David Bonellie
Last updated: February 20, 2023
At Global Residence Index, we work with you to determine which second residence or passport program is best for you. Portugal’s Golden Visa is a popular second residence option for our US citizen client base. If the Golden Visa is not top of the list, then our expert team will find other possible residence options for you to move to Portugal from the US.
This article hopes to teach you about the following:
The Iberian peninsular country Portugal is one of the oldest in the world, forming before the tenth century. The Anglo-Portuguese Treaty between King Edward III of England and King Ferdinand and Queen Eleanor of Portugal is the oldest continuous peace treaty still in effect today. It established a “perpetual friendships, unions, and alliances” treaty between the two maritime nations.
The peaceful nature of the Portuguese has continued to the modern day, with its government welcoming new residents from all over the world. Thus the country has several routes to obtaining residency and has a clear pathway toward citizenship.
There is more to know about living in Portugal as an American other than only its peaceful history and several residence options.
US passport holders have a visa-waiver agreement with Europe’s Schengen countries, including Portugal. If you do not have a resident permit, you can still have ninety days of visa-free access to Portugal. However, we recommend you receive residence approval before permanently settling in Portugal.
Luckily traveling to Portugal from the US is going to be relatively easy. The national airline TAP has direct flights from major airports in Boston, Chicago, Miami, NYC, Newark, San Francisco, and Washington DC. Delta, United, and American Airlines also fly daily from multiple cities across the US to Portugal.
Physically traveling as an individual from the US to Portugal is relatively easy. However, there are steps that you need to follow to move household goods between the two countries.
During your visit or visits to the nearest Portuguese consulate concerning submitting a residence application, you need to request a “Luggage Certificate” (Certificado de Bagagem). Your request needs to be accompanied by a complete list of items you will move from the US to Portugal.
Some specialized travel migration companies can assist in the process, and we can help connect you to make your move easier. Please do remember that your household goods need to arrive within ninety days of the date on the Certificado de bagagem.
Typically air freight is more expensive but a faster route to get goods from the US to Portugal. Sea travel is less expensive, but there is an increase in time. There typically is a two to three-week travel time from the East Coast to Portugal (Porto and Lisbon) or four to six weeks from the West Coast, depending on where your departure is.
Using your freight company to arrange storage for your goods is possible if you do not have a permanent residence when arriving in Portugal from the USA. If the freight company cannot assist you, storage facilities are all over Lisbon and Porto, the Algarve, Silver Coast, and inland areas.
Many of the facilities operate 24/7 to make life easier for you.
We understand that it is possible that not only the human family will move to Portugal. Pets are family and need to require special care for the move. Portugal is an EU member state and follows laws set by the EU council regarding moving pets to the continent.
The below list is a comprehensive step-by-step guide on what you’ll need to do before moving your pet to Portugal:
As mentioned above, Americans do not need visas to enter the European Union and Portugal. American citizens have up to ninety days of visa-free tourism or business travel access. However, if you are looking to move more permanently (longer than ninety days), various residence visas are available for living in Portugal as an American.
Portugal’s residence process is relatively standard across the board. The financial component or requirement for each type of residence is the significant difference between each. Once your residence visa is active, there is a clear path toward permanent residency or Portuguese citizenship after five years.
The following residence visas are available to Americans moving to Portugal:
The most common residence visas for living in Portugal as an American citizen are the Golden Visa and the D7 Passive Income. In late 2022, the Portuguese government changed its residence criteria and introduced the Digital Nomad visa.
Traditionally the D7 residence visa had a “gray area” for what could be considered passive income. Remote workers were using the D7 as a means to obtain residence. 2020 saw a surge of D7 applications as remote work also dramatically increased.
The introduction of the Digital Nomad visa now strictly distinguishes between passive and active income earners and which type of visa you must use to obtain residence in Portugal. All residence visas require the applicants to show proof of health care and accommodation.
Portugal’s Golden Visa program is a residency by investment program that allows non-European citizens to obtain a residence permit in Portugal in exchange for an investment in real estate, transfer of capital, or creation of jobs.
