Is Portugal right for you? A candid assessment

Before we go into the logistics of moving to Portugal, let’s be honest about who thrives here, and who doesn’t. After five years of living here and helping many others relocate through our Golden Visa fund offerings (amongst other options), I’ve seen a few clear patterns emerge.

Who tends to thrive in Portugal

Portugal works beautifully for people who:

• Value work-life balance over career advancement.
• Have stable remote work or passive income.
• Embrace cultural differences rather than fighting them.
• Are patient with bureaucracy and different ways of doing things.
• Want to integrate with local community.
• Are comfortable with a slower pace of life.
• Have a strong desire to learn the language.

Who might struggle

But you might want to reconsider if you:

• Need to find local employment (salaries are relatively low).
• Can’t handle bureaucratic uncertainty.
• Expect everything to work like it does back home.
• Need cutting-edge medical care for specific conditions.
• Want to advance rapidly in your career.
• Require everything to happen on schedule.
• Have no interest in learning Portuguese.

The real benefits

Life in Portugal offers genuine advantages that go beyond the usual tourist brochures. The universal healthcare system isn’t perfect, but it takes away the anxiety many Americans and others feel about extreme medical costs. And the political stability, women’s rights, and strong gun control laws create a sense of security that many of my American friends say they find deeply relieving.

The work-life balance here is real – I’ve never seen anyone expected to answer work emails at dinner. Portuguese people generally welcome foreigners who make an effort to integrate. Plus, the opportunity to eventually acquire a Portuguese (EU) Citizenship will open doors across Europe that you might never have imagined.

The real challenges

But let’s be clear about the challenges of Portugal too. Housing costs are rising sharply, especially in popular areas, and the bureaucracy can test anyone’s patience.

Yes, English is widely spoken in tourist areas and international business, but you’ll need a decent level of Portuguese for many official interactions (and for general integration purposes), but no worries you will get by quite quickly.

Banking can be surprisingly complicated, and simple administrative tasks often take longer than you’d expect. Some of my clients struggle with the slower pace of getting things done – whether it’s setting up internet service or renovating an apartment.

Moving to Portugal in 2025: What’s changed?

Here are the most important changes affecting foreigners moving here in 2025:

Visa and tax updates:

• The Golden Visa’s real estate option is gone – investment funds are now the main route for those looking to invest
• Processing times at AIMA (formerly SEF) are facing delays (sometimes even 6 months).
• Compared to the Golden Visa, the HQA (highly qualified activity) visa offers a faster route to residency with a €175,000 investment threshold.
• The new Digital Nomad (D8) visa requiring at least €3,280 of monthly income is gaining popularity (and it’s the best option if you have a salaried remote job).
• The old NHR tax program is being phased out, most notably no longer applicable to those with pension income.

Housing market situation:

• Housing costs in major cities (Lisbon, Porto, Funchal) have risen by over 20% since 2023.
• New rent control measures affect long-term rental availability.
• Local protests against housing speculation are becoming more common.
• More Americans are looking beyond Lisbon and Porto to smaller cities.

Cost of living shifts:

• Portugal remains more affordable than the US, but the gap is narrowing.
• Energy costs have increased significantly.
• Food prices are rising faster than the European average.
• The US dollar-euro exchange rate continues to influence purchasing power.

Social context around immigration:

• Growing discussion about impact of foreign residents on local communities.
• Portuguese government focusing on affordable housing for locals.
• Remote work hubs developing in smaller cities.
• Increasing emphasis on Portuguese language requirements.

Getting into Portugal: Residency visa options

Here’s a breakdown of the main options available to you in 2025, based on what I’ve seen first-hand work (and not work) for hundreds of foreigners relocating. I highly recommend arranging a consultation with an experienced cross border tax advisor. Taxes will be a key factor in your final decision.

The ‘Golden Visa’ – the Crown Jewel of the Portuguese immigration solutions

The most versatile option is Golden Visa, especially if you are used to an investment fund (minimum investment for the funds route is €500,000). The main advantage of the Golden Visa is the low stay requirement of just seven days per year.

To be eligible, you’ll need:

• To have made a substantial investment in a Golden Visa investment fund like that offered by Saratoga Capital.
• A clean criminal record.
• A valid health insurance policy covering Portugal and the whole Schengen area.

