In recent years, Portugal has become an increasingly popular destination for Americans seeking a new place to call home. This trend is driven by a combination of factors that enhance the quality of life and offer a more relaxed and enjoyable lifestyle. From the mild climate to the rich cultural tapestry, Portugal presents a compelling case for Americans considering relocation. Following this tendency, Portugal Homes has spoken with several clients from the U.S. who have made the journey to Europe. We now have the opportunity to present you with a complete guide on what to expect when living in Portugal as an American citizen.
Why Living in Portugal is pleasant?
- Portugal's mild climate is embraced by a vibrant culture.
- A well-established expat community that welcomes newcomers and promotes cultural integration.
- The affordable living costs in Portugal will increase your quality of life.
- Financial benefits in Portugal provide a supportive framework for relocation.
- The country's excellent universal healthcare and education systems insuring extra peace of mind.
- A safe and politically stable environment contributes to the overall quality of life for expatriates.
- Portugal's rich history and diverse recreational opportunities, bringing new possibilities and experiences.
Portugal stands out for its high levels of English proficiency, despite often being grouped with Southern European countries like Spain and Italy, which typically have lower English-speaking populations. The country is frequently compared to Nordic nations like Sweden, Denmark, and Norway, which are celebrated for their exceptional English skills outside the Anglosphere. Not so bad, right? This, and many other reasons, will bring us to the conclusion of why there are so many American expats living in Portugal.
Let's not rush, though. Take the time to go through our exclusive guide on Living in Portugal as an American and discover how this can be the great experience of your life.
Why do Americans decide to live in Portugal?
One of Portugal's most attractive features is its climate. The country enjoys 300 days of blue skies and sunlight per year, mild winters and warm summers, particularly in the southern regions like the Algarve. This Mediterranean climate allows for an outdoor lifestyle year-round, perfect for those who appreciate the sun and the sea. With some of the best beaches in Europe and the world, Portugal perpetrates the idea of a laidback life. Of course, one can have the same beautiful appeal on the beaches of Los Angeles, California, but the prices you would pay for it would be 3 times higher. For a quick comparison, on the beach in Albufeira - Algarve, you would pay €2.00 for a 33cl glass of national beer, while the average in Los Angeles - California would be €7.00.
This brings us to another reason: safety. You could find similar affordable prices in a beach town in Central America, but what about the safety of your family? Portugal is one of the safest countries in the world, which is a significant consideration for Americans moving abroad. Since 2008, Portugal has consistently ranked as one of the safest countries globally, according to the Global Peace Index (GPI). Here, crime rates are meagre, especially in the capital, Lisbon. When compared with other European capitals, Lisbon is one of the safest places to be. The GPI, a highly respected ranking of peaceful countries, frequently places Portugal in its top 10 due to its low crime rates and stable political environment. In 2024, Portugal maintained its 7th position, the same as in 2023. Many American expats report feeling much safer in Portugal than in cities like New York, Miami, or Los Angeles.
Education is always an important topic, especially when one decides to move abroad with children. Portugal offers a robust system of schools - which includes public, international and private schools. Considered one of the best public-school systems in Europe, residents' children can benefit from the Portuguese education. In big cities like Lisbon and Porto, you will find numerous private and international schools catered to expat families. International schools often maintain a higher standard of education with larger educational coverage and a more personalised focus on each child, allowing them to flourish, grow, and develop individually. As of early 2024, the Portuguese capital hosts 27 international private schools. Higher education institutions in Portugal are well-regarded, and many offer programmes in English, making them accessible to American students.
In Portugal, the school year conveniently begins after the summer, similar to the United States. This alignment allows families moving from the U.S. to transition seamlessly without the disruption of a mid-year school change. American parents typically appreciate the continuity this provides, ensuring their children's education starts correctly in Portugal without losing or cutting short their school year. This scheduling harmony eases the adjustment process for the children, helping them settle into their new environment smoothly and maintain their academic progress uninterrupted.
