Portugal is a country that has recently become popular among Americans expats and retirees as a destination for living, working, and enjoying a comfortable lifestyle. The country boasts a warm Mediterranean climate, beautiful beaches, and a high quality of life.
However, there are some challenges that Americans face when they move from the US to Portugal, such as the language barrier, bureaucracy, and limited job opportunities.
Why Americans are moving to Portugal
Climate in Portugal
Safety
Portugal is ranked among the world’s safest countries, consistently placing in the top 10 of the Global Peace Index due to its low crime rates, political stability, and effective public institutions. This safe environment appeals to families, retirees, and solo travelers, allowing them to feel secure whether exploring cities like Lisbon and Porto or enjoying rural and coastal areas.
The country’s low violent crime levels and absence of political unrest provide peace of mind for residents and visitors. Numbeo’s 2024 Crime Index gives Portugal a strong safety score of 68.8%. Additionally, TimeOut recently ranked Portugal as the safest destination for solo female travelers, highlighting its welcoming and secure environment. The strong sense of community and friendly locals further enhance this sense of safety, ensuring expats feel comfortable and supported throughout the country.
Quality of life
Portugal offers expats a high standard of living with its stunning beaches, vibrant culture, diverse landscapes, and excellent cuisine. The country’s mix of natural beauty and rich heritage makes everyday life feel like a vacation. Whether settling in the Algarve’s coastal areas, the dynamic cities of Lisbon and Porto, or the serene countryside, expats are always close to outdoor activities like hiking, surfing, and exploring vineyards or rolling hills.
The variety of landscapes and environments allows expats to choose a lifestyle that suits them, from urban excitement to coastal or rural tranquility. Portugal’s culinary scene, known for its fresh seafood, olive oil, and local wines, enhances the quality of life. Voted the fourth best in the world by TasteAtlas, Portuguese cuisine is a key part of the country’s appeal.
Portugal's healthcare system
Portugal offers a high-quality and affordable healthcare system, accessible to both residents and expats through its public and private sectors. The public system, Serviço Nacional de Saúde (SNS), provides comprehensive coverage, including general medical care, specialist services, and emergency treatments, with minimal costs or subsidies, making it an attractive option for expats. According to Numbeo’s 2024 Healthcare Index, Portugal ranks 21st globally, highlighting its strong healthcare standards.
Expats can easily register with the SNS upon gaining residency, ensuring smooth access to services. For those seeking more convenience, the private sector offers shorter wait times, access to specialists, and services like English-speaking doctors. Private health insurance is also affordable, providing premium care at lower costs compared to other European countries.
Country Comparison: Portugal vs USA
Culture in Portugal
History and Heritage
Portugal is one of the oldest nations in Europe, with a history dating back to the 12th century. Its Age of Exploration, when Portuguese explorers like Vasco da Gama discovered new lands, is a source of national pride. This history is reflected in its architecture, such as the Manueline style and iconic landmarks like the Jerónimos Monastery and Belém Tower.
Cuisine
Portuguese cuisine is simple yet flavorful, emphasizing fresh ingredients, especially seafood, given the country’s coastal location. Dishes like bacalhau (salted cod), sardinhas assadas (grilled sardines), and pastéis de nata (custard tarts) are iconic. Meals are seen as social events, often enjoyed with family or friends.
Fado Music
Fado, a melancholic genre of traditional Portuguese music, is a UNESCO cultural heritage. It reflects themes of love, loss, and longing, and is often performed in small, intimate venues. Lisbon and Coimbra are known as the centers for Fado.
Art and Architecture
Portugal’s art scene reflects both traditional and modern influences. The country is famous for its azulejos (decorative ceramic tiles) that adorn buildings. Modern architects like Álvaro Siza Vieira have also gained international recognition.
Festivals and Celebrations
Portugal hosts numerous festivals throughout the year, including Festas dos Santos Populares in June, which honors saints with street parties, music, and grilled sardines. Carnival and religious festivals like Semana Santa (Holy Week) are also important events.