Golden Visa is very good because it allows you to live in Portugal as much as you want but still keep your existing life. Moreover, after 5 years you are eligible for Portuguese citizenship for not only yourself but your spouse/partner, dependent children and grandparents.

Most important is you never become a Portuguese tax resident, which is a good thing because Portugal does have very high personal income taxes.

The D7 passive income visa

The D7 visa is good for retirees and those with stable passive income. The D7 requires proof of regular monthly income above €820 (which matches Portugal’s national minimum wage for 2024). In reality, this is far too low to live on comfortably. In practice, you should aim to show proof of significantly more – typically at least €2,000 monthly for a single person.

You’ll also need proof of existing accommodation in Portugal, plus 12 months of savings. The D7 pathway is for those who actually want to live in Portugal, as spending 183 days per year here is a condition to maintain residency status. You will end up becoming a Portuguese tax resident.

To be eligible, you’ll need:

• Passive income to (or beyond) the required level.
• 12 months of accommodation in Portugal (official lease or property deed).
• A clean criminal record.
• 12 months of savings in a Portuguese bank account.
• A valid health insurance policy covering Portugal and the whole Schengen area.

The D8 ‘digital nomad’ visa

Introduced in late 2022, the D8 ‘digital nomad’ visa has become the go-to option for remote workers in salaried employment or with freelance clients. You’ll need to prove a monthly income of at least €3,280 from work with an employer or clients outside Portugal, plus 12 months of savings and proof of existing accommodation.

This is a lot higher than the D7 requirement, but it offers more flexibility in terms of income sources (you can’t use the D7 if you have active income sources, like salaried remote work).

Like the D7, you’ll need to make Portugal your primary residence for at least 183 days per year.

To be eligible, you’ll need:

• Remote work income to the required level.
• 12 months of accommodation in Portugal (official lease or property deed).
• A clean criminal record.
• 12 months of savings in a Portuguese bank account.
• A valid health insurance policy covering Portugal and the whole Schengen area.

The HQA “highly qualified activity” visa

The HQA is a newer option for investment residency that’s gained traction as a faster alternative to the Golden Visa.
You can get residency with minimal stay requirements (just 7 days annually), by making an investment of at least €175,000 into creating a new Portuguese startup involved in research activities. The problem is that unlike Golden Visa (which with a good investment fund placement you should expect your monies back plus profit), the HQA results in you in reality never receiving any financial returns.

Portugal residency visas: Quick comparison

Residency route	Basic requirements	Timeline to residency permit (estimated)	Minimum physical stay requirement
Portugal Golden Visa (Investment Funds)	Minimum of €500,000 invested into an eligible Portuguese fund. You receive Portuguese citizenship at the end.	6-12 months from time of investing and submitting application at AIMA.*	7 days per year
Portugal Highly Qualified Activity (HQA) Visa	Minimum of €175,000 investment, plus company setup in Portugal. Highly limited option.	1 to 2 months from submitting application at AIMA.	7 days per year
Portugal D7 ‘Passive Income’ Visa	Minimum of €830 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
Portugal Digital Nomad (D8) Visa	Minimum of €3,280 per month in remote work salary, plus 12 months of savings (for one person).	4 months from time of submitting application at embassy.	183 days per year

The path to permanent residency and citizenship

After five years in Portugal myself, I’m now in the middle of navigating the citizenship process. Let me share what I’ve learned about securing your long-term future here. It’s more straightforward than many European countries, but there are several important nuances to understand.

The five-year milestone

In theory, Portugal offers one of the fastest routes to citizenship in the EU. After five legal years of residency, you can apply for either permanent residency or citizenship (or both). Keep in mind though, processing times are currently long, so expect to wait 1 or even 2 years for your citizenship process to be completed.

What counts as “legal residency” is different for different types of residency permits. For D7 and Digital Nomad visa holders, this means spending at least 183 days annually in Portugal.

In contrast, Golden Visa and HQA visa holders need just 7 days per year. Everyone is subject to the same five-year period before they are eligible to apply for permanent residency and/or citizenship. Golden Visa ensures you are not a tax resident, which is quite important.

