11 Reasons to Move to Portugal from USA in 2022

2022 is a perfect time to consider a move to Portugal from USA.

And why not, because Portugal is rapidly becoming one of Europe’s most popular relocation destinations.

This small Atlantic country has so much to offer, from scenic destinations like the Algarve, Silver Coast and Madeira, to generous tax breaks for remote workers and online business owners.  Not only that, but the cost of living in Portugal is one of Western Europe’s lowest.

For those who move to Portugal from USA for the long-term, there’s the option to apply for Portuguese citizenship after just five years – one of the fastest timelines in the European Union.  

Having dual citizenship can bring you some awesome benefits, including more freedom of travel, better scope for tax planning, increased quality of life, and access to a safe haven.

Armed with an EU passport, you’ll benefit from freedom of movement across the entire Eurozone. That includes not just freedom of travel, but the full rights to live, work, study and retire across all countries in the EU. 

So, without any further ado, let’s dive in and look at 11 reasons to move to Portugal from USA in 2022.  

1. Political stability 

Are you fed up with constant conflict between Republicans and Democrats? Are you concerned that Trump might somehow get back into power in 2024? Alarmed by recent threats to attack women’s rights by revoking Roe vs Wade?

If you move to Portugal from USA, you can leave all of those stresses behind.   

Portuguese politics isn’t perfect either, but as a foreigner in Portugal, you won’t have to deal with constant anxiety about the country’s political direction. What’s more, Portugal is politically stable and lacks the toxic polarization that presently characterizes the United States.  

And if you’ve had enough of sovereign citizens, QAnon obsessives, and anti-vaxxers, then a move to Portugal from USA will make for a refreshing change of pace. 

Move to Portugal from USA
Traditional Portuguese blue and white tiling

2. Free healthcare 

Europe has long been known for its state healthcare, and Portugal’s no exception. When you move to Portugal from USA and become a resident, you’ll be eligible to access free good quality healthcare anywhere in the country. If you still prefer to go private, health insurance in Portugal is very affordable compared to the US.  

Also, health issues don’t get as politicized as they do in the US. For example, Portugal legalized abortion in 2007 (albeit very late compared to the rest of Europe). The country held a referendum on the issue in February 2007 with 59% voting in favor of legalization. Now women are much safer, as the number of deaths from complications has reduced to zero.  

Then there’s the drug issue. In 2001, Portugal became the first country in the world to decriminalize the consumption of all drugs. Since then, it has seen dramatic drops in overdoses, HIV, and drug-related crime.   

3. Guns, yet low gun crime 

You might be surprised to discover that Portugal has some of the most relaxed gun ownership laws in the EU. Portuguese citizens can own guns for hunting, target shooting, pest control and collecting.  

There’s even a permit for self-defense, but it’s hardly ever granted to civilians. This policy has caused tensions between Portugal and the rest of the EU, which has far more stringent laws on gun ownership, such as the EU Gun Ban

Despite all this, gun crime in Portugal remains extremely low. Mass shootings on a United States scale are practically unheard of. In 2016, Vice News tracked all the mass shootings across Europe. Portugal featured only twice. In both instances, five people were injured. None died.  

In the same year, the USA had 133 mass shootings within just 164 days, including the notorious Orlando nightclub attack in which 49 people were killed. 

4. Safer food

Thanks to EU regulations, Portugal has significantly stricter sanitary and animal welfare standards than the US.  

For example, the US uses chemical washes such as chlorine, growth hormones in animal feed, genetically modified foods that aren’t labeled and pesticides that are banned in the EU. That means no chlorinated chicken or high fructose corn syrup.  

In some regions, such as Madeira, locally grown produce (such as bananas and avocados) is plentiful and low-cost. Produce that doesn’t grow in Portugal is often brought in from nearby Spain, reducing environmental costs in terms of transportation. 

5. Easy immigration pathways  

Now let’s look at how to get into Portugal as a US citizen. For starters, all US citizens can enter Portugal visa-free as tourists for stays of up to 90 days.

