Moving to Portugal from the USA

Nov 09, 2024

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The world is a book, and those who do not travel read only one page.

This saying resonates deeply with many Americans contemplating a move abroad.

Portugal is a small but vibrant country on Europe’s western coast.

It has recently become one of the most popular destinations for Americans who are ready to start fresh in a new place. 

Did you know that the number of Americans moving to Portugal has shot up dramatically?

In the recent year, there was a 239% increase in the number of U.S. citizens living there compared to just five years earlier.

Today, more than 10,000 Americans call Portugal home, and this number is expected to rise more in the upcoming years.

Why Portugal, you might wonder?

Well, imagine trading high-cost cities like New York or Los Angeles for affordable and scenic cities like Lisbon and Porto, where the cost of living is 50% lower.

In fact, the average rent in Lisbon is around €1,000 (roughly $1,100), which might sound steep by European standards.

But it is a huge relief if you are coming from U.S. cities where similar rentals easily exceed $3,000. 

On the other hand, Portugal offers a quality of life that’s hard to find elsewhere.

It’s no wonder so many Americans are asking themselves if they should make a move.

Portugal lets you escape the fast-paced American lifestyle.

To give an example, Portugal is the fourth country in the Global Peace Index; therefore, it can be considered one of the safest places to live in the world.

Therefore, no matter if you are attracted by the beaches or the cultural history of Portugal, it is a place that offers adventure and well-being.

But how can you move to Portugal from the USA?

How can you get a residency visa, set up a bank account, secure a NIF (a tax identification number), and learn about local customs?

This blog is all about helping you find the answers to the questions you have regarding your move to Portugal.

Why Are Americans Moving to Portugal?

The trend of immigration to Portugal from the USA has been on the rise.

But what's driving this movement? 

Affordable Cost of Living: Portugal is cheaper than many U.S. cities.  

For instance, living in Lisbon is about 56.3% cheaper than in New York City, even though the rent is 65.1% lower. 

Quality Healthcare: Portugal has a high-quality healthcare system that is easily accessible and inexpensive.

Private health insurance in Portugal is quite affordable, so many expats discover that private care costs them less than what they were paying back in the States. 

Pleasant Climate: Portugal has a relatively mild winter and warm summers, so you can visit throughout the year.

Safety: Portugal has a relatively mild winter and warm summers, so you can visit throughout the year. 

Portugal Residency for Americans

Before packing your bags, it is compulsory for Americans to understand Portugal residency.

Here's a breakdown of the most common visa options:

D7 Visa (Passive Income Visa)

It is ideal for retirees or those with a steady passive income.

Applicants must demonstrate sufficient income from sources like pensions, rentals, or investments.

The minimum required income is around €820 per month for the main applicant, €410 for a spouse, and about €300 for each dependent child. 

D2 Visa (Entrepreneur Visa)

This type of visa is for those who are looking to start a business or invest in Portugal.

It is intended to raise foreign investment to develop the Portuguese economy. 

Golden Visa

This program allows significant investors to obtain residency.

However, recent changes have removed investments in the real estate sector as a qualifying option. 

D8 Visa (Digital Nomad Visa)

For digital nomads, contractors, freelancers, and remote workers, the D8 visa offers a means of moving to Portugal.

Applicants must demonstrate a monthly income of €3,280. 

Living in Portugal as an American

Living in Portugal as an American offers a unique blend of familiarity and novelty.

Here's what you can expect to encounter:

Language: Portuguese is the official language, but many locals, especially in major cities, speak English.

Now, knowing basic Portuguese is not a must, but it can definitely boost your experience and integration. 

Culture: Portuguese culture is rich, with many customs and traditions revealed through festivals, music and cuisine.

The pace of life is generally more relaxed compared to the U.S.

Community: There are existing expat communities in Lisbon, Porto, and the Algarve which provide support and socialization opportunities. 

Expat Life in Portugal for Americans

The expat life in Portugal for Americans is enriched by various factors:

Social Integration: The Portuguese are known for their hospitality.

You can develop meaningful connections by engaging in local events and activities.

Activities: From exploring historic sites to enjoying the beaches and indulging in the local cuisine, there's no shortage of things to do.

Healthcare: Portugal's healthcare system is both public and private.

Many expats go for private health insurance, which is generally more affordable than in the U.S.

Moving Requirements for Portugal

If you are looking for a smooth transition, always be aware of the moving requirements for Portugal:

Visa Application: Depending on your chosen visa, gather necessary documents such as proof of income, health insurance, and a clean criminal record.

NIF Number: This is a tax identification number required for various transactions and it includes opening a bank account and signing a lease.

Bank Account: Opening a Portuguese bank account is essential for managing finances locally.

Healthcare Registration: While private insurance is recommended, but registering with the public healthcare system can provide additional coverage.