Permanent residency vs citizenship

Permanent residency lets you stay in Portugal indefinitely without the hassle of regular permit renewals. But Portuguese citizenship offers something far more valuable: full EU rights.

With a Portuguese passport, you can live, work, study, and retire freely across all EU and EEA countries, plus Switzerland.
Want to spend your summers in France and winters in Spain? As an EU citizen, that’s entirely possible, with no need for any more visas or residency permit applications (trust me: as a currently ex-EU citizen, this is an enormous, life changing benefit).

The CIPLE challenge

The required Portuguese language level (A2) might seem basic, but don’t underestimate the CIPLE exam itself. Many foreigners (including myself), who are otherwise confident speakers in daily life, have struggled with its formal nature, especially the listening component (luckily I passed, but it wasn’t easy).

But the good news is there’s an alternative: you can enroll in a government-approved Portuguese language course and use your completion certificate as proof of A2 level, instead of taking the exam. For many, this less pressured route proves more manageable

Fortunately, there’s no expiry date on the CIPLE certificate. Once you have it, you’re good to go.

Tax residency matters

One detail that often catches people off guard: your tax residency status can affect your citizenship application. If you’re spending significant time outside Portugal, make sure you understand how this impacts your residency status.

If you come here with a D7/D8 visa, then you may be asked for proof that you’ve spent the required amount of time in-country, when it comes to applying for citizenship. HQA and Golden Visa holders have more flexibility, with the latter being the most flexible.

Real costs of Portuguese life in 2025

I’ve watched the cost of living in Portugal shift dramatically over the last five years. Here’s what you can really expect to spend in Portugal in 2025 (beyond the often outdated figures you’ll find online).

Housing (the biggest expense of all)

Nope, I’m not gonna sugarcoat it – housing costs in Portugal have soared since the end of the pandemic.

In Lisbon, where I started my Portuguese journey in 2020, a one-bedroom apartment in a decent area now runs €1,200-1,500 monthly. Even in Porto, which was once considerably cheaper, I’m seeing similar apartments go for €1,000-1,300. If you’re buying, expect to pay €450,000-600,000 for a well-maintained two-bedroom apartment in these cities.

Funchal, the capital of Madeira Island, is another location that’s seen massive price increases in recent years. For example, in 2021, I rented a two-bedroom city center apartment for €700.

Now, you’d be lucky to pay double that just for a one bedroom. In short, when it comes to housing, Portugal is no longer an affordable destination.

Healthcare costs

Yes, Portugal has state healthcare and the public healthcare system (SNS) is nearly free. That’s a refreshing change from the US’s famously high health insurance costs. Despite this, I recommend budgeting €100-200 monthly for comprehensive private insurance in Portugal (depending on your age and health situation) – especially if you’re not confident in speaking Portuguese.
Private cover will get you faster access to specialists and a higher chance of finding English-speaking medical professionals. You can access affordable private healthcare cover through AFPOP (the largest association for foreign residents in Portugal).

Daily living expenses

As an individual, my monthly utility bills run about €100-120 for electricity and water. Internet and mobile phone service costs me another €50-60. For groceries, I spend roughly €400-500 monthly, shopping at both local markets and larger supermarkets; and eating out ranges from €10-15 for a simple local-style lunch (ask for prato do dia) to much more for a nice dinner in one of Lisbon’s high-end restaurants.

Transportation trade-offs

At present, I’ve chosen to live without a car in Portugal. I prefer to use Lisbon’s excellent public transportation and affordable Uber/Bolt services. But if you’re planning to live in a smaller town or rural area, you must factor in the high cost of car ownership – fuel prices are much higher than in the US, and car prices can be 20-30% more than what you’re used to. I don’t recommend bringing a car from the US to Portugal. You’ll pay a huge amount in import duties and other taxes.

Education and schools in Portugal

If you’re moving with children, your main choice will be between international and public schools. Your choice of school might influence where you live, as international schools are mainly concentrated in and around major cities. Also, remember that the Portuguese school year runs from September to June, which might affect your relocation timing. Here’s what you need to know.