During that period, you can use your 90-day allowance to travel freely across other countries in the Schengen zone.  

For those who want to stay in Portugal for the long term, the two best options are the D7 visa or the Golden Visa. Let’s take a quick look at what each one involves. 

Move to Portugal from USA
Lisbon rooftops

The D7 Passive Income Visa  

The first is the D7 visa, often known as the ‘passive income’ or ‘retiree’ visa. In fact, this flexible immigration pathway goes beyond just passive income or pensions.  

The D7 is also a good fit for remote workers and online business owners. Portugal allows those working remotely with an overseas employer to be eligible for D7, as well as online business owners who draw their income in dividends. 

The most important factor in getting the D7 is showing proof of income, and, depending on the embassy, proof of having enough savings in the bank. Income levels are based on the equivalent of the Portuguese minimum wage, which at €665 per month is one of the lowest in the EU.  

The Portuguese government wants to know that D7 applicants can support themselves in Portugal without needing to ask for state funds. If you can do that, and don’t have a criminal record, then the D7 visa is easy to get. 

The initial D7 residency is valid for two years. After that, you’ll need to renew your status again for a further three years, which means showing evidence of sufficient income and savings. Once you hit the five-year residency mark, you’ll become eligible to apply for permanent residency or citizenship.  

It’s important to note that getting residency with the D7 visa means that Portugal should be your main home. You’ll need to become a Portugal tax resident and declare your worldwide income to Portugal every year, although you won’t necessarily have to pay tax on it. 

We’ll take a closer look at the tax implications in the next section, after looking at one more useful type of visa. 

The Portugal Golden Visa  

The second immigration pathway is via Portugal’s residency by investment program, known as the Portugal Golden Visa. It gives you immediate residency for five years, which will take you all the way to being eligible for permanent residency or citizenship.  

In return, the government of Portugal wants you to make a significant investment in the country. The most commonly used option is real estate, but there are also opportunities to invest in venture capital funds, arts and heritage projects, or simply deposit €1.5 million into a Portuguese bank. 

Portugal has one of Western Europe’s lowest costs of living. Hence, real estate investment thresholds can be quite affordable, ranging from €280,000 in low density areas of the country to €500,000 for any sort of real estate in eligible areas of the country. Lisbon, Porto, and some of the Algarve region are no longer eligible for Golden Visa investment in 2022.

Perhaps you want to move to Portugal from USA with the Golden Visa, but can’t manage it until 2022 or beyond.

In that case, getting your Golden Visa in Madeira could be one of your best alternatives to Lisbon, Porto, and the Algarve. Check out our full article on the first-hand experience of life in Madeira.

6. Generous tax breaks  

Let’s now look at wha’s on offer in terms of tax benefits when moving from Portugal to USA. Portugal isn’t a tax haven or even a low tax country. It uses a progressive income tax scheme with a top threshold of 48%. 

But one of the main attractions for foreigners who move to Portugal from USA is the non habitual residency (NHR) tax scheme. This name is misleading, because it’s full-time tax residents of Portugal who typically use the NHR scheme.

So, what exactly is Portugal’s NHR scheme and what does it offer? 

The NHR grants preferential tax treatment for a period of 10 years to individuals (foreigners or citizens) who haven’t been taxed as a Portuguese tax residents during the preceding five years.  

You can apply for NHR status from the moment you register as a tax resident of Portugal. Benefits include tax exemptions from non-Portuguese sourced income in most categories, including foreign dividends, salary, real estate income and capital gains on property. 

NHR status also gives you a flat rate of 20% tax on most Portuguese-sourced income, if it comes from one of the eligible professions. For more information, here’s our full guide to the NHR scheme. 

NHR is extremely beneficial for those moving to Portugal from USA with EU citizenship as their end goal. The NHR timeline extends far beyond the citizenship timeline, allowing you to work towards Portuguese citizenship while still benefiting from preferential tax treatment. 