It was introduced in 2012 to attract foreign investment to the country and has since become one of the most popular programs of its kind in Europe. After an initial one year visa, the Golden Visa is renewable every two years and provides the holder with visa-free travel within the Schengen Area.
The program has been successful in attracting high net-worth individuals from around the world and has had a positive impact on the Portuguese real estate market. The Portuguese Golden Visa is arguably the best in Europe for American citizens who want to have flexibility to live outside of Portugal, with a path towards citizenship.
Investments start at €200,000 using the Cultural Investment option, and a maximum investment of €1.5m for a bank deposit. The most popular investments are real estate (€280,000 to €500,000) and the Portuguese investment fund €500,000.
The D7 Passive Income Residence Visa is a visa for American citizens who wish to live in Portugal and have a guaranteed income from a pension, dividends, or rental property.
To be eligible for the D7 Passive Income Residence Visa, the applicant must have a guaranteed monthly income of at least €760 for a single person or €1,140 for a couple. You may bring your dependents on the D7 if you show an additional €228 per dependent.
You must show income in your Portuguese bank account and sufficient means to cover your living expenses in Portugal without needing to work.
The D6 visa is a type of visa that allows non-EU citizens who are spouses, partners, or dependents of EU citizens to join them in Portugal. The EU citizen must reside in Portugal as a legal resident and have sufficient financial means to support the non-EU family member.
As of October 2022, the newly introduced Digital Nomad Visa program features two streams and caters specifically to the needs of remote workers. The first stream is a one-year residence permit extendable for a further six months. If you want to continue to live in Portugal as an American on the D8 after eighteen months, you need to use stream two. The first stream is the D8 Lite.
The second stream of the D8 Digital Nomad visa, commonly known as the D8 Plus, is a two-year, renewable residence for three years. There are a few differences between the two Digital Nomad visas that you should be aware.
The minimum financial requirement is proof that you receive at least €2,820 stable income for an individual applicant. You can use multiple income sources to contribute towards the minimum income. For the D8 Plus version, you need at least €8,460 in savings. Preferably this needs to be transferred into your Portuguese bank account.
The D8 Plus requires you to open a Portuguese bank account, while the Lite version does not. Regarding proof of accommodation, the D8 Lite requires a four-month proof. The D8 Plus needs you to show evidence of a twelve-month lease or long-term rental.
Young Americans with great ideas might be interested in using the Startup Visa to move to Portugal. The Startup Visa is a residence visa for entrepreneurs which aims to attract investment, talent, and capacity for innovation to Portugal. To legally acquire the Startup visa and move to Portugal, you need to complete the following:
The Tech Visa is more appropriate if you are not a startup founder but someone working in tech. To apply for it, you must have completed a Bachelor’s. If you do not have a degree, you can have an equivalent level six, according to ISCED 2011, or level five (tertiary level education) with five years of experience in specialized technical functions.
The HQA (Highly Qualified Activity) Residence Visa is designed to fast-track highly qualified professionals to Portugal. The program provides priority entry to professionals who drive R&D in Portugal through collaboration with recognized research institutions. The program is a beneficial alternative to the Golden Visa, primarily due to a lower investment amount and speed of obtaining residency as an American citizen.
The beauty of the HQA is its speed for processing. Portuguese HQA legislation stipulates that applicants receive notification within thirty days and HQA residency permits within sixty days. The investment requirement is €175,000, and the investment needs to be actively managed by the applicant to build their business in Portugal.
If you are a US citizen that already has your own business or actively invests in other companies, then the D2 Business and Entrepreneur Residence is best. The D2 can make a living in Portugal a worthwhile option for residence. The Portuguese D2 Visa enables non-EU entrepreneurs, freelancers, and independent service providers to establish residency in Portugal. The Portuguese government established this visa to attract external resources and investments to drive economic growth.
You must invest in the company’s share capital, which immigration firms advise should be at least €50,000. In truth, the more you invest, the more likely you will get your visa. You must also show that you have the financial ability to sustain yourself while living in Portugal.
After moving to Portugal as an American on your initial residence permit, there will be a time to renew it. It is now possible to renew your residence permits online in Portugal. The process reduces time spent on renewals and improves residents’ overall experience.