International vs public schools

International schools offer a familiar educational environment for your kids, with teaching in English following American, British, or International Baccalaureate curricula. These schools typically provide well-equipped facilities, smaller class sizes, and a strong international community. But they come with significant costs – expect to pay between €10,000-20,000 annually per child. They’re also mainly concentrated in and around Lisbon and Porto, which might limit your location options. Don’t forget, popular international schools often have waiting lists, so you’ll need to plan well ahead.

Portuguese public schools, on the other hand, offer free education and a chance for complete cultural immersion. They’re particularly successful for younger children, who often adapt remarkably quickly to the Portuguese language and make local friends easily. The quality can vary by location, but generally, Portugal’s public education system is well-regarded. Classes are taught entirely in Portuguese, which can be challenging for older students who need to keep up with subject matter while also learning an entirely new language. You’ll also find larger class sizes and may need to be more involved as a parent, particularly during the initial transition.

Higher education

More and more of Portugal’s universities are offering English-language programs, particularly at the graduate level. As EU residents, your children would eventually qualify for the same tuition rates as Portuguese students, which are significantly lower than US college costs. The University of Lisbon and University of Porto both rank well internationally.

Finding your place: Location guide

I’ve explored many regions of Portugal while living here and helping others relocate.

In the process, I’ve learned that choosing where to live is about more than just going straight for the biggest cities (even though that’s exactly what I did at first). Here’s what I’ve discovered about Portugal’s main regions for foreigners.

Lisbon

I spent my first year based in Lisbon, and still spend a lot of time here now. While it’s beautiful, lively and cosmopolitan, it’s also becoming increasingly crowded and expensive.

The city still offers unmatched amenities and international connections, but I’ve watched its character change as tourist apartments multiply and locals move out to the suburbs. Consider instead neighboring areas like Algés, Almada or Oeiras, where you’ll find better value and more authentic communities just 20 minutes from the center.

Porto

Porto beats Lisbon in terms of authenticity and slower pace. It’s still following Lisbon’s path of rising prices, but feels more genuinely Portuguese. The local tech scene is booming, and I’m seeing more remote workers choose Porto over Lisbon. Just be prepared for (a lot more) rain and cooler temperatures than you might expect from Portugal.

The Algarve (beyond the tourist track)

Yes, the Algarve is beautiful, but there’s a world of difference between the tourist-heavy central coast and quieter towns like Tavira or Lagos. I’ve helped several families settle in these areas, where they’ve found stronger year-round communities and more reasonable housing costs. The catch? Winter is low season and hence can be quieter than you might expect, and you’ll definitely need a car.

The Silver Coast alternative

This is where I’m seeing more Americans settle lately, particularly in places like Caldas da Rainha, Peniche and Nazaré. You’ll get coastal living at a fraction of Algarve prices, plus easy access to Lisbon. The trade-off is more variable weather and fewer English speakers – but that’s actually a great thing for helping you integrate better with local communities.

Madeira: The island of perpetual summer

I’ve watched Madeira transform over the past few years from a quiet retiree and cruise ship destination to a buzzing remote work hub. Funchal, the capital, surprised me with its mix of authentic Portuguese culture and international amenities, plus its impressive level of cleanliness. The year-round spring-like climate is a huge draw – in Madeira we rarely see temperatures below 16°C (60°F) or above 25°C (77°F).

But what really stands out is Madeira’s growing international community. Since the launch of Digital Nomads Madeira in 2021, I’ve seen a steady stream of remote workers putting down roots here. The digital nomad scene centers mainly around Ponta do Sol and Funchal, but you’ll find quieter spots like Machico, Caniço, or Sao Vicente offering a more traditional Portuguese island life.

The downsides? The island can feel isolated, as you’ll need to fly to mainland Portugal for certain services and appointments (or just to counteract island fever). Property prices have shot up, especially in Funchal, and the mountainous terrain means you’ll find fewer apartments and more houses, often requiring renovation. But for those who can work remotely and are ready to integrate, these trade-offs are worth it for the amazing quality of life, climate, and community.

The reality of renting in 2025

Property prices continue to rise, especially in Lisbon, Porto and Funchal. The main platforms for finding rentals are Idealista and Casa Sapo, plus local Facebook groups (which often have more immediate listings).

