Relocation Guide for US citizens moving to Portugal:
An overview of the key aspects you need to know.
Portugal has become one of the most attractive destinations for US citizens seeking a safer and more fulfilling lifestyle, whether for a seamless retirement, a strategic investment opportunity, or simply a new chapter in life. With its blend of breath-taking landscapes, world-class healthcare and welcoming communities, Portugal is more than a place to live—it’s a place to thrive, but moving across the Atlantic implies many considerations, and navigating the legalities, tax implications, and residency options is crucial to making the transition as smoother as possible.
1. Visas and Residency Options
Golden Visa [More info here.]
The Golden Visa program is designed for non-EU nationals who are willing to make qualifying investments in Portugal, with the following benefits:
• Visa exemption to enter Portugal and travel within the Schengen Area: the possibility to travel freely throughout the Schengen countries without the need for additional visas.
• Opportunity to live and work in Portugal: Portugal ranks highly on the Global Peace Index, being considered one of the safest countries in the world. It also offers access to a high-quality and internationally prestigious education system, as well as a universal public healthcare system.
• Minimal stay requirements: only a minimum stay of 14 days is required in the first 2 years and 21 days in the following 3-year periods, which averages to 7 days per year.
• Family Reunification: allows direct family members, such as the spouse and children, to also benefit from a residence permit.
• Opportunity to obtain permanent residency after 5 years.
• Possibility to apply for Portuguese nationality by naturalization after 5 years: beneficiaries can apply for Portuguese nationality, provided they meet the legal requirements for naturalization, becoming a holder of one of the “five most powerful” passports in the world.
• Possibility to avoid tax implications: considering the minimal stay requirements, the Golden Visa is the only residence permit in Portugal that allows the beneficiary not to become a tax resident in Portugal (as they do not meet the fiscal requirements), which would entail taxation on worldwide income. Obtaining legal residency through the Golden Visa does not imply becoming a tax resident.
Investment options include:
• Capital transfer in the amount of EUR 500,000 or more, intended for the acquisition of shares in non-real estate collective investment vehicles, established under Portuguese law.
• An international capital transfer in the amount of EUR 500,000 or more, intended for the establishment of a commercial company with its headquarters in the national territory, combined with the creation of 5 (five) permanent jobs, or for the reinforcement of the share capital of an already established commercial company with its headquarters in the national territory, with the creation of 5 (five) permanent jobs or the maintenance of 10 (ten) jobs, with a minimum of 5 (five) permanent jobs, for a minimum period of three years.
• Creation of at least 10 jobs in Portugal.
• An international capital transfer to Portugal in the amount of EUR 500,000 or more, to be applied in research activities carried out by public or private scientific research institutions, integrated into the national scientific and technological system.
• An international capital transfer in the amount of EUR 250,000 or more, to be applied in investment or support for artistic production, restoration, or maintenance of the national cultural heritage.
Applicants are required to maintain their investment for at least five years. After this period, Golden Visa holders may apply for permanent residency or citizenship. The program only requires minimal stay periods (14 days every two years), which is advantageous for those who do not intend to reside in Portugal full-time.
D7 Visa (Passive Income Visa) [More info here.]
The D7 Visa is ideal for retirees or individuals with passive income streams, such as rental income, dividends, or pensions. To qualify, applicants must prove they have a stable income that meets or exceeds Portuguese minimum wage requirements:
• Proof of Income: Demonstrating income from pensions, investments, or other regular sources.
• Minimum Income Requirement: Roughly € 870 (for 2025) per month for a single applicant, with additional amounts for dependents.
• Renewal and Residency: After two years, the visa can be renewed for an additional three years, after which applicants may apply for permanent residency or citizenship.
Digital Nomad
Portugal has introduced a Digital Nomad Visa for remote workers employed by foreign companies.
Requirements include:
• Minimum Income Requirement: Roughly four times the Portuguese minimum wage (approximately €3,480 per month for 2025).
• Proof of Remote Employment: Employment contracts, freelance contracts, or proof of self-employment.
• Application Process: Apply at a Portuguese consulate with required documentation, including proof of income, health insurance, and proof of remote work capability.
For both D7 and Digital Nomad Visa, the applicant must not be outside Portugal for more than 6 consecutive months or 8 non-consecutive months during period of validity of the residence card. The applicant should be in Portugal for 16 months during the initial 24 months period residence card, provided there are no consecutive 6 months of absence.
2. Taxes
General Tax Obligations
Portugal taxes its residents on the basis of their worldwide income. Common taxes include:
• Personal Income Tax (IRS): Progressive rates up to 48% on income, with additional surcharges for higher incomes.