Where do Americans live in Portugal
Portugal has long been a popular destination for Americans looking to relocate abroad. The country offers a high standard of living, a relaxed lifestyle, and beautiful scenery, making it an attractive option for retirees, families, and young professionals alike.
While Americans can be found throughout Portugal, there are a few areas that are particularly popular among the expat community. Here are five places where Americans tend to live in Portugal:
Lisbon
The capital city of Lisbon is a top destination for Americans in Portugal. The city is a bustling hub of culture, history, and nightlife, with plenty of opportunities for entertainment and relaxation.
Lisbon (Lisboa in Portuguese) had a total population of 2,884,170, of which 343,995 were foreigners, accounting for 11.9% of the total population. The city is also a relatively affordable city, with a lower cost of living than many other European capitals.
The neighborhoods of Chiado, Bairro Alto, and Alfama are particularly popular with expats, offering a mix of historic charm and modern amenities.
Porto
Located in the north of Portugal, the city of Porto is another popular destination for Americans. Known for its historic architecture, charming streets, and world-famous wine, Porto is a great place to experience Portuguese culture.
The city is also home to a growing startup scene, making it a popular destination for young professionals. The neighborhoods of Ribeira and Foz do Douro are particularly popular with expats.
Cascais / Estoril
The coastal towns of Cascais and Estoril, located just outside of Lisbon, are popular among expats looking for a more relaxed lifestyle.
The towns offer beautiful beaches, a mild climate, and a range of outdoor activities, from golf to surfing. Cascais and Estoril are also well-connected to Lisbon by train, making it easy to access the city when needed.
Algarve
The southern region of the Algarve is one of the most popular destinations for expats in Portugal, including Americans. According to official information available on Pordata, more than 469,938 people reside in the Algarve and over 105,000 foreigners residents (22%). The region is known for its beautiful beaches, warm weather, and laid-back lifestyle.
The towns of Lagos, Albufeira, and Vilamoura are particularly popular with expats, offering a range of amenities and activities.
What is the cost of living in Portugal vs USA
Portugal is a relatively affordable country compared to other Western European countries. The cost of living is generally lower than in neighboring Spain or France, and it is possible to live comfortably on a modest budget. This makes Portugal an attractive destination for retirees and expats who are looking for a high quality of life at a reasonable cost.
According to recent Numbeo statistics, the cost of living in Portugal is, on average, 36.6% lower than in the United States. This means that you can enjoy a comfortable lifestyle in Portugal for much less than you would pay in the US. One major contributor to this lower cost of living is housing.
Cost of renting an apartment in Portugal vs USA
The rent prices in Washington, DC are 101.8% higher than in Lisbon, Portugal. This means that on average, you would have to pay significantly more for rent in Washington, DC than in Lisbon for the same type of accommodation. The rent prices in San Francisco, CA are 160.4% higher than in Lisbon, Portugal.
However, it’s important to note that the cost of living can vary depending on several factors such as location, lifestyle, and personal preferences.
Price of buying a property in Portugal vs USA
The price of buying an apartment in Portugal versus the US can vary widely depending on several factors such as location, property type, and market conditions. Generally speaking, Portugal is less expensive than many parts of the US when it comes to real estate prices.
Dining Costs is Portugal vs USA
Dining out in Lisbon is more affordable than in Washington, USA. An inexpensive meal costs about 12.00 € in Lisbon, compared to 18.20 € in Washington. For a mid-range, three-course meal for two, the price is 50.00 € in Lisbon, whereas it’s nearly double at 90.99 € in Washington.
Even fast food is cheaper, with a McMeal priced at 7.50 € in Lisbon versus 9.10 € in Washington.
Groceries Prices
Groceries in Lisbon are significantly cheaper compared to Washington, USA. For example, a loaf of bread costs 1.41 € in Lisbon versus 2.99 € in Washington, while rice is 1.31 € per kg compared to 3.99 €.
Fresh produce like apples, oranges, and tomatoes also show notable differences, with apples at 1.98 € per kg in Lisbon versus 4.78 € in Washington. Essentials such as eggs, potatoes, and lettuce are also more affordable, reflecting Portugal’s overall lower grocery costs.
