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Why are SO Many Americans Moving to Portugal? 9,794 and counting…

Are you considering moving to Portugal from the United States? You’re not alone. In recent years, many Americans have been drawn to this beautiful country for its warm climate, stunning beaches, and affordable cost of living compared to EU average, in fact, 9,794 Americans have moved to Portugal at the last count. Portugal's location adjacent to the Atlantic Ocean has historically made it a significant maritime power, influencing its cultural and economic interactions and exploration routes to unexplored lands such as East Timor and African countries, during the Age of Discovery. But why are Americans moving to Portugal in such large numbers?

Before you pack your bags and head overseas, there are a few things you should know.

Firstly, it’s important to understand the cultural differences that come with relocating to a new country. US citizens will need to navigate Portuguese immigration laws and obtain temporary residence or resident status (although we can help with that!). Understanding Portuguese is also helpful for integrating into society.

We’ll cover topics such as how many Americans live in Portugal, how long you can stay as a US citizen, how much money is needed for immigration, healthcare in Portugal and more.

Introduction to Portugal’s Popularity

Portugal has become an increasingly popular destination for tourists, expats, and businesses alike. Its unique blend of rich history, stunning landscapes, and welcoming culture has made it an attractive choice for those looking to explore, live, or invest in Europe. From the beaches of the Algarve to the vibrant cities of Lisbon and Porto, Portugal has something to offer for everyone.

The country’s diverse attractions cater to a wide range of interests. History enthusiasts can explore ancient castles, monasteries, and UNESCO World Heritage sites, while nature lovers can enjoy the breathtaking scenery of the Douro Valley, the rugged cliffs of the Portuguese coast, and the serene beauty of the Azores and Madeira islands. For those seeking a vibrant urban experience, Lisbon offers a mix of traditional charm and modern amenities, with diverse markets, world-class restaurants, and a thriving arts scene.

Portugal’s popularity is also boosted by its friendly and welcoming people. The Portuguese are known for their hospitality and warmth, making it easy for newcomers to feel at home. Whether you’re visiting for a short stay or planning to relocate, Portugal’s unique blend of culture, history, and natural beauty makes it an ideal destination for various interests.

Benefits of Living in Portugal for American Expats

Affordable Cost of Living Compared to the USA

One of the main benefits of living in Portugal as an American expat is the affordable cost of living compared to the EU average. The cost of housing, food, transportation, and healthcare are all significantly lower than in the United States. For example, a three-course meal for two people at a mid-range restaurant costs around $50 in Portugal compared to $75 or more in the US.

Utilities such as electricity and water bills are also cheaper by about 30-40% on average.

Pleasant Climate All Year Round on the Iberian Peninsula

Another benefit that draws many American expats to Portugal is its stunning beaches facing the atlantic ocean, and pleasant climate (typical from Iberian Peninsula), with the climate in some regions of the Algarve being directly comparable to that of Southern California. With over 300 sunny days per year and mild temperatures throughout most seasons, it's no wonder that Portugal has become a popular destination for retirees seeking warmer climates. The Mediterranean climate also allows for outdoor activities such as hiking, swimming, and surfing all year round.

Rich Cultural Heritage and Diverse Cuisine

Portugal has a rich cultural heritage with influences from its former colonies including Brazil, Angola, Mozambique, and Goa. This diversity can be seen in its cuisine which includes seafood dishes such as grilled sardines and octopus stew as well as meat dishes like cozido (a hearty stew) and frango piri-piri (spicy chicken). The country also has a vibrant music scene with traditional fado music performances held regularly. Portugal is renowned for its great food, emphasizing traditional Portuguese cuisine and the appreciation for simple, unostentatious meals.

High-Quality (and Cheap!) Healthcare System

The Portuguese Republic has a high-quality healthcare system that provides universal coverage to all residents including American expats. The country ranks 12th out of 191 countries according to the World Health Organization‘s ranking of health systems.

Private healthcare is also available at an affordable price point compared to the US.

How healthcare works in Portugal

Portugal has a public healthcare system that provides free or low-cost medical care to all legal residents, including foreigners. The National Health Service (Serviço Nacional de Saúde) is funded by taxes and social security contributions, and it covers most medical services, including consultations, hospitalization, surgeries, diagnostic tests, and medications.

In addition to the public healthcare system, there are also private health insurance plans available for those who want additional coverage or prefer faster access to medical care. Private health insurance plans can range from basic to comprehensive coverage and are offered by several companies throughout the country.

