Americans Moving to Portugal: Why & How They're Making it Happen

Are you an American citizen who has seen the hordes of expats moving to the beautiful, sun-drenched country of Portugal over the last few years? Well, that’s for a very good reason. Many Americans are moving to Portugal and I’m going to let you know why and how they’re making it happen.

In this complete guide, I’m going to tell you everything you need to know about being a US expat in Portugal and how to make your European dreams a reality. Let’s dive in and find out more.

Why are Americans Moving to Portugal?

First things first, why are Americans moving to Portugal anyway? While it might not be as flashy or famous as its neighbors Spain or other European nations like Italy or Germany, Portugal has it all.

With gorgeous beaches, a laidback Southern European culture, an amazing food and drink scene, affordable healthcare and education, bustling and historic cities, and great travel links around Europe and beyond, it’s no wonder that US expats are choosing Portugal as their new home.

Now, one of the biggest selling points of Portugal is the low cost of living. Portugal is frequently listed as the cheapest country in Western Europe and offers savings of between 40% and 50% versus the cost of living in the US. That’s huge.

Portugal is also ranked sixth on the Global Peace Index, which is reassuring for anyone looking for a new home country. After all, we all want to be safe!

When you add in the reputation that Portugal has created for being a hub for startups, tech, and digital nomadism, it’s a really exciting and affordable country to move to. One of the reasons Portugal is now so popular with expats is that it was one of the first countries to offer a Digital Nomad visa and capitalized on the boom in remote working both before and after COVID.

All this, and if you become a citizen, you’ll have full access to live, work, or study in all 27 EU member states! That’s pretty amazing, right?

What’s Expat Life Like in Portugal?

Honestly, expat life in Portugal is so chilled out! There’s definitely a slower pace, even in the big cities like Porto and Lisbon compared to the US. You can relax on the beach, have a huge delicious local lunch, or spend your evenings in cool jazz bars.

There are plenty of activities like surfing, kayaking, golfing, hiking, and more if you’re an outdoorsy person, and of course, the gastronomic scene is amazing. From the wine of the Douro Valley to Pasteis de Natas to fresh seafood from all along the coast, you know you’re going to eat well if you live in Portugal.

Realistically, your expat life in Portugal can be anything you want it to be, but definitely expect a laidback attitude and vibe to your new southern European life!

How Easy is it to Move from the US to Portugal?

It’s relatively easy to move from the US to Portugal and there are a lot of avenues that you can go down. Of course, it’s super easy if you have a job in Portugal or you’re a remote worker or digital nomad who can work overseas.

Portugal also has great visas and programs for investors and retirees as it’s a popular spot for those with passive income due to some very helpful tax laws.

As with any international move, you need to make sure that you’re eligible for one of the many visas on offer, however, with the digital nomad visa, moving to Portugal has just become a whole lot easier for many of us!

What’s the Cost of Living in Portugal?

As I’ve mentioned, the cost of living in Portugal is around 40-50% less than living in the US. This obviously depends on the city or state that you have been living in versus which city or region in Portugal you plan on moving to. Like every country, Portugal has more expensive areas and cheaper places to live.

So, let’s break down the cost of living in Portugal into its constituent parts, so you can compare and contrast versus what you’re spending at the moment.

Accommodation

As with many countries, the capital city is the most expensive place to live in Portugal. Lisbon is by far the most expensive place to live and a three-bed apartment in the city center will cost you around 2,500 Euros per month.

If you’re on a budget, you can get a one-bedroom apartment on the outskirts of the city for around 850 Euros per month.

So, considering this is the most expensive part of Portugal, you can already see that it’s really affordable compared to living in the US where the average one-bedroom apartment cost in Los Angeles is around $2,433 per month. You could literally get a three-bed in the heart of Lisbon for that price.

However, if you live in the city center of Porto, Portugal’s second city and gastronomic heartland, you can expect to pay between €500 to €750 for a one-bedroom apartment. On the outskirts of the city, this drops to €450.

Of course, the smaller the town or city, the lower the rent tends to be, but it’s clear that accommodation costs in Portugal are still ridiculously low.

In terms of utilities and bills, these also tend to be cheaper than in the US by around 50 Euros per month. This might not sound like a lot, but that adds up to 600 Euros across the year, which can easily be a month’s rent outside of Lisbon!

Transport

On the whole, transport around Portugal is very cheap and reliable. There are plenty of trains and buses around the main cities and connecting the towns and cities together. While public transport passes are normally around 30-40% cheaper than in the US, if you want to buy a car, it will likely cost more.