Transport Costs in Portugal vs USA
Transportation costs in Lisbon are generally lower than in Washington, USA. A one-way ticket for local transport is 2.00 € in Lisbon compared to 2.50 € in Washington, and a monthly pass is significantly cheaper at 40.00 € versus 90.99 €.
Cost of Utilities Portugal and USA
Utilities in Lisbon are generally more affordable than in Washington, USA. For an 85m2 apartment, basic monthly costs for electricity, heating, cooling, water, and garbage are 124.80 € in Lisbon compared to 151.43 € in Washington.
Additionally, internet services (60 Mbps or more, unlimited data) are cheaper in Lisbon at 36.35 €, while the same service in Washington costs 50.14 €. Overall, Portugal offers lower utility costs for both basic services and internet.
How to move from the US to Portugal
If you’re considering moving from the US to Portugal, there are several steps you’ll need to take to make your relocation as smooth as possible. Here’s a general guide to help you get started:
Portugal D7 Visa
Portugal D7 Visa, which is perfect for retirees or those with passive income. This visa requires proof of regular income or savings, and the ability to support yourself without working in Portugal. It’s a great option for those looking to enjoy the country’s relaxed lifestyle and stunning natural beauty.
Portugal Digital Nomad Visa
Digital Nomad Visa Portugal, or D8 Visa, for remote workers and freelancers allow them to live and work in the country for up to a year, enjoying all the benefits of the Portuguese lifestyle while earning an income from their remote job or business.
Portugal D2 Visa
D2 Visa Portugal in case you are an entrepreneur looking to start or develop a business in Portugal, which allows you to obtain a residence permit for up to two years.
Portugal Golden Visa
The Portugal Golden Visa program in Portugal, also known as the Residence Permit by Investment Program, is an investment immigration program that grants residency and citizenship rights to foreign investors who make a significant economic contribution to the country.
- Investment funds: Contribution of €500,000 or higher, for the acquisition of units of investment funds or venture capital fund of funds under the Portuguese.
- Business Investment: Minimum investment of €500,000 for constitution of a company in Portugal, combined with the creation of five permanent working jobs.
- Scientific research: Capital transfer with a value equal to or above €500,000 for investing in research activities conducted by public or private scientific research institutions.
- Cultural heritage contribution: Known as the Cultural Golden Visa, donation of a minimum of €250,000 for investing in artistic output or supporting the arts, for reconstruction or refurbishment of the national heritage.
- Job Creation: Incorporating a company and creation of at least, ten jobs positions.
- In the last three options mentioned above, if the investment is located in a designated ‘low-density’ area, then a 20 percent discount applies.
For more videos about investing or moving to Portugal, explore our YouTube channel here: YouTube Channel Portugal Residency Advisors.
Processing time for a visa application to Portugal
Most of the Visas follow the same application process which you can find below
Documents required to move from the USA to Portugal
Obtaining residence visa for Portugal requires the following documents, but depending of the Portuguese consulate or embassy or VFS it might be required some additional documentation.
- Visa Application Form
- Your Valid Passport
- Two recent passport-size photos
- Criminal Record certificate
- Valid travel insurance, including medical coverage and repatriation
- Documentary evidence of having accommodation in Portugal
- Proof of sufficient means in Portugal (latest 3 months bank statements)
- Declaration with the reasons for requesting Portuguese Residency
- Depending of the visa additional documentation might be required such as for student visa, working visa or opening a business
Portugal Taxes vs. USA Taxes
Taxation in Portugal
- Personal Income Tax: Progressive tax rates ranging from 14.5% to 48%. Special flat tax rates for non-habitual residents on certain types of foreign income (as low as 10%).
- Value Added Tax (VAT): Standard VAT rate of 23% and a reduced rates of 13% and 6% for specific goods and services.
- Social Security Contributions: Both employees and employers contribute to social security, with total rates around 34.75% for employees and 23.75% for employers.
- Property Taxes: Property transfer tax and annual property tax (IMI) with rates varying by location and property value.
- Inheritance and Gift Taxes: No inheritance tax, but there is stamp duty on gifts.