The type of residence visa held impacts the physical presence requirements to be able to renew your residence permit. Additionally, the kind of residence impacts how you can and cannot apply for permanent residency and citizenship after five years.
When moving to Portugal, you need to spend at least six consecutive months or eight months non-consecutive to renew your residence. Effectively, you can be out of the country for six to four months, depending on when you decide to leave Portugal. After completing five consecutive years of residency, you can apply for permanent residency and citizenship. You do not need to have your permanent residence before applying for citizenship.
The general physical presence requirements do not apply to Golden and HQA visas. The Golden Visa requires you to complete a minimum of thirty-five days of physical presence over five years to be eligible for PR and naturalization. The HQA does not have specific requirements for physical presence. Instead, you need to motivate why you are not physically present in the country and for how long.
Many Americans have dual citizenship and even multiple citizenships through descent, marriage, and by using investment programs. When preparing for Portuguese citizenship, you must complete the following steps:
Portugal allows children born in the country to obtain citizenship even if their parents are not citizens. The child of a parent who has been a resident of Portugal for at least one year. The one-year residence requirement while living in Portugal is an incredible opportunity to provide your children with dual citizenship.
When moving to Portugal, the highest cost will be your home. You’ll need to consider whether it is better to obtain a lease or to purchase real estate when moving to Portugal. Initially, obtaining a lease and rent for the first year may be better. A lease allows you time to get to know Portugal and which areas might suit you and your family better than others.
It is essential to do your due diligence and thoroughly research the property, the local area, and the real estate market before deciding. Consider working with a lawyer specializing in real estate to help you navigate the buying or rental process and ensure that you meet all the necessary legal requirements.
There are several notable regions to consider when living in Portugal. If you have the time, spending some time in each of the areas below will help you when moving to Portugal from the USA.
Ultimately, the best region for you will depend on your personal preferences, lifestyle, and budget. Consider factors such as access to healthcare, availability of amenities, and the cost of living in each region.
Whether it is cheaper to rent or buy when moving to Portugal from the USA depends on various factors. The cost of housing in the specific location, the exchange rate between the US dollar and the Euro, and the current real estate market conditions. The US Dollar strengthened considerably in 2021 and 2022 and is vital to convert to Euros.
In general, the cost of housing in Portugal is lower than in many cities in the United States, making it more affordable for American expats. It is possible to rent a two to a three-bedroom home in Lisbon and Porto for €1,250 to €2,000. These prices would not be possible in cities like NYC, San Francisco, or Washington DC.
However, this can vary depending on the location and the type of property you desire. For example, housing in popular tourist destinations, such as certain areas within Lisbon or the Algarve, may be more expensive than in other parts of the country.
When purchasing real estate, Portugal does not have many (or any) restrictions on Americans investing in real estate. The only limits relate to the Golden Visa and the type of property that can qualify.
Global Residence Index is incredibly knowledgeable on the ins and outs of purchasing real estate in Portugal. Our expert team can provide more detail and link you to several real estate developers and agents in Portugal.
The minimum monthly wage in Portugal is the same as the D7 Passive Income financial requirement, €760 per month. Cost of living in Portugal as an American can be cheaper than their existing expenses, depending on where they reside. Of course, city life is more expensive than living in a more rural area. That said, you can live reasonably comfortably on a few thousand Euros per month.
Day-to-day expenses are generally very affordable in Portugal. A single person should expect to pay around €250 to €350 per person per month on groceries. Wine is very reasonable, with a good bottle of wine costing around €3 to €7 at the supermarket. Public transport is plentiful in the major metropolitan areas of Lisbon. Depending on the bar and location, a beer will cost between €2 to €5.
Moving around Portugal will seem like a breeze if you are an American that does not have easily accessible public transport. If you live in Lisbon or Porto, you may rely on public transport a lot, and it might be worth looking into a monthly pass. Monthly passes make moving around the cities very affordable. In Lisbon, this costs around €40 per month. In Porto, the cost is similar: €30 for a Z3 pass or €40 for a Metropolitano pass. A single trip will cost around €1.50.