As Portugal imports all their cars and gas, they do tend to be a little bit more expensive than in the US. However, if you’re living in a Portuguese city or large town, they’re all designed to be walkable cities and you really won’t need a car. In fact, it might be more hassle trying to find parking!

If you’re looking to travel around the rest of Europe from Portugal, there are plenty of low-cost airlines flying out of Lisbon, Porto, and Faro. These can get you to London from around 30 Euros return and have routes all around the continent and into North Africa.

You can also jump on a bus or train and be in neighboring Spain in no time at all.

Groceries

Many expats and locals in Portugal use local markets to buy fresh produce and goods directly from local farmers. This ends up being cheaper than the supermarkets in a lot of cases and you only buy what you need, so it reduces food waste as well.

In terms of price, if you’re buying seasonal, locally-grown, or made produce, it’s going to be a lot cheaper than in the US. However, dried pantry goods and brand names tend to be a little bit more expensive due to import costs.

However, Portugal has so much amazing produce that you’re going to be spoiled for choice.

Healthcare

Like in many European countries, Portugal has socialized healthcare which means it’s extremely affordable, if not free. If you’re under 18 or a senior citizen, you don’t have to pay for treatment or appointments at all. Everyone else pays around five Euros for a GP appointment rather than the $100 in the US.

You can get private health insurance to avoid the sometimes lengthy waitlists and queues, but even still, this tends to be a lot more affordable than in the US. It’s important to remember that you have to be a legal resident of Portugal or a Portuguese citizen in order to access the public healthcare system, so you might need to buy private healthcare when you arrive in the country.

Schools

A great thing about Portugal is that schools are completely free! So, you can send your kids to a Portuguese school without worrying about expensive fees. Portuguese schools also have one of the highest English proficiencies in the world, ranking seventh in the world.

However, if you want your child to attend an international school, there are plenty of options all around the country. These are predominantly in the cities and will cost you around 6,000 Euros per year versus the $9,000 it would cost in the US.

Eating Out

With Portugal’s amazing gastronomic scene and culture rooted in fishing and agriculture, eating out is part of the Portuguese lifestyle. As such, it’s super affordable to eat out. You can get a coffee for a euro, a toasted sandwich for 2-3 euros, and a meal with wine for around 10 Euros.

Compared to the US, you wouldn’t get any change out of $20 for a meal with wine and coffee, which is going to be closer to $4-5 than a buck. With this being the case, it’s pretty common for expats and locals to eat out around three times a week. It’s also a great way to stay social and meet up with friends.

Drinking

If you like to party or just enjoy a nice glass of wine after a long day, you’re covered in Portugal. As there are two major wine regions in Portugal, you can get a bottle of local wine for as low as three euros and it’ll still taste great. You can go cheaper, but it probably won’t taste great.

Domestic beer costs around two euros in the bars, and is obviously more expensive in the city centers or touristy areas, so steer clear if you can. Overall, it’s super affordable to drink in Portugal, especially if you stick with the local wines, beers, and spirits.

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How to Move from the US to Portugal?

So, now you know all about the cost of day-to-day living in Portugal, let’s dive into how to practically make your new life in Portugal a reality.

How can you move from the US to Portugal, and what steps do you need to take? I’ve got you covered.

Finding the Right Visa

First things first, you need to make sure that you’re eligible for a Portuguese visa. If you don’t qualify for one of the following visas, you’re not going to be able to move to Portugal for any prolonged amount of time, and you’re not going to be able to work while you’re there. So, not ideal.

Work Visa

The most traditional way of getting a Portuguese visa is probably by getting a sponsored work visa. This is when a company offers you a job and vouches for you in the eyes of the government and essentially guarantees that you’re not going to become a burden to the state.

Not every company offers visa sponsorship as it tends to cost them money, so check before you apply for roles.

It’s important to remember that if you move jobs or companies while you’re in Portugal, you need to make sure that your new company is happy to take over the sponsorship of your visa. As with many temporary residence visas in Portugal, once you’ve lived here for five years, you can apply for your permanent residency permit.

Study Visa

If you’re planning on going to college or university in Portugal, you can apply for a student visa. You’ll need a letter of acceptance from your chosen institution as well as proof of funds and accommodation while you’re here.

You also need to get a resident’s permit when you arrive. Officially, the student visa that you get from the Embassy only lasts three months. During this time, you need to get your resident’s permit.

These permits last one year and you can renew them each year until you finish your studies.

D7 (Passive Income) Visa

As we’ve mentioned, Portugal is a great place to retire. With the sun, sea, and low living costs, it’s the ideal spot to while away those golden years. If you’re looking to retire in Portugal or live off passive income like real estate, pensions, equity, or intellectual property payments, you can apply for a D7 Visa.