- Wealth Tax: wealth tax starting from 0,7% for high-value local properties over €600,000.
Taxation in the USA
- Personal Income Tax:: Progressive federal income tax rates ranging from 10% to 37%. State income taxes vary by state, with rates and brackets specific to each state.
- Value Added Tax (VAT): The USA does not have a national VAT. Instead, it uses a state-level sales tax, which varies by state and locality.
- Social Security Contributions: Social Security and Medicare taxes are levied on employees and employers, with a combined rate of 15.3%.
- Property Taxes: Property taxes are levied at the state and local levels, with rates and rules varying widely.
- Inheritance and Gift Taxes: Federal estate and gift taxes apply to larger estates, with various exemptions and credits available. State-level estate and inheritance taxes also exist in some states.
- Wealth Tax: The USA does not have a federal wealth tax, but it has an annual federal tax on net investment income for high-income individuals.
You can check our Tax Guide for Americans here.
Direct flights from the US to Portugal
Here is a list of some of the direct flights from the US to Portugal, along with the airline, origin cities, destination cities, ticket price, and frequency:
- Origin Cities: New York (JFK), Boston (BOS), Miami (MIA), and Newark (EWR)
- Destination Cities: Lisbon and Porto
- Ticket Price: depending on the season, but can range from $500-$1200
- Frequency: Daily flights from JFK and EWR, 5-7 flights per week from BOS, and 3-4 flights per week from MIA.
- Origin Cities: Newark (EWR) and Washington, D.C. (IAD)
- Destination City: Lisbon
- Ticket Price: Depending on the season, but can range from $600-$1200
- Frequency: Daily flights from EWR and 5-7 flights per week from IAD.
- Origin City: New York (JFK)
- Destination City: Lisbon
- Ticket Price: Depending on the season, but can range from $700-$1200
- Frequency: Daily flights
- Origin City: Philadelphia (PHL)
- Destination City: Lisbon
- Ticket Price: Depending on the season, but can range from $800-$1500
- Frequency: Daily fligh
Shipping your belongings from the USA to Portugal
Shipping costs for moving a 25ft container from Washington, DC to Portugal can vary based on several factors. As an example, let’s consider two options: shipping by sea and shipping by air.
Shipping by Sea
If you choose to ship the container by sea, the cost is estimated to be around 1300€, and the transit time is approximately 15 days. This option is generally more cost-effective but requires a longer time for delivery.
Shipping by sea involves loading the container onto a cargo ship and transporting it across the Atlantic Ocean to the designated port in Portugal.
Shipping by Air
If you prefer to expedite the shipping process and send the container by air, the cost increases to around €2,750, but the delivery time significantly reduces to approximately 5 days.
Shipping by air is faster but more expensive compared to shipping by sea. It involves transporting the container via airfreight on cargo planes to the nearest airport in Portugal.
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Bringing pets from America to Portugal
If you plan to bring a pet from the US to Portugal, there are certain requirements that you need to fulfill to ensure a smooth entry for your pet. Here are some general guidelines:
Microchip
Your pet must be microchipped with an ISO-compliant microchip. This microchip serves as a permanent identification for your pet and contains a unique identification number. It is important to ensure that the microchip is implanted before or at the same time as their rabies vaccination.
Rabies Vaccination
Your pet must be vaccinated against rabies. The vaccination should be administered at least 21 days before traveling to Portugal but not more than one year before the travel date. Make sure the vaccination is valid and up to date.
Health Certificate
Obtain a health certificate from a licensed veterinarian in your home country. The certificate should confirm that your pet is in good health, free from infectious diseases, and fit to travel. The health certificate is generally required within 10 days prior to the travel date.
American institutions in Portugal
The United States Embassy in Lisbon
The US embassy is the main American institution in Portugal. It is located in the capital city of Lisbon and serves as the diplomatic mission of the United States in Portugal. The embassy provides a range of services to American citizens in Portugal, including passport and visa processing, emergency assistance, and consular services.
Luso-American Development Foundation
The Luso-American Foundation was established in 1985 as part of an agreement between the Portuguese and US governments to promote economic, cultural, and scientific cooperation between the two countries.
