How You Could Move to Portugal From the USA (in 7 Easy Steps)

So, grab a coffee (or a glass of Port), and let’s dive into what life in Portugal could look like for you. By the end of this, you might just be ready to say “goodbye” to the USA and “olá” to Portugal!

Step 1: Check Your Eligibility

Do you or your partner/spouse have an EU/EEA/Swiss passport? If so, you’re set. If not, explore these visa options:

The most common visas for Americans moving to Portugal are:

1. D7 Visa: Ideal for those with passive income. Think pensions, social security, rental income, dividends, or royalties. You’ll need at least €820 monthly (about $885) as an individual and more as a couple or family (discussed below). 
2. D8 Visa: Perfect for remote workers, contractors, and freelancers. The income requirement is higher: €3,280 per month (around $3,542) for an individual. More as a couple or family (discussed below). 
3. Golden Visa: Designed for investors and those with savings. Typically, you’ll need to invest €500k or donate €250k. This visa appeals to two groups:
   • Those with significant savings who don’t qualify for D7 or D8 visas.
   • People wanting a “backup plan” without moving full-time. You only need to spend 7 days a year in Portugal, so you could continue living in the US, only moving if you feel you have to. This is ideal for those that don’t really want to move. 
4. D2 Visa: For entrepreneurs ready to start a business in Portugal. Got experience running a company or a groundbreaking idea? This could be your ticket.
5. D3 Visa: Aimed at highly skilled professionals seeking work in Portugal. The challenge? Finding a company willing to hire non-EU citizens at American wages.

Each visa has its quirks and perks. We’ll dive deeper into the details later, helping you find the best fit for your situation.

Have Portuguese parents or grandparents? A citizenship application takes around two years currently, but you should consider submitting this anyway. There’s nothing to stop you from applying for citizenship and one of the above residency visas, if you meet the requirements for a residency visa as well. 

Key Takeaway: This is the deciding factor on whether you’ll be able to move to Portugal or not. Figure this out now. If you can’t find a suitable visa, start looking at other countries. 

Step 2: Choose Your New Home

Selecting your Portuguese home is an important decision. Ideally, you should visit Portugal first to see where is right for you, but not everyone has that luxury. 

Here’s an important point: if you apply for most of the residency visas mentioned above (with the exception of the golden visa) you’ll need to show proof of accommodation in Portugal when you submit your application. That means you’ll need to have rented or bought a property in Portugal (or have a friend/family member who’s willing to allow you to stay with them). Rental contracts typically (but not always) need to be one year or more in length. 

You could hop on a flight to Portugal and look for somewhere to rent. Again, not everyone has that luxury. What a lot of people do is they rent sight-unseen, doing viewings over Zoom or WhatsApp. It’s not ideal, but it’s just the way things work. 

Now in terms of places to live, you could live anywhere in Portugal. But that thought can be overwhelming. To speed things up, let’s focus on some of the most popular locations Americans choose to live in. 

Let’s explore some popular destinations to ignite your imagination:

The Algarve

The Silver Coast

Lisbon

Cascais

Porto

The Island of Madeira

Braga

The Azores Islands

Remember, these are just starting points. Take your time exploring. Your ideal Portuguese lifestyle awaits!

Coming with children? Start researching schools

For families, consider school options.

There are typically three options:

• Public (or state)
• Private
• International

Each has their pros and cons. 

If you are considering private or international, be aware that these options aren’t available everywhere in Portugal – there are a lot of options in Lisbon and the Algarve but fewer in, say, the middle of the Alentejo region. 

Deciding on the right school system and then the right schools can take a long time. It’s best to start this research well in advance.

Key Takeaway: Work out where you would want to live. You don’t have to live there forever, but you will likely have to rent somewhere for at least a year. If you have children, these will guide your decision considerably. 

Step 3: Really Dive Into Those Visa Options

As you contemplate your move to Portugal, understanding your visa options is crucial. Let’s explore the most popular choices for Americans seeking a new life in this sun-soaked corner of Europe.

The D7

The D7 visa, often called the “retiree visa,” is the go-to option for those with passive income. Whether you’re able to live off a pension, social security, dividends, royalties, or rental income, this visa could be your ticket to Portuguese residency. 

As of 2024, an individual only needs to show a monthly income of €820. Bringing a spouse/partner? Add 50% to that figure. Each dependent child? Tack on another 30%. It’s a straightforward path for those with steady income streams.

The Golden Visa

If you’re looking for a safety net rather than an immediate move, the Golden Visa might be your best bet. This unique option requires you to spend just seven days a year in Portugal, making it perfect for those who want a backup plan without committing to a full relocation. 