Eligibility criteria for free healthcare in the European Union

To be eligible for free healthcare in Portugal, you need to be a legal resident with a valid residency permit or a European Union citizen with an EHIC (European Health Insurance Card). In some cases, you may also need to register with the municipality or a local health center and choose a general practitioner (médico de família).

Comparison with US healthcare costs

Compared to the US healthcare system, which is largely based on private health insurance plans and out-of-pocket expenses, the Portuguese public healthcare system offers significantly lower costs. While private health insurance plans can still be (relatively) expensive in Portugal, they generally offer much more affordable options than their US counterparts.

For example, according to data from the World Bank Group in 2018, total per capita health expenditure in Portugal was $2,785 compared to $10,586 in the United States. This means that Americans pay significantly more for their healthcare on average than Portuguese citizens do.

One of the biggest advantages of the Portuguese public healthcare system is its accessibility. With universal coverage provided by state-run hospitals and clinics across the country, residents have easy access to quality medical care.

Quality Education at Low Cost

Portugal's education system has been ranked as one of the best in Europe, with a focus on high-quality education that includes both theoretical and practical learning. The country has a strong emphasis on science and technology, with many universities offering degrees in fields such as engineering, computer science, and biotechnology. Portuguese universities are also known for their research capabilities.

Affordability compared to US education costs

One of the main reasons why Americans are moving to Portugal is because of the low cost of education. Compared to the United States, tuition fees for higher education in Portugal are significantly lower. For example, an undergraduate degree program at a public university in Portugal can cost around €1,000 per year while the same program at a private university in the US can cost upwards of $30,000 per year.

Availability of English-taught programs

Another advantage for American students is that many universities in Portugal offer courses taught in English. This makes it easier for international students who may not speak Portuguese fluently to study there without having language barriers.

Opportunities for international students

Portugal offers various opportunities for international students who want to study there. The country has several scholarship programs available for foreign students who wish to pursue their studies there. Graduates from Portuguese universities can apply for a residence permit which allows them to work or look for work within the country after graduation.

One of the main reasons Americans are moving to Portugal - and this is the #1 reason that we've learnt first hand from our clients - is the very low crime rates and the fear of violence and particularly, gun crime in the States.

According to the Global Peace Index, Portugal ranks as the 6th safest country in the world. In contrast, the United States ranks as the 129th safest country in the world, ranking below countries such as Honduras, South Africa and Haiti.

Looking at specific crimes, Portugal has significantly lower rates than the US for homicide (0.6 per 100k people vs 5.3), robbery (27.8 vs 86.5) and astonishing figures for assault (1.7 vs 248.9), where you are 146x more likely to be a victim of assault in the US compared to Portugal.

Reasons Behind Low Crime Rates in Portugal

Portugal’s mild climate and peaceful life make it an attractive place to live for many expats from around the world. But what makes it so safe compared to other countries?

The geographical features of mainland Portugal, such as the Estrela Mountains, contribute to the country's low crime rates by fostering close-knit communities and enhancing natural surveillance.

One reason could be that Portugal has a relatively low population density compared to other European countries like Germany or France. This means there are fewer opportunities for criminals to commit crimes without being seen or caught.

Portuguese cities and towns tend to be more walkable and pedestrian-friendly than many American cities, which can deter criminals who rely on cars or other vehicles for quick getaways.

Finally, Portuguese locals generally have a relaxed attitude towards life and are not as materialistic as citizens from some other countries might be - this could contribute to lower levels of violent crime related to wealth disparities.

Generous Tax Breaks and Affordable Cost of Living in Portugal

If you're an American looking to move abroad, Portugal has become a popular destination due to its generous tax breaks. As a foreign resident, you could benefit from the Non-Habitual Resident (NHR) program that used to offer significant tax exemptions on income earned outside of Portugal.

Tax Benefits Available for Foreign Residents (cancelled in 2024)

The Non-Habitual Resident (NHR) tax regime in Portugal was a beneficial tax program designed to attract expats to the country. It offered significant tax advantages for a period of 10 years to individuals who became tax residents in Portugal, provided they were not tax residents in Portugal in the previous five years.

Under this regime, foreign income such as pensions, dividends, royalties and interest from foreign sources could be exempt from Portuguese taxation, and certain types of Portuguese-sourced income can benefit from a special flat rate of 20%.

The NHR regime was particularly attractive to retirees, high-value-added service professionals, and individuals with income from a foreign source.