Portuguese apartments are classified by their number of bedrooms using a T-system:

• T0 – Studio apartment.
• T1 – One bedroom.
• T1+1 – One bedroom plus a small room (not quite a second bedroom, usually has no window).
• T2 – Two bedrooms And so on. When you see ‘T’, think ‘typology’.

Unlike some European countries, unfurnished apartments in Portugal typically include a fitted kitchen with major appliances (fridge, washing machine, oven). This is standard practice, but always confirm exactly what’s included before signing anything.
One of the biggest surprises for foreigners is the ‘fiador’ system. Many landlords require a guarantor (fiador) who must be a Portuguese resident. This person becomes legally responsible for paying your rent if you default.

Finding a fiador is a pretty challenging requirement for newcomers who don’t have local connections. Some landlords will waive this requirement if you can offer additional security in other ways (like offering more payment upfront, or having exceptional references).

In terms of payment conditions, some landlords will also ask for six months’ rent upfront. I advise trying to negotiate this down. Aim for a maximum of two months’ deposit plus first month’s rent. Here’s why: Portugal doesn’t have a formal deposit protection scheme, so your money has no legal protection (and it’s not worth taking your landlord to court over a deposit). Meeting landlords in person and building rapport can help you negotiate better terms.

And finally, to avoid scams, never, ever pay anything without seeing an apartment in person. If you’re searching from abroad, work with a reliable real estate agent who can do video viewings for you. Be particularly wary of deals that seem too good to be true or landlords pressing you for payment before viewing.

Buying property in Portugal

Many Americans choose to buy property here (note: the Golden Visa’s real estate route is now closed) to get a more stable foothold in the country. Here’s what to keep in mind.

Mortgages

Getting a mortgage in Portugal is possible. Portuguese banks do lend to foreigners, typically requiring:

• 30% down payment (if you’re not tax resident), 20% if you are Portuguese.
• Proof of stable income (normally 3 months of pay-slips or pension receipts.
• Mandatory life insurance tied to the mortgage.

You’ll need a NIF (tax number) and Portuguese bank account to purchase property. Unlike the US, transactions happen through public notaries rather than title companies.

The process involves signing a promissory contract (CPCV) and paying a deposit (usually 10%), followed by due diligence, and finally the deed signing. Keep in mind, after signing the promissory contract, you will pay the 10% directly to the seller (escrow is uncommon in Portugal). If you pull out of the sale after that, you’ll lose the deposit.

But if they pull out, then they have to pay you back double the deposit. If you’re buying with a mortgage, I recommend putting an extra clause in the promissory contract. It should state that the seller must refund your deposit if the bank doesn’t give you the mortgage, or if the bank valuation is less than the stated value of the property.

Alternatively, to play it really safe, you could do what I did and wait until the mortgage is approved and the property is valued, before releasing the 10% and signing the contract.

Other housing issues

Older properties in Portugal tend to lack central heating and cooling – something that surprises many buyers. Portugal can be much colder than you think, especially in the north, but also in Lisbon during the winter months (I usually spend my winters in Madeira due to this).

Always check for humidity and mold issues, particularly in coastal areas or ground floor apartments. Consider getting a proper survey done, even though it’s not standard practice here. One of the biggest challenges in apartment living here is sound insulation, or rather, the lack of it. Many buildings, even relatively new ones, have poor acoustic insulation. You might hear your neighbors’ conversations, footsteps from above, or TV sounds through the walls.

This can lead to tensions between neighbors and is something to seriously consider when viewing properties, especially if you’re sensitive to noise or work from home.

I always tell my clients to visit potential properties at different times of day to assess noise levels. If you’re really sensitive to noises from above, do your best to secure a top floor apartment.

Making it work: Practical steps

After helping many Americans and Brits navigate their move to Portugal, I’ve developed a clear monthly timeline on what to do and when to do it.

Here’s exactly what you need to do, in the order I’ve found works best:

Gathering documentation

Start with your documentation. Depending on which visa you’re applying for, you’ll need to gather the following:

• Birth certificate (apostilled).
• Marriage certificate (if applicable).
• Police record from your home country.
• Proof of income/pensions.

Note: Portuguese authorities often want documents issued within three months, so don’t get these too early.