One big benefit of this is that you can avoid becoming a Portuguese tax resident by spending minimal time here – typically less than 183 days, but check with a tax advisor to confirm. 

As with the other visas, you’ll secure residency, gain access to Portuguese healthcare and education, and even pave your way to citizenship – all while maintaining the freedom to live elsewhere. Of course, you can spend the entire year in Portugal if you wish. 

Most applicants opt for investments in venture capital funds, but be prepared for a lengthy process. All that reading and due diligence takes time.

It’s also worth noting that this has a longer application process than other residency visas – the current backlog stretches beyond 18 months.

The D8

For digital nomads, contractors, freelancers, and remote workers, the D8 visa offers a means of moving to Portugal. Imagine living in a charming Portuguese village while earning US wages. With this visa, you can do just that, provided you can demonstrate a monthly income of €3,280. 

Bringing a spouse/partner? Add 50% to that figure. Each dependent child? Tack on another 30%.

There are a few challenges with this visa. Firstly, many companies allow their employees to work remotely in the US but not internationally. Speak to your manager, have a chat with Human Resources, and get them to speak to legal. It’s very common for companies to say yes to this only to change their minds later on. 

If that’s the case, you may need to find a new job or go start contracting for your current company instead of acting as an employee. 

D2

Entrepreneurs with their sights set on starting a business in Portugal should look into the D2 visa. While approval can be challenging due to the discretionary powers of immigration officials, a solid business plan that benefits the Portuguese economy could be your key to success.

There’s no capital requirement, no milestones to hit, and no need to hire anyone. In some ways, this is an incredibly attainable visa. However, the Portuguese authorities will be analyzing it heavily and looking to make sure you can actually achieve what you promise – the last thing they want is you running out of money and needing to rely on the Portuguese state. And realistically, it’s the last thing you should want to. 

D3

For those with specialized skills, the D3 visa caters to highly skilled workers. You’ll need to prove your qualifications or experience in a highly skilled field, secure an employment contract for at least a year, and earn an annual salary of around €20,000 or more.

This is easier said than done. Finding companies willing to take on a non-EU/EEA/Swiss citizen can be challenging to say the least. And then there are the wages? Wages here are lower, and although there is always room for negotiation, finding companies that pay American wages is going to be difficult. 

Ideally, you should start the job search now. See if there are companies willing to hire you and whether you would want to work there. 

Do I need a lawyer?

No, but it’s a really good idea – especially if you’re trying to move fast. Portuguese bureaucracy is incredibly complex and messy and while it is possible to figure out everything you need to do, it’s going to take a lot of time. That’s time you probably don’t want to waste. Besides, this isn’t something you want to get wrong. 

Other Considerations

Regardless of which visa you choose, there are some essential preparations to consider. 

• NIF Number: You’ll need a NIF number – a Portuguese tax ID. This can cost anywhere from €70 to €300 and typically takes a week to process, though some services offer 24-hour turnaround. That’s not a huge issue. 
• Portuguese Bank Account: You’ll also need a Portuguese bank account, which you’ll need to fund with about €9,840 for individuals – equivalent to a year’s worth of the Portuguese minimum wage. Expect this process to take two to four weeks. Unless you come to Portugal to open the account, expect to pay a company a around €200-400 to open it for you (depending on the company). 
• Proof of Address: Perhaps the most challenging requirement is securing a Portuguese address. This could be a property you own, a rental, or even an invitation to stay with a friend or family member. Given the current housing shortages and high demand, finding suitable accommodation can take time.

A word of caution about Portuguese properties: they often lack some of the modern amenities you might be accustomed to, such as central heating, air conditioning, or robust insulation. Newer properties tend to be better equipped, but even these may not meet the standards you’re used to in the US. Houses generally offer better noise insulation than apartments. Given these factors, it’s worth considering hiring a house hunter or buyer’s agent to help you find a suitable home more quickly. 

Key Takeaway: Really figure out which visa(s) you might qualify for. It’s a very good idea to speak to a lawyer (many offer a free initial call) to see what they suggest. 

Step 4: Can I Afford to Live in Portugal?

Let’s dive into the financial realities of life in Portugal. 

While the country’s minimum wage of €820 per month might seem appealingly low, it’s important to understand that this figure doesn’t paint the whole picture. Most people need more than this to live comfortably, especially in popular expat destinations.

Housing

Housing will likely be your biggest expense. In Lisbon, a one-bedroom apartment in the city center might set you back €1200 per month or more, while a similar place in Faro could range from €800 and upwards.

Note: the time of year can affect the availability and price of properties, particularly in the Algarve (it’s typically easier and more affordable to find a place to rent during the winter months).