Essentially, if you earn at least 760 Euros per month from passive income of any kind, including from your pension and you’ve found somewhere to live in Portugal, you can apply for this visa. It’s one of the most straightforward eligibility criteria I’ve seen for a visa in a long time!

Unlike the student visa, when you get a resident’s permit on a D7 visa, it lasts for an initial period of two years and then you can renew it for a further three years. This then brings you to the five years needed to apply for permanent residency.

Golden Visa

Sometimes called the investor visa, the controversial Golden Visa is designed for big spenders and foreign investors to call Portugal their home. Usually, you need to spend 500,000 euros either investing in tech or science research, real estate, arts or cultural reconstruction or creating 10 new jobs to the value of 500.000 euros.

The most common way to get this visa is to buy a property for 500,000 euros or more. It can be a private property or commercial property, and if it’s a “rehabilitation project” aka rundown or in need of a lot of work, the spending minimum drops to 350,000 euros.

It’s a lot of money, but if you have it to hand, you can buy a property outright to live in and then benefit from the lower cost of living, work in a European tech hub, and automatically get a five-year resident’s permit, so you don’t have to keep reapplying year-on-year like you have to with other Portuguese visas!

Family Visa

If you’re married to, are the registered partner of, or are the child (adopted or biological) of a Portuguese resident or citizen, you can apply for a Family Visa. The length of your resident’s permit in this case depends on your Portuguese partner. If they’re not a citizen, your resident’s permit will last as long as theirs does.

However, if you’ve been married for more than five years, your resident’s permit will last two years and then when you renew it’ll last for a further three years. It’s a complicated system and it relies a lot on your partner’s situation.

Digital Nomad Visa

So, as Portugal has been styling itself as a remote working hub, it’s no surprise that they were one of the first countries to announce a formal Digital Nomad Visa. Like many countries, Portugal’s Digital Nomad Visa has a minimum amount that you have to earn each month.

This equates to four times the national average and works out at $3,350 (€3,040) per month.

Previously, remote workers and digital nomads made use of the D7 passive income visa, especially if they were renting out a property back home or made passive income off their blogs or websites. That’s because the D7 Visa has a much lower monthly income requirement of 760 Euros per month.

Depending on the way your digital nomad business works, you might want to apply for a D7 visa instead. However, if you have to actively work for your income, you need to apply for a digital nomad visa instead.

Find Accommodation

Once you know that you’re eligible for a visa in Portugal and you’ve applied and been accepted, you can look at accommodation. Sometimes you might need to provide proof of accommodation as a part of your visa application, so check the requirements of your individual visa first.

If all else fails, you can put down an Airbnb or hostel that you plan on staying in initially until you find a more permanent situation.

I’ll dive deeper into how to find accommodation in Portugal and whether it’s better to buy or rent further down in this guide.

Ship Your Stuff

When you have an address, a valid visa, and a flight date, you can work out when you have to ship your stuff. You can either ship your items by sea or send them by air and while both have their pros and cons, if you’re using a boat, you need to plan much further in advance.

Again, I’ll delve into this in more detail further on in this guide, but it’s important to remember that you can buy the majority of house stuff when you land in Portugal, so it’s best to focus on sentimental items and one-of-a-kind items when it comes to shipping items.

The rest you can sell in the US before you leave and get yourself some much-needed money for your new life in Portugal!

How Can You Find Accommodation in Portugal?

Okay, finding accommodation in a foreign country can be tricky. After all, most nations have their own real estate websites that you might not know about and you might not be super aware of the different cities, regions, and districts that you can move to.

Rent

Most expats who move to Portugal will rent a property, at least initially. Even if you’ve traveled to Portugal a lot on vacation, it’s not the same as living there and you’re not going to be staying or working in the same kinds of areas.

You might want to rent for a couple of weeks to see which areas work best for your lifestyle. It also allows you to move on if the town or city is not for you.

The top rental website in Portugal is probably Idealista.pt, but you can always find short- and long-term lets on Airbnb if you’re still test-driving neighborhoods. If you’re completely unsure, check out your town or city’s local expat community forum – there will be one!

They’ll be able to let you in on the expat hotspots, the best areas, transport links, coffee shops – all that good stuff. If all else fails, you can contact local real estate agencies to help you find the perfect place.

Buying

If you can afford to buy a property in Portugal, it’s going to be the most cost-effective way of setting up your life in the country. Of course, make sure you’ve done your due diligence and know which areas you want to live in before pulling the trigger and paying that down payment.

