covers major cities, making it easy to get around. The metropolitan area is quite spread out, so accessing further regions may require an Uber ride. Luckily, coming from America you will find Uber very low cost.
Local markets are an integral part of life. You can purchase fresh produce, including Portugal’s famous olive oil. This gives you the chance to cook with local ingredients and experience the authentic flavors of the region. Getting pastel de nata can become a daily occurrence.
For families, international and public schools are available. Public schools offer education in Portuguese, while international schools provide English-language instruction. You’ll have to weigh the pros and cons of each option not just for your present situation but fast forward to your child’s future prospects under each system. Our children have been thriving in the international school environment which teaches Portuguese as an individual class but instructs the core classes in English.
In terms of healthcare, you might need private health insurance, especially in the interim while you wait to be covered by the national system. Portugal offers good medical care with reasonable insurance costs, ensuring peace of mind for expatriates who are used to paying outrageous prices back home.
The city center in larger cities like the Portuguese capital, Lisbon offers a vibrant lifestyle. You will find various cultural activities, dining options, and entertainment. Many retirees prefer the tranquility of southern Portugal, there’s something for everyone seeking to settle long term.
Challenges to Living in Portugal
Before deciding to move, think about the language barrier. While many Portuguese people speak English, learning Portuguese will help you in daily life and integrate better.
Cost of Living: Adjusting to the cost differences can be challenging. Some goods and services may be cheaper, but housing in popular areas like Lisbon can be expensive, especially for foreigners. You have to factor in one-time costs such as shipping in or buying new household items, purchasing a vehicle, rental deposits, and school entry fees. While the month to month expenses may feel manageable, those beginning costs can add up.
Finanças: Navigating the Tax System is another hurdle. The Portuguese tax system operates on a progressive scale. If you become a Non-Habitual Resident (NHR), there are tax benefits. Yet, understanding both U.S. taxes and Portuguese taxes can be complex.
Immigration Rules: As non-EU citizens, you’ll need to navigate Portuguese immigration laws and the Schengen Area regulations. Securing the right visa can be tricky and time-consuming.
Job Market: Finding a suitable job might require patience. The average salary in Portugal might be lower than in the United States, so it’s wise to plan your finances carefully.
Cultural Adjustments are part of any move. Adapting to a new culture, different customs, and slower bureaucracy might challenge your expectations and patience.
Living in Portugal is generally safe, with low crime rates, particularly when compared to other Western European countries. Nonetheless, staying informed about your local area is always a smart move.
For foreign investors, understanding policies related to foreign investment and capital gains is crucial, especially if you’re planning to purchase property.
Is Moving to Portugal Right for You?
Thinking about relocating to Portugal? You’ll find scenic landscapes and rich history that attract many, but it’s important to consider if it fits your lifestyle.
Safety: Portugal ranks as one of the safest countries globally. This can offer peace of mind and a comfortable environment for families.
Lifestyle: Do you enjoy a slower pace of life with a strong emphasis on community and tradition? Portuguese culture values family time, leisurely meals, and a laid-back approach to daily life.
Cost of Living: Many Americans find Portugal more affordable than the US, especially in terms of housing and healthcare. Yet, prices can vary based on location, so consider your budget.
Work Opportunities: If employment is a priority, research the job market. While opportunities exist, especially in tech and tourism, some fields may have limited positions.
Language: Portuguese is the main language, but many young people and urban residents speak English. Learning basic Portuguese could enhance your experience.
Personal Preferences: Reflect on what matters most to you. Is it climate, cost, community, or career? Weigh these factors alongside your personal goals.
Visa Options: Consider which visa fits your situation. Options like the D7 or the Golden Visa offer routes for residency. Understanding these can help plan your move effectively.
Deciding to become part of the community in Portugal involves balancing your dreams with practical realities. Whether it matches your lifestyle and aspirations is the key question only you can answer.
Our Take as an Expat Family
People who haven’t lived abroad often create rigid criteria for what a place must have to consider moving there. At the same time, they insist certain issues cannot exist in their new home. Ironically, the place they currently live often fails to meet these criteria, yet it remains their default.
I’ve been happy living in a developing country, an Eastern country, and now a European country. For me, the only non-negotiable is living somewhere with less gun violence than the United States.
Sure, I prefer a warm climate and a low cost of living, but more than anything, I want my kids to be safe. The mental gymnastics parents go through to justify staying in America, despite its challenges, puzzles me.
Can my kids get their favorite cereal at the grocery store here? No. But will they face the risk of being shot at school, in a mall, or at a concert? Also no.
For American expats, Portugal is as good a choice as any.
Moving to Portugal as an American
If you’re thinking about making the move to Portugal, you’re definitely not alone. Many Americans are finding new opportunities and a wonderful lifestyle there. With its sunny weather, Portugal offers a warm and inviting environment.
The charm of Portuguese culture and the chance to enjoy a relaxed pace of life make it appealing.
You might find it exciting to experience different foods, festivals, and community events. Americans moving to Portugal are discovering that it’s not just a place to visit, but a place that feels like home.
With friendly locals and a rich cultural backdrop, Portugal invites you to be part of its vibrant scene. Whether it’s retirement or a new adventure, the possibilities are endless and rewarding.
Portugal could be the perfect place for the next chapter in your life.