Dining out is a treat for US citizens who move to Portugal. Even in city centers, eating out is relatively affordable, especially if you dine at traditional Portuguese restaurants. However, if you prefer modern, international cuisine, be prepared to pay more, especially in Lisbon, Porto, and the Algarve. The price of a beer or glass of wine can range from €1 to €5 and higher, depending on the type of bar you visit.
A traditional espresso (café) from a pastelaria can cost as little as €0.75 to €1.00 in a rural location but will probably be closer to €1.50 in a city. If you order an espresso from a more modern café geared towards young professionals, expect to pay around €2 to €4.
As with many European countries, English is well-spoken in major metropolitan areas. Lisbon, Porto, the Algarve, and Silver Coast are no different. Younger Portuguese people generally tend to have better English skills than older generations. English is the primary second language in Portugal. The University of Lisbon is bi-lingual and has one of Europe’s highest international student rates. Thus most subjects are taught in both Portuguese and English.
You may still encounter local citizens who speak very little or no English, but the majority of citizens will speak some English. Ordering food at restaurants can be done in English, and most menus are bilingual because of tourism.
It is always good to learn the local language. You need to speak Portuguese to truly understand a culture and get into the hearts of locals. Additionally, there is a requirement to pass a Portuguese language test to be eligible for citizenship.
Americans living in Portugal will have the ability to access both private and public healthcare. A third option is available for those who wish to keep their existing healthcare but change it to cover them internationally.
US citizens who live legally in Portugal and pay into the country’s social security system can access the public healthcare system. The public system provides various medical services, including hospital treatments, doctor visits, and diagnostic tests, but it may not cover all medical expenses.
You can purchase private health insurance if you need more than public healthcare. Private healthcare offers various medical services and treatments not covered by the public healthcare system. Some insurance companies provide specific expatriate plans, including in-patient and outpatient therapy coverage.
Portugal offers some desirable business opportunities for Americans living in the country. There is a real opportunity to use Lisbon and Porto as European Headquarters for business and access to the rest of Europe. Smaller entrepreneurs can open small businesses that focus on growing tourism or ancillary businesses that help tourism businesses.
Portugal has a growing technology industry and is home to several multinational technology companies, as well as several startups and innovation hubs. Job opportunities in this sector include software development, data analysis, and IT support. Startup Portugal is one of the largest communities in Europe for founders to bring their ideas, skills, and existing business to Portugal.
However, the country is also home to thousands of remote worker expats. There are significant tax benefits for remote workers who can use the Non-Habitual Residence program for ten years.
In Portugal, education is mandatory and provided at no cost to all citizens and residents of the country up to the final year of secondary school. The country boasts a high literacy rate, with 99.44% of its population possessing the ability to read and write. Portugal’s Basic education system has three cycles. The first cycle consists of grades one through four, the second covers grades five and six, and the third encompasses grades seven, eight, and nine. The education cycles emphasize subjects like mathematics, sciences, and language.
Secondary education focuses on grades ten, eleven, and twelve and expands into various themes and subjects. To secure a place in higher education, Portuguese students in their final year of secondary school (twelfth grade) must pass national exams and attain appropriate grades.
There has been considerable growth in international students flocking to universities in Portugal. The country’s cities and student towns are developing a cosmopolitan culture on a global scale. With approximately 50,000 international students, the influx of new ideas and creative processes is elevating the competitiveness of Portuguese universities and improving their quality. Americans living in Portugal will have several options available to them for university:
Climate Comparisons between the US and Portugal
It isn’t easy to compare all of the US climates to Portugal. However, you could compare regions where much of the coast is similar to the Californian coast. The climate in Portugal’s Algarve region is similar to that of Southern California in the US. The Algarve’s Mediterranean climate is generally warm, with dry summers and mild, wet winters. The Silver Coast of Portugal is closer to the Central California coast.
While living in Portugal, a city in the US with a similar climate, San Francisco, California is a good comparison. Both cities experience a similar range of temperatures, with average daily temperatures ranging from the mid-50s to mid-60s Fahrenheit in the winter and the mid-60s to mid-70s in the summer.
Moving to Portugal from the US is not limited to one group, and there is no stereotype. The European country is excellent for everyone, including retirees, students, young professionals, and families.