If you’re looking to buy, take a look at properties for sale in Portugal for example in Lisbon, the Algarve, Porto, Braga, Coimbra, and Madeira to get an idea of prices.

Healthcare

Healthcare in Portugal is a breath of fresh air for many Americans. As a resident, you’ll have access to the public healthcare system, which is either free or comes with nominal fees (e.g. €5-20). Prescriptions are also much more affordable. Pre-existing conditions? No problem. Age? Not an issue. It’s a far cry from the American system.

That said, many expats opt for private health insurance to access private hospitals, which often offer shorter wait times for non-emergency treatments. You will also need insurance for your interview with AIMA (Portuguese immigration control). The good news? Health insurance in Portugal is significantly cheaper than in the US. 

Food & Drink

When it comes to food and drink, prepare for a pleasant surprise. A meal at an inexpensive restaurant might cost you €10-12, while a three-course dinner for two at a mid-range restaurant could be around €35-50. A domestic beer or a glass of wine at a bar? About €2-€5. Grocery prices are also generally lower, especially for local produce.

Utilities

Internet and cell phone services are both affordable and high-quality in Portugal. Expect to pay around €40 per month for high-speed internet, with speeds up to 1 Gbps available in most urban areas and even 10 gbps on specialist plans. However, it’s important to check that fibre internet is available before renting or buying a property — some parts of rural Portugal do not have this yet.

Cell phone plans are a bargain compared to the US, with prepaid plans starting around €10 per month and unlimited data plans available for about €30.

Education

If you have children, education costs vary widely. Public schools are free, save for some minor expenses like stationery and field trips. Private schools are more affordable than in many other countries, typically costing a few hundred euros per month. International schools, popular among expats, range from €500 to €1500 per month.

Transportation

Transportation costs depend on your lifestyle. Cars and gas are more expensive in Portugal, but you’ll likely drive less due to shorter distances and good public transportation. A monthly public transport pass in Lisbon or Porto costs around €40. If you do want a car, used car prices can be checked on standvirtual.com.

Overall, while some costs (like housing in popular areas) can be high, many expats find that their overall cost of living in Portugal is lower than in the US, especially when factoring in healthcare savings. With careful budgeting and smart choices, you might find that Portugal offers a high quality of life at a surprisingly affordable price.

Key Takeaway: Figure out whether you can afford to live in Portugal. Focus on property costs initially as this will be your biggest cost. 

Step 5: Figure Out Your Taxes

When planning your move to Portugal, it’s crucial to understand the tax implications. This often-overlooked aspect can significantly impact your financial picture, so let’s break it down.

If you decide to make Portugal your new home, you’ll likely be considered a tax resident. This means Portugal will want its share of your global income. The golden visa can be an exception to this rule, potentially allowing you to limit your time in Portugal. However, for most expats, Portuguese tax residency is a reality they’ll need to face.

Now, don’t panic about double taxation. The U.S. and Portugal have a tax treaty in place to prevent you from paying taxes twice on the same income. However, this doesn’t mean you’re off the hook for filing taxes in both countries. You’ll still need to report your income to both the IRS and the Portuguese tax authorities. Typically, taxes paid in one country can be used as a credit against taxes owed in the other, but the devil is in the details.

As of 2024, Portuguese tax rates range from 13.25% to 48%. It’s important to understand that this is a progressive tax system. If your income reaches into the highest bracket (currently €81,199 and above), you won’t pay 48% on all of your earnings. Only the portion of your income above that threshold will be taxed at the highest rate.

Given the complexity of international taxation, it’s not just advisable but practically essential to consult with a qualified tax advisor before making your move. Yes, it will cost you – expect to pay anywhere from €100 to €500 for a consultation. But consider this an investment in your financial future. The insights you gain could save you thousands in the long run and help you avoid potential legal pitfalls.

Key Takeaway: Work out your tax situation. Ideally, speak to an accountant or tax advisor to get a full simulation of what your final tax bill (between Portugal and the US) would look like. 

Step 6: Decide What to Take And What to Leave

One of the biggest dilemmas you’ll face when moving to Portugal is deciding what to bring with you and what to leave behind. This decision can have significant impacts on your moving costs, your initial comfort in your new home, and even your long-term satisfaction with the move. Here are some things to consider:

The Minimalist Approach: Selling or Storing Everything Many expats find it liberating to start fresh. Selling your possessions can provide extra funds for your move and eliminate the stress of international shipping. If you’re not ready to part with everything, consider putting items in storage. This gives you the flexibility to retrieve them later if needed.