It’s important to note that US citizens must file taxes with the IRS every year no matter where they live. The US has a citizenship-based taxation scheme, but, thanks to the double tax treaty, you won’t be taxed twice in both the United States and Portugal.  

What’s more, the IRS has certain exclusions designed to help those who live overseas, such as foreign tax credits and exclusions from income.  

If in doubt, you should seek advice from a qualified US tax advisor with cross-border knowledge. 

Move to Portugal from USA
Boats on the river in Porto

7. Cash out cryptocurrency tax-free

Another big benefit of a move to Portugal from USA is Portugal’s tax treatment of income from cryptocurrency investments.  

At present, Portugal doesn’t levy capital gains tax for gains on cryptocurrency (although this only applies to investments rather than day-trading. The latter would likely be classified as work and taxed accordingly). 

If you’ve made large gains on crypto in the last few years and are thinking of cashing out, a move to Portugal from USA to become a tax resident could be an interesting solution for you. 

8. Five years to full EU citizenship 

Here at Digital Émigré, our number one goal is helping people to get EU citizenship. We’re firm believers in the many benefits of dual citizenship, which go beyond those of mere permanent residency. 

Here’s our full comparison of permanent residency vs citizenship.

So how does Portugal measure up when it comes to getting citizenship? The answer: extremely well.  

In fact, Portugal has one of the fastest citizenship by naturalization pathways in the whole EU. Five years is as quick as you’re going to get without having family ties to an EU country. 

What’s more, Portugal allows dual citizenship, so you’ll get to keep your US passport. Language skills are a requirement for citizenship, but Portugal’s required level is one of the lowest in the EU. 

A massive benefit of having a Portuguese passport is full freedom of movement across the EU countries, with the right to live freely, travel, access study at EU-level tuition rates, and retire anywhere you want in Europe.

Fancy spending your golden years in Greece or Italy instead of Portugal? That’s easy to do as an EU citizen. 

What’s more, if you get into trouble while travelling abroad, as a Portuguese-US dual national you’d be entitled to consular assistance from the embassy of any EU country (if Portugal isn’t represented), as well as from the United States embassy.  

Top 3 FASTEST Portugal residency routes

You can apply for Portuguese citizenship after just five years of residency. That’s one of the fastest timelines in the EU.

But when exactly are those five years counted from? Well, the clock starts when you receive your residency permit.

That’s why it makes sense to get to that point as quickly as possible, avoiding any unnecessary hold-ups or complications.

Here are the top three fastest Portuguese residency routes.

Residency routeBasic requirementsTimeline to residency permit (estimated)Minimum physical stay requirement
Portugal Golden Visa (Investment Funds)Minimum of €500,000 invested into an eligible Portuguese fund.6 to 8 months from time of investing and submitting application at SEF. 7 days per year
Portugal Highly Qualified Activity (HQA) Visa Minimum of €175,000 investment, plus company setup in Portugal. Can all be done via a concierge-style incubator service.1 to 2 months from submitting application at SEF.7 days per year
Portugal D7 ‘Passive Income’ Visa Minimum of €705 per month in passive income, plus 12 months of savings (for one person). 4 months from time of submitting application at embassy.183 days per year

9. Access the entire Schengen zone 

Remember that 90 days in 180 limit on travel across Europe?

Well, as a resident of Portugal, you’ll be able to reset it by going back to Portugal (instead of leaving the Schengen area altogether). 

Once you’re a citizen, the limit gets removed completely and you can travel across Europe for as many days as you like. 

You can also move freely to any other EU country if you decide that Portugal is no longer the right fit.

Madeira golden Visa
Ocean views in Madeira

10. Diverse choice of destinations 

Portugal has some stunning places to live in. Whether you’re a fan of year-round sunshine, or prefer a cooler climate, Portugal has it all.  

Madeira is a great place to opt out of winter permanently with some fabulous beaches, while Porto offers a similar climate to San Francisco.  