Buying property in Portugal has its quirks, as with any country, so it’s always best to hire a real estate agent, especially if you don’t speak Portuguese. They’ll be able to walk you through the mortgage application process, put you in contact with property lawyers in the area, and just make sure the whole process is as seamless as possible.

Again, check the local expat forums for real estate recommendations!

What’s the Healthcare Like in Portugal?

The healthcare system in Portugal has actually been rated as one of the best in the world. With a combination of free or low-cost services and a mix of public and private healthcare options, you can definitely work out the best situation for you and your family when you move from the US to Portugal

Public

The public healthcare service in Portugal, known as SNS, is only available to residents and citizens, so it’s massively important that you apply for your resident’s permit as soon as you can. It might be worth purchasing some private healthcare insurance while you’re waiting for your permit paperwork to go through, just so you’re covered if anything happens.

The SNS is super affordable and covers dental services as well as traditional healthcare services. For example, a dental cleaning through the SNS will only cost you around 25 Euros, and if you’re under 18 or a senior citizen, SNS services are completely free.

Private

As with many free or low-cost healthcare systems, the SNS can often have long waiting times. So, many people opt to get private health insurance, especially retirees who have specific healthcare needs. Even so, you’re only looking at between 20-50 Euros a month for private health insurance.

It’s definitely worth getting private health insurance while you’re getting set up in Portugal and waiting to become a legal resident with an approved permit!

Can You Retire to Portugal as a US expat?

Simply put, yes you can retire to Portugal as a US expat. Many US citizens retire in Portugal thanks to the beautiful weather, expansive golf courses, stunning beaches, low cost of living, and free healthcare.

With the D7 passive income visa and Golden visa, there are designated paths for retirees to move to Portugal, and it’s super affordable.

Passive Income Tax Breaks

There is a program called the Non-Habitual Resident Program (NHR) in Portugal which allows you to have a series of tax breaks for up to 10 years while you’re living in Portugal. This is specifically geared toward expats on the D7 or Golden visas who are living in Portugal off their passive income, although it does also apply to remote work in some situations.

Essentially, if you’re eligible for the NHR program, you become exempt from taxes that are earned overseas including passive income like 401l, pensions, rental income, capital gains, or sometimes, remote work.

As with anything to do with tax or the IRS, I’d strongly advise getting a financial advisor to check out whether you’re eligible and what assets or income streams you can actually earn tax-free.

How Can You Ship Your Stuff from the US to Portugal?

Realistically, there are two ways of shipping your stuff from the US to Portugal. You can either ship your stuff via boat or you can send your stuff to Portugal on a plane.

There are pros and cons to both, so let’s compare and contrast.

Shipping vs. Flying

So, shipping your items on a boat is nearly always going to be cheaper than flying. However, it will take a lot longer. If you’re shipping by sea, you need to give yourself a couple of months to allow it to arrive in Portugal, so you need to be organized and pack up your house early.

The main perk of shipping by sea is the price. It’s at least three times cheaper than shipping by air. However, if you’re sending your stuff on a cargo plane, you can send it relatively last minute. It’s all about cost versus time and convenience and which is more important to you when you’re moving to Portugal.

Remember that shipping costs are largely done by weight, so if you can sell the heavier items before you travel, you can save a lot of money. Shipping costs for a Transatlantic family move can easily run up to 10,000 Euros.

For reference, shipping by sea costs around $1,200 for a 20ft container from New York to Lisbon. For 250kg on a plane, it’ll cost around $3,000.

Storage Costs in Portugal

If you’re not sure where you’re going to be living in Portugal or are staying in an Airbnb in the meantime, you’ll need to ship your items directly to a storage service. Realistically, there are very few storage services in Portugal so they can come at a premium, but small storage units can start from around 21 euros per month.

Bringing Pets to Portugal

If you’re planning on bringing your furry friend to Portugal, you’ll need to make sure that they have identification, are microchipped, and have been vaccinated against rabies. Dogs and cats have their own list of vaccinations that they’ll need to have met before they fly and your pet needs to arrive within five days of you arriving in the country.

There are also some dog breeds that are banned in Portugal, so keep this in mind:

Fila Brasileiro
Dogo Argentino
Pit Bull Terrier
Rottweiler
American Staffordshire Terrier
Staffordshire Bull Terrier
Japanese Tosa

What are the Pros and Cons of Moving to Portugal?

Now that we’ve gone through the different prices and processes of moving from the US to Portugal, here are some quick pros and cons to help you make your decision at a glance.