The Middle Ground: Bringing Essentials This approach involves carefully selecting items that are either difficult to replace, hold sentimental value, or are significantly more expensive in Portugal. Think about:

• Family heirlooms and photos
• Favorite kitchen appliances (check voltage compatibility)
• Specific clothing items (especially if you’re particular about fit or style)
• Electronics (again, check voltage compatibility)

The Full Move: Shipping Everything While this ensures you have all your familiar possessions, it’s also the most expensive and complicated option. If you choose this route:

• Get quotes from several international moving companies
• Consider insurance for your shipment
• Be prepared for potential delays and customs procedures

Practical Considerations:

• Furniture: Large US furniture might not fit well in typically smaller Portuguese spaces.
• Appliances: Due to voltage differences, many US appliances won’t work in Portugal without converters. Even then, they don’t always work well or can have electrical issues. 
• Cars: You can import your car into Portugal, but whether it’s worth it will vary from car to car. Larger American cars are not only impractical in Portugal but also may attract higher taxes and fuel costs. 

Remember, Portugal has stores too! While certain items might be more expensive or different from what you’re used to, you can find most daily necessities. Many expats find that letting go of possessions and embracing a new, potentially simpler lifestyle is part of the adventure of moving abroad.

Pets

Of course, you’re bringing your four-legged friends with you to Portugal. They’re family, after all. But moving pets internationally isn’t as simple as booking an extra seat on the plane. There are practical considerations and preparations you’ll need to make well in advance of your move.

First and foremost, you’ll need to meet the EU’s pet entry requirements. This means ensuring your pet has a compliant microchip, a valid rabies vaccination (given after microchipping and at least 21 days before travel), and an EU Health Certificate. This certificate must be issued by an accredited veterinarian within 10 days of travel and then endorsed by the USDA. It sounds like a lot, and it is – which is why you should start this process at least 3-4 months before your planned move.

But perhaps the biggest challenge you’ll face is figuring out how to physically transport your pets to Portugal. This isn’t as straightforward as you might hope. Different airlines have vastly different pet policies. Some allow small pets in the cabin, while others restrict animals to the cargo hold. Some don’t accept pets at all.

If the thought of your beloved pet traveling in cargo sends shivers down your spine, you’re not alone. Some pet owners book passage on pet-friendly cruise ships to avoid air travel altogether. For those with the means, private jet charters offer the most comfortable option for pet travel. It’s a complex issue, and one that deserves thorough research based on your specific situation and your pet’s needs.

Key Takeaway: Figure out what you would bring and what you would keep. If you’re shipping items, get quotes in advance. Shipping options may be more limited if others are thinking the same thing. If you have pets, there’s no reason not to get all of their vaccinations and paperwork in order as soon as you decide you’re ready.

Step 7: Familiarize Yourself With Portugal

If you meet the requirements and can move to Portugal, congratulations! You’re on the cusp of an exciting new chapter. This could be your gateway to a new life in Europe. After five years of residency, you’ll be eligible to apply for Portuguese citizenship. While the process takes about two years, the reward is significant: an EU passport. This golden ticket grants you the freedom to live, work, study, and retire across the EU/EEA and Switzerland.

However, it’s crucial to approach this move with open eyes and realistic expectations. Yes, Portuguese visas are attainable, but Portugal isn’t the United States. There’s a lot to love about Portugal – the public healthcare system, the high level of safety, and the lower cost of living are often cited as major draws. But honesty compels us to acknowledge that there are areas where the U.S. excels – think customer service, convenience, day-to-day friendliness, job opportunities, and retail variety.

Portugal will not be a carbon copy of your life in the States, and that’s part of the adventure. To truly thrive here, you should make a concerted effort to adapt and learn the language. While it’s possible to get by in English, especially in expat-heavy areas, living in a linguistic bubble can limit your experience and integration.

Speaking of language, Portuguese is challenging – even for those with a background in Spanish. The pronunciation, in particular, can be tricky. Given that you’ll be juggling many aspects of your move, it’s a good idea to start learning before you arrive. Even basic proficiency will smooth your transition and daily interactions.

Beyond language, take time to familiarize yourself with Portuguese culture. Read up on both the upsides and the downsides. Many of these downsides are common across European countries, especially Portugal’s neighbors, but they’re worth considering nonetheless. You might encounter more bureaucracy, a slower pace of life, or find that homes lack some of the conveniences you’re accustomed to in the U.S.

Remember, no place is perfect. Portugal, like any country, has its strengths and weaknesses. But what it offers is a ticket to a new life – a chance to experience a different culture, a new language, and a European lifestyle. It’s an opportunity to broaden your horizons, challenge yourself, and potentially secure a future that spans beyond Portugal to the wider European Union.

Key Takeaway: Read up on the culture and start learning the language. After all, this will be your new home.