The Algarve region is loaded with golden sand beaches and boasts a lively international community, while cosmopolitan Lisbon has everything that a world capital should offer.  

Central Portugal has countless historical towns, such as the old university city of Coimbra, and affordable real estate investments that still have plenty of mileage for the Golden Visa in 2022 and beyond. 

11. Tolerant and progressive  

Portugal is famous for its tolerance of LGBTQ and alternative lifestyles.

Despite its conservative Catholic heritage and recent dictatorship, Portugal has evolved into a progressive and accepting country.  

As an LGBTQ foreigner, you’re highly unlikely to experience any form of homophobic violence. People are more likely to just accept you with a relaxed indifference – considering that it’s none of their business anyway. 

That’s a good recipe for a peaceful life.


Move to Portugal from USA: FAQs

Can a US citizen move to Portugal?

Yes, a US citizen can move to Portugal quite easily. First, you’ll need to decide what sort of residency visa to go for. You can use the D7 Visa if you have passive income, for example from pensions, rentals, dividends, or remote work. Alternatively, if you want to make an investment in Portugal, such as real estate or investment funds, then you can go for the Portugal Golden Visa.

Can US citizens retire in Portugal?

Yes, US citizens can definitely retire in Portugal, and many do. As before, you’ll need some sort of residency visa, usually either the D7 passive income visa (which you’ll be eligible for via your US pension income), or the Portugal Golden Visa (if you want to invest in Portuguese real estate or investment funds).

Where do most American expats live in Portugal?

American expats can be found scattered all over Portugal, with the biggest expat communities located in the Algarve, Lisbon, and Porto. There are also growing numbers of US expats living in Madeira and the Azores.

Can an American buy property in Portugal?

Yes, Americans can easily buy property in Portugal. There are no restrictions on foreigners buying property. Before making your purchase, you’ll need to apply for a Portuguese tax number (NIF) and appoint a fiscal representative. It’s also useful to open a Portuguese bank account. If you want to live full time in Portugal in your new property, you will need a residency visa, such as the D7 Visa or Golden Visa.

How long can you stay in Portugal as a US citizen?

US citizens can stay in Portugal for up to 90 days in every 180 days as tourists, without needing any visa. After that, you’ll need to leave the Schengen area for another 90 days, before you can re-enter. If you want to stay in Portugal for longer than 90 days, you will need a Portugal residency visa.

How long can you stay in Portugal if you own a property?

If you own a property in Portugal, it’s possible to become eligible for the Golden Visa (depending on the value of the property). The Portugal Golden Visa allows you to maintain residency rights in Portugal, without needing to actually live there (unless you want to). You only need to spend a minimum of seven days per year physically in Portugal.

Is Portugal a safe place to live?

Yes, Portugal is one of the safest countries in the world to live in. It was ranked fourth most peaceful country in the world on the Global Peace Index 2021, and third in the World Population Review’s Most Peaceful Countries 2022.

What is non-habitual residency in Portugal?

Non-habitual residency in Portugal, also known as NHR, is a preferential tax status available for new residents of the country. NHR is valid for 10 years and enables certain tax benefits on income from overseas, as well as on certain professions with income derived from within Portugal. To be eligible for NHR, you need to live full time in Portugal and have a Portuguese address. In addition, you must not have been resident in Portugal previously within the last five years.

Is abortion legal in Portugal?

Yes, abortion is legal in Portugal. The laws governing abortion were liberalized on April 10, 2007, following a referendum. Since then, abortions can be performed on request if pregnancy hasn’t exceeded its 10th week. There is a mandatory 3-day waiting period between pre-abortion consultation and abortion procedure.


Conclusion

In this article we discussed 11 compelling reasons to consider a move to Portugal from the USA in 2022.

Portugal’s high quality of life, low cost of living, affordable healthcare, excellent weather and high levels of safety all combine to make it a compelling destination for Americans looking for a better lifestyle.

Why not make 2022 the year you finally make the move to Portugal?


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