Read more:
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Healthcare System in Portugal: A Key Benefit for Expats and Foreigners
However, this all pales in comparison to the importance of healthcare when an American citizen decides to move abroad. Living in Portugal as a resident grant you access to the Universal Healthcare system, known for its high quality and affordability. The Portuguese National Health Service (SNS) provides universal coverage at a fraction of the cost of the American healthcare system. Additionally, private healthcare is available and reasonably priced in Portugal, with some monthly plans costing as little as €25 for an adult around 30 years old in 2024.
Culturally, Portugal is rich and diverse, with a heritage that spans centuries. From the historic streets of Lisbon to the traditional Fado music and the vibrant festivals, there is always something to explore. The Portuguese are known for their warm hospitality, making it easier for newcomers to feel at home. The quality of life in Portugal is another major draw. The pace of life is generally slower and more relaxed compared to the hustle and bustle of many American cities. This, combined with a lower cost of living, makes Portugal an attractive option for those seeking a better work-life balance. The American dream may be an old tale in the U.S., but it is alive and well in Portugal.
Cost of Living in Portugal vs. the U.S.
Understandably, many Americans are leaving the United States to explore alternative places to live, given the significant increase in the cost of living within the country. On average, Californians spend more than $700,000 on a simple home, whereas with the same amount you would be able to buy a great property - even located at the heart of Lisbon. If you don't believe, you can see it for yourself here.
The truth is that the cost of living in Portugal is considerably lower than in the United States, even when compared with other European nations. Housing, in particular, is more affordable and one can say that this itself justifies living in Portugal as an American. Whether renting or buying, Americans will find that their money goes further in Portugal. Daily expenses such as groceries, dining out, and public transportation are also cheaper, allowing for a comfortable lifestyle without the financial strain often experienced in the U.S.
For comparison, see the chart Portugal Homes developed, with updated prices for 2024.
Indeed, Portugal does not offer the highest wages in Europe, with a minimum wage in 2024 set at €820. However, working remotely for a wealthier country like the U.S. allows individuals to earn higher wages while enjoying the Portuguese lifestyle and lower cost of living. For retirees looking to enjoy their golden years, Portugal is also an ideal destination - especially for those with passive income, or a good retirement pension.
This trend highlights Portugal's reputation for affordability, which is especially noticeable in everyday essentials such as groceries, dining options, and household bills.
Where Do Americans Live in Portugal?
Along with such a great country, you might ask where to live in Portugal as an American. The answer stretches through the cities of Lisbon and Porto, Cascais, and the Algarve region. As the country's capital, Lisbon has all the infrastructure of a big European city, which also includes Cascais, due to its notable proximity to Lisbon. In 2024, it became very common to walk through the Portuguese streets from North to South and hear Americans talking, laughing, and enjoying their life. The American expat communities in Portugal are everywhere but here are top locations where you will find them.
Lisbon
Lisbon, the capital of Portugal, is a vibrant city that seamlessly combines historic charm with modern amenities. Positioned along the banks of the Tagus River, Lisbon boasts picturesque river views and a lively ambience. Cradled among seven hills, the cityscape features closely packed buildings, creating a dense urban environment where skyscrapers are uncommon, and most structures average just four floors. Lisbon's city centre is predominantly composed of narrow cobblestone streets, with a few spacious avenues primarily situated in the flatter areas of the city.
A fun fact about Lisbon's hills: Recently, a series of memes have circulated on TikTok and Instagram, humorously highlighting how what seems like a 10-minute walk in Lisbon can turn into a significant journey due to the steep climbs required to reach your destination.
Lisbon's diverse neighbourhoods cater to various preferences, ranging from the bustling shopping district of Baixa to the bohemian atmosphere of Bairro Alto. The city is renowned for its charming cafés where one can enjoy a leisurely coffee, vibrant cultural events, and an exciting nightlife scene, making it an ideal choice for expatriates seeking a dynamic and culturally enriching urban experience.