Examples on How Affordable It Is To Live Comfortably as an Expat

Portugal offers an affordable cost of living compared to many other European countries. While Lisbon and the Algarve tend to be more expensive, especially when it comes to housing due to high demand from expats, there are still plenty of affordable options available throughout the country.

For example, in much of Portugal it's possible to rent a one-bedroom apartment for around €500-€600 per month. Groceries are also relatively cheap compared to other European countries, with fresh produce readily available at local markets.

So as the rest of you can see, as long as your hobbies don't include collecting new pairs of jeans and motor racing, you'll likely be considerably better off financially living in Portgual.

Easy Residency Visa Pathways for Americans Moving to Portugal

Portugal offers several visa options for Americans who want to move here and obtain residency. The most popular is the Portuguese D7 ‘Passive Income Visa’ program, which grants residency rights to those who have a ‘passive’ foreign income of more than approximately €700 per month - this can include income from pensions or rental income on a property.

Lisbon, house of the longest bridge in Europe, located north, on the right bank of the Tagus River, offers a unique geographical and cultural appeal that attracts many expats. The river's significance is further highlighted by infrastructure developments like the Vasco da Gama Bridge over the Tagus River estuary, showcasing the city's modernization and cultural relevancy.

Other options include the D2 visa, which is designed for entrepreneurs who want to start a business in Portugal, and the HQA visa, which is intended for highly qualified professionals, such as doctors, scientists, engineers and other professionals (check here the Portuguese types of visas).

Requirements needed to obtain a residency visa

To obtain a residence permit in Portugal, applicants must meet certain requirements, usually related to having sufficient funds to support themselves and any dependents while living in Portugal.

The process involved when applying for a visa

The application process for a residency visa can seem lengthy and complex, however if you have the pathway clearly laid out for you, you'll be able to work through the process in a systematic manner and you shouldn't have any problems.

Applicants will need to provide various documents such as proof of income, criminal background checks, and medical insurance certificates. You may also be required to attend an interview with immigration officials. Once all necessary documents have been submitted, it usually takes 2-4 months before a decision is made on the application.

How long does it take before you receive your visa?

The length of time it takes to receive a residency visa varies depending on the type of visa being applied for and individual circumstances. In some extreme cases, it can take up to six months or more from the date of application until approval is granted, but 2-4 months is more common.

Retiring in Portugal from the USA: Visa Options for Retirees

Portugal has become an increasingly popular retirement destination for Americans due to its low cost of living. The cost of housing, great food, and healthcare is significantly lower than in the United States. For example, a couple can live comfortably on around $2,500 per month in Portugal. This makes it an attractive option for retirees who want to stretch their retirement savings.

Portugal's historical connections with the African coast have also influenced its culture and appeal, adding to its attractiveness for retirees.

Benefits Offered by the Portuguese Government for Retirees

The Portuguese government offers several benefits to retirees who move to Portugal. One of these benefits was the Non-Habitual Resident (NHR) program which provided tax incentives for foreign residents who retire in Portugal. Under this program, foreign-sourced income was exempt from personal income tax for ten years after becoming a resident.

Another benefit offered by the Portuguese government was the Golden Visa Program. This program granted residency permits to non-EU citizens who made certain investments in Portugal such as purchasing property or creating jobs. After five years of residency, investors could apply for Portuguese citizenship, however, please note, the Golden Visa scheme through property investmnt was discontinued (2024).

Requirements to Obtain a Retirement Visa

The most common type of ‘retirement visa' in Portugal is the D7 visa, however it is a misnomer to call it a ‘retirement visa'. The D7 is actually a passive income visa, meaning your income (or a part of it) needs to come from something other than work / a salary. This can include rental income from a property or dividends from a company, An 18-year-old can qualify for this visa if they have enough passive income, so therefore referring to it as a ‘retirement visa' is inaccurate.

To qualify for the D7 visa, applicants must meet certain requirements such as having sufficient funds to support themselves without working and having health insurance coverage for the first 4 months of their stay. They will also need to provide proof of their pension or other sources of income.

Considering a Move to Portugal? Contact us

Comparison with Other Popular Retirement Destinations

Compared to other popular retirement destinations like Mexico and Panama, Portugal offers several advantages such as its stable political climate, safe, crime-free environment, and high-quality healthcare system. English is widely spoken throughout the country making it easier for American retirees to integrate into society.