Pros

Low cost of living
Weather
Work-life balance
Access to Europe
Low crime rates
Great food and drink
Beautiful beaches
Expat community

Cons

Healthcare availability
Hard to get certain items in rural areas
Culture shock

Where are the Most Popular Places in Portugal for US expats?

Unsure about which area of Portugal to move from? There are some regions that have more expats than others, so here are some of the more popular expat hotspots in Portugal.

Algarve

The Algarve is 100% an expat favorite, especially with Brits, Germans, and US expats. The long sandy beaches, the clear waters, and the great flight links out of Faro make it super popular. It’s one of the sunniest places in Portugal, which makes it popular with families and retirees alike.

There are several beach towns all along The Algarve with their own distinct vibe and feel, with some being more touristy than others.

Lisbon

It’ll hardly come as a shock to see the capital of Portugal on this list. As a growing tech hub and remote worker hotspot, Lisbon has been attracting talent from around the world. Add into the mix the fantastic surf beaches all around the city’s local area, and you have an ideal work-life balance right here.

Of course, being the capital means that it’s the most expensive city, but if you love big city amenities and want to be near an airport with transatlantic routes readily available, you’re going to love Lisbon.

Porto

As Portugal’s second city and former capital, there’s a hugely historical and cultural vibe to this riverside city. If you’re a foodie, you’re going to love living here as it’s the home of Port Wine and is famous for its gastronomic scene.

If you’re looking for a big city feel without the price tag, Porto is an amazing option and you can easily fly around Europe from the city’s main airport that’s served by a ton of low-cost airlines.

Madeira

I haven’t spoken a lot about the Portuguese islands (of course, The Azores being the other Portuguese island chain), but it’s hard to ignore Madeira as an expat hotspot. Known as the Hawaii of Europe, Madeira is full of waterfalls, hiking routes, surf beaches, and amazing food and drink.

As it’s located in the Atlantic, off the coast of West Africa, Madeira has its own climate that’s warm and pleasant all year round. Rent in the capital. Funchal, averages between 650-900 Euros per month for a one-bed apartment, so it’s super affordable considering how much this place looks like paradise.

How Much Money Do You Need to Move to Portugal from the US?

Let’s be honest, international moves are not cheap. Although you can comfortably get by in Portugal for between 2000-3000 Euros per month depending on your home city, moving costs soon add up.

Shipping costs, visa fees, and the costs of vaccination and transport for pets compound pretty quickly. Considering you’ll need the first month’s rent plus the same again as a deposit, end up spending around $1,200 in shipping fees, $400-600 on airfare, and a couple of hundred on your visas and permits, you could easily be looking at 7,000-10,000 Euros depending on your situation,

Is it Safe to Live in Portugal?

As Portugal is rated highly on the Global Peace Index, coming in at sixth in the world, Portugal is a very safe country to live in. If you’re moving with kiddos in tow, you can be safe in the knowledge that the country has extremely low crime rates.

That being said, always be sensible, especially at night and in touristy areas where pickpockets might be lurking.

Are There International Schools in Portugal?

Yes, there are quite a few international schools in Portugal. The vast majority of them are in larger cities like Lisbon, Porto, Braga, Cascais, and The Algarve.

Although public schooling is free in Portugal, international schools cost around 6,000 Euros per child, per year.

Do I Need a Job to Move to Portugal?

No, you do not need a job to move to Portugal. You can apply for a D7 visa (passive income), a Golden visa (investor visa), a student visa, or a family visa if your partner or parent is a Portuguese resident or citizen.

If you’re thinking of applying for a job once you’re in Portugal, remember that you may need to swap to a sponsored work visa if your current visa doesn’t allow you to actively earn money in Portugal. It’s also worth noting that the minimum wage in Portugal is very low due to the low cost of living, so you might want to try and get an office job or a remote job where you can benefit from a higher wage.

Is Portuguese Hard to Learn?

Portuguese isn’t actually that hard to learn if you’re an English speaker. Both Portuguese and English have their roots in Latin so there’s a lot of crossover between the languages.

However, it’s not that similar to Spanish, French, or Italian, as many expats assume. It might come from Latin, but Portuguese definitely isn’t a Romance language!

There is more of an Arabic influence in the Portuguese language as there was a Moorish occupation across Portugal and southern Spain for centuries. This can come as a surprise for some expats who assume Portuguese will have a similar flow and vocabulary to Spanish.

It’s also worth noting that while there are crossovers between European Portuguese and Brazilian Portuguese, there are a lot of differences as well, so make sure you’re learning European Portuguese so that you don’t get caught out!

If you use Duolingo, there are two completely different courses, so you can ensure you’re learning the right variation for you!