US to Portugal Moving Guide

Here's a step-by-step US to Portugal moving guide:

Research and Planning: Visit Portugal to explore potential living areas and understand the local culture.

Choose a Visa: Determine which visa aligns with your situation and begin the application process.

Financial Preparation: Always check you have sufficient funds to cover initial expenses and meet visa requirements.

Organize Logistics: Plan the shipment of personal belongings, arrange temporary accommodation and book flights.

Settle In: Upon arrival, complete necessary registrations, such as obtaining your NIF, opening a bank account, and registering with local authorities.

Costs of Moving to Portugal from the USA

Moving to Portugal from the USA is an exciting venture, but it's essential to have a clear understanding of the associated costs.

Let's break down the expenses you'll encounter. 

Pre-Move Expenses

Before you even set foot in Portugal, there are several costs to consider:

Visa Application Fees: Your visa fees can vary depending on the type of visa you apply for. 

Document Preparation: Gathering necessary documents such as birth certificates, marriage licenses, and academic records may require notarization, apostille, and translations, and each document has its own fee.

Travel Expenses for Preliminary Visits: It's advisable to visit Portugal beforehand to explore potential living areas.

Costs will include airfare, accommodation, transportation, and daily expenses during your stay.

Shipping Personal Belongings

What to bring and how to transport it is a significant part of the moving process:

Shipping Methods:

Sea Freight: It is ideal for large shipments and typically takes 4-6 weeks.

Air Freight: It is faster but more expensive and suitable for smaller and urgent items.

Cost Estimates:

Sea Freight: Shipping a 20-foot container can range from $3,000 to $5,000, while a 40-foot container may cost between $5,000 and $7,000.

Air Freight: Prices depend on weight and volume, but expect higher rates than sea freight.

Insurance: It is essential to protect your belongings during the move.

Insurance costs are usually a percentage of the declared value of your goods.

Airfare

The cost of flights to Portugal depends on various factors:

One-Way Ticket Prices: It ranges from $500 to $1,500 and is influenced by the airline, booking time, and season.

Additional Baggage Fees: Airlines have different policies on baggage allowances; extra or overweight luggage can have additional charges.

Temporary Accommodation

Upon arrival, you might need temporary housing while searching for a permanent residence:

Short-Term Rentals: Options include hotels, hostels, Airbnb, or serviced apartments.

Cost Estimates:

Hotels: €70 to €150 per night, depending on location and quality.

Airbnb: €50 to €100 per night for a private apartment.

Initial Living Expenses

Setting up your new home involves several initial costs:

Security Deposits: It is equivalent to one or two months' rent.

Utility Setup: Connecting electricity, water, gas, and internet involves setup fees ranging from €100 to €300.

Furniture and Appliances: If your rental is unfurnished, furnishing a one-bedroom apartment can cost between €2,000 and €5,000. 

Legal and Administrative Fees

Handling the legal landscape requires certain expenditures:

NIF (Número de Identificação Fiscal): It is integral to get a tax identification number for various transactions. The fees can range from €10 to €20.

Residency Permit Fees: After your visa approval, applying for a residency permit involves additional costs, between €50 and €100. 

Translation and Notarization: Official documents may need to be translated into Portuguese and notarized, and the cost is based on document length and complexity.

 Overall Estimated Costs

Expense Category Estimated Cost Range (USD)
Visa Application Fees $100 - $200
Document Preparation $200 - $500
Preliminary Visit Expenses $1,500 - $3,000
Shipping (Sea Freight) $3,000 - $7,000
Airfare $500 - $1,500
Temporary Accommodatiom $1,000 - $3,000
Initial Living Expenses $2,500 - $5,500
Legal and Administrative Fees $100 - $300
Miscellaneous Expenses $500 - $2,000

Total Estimated Cost: Approximately $9,400 to $23,000

Note: These figures are estimates and can vary based on individual circumstances and choices.


Frequently Asked Questions (FAQs)

Yes, Americans can freely buy property in Portugal. In fact, purchasing property may qualify you for the Golden Visa program, depending on investment thresholds. Portugal’s real estate market is quite accessible.

American retirees benefit from Portugal's affordable healthcare, lower cost of living, and 10-year non-habitual resident (NHR) tax program, which can provide favorable tax rates on foreign income.

While Portugal has a public healthcare system that residents can access at reduced rates, it’s not entirely free. Most expats supplement this with affordable private insurance for faster access to services and additional coverage options.

Yes, you can bring pets to Portugal, but they must meet certain requirements, including microchipping, rabies vaccination, and an EU health certificate issued within 10 days of travel.

Yes, U.S. citizens are required to file taxes annually with the IRS, even when living abroad. However, you may benefit from foreign tax credits or the Foreign Earned Income Exclusion (FEIE) to avoid double taxation on your income earned in Portugal.