Organizing finances and accommodation

Before you start your visa application at your closest Portuguese consulate in the US (assuming you’re aiming for D7 or D8) you’ll need to:

• Get your NIF (Portuguese tax number).
• Open a Portuguese bank account remotely.
• Arrange proof of accommodation (typically a 12 month rental contract, which the landlord must register with the tax authority, Finanças).
• Find a suitable health insurance policy to cover your initial time in country.

These steps are interconnected, as you’ll need your NIF to open a bank account and get a rental contract, and you’ll often need a bank account to secure long-term accommodation.

Initial setup in Portugal

After arrival, focus on these essential tasks:

• Get a Portuguese phone number.
• Register your address at the local Junta de Freguesia.
• Start setting up your utilities (if needed, many rental apartments already have them).
• Register with the SNS (national health service).

Building your life here

These tasks can be handled as you settle in:

• Exchange your driver’s license (if from a qualifying US state).
• Get your Portuguese bank cards and set up MBWAY.
• Set up all regular bill payments via direct debit.
• Find a Portuguese language class (either in-person or online).

The order of these steps will change a bit based on individual circumstances, visa type, and even which region you’re moving to.
I’ve seen some people get everything done in a few weeks, while others take several months. The key is flexibility – just focus on what you can control, stay patient, and always have a backup plan.

Living here: A fellow political émigré’s perspective

As someone who left the UK after Brexit, I deeply understand what many Americans are feeling in 2025. I made this move to retain my EU rights and escape growing political tensions (sound familiar?) After five years here, let me share what life is really like when you’re rebuilding in a new country.

Finding your feet

Living in Lisbon feels surprisingly international. The city has transformed even in my five years here, with communities of digital nomads, entrepreneurs, and yes, plenty of fellow political émigrés.

Supermarkets stay open late, restaurants serve dinner at familiar hours, and you’ll find plenty of English speakers. But you’re still very much in Portugal, with its own distinct culture and ways of doing things.

Mastering the language

Yes, you can get by with English in Lisbon, especially in professional settings, but speaking Portuguese opens doors.
I’m not fluent (yet) but I’ve passed my CIPLE A2 exam. I’ve found that making an effort with the language has transformed my experience. My Portuguese neighbors switched from polite nods to warm conversations once I started greeting them in Portuguese, even with mistakes.

Having gone through this as a native English speaker, I can tell you it’s challenging but absolutely worth the effort (plus, you’ll need to reach A2 level to eventually apply for citizenship).

Healthcare: A welcome change

Coming from the UK’s NHS, Portugal’s healthcare system was an interesting adjustment – and I imagine it will be even more so for Americans. Through private insurance (I pay €55 monthly), I can see specialists quickly with minimal co-pays.

The public system (SNS) provides good backup coverage, though wait times can be longer. The integration of public and private care here offers flexibility I never had back home.

Building lasting community

One of my early mistakes was sticking too close to the international community.

While these connections are valuable, my life became richer when I started joining local groups and activities. Things like community gardens, weekly markets, or local yoga classes. These routine interactions help Portugal feel like home. And unlike some European countries I could mention, Portuguese people are generally welcoming to foreigners who make an effort to integrate.

Next steps

Moving to Portugal from the US isn’t just about escaping political turmoil – it’s about choosing an entirely different way of life.
Portugal in 2025 offers a unique balance. Yes, you’ll find universal healthcare, political stability, and a clear path to EU citizenship.
But you’ll also encounter rising costs, bureaucratic challenges, and cultural adjustments that require patience and flexibility. It’s a conscious choice to embrace a different set of trade-offs.

Success here doesn’t depend on your visa type or bank balance. Rather, it comes down to your mindset. The Americans I see thriving in Portugal are those who arrive with realistic expectations, a willingness to learn Portuguese, and genuine curiosity about the culture.

For those considering this move, my advice is simple: take your time to research and plan, but don’t let perfect be the enemy of good. Yes, Portugal has its frustrations. Yes, some days you’ll miss the efficiency and familiarity of life back home.

But if you’re willing to adapt and integrate, you might just find a different rhythm of life, a new perspective, and (perhaps most importantly), a sense of belonging in a country that, despite its challenges, still prioritizes human connection over endless productivity.

The door to Europe is still open in 2025 – but be sure to enter it with your eyes wide open.