Europe has always been an excellent destination for American retirees. Portugal is one of the top retiree countries. Portugal offers a great combination of the low cost of living, beautiful climate, rich culture, and friendly people, which makes it an attractive destination for American retirees. Many direct flights are available back to the continental US, making it easy to visit family and friends. The lower cost of living compared to other European hot spots is also attractive to American retirees living in Portugal.
Portugal has a well-established education system with universities that offer high-quality programs at an affordable cost. Additionally, if you become a citizen before or while attending university, you can study anywhere in Europe at local rates. Several top European universities offer European citizens tuition for free. You save tens of thousands of dollars compared to the US university cost.
The country is diverse and multicultural. It is an ideal place for students and young professionals to develop their cultural awareness and intercultural communication skills. Lisbon and Porto are tech hubs in Europe, bringing global skills and opportunities to living in Portugal.
Overall, Portugal is an excellent destination for American students and young professionals looking for an affordable and fulfilling study or work experience in a culturally rich and dynamic country.
Living in Portugal is possibly the “American Dream” of the 2020s for many young families. Several reasons make the country so attractive. We have mentioned some above, but to give some perspective, they include:
Moving funds, setting up bank accounts, and ensuring you receive the best tax rates possible are some of the most critical focus areas when moving to Portugal.
Establishing a bank account in Portugal is typically a straightforward process but does require a fair amount of paperwork. As an American planning to relocate to Portugal, obtaining a NIF (Portuguese tax number) is the first step.
After obtaining a NIF, you must choose a bank that permits Americans to open an account in Portugal. Please note that some financial institutions may decline US citizens as clients. US citizens must comply with stringent regulations imposed by the IRS under the Foreign Account Tax Compliance Act (FATCA).
Unfortunately, the US is one of two countries that tax its citizens purely based on their citizenship, regardless of their physical tax residency. However, US citizens can reduce their tax liability while living in Portugal through Non-Habitual Residence (NHR).
The NHR tax regime in Portugal is a tax incentive program designed to attract highly skilled individuals and entrepreneurs to Portugal. It provides special tax treatment for individuals who establish their tax residency in Portugal for ten years.
Under the NHR program, the foreign-sourced income of qualifying individuals, such as pension income, rental income, and self-employment income, can be taxed at a flat rate of 20%, which is significantly lower than the standard tax rate in Portugal. In addition, some types of income, such as dividends and capital gains, are exempt from tax under the NHR regime.
Many Americans are moving to Portugal and like the country’s stance on cryptocurrency. Portugal has been relatively progressive regarding cryptocurrency and has taken a permissive approach toward its use and regulation. The Portuguese government has not imposed strict restrictions on the use of cryptocurrency and has been supportive of its growth and development.
Although the government accepts crypto, it is subject to taxes. The Portuguese Parliament approved a specific tax regime that came into force on January 1st, 2023.
Under the Portuguese Personal Income Tax Code or “PIT” Code, related income from crypto will qualify either as capital income, capital gains income, or self-employment income. Each classification will incur taxes ranging from 14.5% to 53%.
We work with you to determine which residence visa is best for you. We understand that the process can be complex and you may not know everything to make an informed decision. Our experts must ask you several critical questions during the consultation and other engagements. We can devise a residence, citizenship and passport strategy with you.
If you are interested in any of the programs, why don’t you sign up for our free consultation?
Yes, moving to Portugal from the US is possible using one of the several residence visas available.
Yes, the Golden Visa is best if you are willing to spend between six to eight months per year in Portugal. Portugal’s Golden Visa allows you to spend most of your time outside the county.
Yes. The Digital Nomad Visa allows you to move to Portugal and work remotely.
No. Although you can avoid speaking Portuguese, learning some introductory phrases is advisable. The cities in Portugal are very bilingual, with most of the younger generation speaking English very well.
There is a level of political bureaucracy in Portugal that can be frustrating at times. There is often red tape about getting administration done promptly. Depending on where you came from in the US, there may not be equal “on-demand luxuries” for the comfort of living.
Yes, American citizens can naturalize as Portuguese after spending at least five years as a resident. The Golden Visa only requires you to spend thirty-five days in five years before being eligible to apply for citizenship.
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