The foundation provides funding for research, education, and cultural exchange programs.
American Club of Lisbon
The American Club of Lisbon is a social club for Americans living in Portugal and Portuguese citizens with ties to the US. The club hosts social events, such as dinners and wine tastings, and provides a forum for cultural exchange and networking.
American Chamber of Commerce in Portugal
The AmCham is a business organization that promotes economic and commercial ties between the US and Portugal. The chamber provides a range of services to its members, including networking opportunities, business events, and market intelligence.
American Corners
The American Corners national network is the result of a partnership between the US Embassy in Lisbon and several universities and other educational institutions.
Their mission is to provide access to scientific information and to carry out cultural exchange and scientific dissemination activities.
Currently, there are several American Corners located in Lisbon, Porto, Aveiro, and other cities.
Tips for finding a place to live in Portugal?
Once you have your visa sorted out, you’ll need to find a place to live in Portugal. For many Americans, the idea of buying or renting property in Portugal may seem like a daunting prospect. The unfamiliar legal and financial systems, as well as cultural differences, can make the process seem overwhelming.
Here are some tips for Americans who are unfamiliar with buying or renting property in Portugal:
1. Work with a reputable real estate agent
A good buyer’s agent can provide valuable guidance and advice on the local property market, as well as help with the legal and financial aspects of the transaction. It’s important to choose an agent who is familiar with the local market and has experience working with international clients.
2. Understand the legal system
Portugal has a different legal system than the United States, so it’s important to familiarize yourself with the local laws and regulations related to buying or renting property. Working with a lawyer who is familiar with Portuguese property law can help ensure that you are protected throughout the process.
3. Consider the cultural differences
Portugal has its own unique culture and way of doing things, which can take some getting used to for Americans. For example, the pace of life may be slower than what you are used to, and communication styles may be different. It’s important to be patient and open-minded when dealing with cultural differences.
Can Americans Apply for a mortgage?
Yes, Americans can obtain a mortgage in Portugal to buy property, but the process may be more complex than for Portuguese citizens. Here are some things to keep in mind:
Interest rates: Interest rates for mortgages in Portugal can vary depending on the lender and the borrower’s creditworthiness. In some unique situations US citizens may be subject to higher interest rates than residents.
LTV (Loan-to-Value Ratio): This measures the ratio between the loan amount and the lower of the purchase price or appraisal value of the property. LTV is ≤ 90% for primary residences and ≤ 80% for other properties or non-primary residence loans. Non-residents can expect an LTV of 80%.
DSTI (Debt Service-to-Income Ratio): This ratio compares monthly loan payments to the borrower’s net income. New credits should have a DSTI ≤ 50%, with some exceptions per institution.
Maturity Limits: For residential or mortgage-backed loans, the maturity is capped at ≤ 35 years for borrowers over 35 years old.
Life insurance: Subscribing a life insurance is requested by the Portuguese banks and it provides financial protection for your loved ones in the event of your death.
Required documentation: Non-residents will typically need to provide the following documentation to support their mortgage application: Passport, Credit report, Last 3 pay slips and Most recent tax returns.
Benefits of Portuguese residency
Mobility
The Portugal resident permit allows you visa-free entry and circulation through the Schengen Area.
Live, Work, Study
Once you become a resident in Portugal you are entitled to conduct any professional activity as an independent professional and you gain access to the National Education Service, schools, and vocational training.
Access to Healthcare System
Being a resident in Portugal you gain access to National Healthcare, also called SNS (Serviço Nacional de Saúde) and covers primary and secondary healthcare needs.
Path to Citizenship
After five years of legal residency, you may apply for permanent residency or to citizenship. However, in this case you’ll have to pass a Portuguese language test.
Family Reunion
You are entitled to bring your family members who are already in Portugal or who will be joining you in Portugal. You may request family reunification in the Agency for Integration, Migration and Asylum (AIMA), former SEF, at the same time as your visa application, or after you have received your visa.
The following is the list of family members that may qualify for family reunification:
- Your spouse or partner.