• Investment Tax: Generally a flat rate of 28% on capital income and gains from selling securities.
• Property Taxes: Property ownership incurs an annual municipal property tax (IMI) and possibly an additional property tax (AIMI) for high-value properties.
• Wealth and Inheritance Taxes: No wealth tax, and inheritance tax only applies to non-immediate family members at a 10% rate and only covering Portuguese assets.
Under the Double Taxation Agreement between Portugal and the U.S., you can avoid paying taxes twice on the same income. Since U.S. citizens are taxed based on nationality and Portuguese residents are taxed based on residence, the Agreement provides specific tax credit methods to prevent double taxation. Reach out to us for personalized tax guidance to ensure you’re maximizing these benefits.
New Tax Regime for Impatriates. The Ifici + Tax Regime [More info here.]
The IFICI program will replace the NHR scheme starting in 2024, offering tax incentives aimed at attracting foreign residents to Portugal. Key features and benefits of the IFICI include:
• Flat Tax Rate on Portuguese Income: A reduced, flat rate for income earned from high-value professional activities, which will be specified in a list set by the Portuguese tax authority. This may apply to areas such as scientific, technical, and creative professions.
• Taxation on Foreign Income: For eligible participants, certain types of foreign income (dividends, interest, royalties, capital gains, and foreign professional income) may benefit from exemptions, as long as income is not derived from blacklisted territories.
• Eligibility Requirements: The program will likely require participants to prove they were not tax residents of Portugal in recent years (typically five years before application), register with the Portuguese tax authority and qualify professionally.
• Duration of Benefits: This new scheme is anticipated to offer benefits for a set period, such as 10 years, encouraging skilled professionals and retirees to establish long-term residence in Portugal.
In order for this new regime to entry into force the Government will have to regulate it which should occur in 2024.
3. Healthcare System
Public Healthcare (SNS)
Portugal’s Serviço Nacional de Saúde (SNS) provides residents with access to free or low-cost healthcare. Key points include:
• Access: Public healthcare is accessible to legal residents, including holders of visas with residency status.
• Services: The SNS covers primary care, hospital care, emergency services, and specialized treatments. While quality is generally high, wait times for non-urgent procedures can be lengthy.
• Costs: Most services have low co-pays, although some services may incur additional fees depending on the individual’s income and residency status.
Private Health InsurancePublic
Many expatriates supplement SNS access with private insurance to receive faster care and access to private hospitals and clinics. Common options for private insurance include:
• Coverage Options: Plans vary widely and can include basic coverage to comprehensive plans with extensive treatment options.
• Insurance Providers: Options include both local insurers and international companies offering expat-focused policies.
• Costs: Premiums depend on age, health status, and chosen coverage, with plans often ranging from €400 to €3,000 per year.
4. Citizenship
Pathways to Portuguese Citizenship
After five years of residence, residents may apply for Portuguese citizenship. Key steps include:
• Residency Requirement: Maintain legal residency in Portugal for five consecutive years. Golden Visa holders meet this with minimal stay requirements, while others need a more substantial presence.
• Language Test: Applicants must pass an A2-level Portuguese language test, demonstrating basic conversational and written Portuguese.
• Community Ties: Evidence of integration, such as property ownership, social connections, or professional engagement, may be beneficial.
Benefits of Portuguese Citizenship
• EU Mobility: Portuguese citizens have the right to live, work, and travel freely across EU countries.
• Welfare Services: Access to social security benefits, public health, and educational systems across the EU.
• Voting Rights: Citizenship grants the right to vote in Portuguese elections.
5. Property Renting/Purchasing
Renting Property
Renting is a common first step for new residents. Key points include:
• Lease Terms: Typical leases run for one year and are often renewable. Many landlords offer long-term leases, which provide greater tenant protections.
• Rental Prices: Prices vary widely depending on location, with Lisbon, Porto, and Algarve generally more expensive.
• Utilities and Maintenance: Tenants are typically responsible for utilities, and certain maintenance costs. Make sure to clarify terms with the landlord in the lease.
Purchasing a Property in Portugal [More info here.]
Portugal allows foreigners to buy property without restrictions. Key costs and steps include:
• Property Transfer Tax (IMT): A progressive tax based on property value, ranging from 0 to 7.5%.
• Stamp Duty: A flat rate of 0.8% of the property’s purchase price.
• Notary and Registration Fees: Additional costs for legal processes and registration typically range from €1,000 to €2,000.
• Legal fees: Typically 1% of the transaction value.
We are ready to assist you all the way through which is our motto and to ensure you have a smooth landing into Portugal, from navigating residency options to optimizing your investments and assure the most efficient tax planning.