Remote working in Portugal from the USA: Visa Options for Remote Workers and Digital Nomads

Remote work visas allow digital nomads and remote workers to live and work in a foreign country legally. Portugal is one of the countries that offer this type of visa to attract foreign talent. The Portuguese government launched the D8 visa program, which allows non-EU citizens to apply for Portuguese residency whilst getting paid from employers or freelance clients outside of Portugal.

Requirements needed to apply for a remote work visa

To apply for a D8 visa, you need to prove that you have enough financial stability to support yourself during your stay in Portugal. At the time of writing, this was a little over €3,000 per month. Essentially, you must provide evidence that you can earn an income while living in Portugal without taking jobs away from locals.

Like the D7, you also need to show proof of health insurance coverage and have no criminal record.

Advantages of working remotely in Portugal

Portugal is becoming increasingly popular among remote workers because it offers a high quality of life at an affordable cost compared to other European countries. The country has excellent weather conditions, beautiful beaches, rich history, and culture. It is also known for its delicious cuisine and wine.

Moreover, English is widely spoken in Portugal, making it easy for Americans who do not speak Portuguese fluently to communicate with locals. The internet connection is reliable throughout the country too.

Language and Integration

The official language of Portugal is Portuguese, which is spoken by the vast majority of the population. However, English is widely spoken, particularly among the younger population and those in the service industry, making it relatively easy for foreigners to communicate and integrate into Portuguese society. This linguistic flexibility is a significant advantage for expats, as it eases the transition and helps in daily interactions.

The Portuguese national government also has implemented various initiatives to promote language learning and cultural exchange, making it easier for expats and foreigners to settle in the country. Language courses are widely available, and many communities offer free or low-cost classes to help newcomers learn Portuguese. Additionally, cultural exchange programs and community events provide opportunities for expats to immerse themselves in the local culture and build connections with their new neighbors.

The Portuguese language is also an important part of the country’s cultural heritage, with many literary and musical works being written and composed in Portuguese. By learning the language, expats can gain a deeper understanding of Portugal’s rich cultural traditions and fully appreciate the country’s artistic and literary contributions. Overall, while knowing some Portuguese will certainly enhance your experience, the widespread use of English ensures that language barriers are minimal.

Work and Business in Portugal

Portugal offers a range of opportunities for entrepreneurs and businesses, with a growing economy and a favorable business environment. The country is a founding member of the European Union and has a strategic location on the Iberian Peninsula, making it an ideal hub for trade and investment between Europe, Africa, and the Americas. This strategic position, combined with a stable political climate and a skilled workforce, makes Lisbon and the rest of Portugal an attractive destination for business ventures.

Opportunities for entrepreneurs and businesses

Portugal has a thriving startup scene, with many incubators and accelerators supporting innovative businesses. The country also offers a range of incentives for entrepreneurs, including tax breaks, funding, and mentorship programs. The Non-Habitual Resident (NHR) tax regime, for example, provided significant tax advantages for new residents, making it an appealing option for entrepreneurs looking to establish their businesses in Portugal.

Additionally, Portugal’s membership as a founding member in the European Union provides access to a large market and a range of funding opportunities. Entrepreneurs can benefit from EU grants and programs designed to support innovation and business development. The country’s robust infrastructure, including modern transportation networks and advanced telecommunications, further enhances its appeal as a business destination.

Support for startups and innovation

The Portuguese government has implemented various initiatives to support startups and innovation, including the creation of a startup visa program and a range of funding schemes. The country is home to a number of innovation hubs, such as the Lisbon Startup Hub and the Porto Innovation Hub, which provide resources and support for entrepreneurs and startups. These hubs offer co-working spaces, networking opportunities, and access to investors, creating a vibrant ecosystem for business growth.

Furthermore, Portugal’s universities and research institutions are actively involved in promoting innovation and entrepreneurship. Many programs and initiatives are aimed at supporting the development of new businesses and technologies, fostering collaboration between academia and industry. This strong emphasis on research and development ensures that Portugal remains at the forefront of technological advancements and business innovation.

To sum up, the country's favorable business environment, strategic location, and robust support for startups and innovation make it an ideal destination for entrepreneurs and businesses looking to thrive in Europe.

Why Portugal Is a Top Destination for American Expats

In conclusion, Portugal is an exceptional destination for American expats. With benefits such as free healthcare, quality education at low cost, and very low crime rates, it's no surprise that many Americans are choosing to move to Portugal. The tax breaks and affordable cost of living make it an attractive option for those seeking financial stability.

Furthermore, easy residency visa pathways are available for Americans looking to relocate permanently or work remotely in Portugal. Retirees can also take advantage of visa options specifically designed for them.