Cascais
Just a few minutes' drive from Lisbon, Cascais is a charming coastal town renowned for its stunning beaches and luxurious lifestyle. It is a popular choice among expatriate families due to its safe environment and upscale living. Initially a quaint fishing village, Cascais has transformed into a vibrant tourist destination celebrated for its sandy beaches, bustling marina, seafood restaurants, and relaxed atmosphere. The town is conveniently connected to Lisbon via a direct train line, making it reachable in just 40 minutes. The "Cascais Line" also passes through other municipalities like Estoril, Lisbon's Las Vegas, as it is home to the famous Estoril Casino. In fact, the Cascais district is blessed with approximately 17 picturesque beaches along its coastline, with Guincho Beach and Carcavelos Beach particularly favoured by surfers for their outstanding waves.
Historically, Cascais gained prominence in the 1870s when King Luis I of Portugal and his royal court selected it as their summer retreat. The town boasts a wealth of Renaissance-era architectural treasures dating back to the 17th century, including notable landmarks such as the Palácio dos Condes de Castro Guimarães, Palacete Seixas, Casa Lencastre, and Casa de Santa Maria. Whether for a weekend escape or a seaside property investment, Cascais offers an ideal retreat from urban life.
Porto
Porto, also known as Oporto in English, located in the northern part of the country, is Portugal's second-largest city. It's globally renowned for its port wine and stunning architecture featuring the blue Portuguese tiles. Compared to Lisbon, Porto is smaller and more intimate but boasts a vibrant cultural scene and a growing expatriate community, making it increasingly popular among Americans.
Situated along the estuary of the Douro River, Porto extends westward to meet the Atlantic Ocean, a geographic feature that has profoundly influenced its development over centuries. It holds the distinction of being one of Europe's oldest urban centres, with roots tracing back to ancient times. Initially established as a Roman outpost known as Portus Cale, blending Celtic and Latin influences, this early settlement is believed to have contributed to the evolution of the name "Portugal" through linguistic development from Latin.
Porto's global renown stems not only from its historical significance but also from its association with the port wine. The metropolitan area, particularly the cellars of Vila Nova de Gaia, has played a pivotal role in the production, ageing, and worldwide export of this fortified wine, which bears the city's name.
The Algarve
The Algarve, celebrated for its picturesque coastline and sunny weather, is particularly beloved by retirees seeking comfort and tranquillity. Its abundance of golf courses, beautiful beaches, and laid-back atmosphere make it an ideal destination for enjoying one's golden years. With the second largest foreign community in Portugal, primarily consisting of UK citizens, the Algarve is well-equipped with stores and services catering to both Portuguese and English speakers.
Situated at the southernmost tip of continental Portugal, the Algarve is bordered by the Atlantic Ocean to the west and south. It was from Sagres Point in the Algarve that Prince Henry "The Navigator" launched Portugal's Age of Maritime Discoveries in the mid-1400s, significantly shaping the course of global history.
The region is renowned for its remarkably mild climate and abundant sunshine throughout the year. Along its stunning coastline, the Atlantic Ocean offers a spectrum of blue hues, with calm and warm waters perfect for leisurely swims and a variety of water sports. Faro, the capital district of the Algarve, hosts its own airport, serving as a primary gateway for the approximately 4 million tourists who visit the region annually.
Americans Retiring in Portugal
Retirement in Portugal is a fantastic choice due to its affordable cost of living, excellent healthcare system, and pleasant climate. The Algarve, in particular, has become a haven for retirees, offering a peaceful lifestyle with a wide range of activities to enjoy. The language barrier is not a significant issue in Portugal, as many Portuguese are highly fluent in English, making daily life easier for elderly residents, although learning basic Portuguese can still be beneficial and appreciated by locals.