- Your children under 18 years of age or incapacitated children of the couple or of one of their spouses/partners.
- Children over 18 years of age who are dependent on you or your spouse which means that they are single and studying.
- Your parents or your spouse/partner’s parents if they are dependent on you.
- You minor siblings.
Exchanging US driving licence to a Portuguese one
Driving licenses issued by member states of the Community of Portuguese-Speaking Countries (CPLP) and the Organization for Economic Cooperation and Development (OECD) which includes The United States of America, allow you to drive in Portugal without having to exchange them for a Portuguese driver’s license for 185 days (about 6 months), provided you are not a resident.
If you live in Portugal, you must exchange your foreign driving license for a Portuguese license within two years after taking up residence in Portugal.
American Schools in Portugal
Portugal is a popular destination for expatriates and international families who are seeking a high-quality education for their children.
As a result, there are many international schools in Portugal that cater to a variety of nationalities and offer curricula from different countries.
Currently, there are 51 International Schools in Portugal in seven different cities, providing a range of educational options for families.
Regarding the American schools you should know that you can count with three schools located in greater Lisbon:
If you would like to explore all the international schools in Portugal please take a time to read the detailed guide of International Schools In Portugal.
Why work with us for your move to Portugal?
Local Expertise
We know Portugal. Due to our extensive local knowledge, we believe that concentrating our services in a single country destination is the best way to give you the most thorough and useful information.
Holistic Approach
One single channel of communication for the entire process. We provide you with a comprehensive service that covers all aspects of your move, from identifying the ideal residency visa to finding your new home or helping you to settle.
Transparent Service
We recommend what’s best for you based on an extensive process experience that saves time and money to clients. Our pricing is clear and competitive, and we don’t sell services that make us more money.
Simple Process
Technology plays a very important role in our company. We minimize our clients’ involvement in paperwork. We are customers ourselves and we know how to serve you.
Frequent asked questions about Americans moving to Portugal
What is the cost of living like in Portugal compared to the US?
The cost of living in Portugal is generally lower than in the US, although it can vary depending on the city and region. Housing and healthcare are typically less expensive in Portugal, but consumer goods and imported products can be more expensive.
Do I need a visa to live in Portugal as an American?
Americans can enter Portugal without a visa for up to 90 days as tourists. If you plan to stay longer, you will need to apply for a residence permit. There are different types of permits available, depending on your circumstances.
Can Americans bring their family members when moving to Portugal?
Yes, Americans can bring their family members when moving to Portugal. Depending on the circumstances, family members may be eligible for family reunification visas or permits, allowing them to join the primary visa holder in Portugal.
How do I open a bank account in Portugal?
To open a bank account in Portugal, you will need to provide identification, proof of address, and a tax identification number. Some banks may require additional documentation or proof of income.
How do I get healthcare in Portugal?
Portugal has a public healthcare system that is available to residents and citizens. To access the public system, you will need to register with a local healthcare center and obtain a national health card. You can also choose to purchase private health insurance.
Can I work in Portugal as an American?
Americans can work in Portugal if they have a valid work permit or residence permit. It’s important to note that the job market in Portugal can be competitive, and speaking Portuguese can be an advantage.
What is the weather like in Portugal?
Portugal has a mild Mediterranean climate, with hot summers and mild winters. The climate can vary depending on the region, with the southern and coastal areas typically having warmer temperatures.
How can Americans apply for a residence visa for Portugal?
To apply for a residence visa, Americans will need to contact the Portuguese embassy or consulate in their home country. It is advisable to start the application well in advance of your planned move, as it can take some time to gather the required documents and for the visa to be processed.
Is it easy to make friends in Portugal as an American?
Making friends in Portugal can depend on your personal interests and social skills, but generally, Portuguese people are known for being friendly and welcoming to foreigners. There are also expat groups and social clubs that can provide opportunities to meet new people.
How do I learn Portuguese?
Learning Portuguese can be a challenge, but there are many language schools and courses available in Portugal. Immersing yourself in the language by practicing with locals and watching Portuguese-language media can also be helpful.