It's important to consider the pros and cons of moving to Portugal before making a decision. Uniquely American concerns and terms should be understood beforehand.

If you're considering a move to Portugal from the USA, we recommend doing your research, consulting with professionals who specialize in international relocation, and conducting a scouting trip before taking the plunge.

Considering buying property in Portugal? Click below to learn more about our property buying service.

Frequently Asked Questions

Can I work remotely in Portugal as an American?

Yes! Americans can apply for a remote worker visa that allows them to live and work in Portugal while employed by a company based outside of Portugal.

Is it difficult to obtain residency in Portugal as an American?

No, it's relatively easy compared to other European countries. There are several pathways made available from the national government, depending on your situation.

Are there English-speaking schools in Portugal?

Yes, there are many international schools that offer instruction in English.

What is the cost of living like in Portugal compared to the USA?

The cost of living is generally lower than major cities in the USA but varies depending on location and lifestyle choices.

Do I need to speak Portuguese fluently to live in Portugal?

While knowing some Portuguese will certainly help with daily life interactions, many people get by without being fluent as English is widely spoken especially among younger generations and bigger cities as Lisbon.

How many Americans immigrate to Portugal?

The number of Americans who have immigrated to Portugal, especially Lisbon, has been steadily increasing over the past few years. This trend can be attributed to various factors such as Portugal's affordable cost of living, pleasant weather, and friendly locals. Additionally, Portugal also offers a high quality of life and a vibrant cultural and tourism scene that attracts many American expats.

Why are so many Americans moving to Portugal?

Portugal has become a magnet for American expats, and it's not hard to see why. The country's rich history, stunning landscapes, and warm climate are just the tip of the iceberg. Portugal offers a high quality of life at a lower cost of living compared to many parts of the U.S. The Non-Habitual Resident (NHR) tax regime is another major draw, offering significant tax benefits for new residents. Plus, Portugal's safety record is one of the best in the world, making it an attractive destination for families and retirees alike.

How many American expats live in Portugal?

While the exact number fluctuates, it's estimated that over 7,000 American expats have made Portugal their home. This number has been steadily increasing over the years, as more and more Americans discover the unique benefits and charms of Portuguese life. The American community in Portugal is diverse, including retirees, digital nomads, entrepreneurs, and families.

Why are Americans retiring in Portugal?

Portugal has become a popular retirement destination for Americans due to its affordable cost of living, excellent healthcare system, and relaxed lifestyle. The country's mild climate is ideal for those looking to escape harsh winters. Additionally, the NHR tax regime offers attractive benefits for retirees, including potential tax exemptions on foreign income such as pensions. Plus, Portugal's culture is welcoming and friendly, making it easy for expats to feel at home.

Are Americans welcomed in Portugal?

Absolutely! Portuguese people are known for their hospitality and friendliness. Americans are generally very well-received in Portugal, with locals often going out of their way to help newcomers feel at home. English is widely spoken, particularly in larger cities and tourist areas, making it easier for American expats to integrate.

How many immigrants come to Portugal annually?

Every year, Portugal welcomes tens of thousands of new immigrants from around the world. This number has been on the rise, reflecting its growing reputation as a desirable destination for expats. The country's strong economy, high quality of life, and welcoming culture make it an attractive choice for individuals and families seeking a new home.

Where in Southern Portugal do most American expats live?

American expats in Portugal tend to gravitate towards areas with a high quality of life and vibrant expat communities. The capital city of Lisbon, the northern Porto municipality, and the southern Portugal region of the Algarve are particularly popular. These areas offer a mix of urban excitement, coastal beauty, and a relaxed lifestyle that many American expats find irresistible.

Is it better to live in Portugal or USA?

The answer to this question depends on personal preferences and circumstances. Portugal offers a relaxed pace of life, a lower cost of living, excellent healthcare, and a warm climate. The USA, on the other hand, offers diverse opportunities, familiarity, and a larger English-speaking environment. Both countries have their own unique advantages, and the choice between the two often comes down to individual lifestyle preferences and goals.

Why are rich people moving to Portugal?

Wealthy individuals are increasingly drawn to Portugal for its attractive tax benefits, particularly the NHR tax regime, which offers significant tax advantages for new residents. Additionally, Portugal offers a high standard of living, with luxury real estate, top-notch healthcare, and excellent education options. The country's safety, stability, and the availability of Golden Visa for property investors (while it's still running) also make it an attractive destination for affluent individuals.