However, while American expats can be found in the Algarve, it is not clear where most American expats live in Portugal. While specific locations favoured by American residents are not widely publicised, according to Portugal Statistics (INE), there were 9,772 American residents officially living in Portugal as of September 2023. Of these, 9,034 were in mainland Portugal, 450 in the Madeira Islands, and 288 in the Azores archipelago. This data underscores the significant number of expats who have chosen Portugal for its relaxed lifestyle compared to the United States.
Over the past decade, many Americans have taken advantage of Portugal's Non-Habitual Resident (NHR) tax regime, which offered substantial tax benefits for retirees, including a flat income tax rate of 20% on certain Portuguese-source incomes and exemptions on foreign-source earnings, such as pensions. Although the program was discontinued in 2023, rumours are circulating as of July 2024 about its potential return. Portuguese Minister of Finance, Joaquim Miranda Sarmento, has indicated the possibility of reintroducing the NHR, but with modifications. The new regime would aim to attract highly skilled professionals such as managers, architects, engineers, medical doctors, and dentists, focusing on salaries and professional income rather than dividends, capital gains, or pensions. This adjustment aims to foster the return of a valuable workforce to Portugal.
Buying a Property in Portugal as an American
After the far more affordable property prices, one of the most attractive aspects for Americans in Portugal is the lack of restrictions on property purchases. Buying a property in Portugal as an American is keen and accessible. Coupled with a straightforward purchasing process, has made the country a favoured destination for those looking to invest or relocate. Portugal offers a reasonable lifestyle without compromising on quality, thus providing a balanced blend of work and personal life.
In Portugal, the real estate investment process is simple and should not raise any concerns for US citizens. Once you identify your ideal property in Portugal and negotiate a price with the seller, the initial step involves making a reservation to demonstrate your intent to purchase and to prevent other parties from making higher offers, granting your lawyer the necessary time to verify the property licenses. Following the completion of the property checks, a detailed report is provided, and a promissory contract is requested by the seller. This contract encompasses all critical sale points and a comprehensive property overview. Once both parties agree to the terms, a second payment, typically 10% to 60% of the sale price, is required. This legally binding contract offers robust buyer protection, heavily penalising the seller if they choose to withdraw from the sale.
The transparency of the Portuguese property market and the comprehensive buyer protection measures make it an attractive option for American buyers. Portugal Homes provides invaluable support throughout each stage of the purchasing process, ensuring a smooth and hassle-free experience. Whether seeking an investment opportunity or a new place to call home, the Portuguese property market stands out as a premier choice for Americans.
Move to Portugal from the United States with Portugal Homes
We could expand this article further, truth be told, as Portugal offers numerous appealing options for accommodating the American lifestyle, whether for settling down with family or enjoying a peaceful retirement. Exploring the country firsthand or hearing from those who live and work there provides invaluable insights, making the appeal of Portugal undeniable.
The combination of scenic beauty, a pleasant climate, and a welcoming culture makes Portugal an ideal destination for US citizens looking for a new home. Recognising this growing interest, Portugal Homes is embarking on a tour across the United States in September 2024. Our CEOs, David Poston and Gary Harland, along with their Investment Advisory team, will visit various cities to offer exclusive one-on-one consultations. These meetings, typically lasting an hour, provide investors with detailed information on relocating to Portugal, including insights into property purchases and residency options.
David Poston and Gary Harland, both born and raised in the United Kingdom, chose Portugal as the perfect location to establish their joint venture, The Harland & Poston Group. Their flagship brand, Portugal Homes, specialises in real estate and residency by investment programmes, offering top-tier properties and investment solutions such as the Golden Visa and the D2 Visa, which can lead to Portuguese citizenship. For those interested in moving to Portugal, booking a consultation with Portugal Homes is highly recommended to secure expert guidance and support throughout the relocation process.
Read more:
Portugal Golden Visa and Dual Citizenship for Americans
Portugal Increasingly Becoming More Popular with U.S. Citizens
Direct Flights from the U.S. To Portugal: an Easy Option and Growing Trend
Moving to Portugal and Living as an Expat: Ultimate Guide
