1. Introduction
This article is your comprehensive guide to relocating to Portugal, offering an honest and practical overview of everything you need to know—from navigating the visa process to settling into your new life in this beautiful country. The purpose of this guide is to provide an unapologetically honest and realistic account of what it truly takes to move to Portugal. From visa options and legal formalities to finding the right place to live and integrating into a new culture, this guide will walk you through all the critical considerations before making the leap. While the process might look like a simple checklist at first glance, the reality is far more complex and nuanced, as no two applications or personal circumstances are the same.
My name is Lewis Gallacher, a British lawyer living in Portugal and the founder—and sole employee—of Relocation Simplified. I take a drastically different approach to the visa process and the broader journey of moving to Portugal than the larger relocation companies. I work one-on-one with all of my clients, offering a personalised, all-inclusive package that covers everything you need to secure residency and settle into life in Portugal. You will find more information on how I can help in the final section of this article. In the meantime, I hope you find this guide both informative and practical as you consider whether moving to Portugal is the right decision for you.
The Realities of Relocation: More Than a Change of Scenery
Relocating to a new country is one of the most significant life decisions you can make, filled with both exciting opportunities and inevitable challenges. For thousands of Americans, Portugal has become a beacon of possibility—a destination offering a relaxed lifestyle, stunning landscapes, and a rich cultural experience. However, navigating the visa process to secure legal residency is far from straightforward. It’s a journey through a labyrinth of bureaucracy, with intricate requirements, varying formalities, and ever-evolving rules that can feel overwhelming without the right guidance.
In recent months, following the results of the latest US election, my company has experienced an unprecedented surge in inquiries from Americans seeking to make Portugal their new home. While political events can understandably act as a catalyst for change, it’s important to approach this decision with careful thought and clear intentions. Moving to another country is not just about leaving one place; it’s about committing to a new life, with all the rewards and adjustments that come with it.
This guide is designed to help you navigate the process, prepare for the realities of life in Portugal, and avoid rash decisions that could lead to unnecessary stress or disappointment. By being clear about your motivations and properly equipped with the right information—and professional support when needed—you can make this transition as smooth and successful as possible. If you’re ready to take this step, or even if you’re still deciding, this guide is here to illuminate the path ahead.
2. Visa Options
The D7 and D8 visas are the most commonly chosen pathways for establishing residency in Portugal, so this guide will focus primarily on these two options. That said, we’ll also touch on the D2, D3, and Job Seeker (DP) visas to provide a more complete understanding of the available routes. It’s important to note that all of these visa applications must be initiated in your home country, through your local Portuguese consulate or a VFS Global office.
Visa Types
D7 and D8 Visa
It’s important to understand that the D7 and D8 visas are not residency permits themselves. Rather, they are long-stay visas that allow you to live in Portugal temporarily while awaiting your residency appointment with AIMA, where your visa will be converted into a renewable 2-year residency permit. It’s useful to view the process as two distinct stages: stage one is your visa appointment in the US, while stage two is your residency appointment, which you attend after arriving in in Portugal.
Both visas require the main applicant to demonstrate a minimum income before arriving in Portugal, and crucially, for at least three months prior to the visa appointment. This means you cannot apply for these visas with the intention of establishing income to meet the minimum requirements after arriving in Portugal. To qualify for either the D7 or D8 visa, the main applicant must be at least 18 years old, a non-EU citizen, and have a clean criminal record. A minor issue on your FBI Rap Sheet is unlikely to affect your application beyond potentially requiring further explanation, whereas a recent felony is likely to present a significant obstacle. Both the D7 and D8 also permit family reunification, allowing you to bring your spouse, children, and other dependent relatives.
It’s easy to mix up the D7 and D8 visas since the differences between them are subtle. The main distinction lies in the type of income that you earn. Simply put, the D7 is designed for those with passive income, while the D8 is for individuals with active income.
For the D7 visa, applicants must demonstrate a minimum monthly passive income of €820, which aligns with Portugal’s minimum wage. This can come from sources such as rental properties, dividends, royalties, interest, or other investments. If you have dependents, you will need an additional 50% of this amount for each adult and 30% for each child.
The D8 visa requires applicants to earn at least €3,280 per month in active income. Active income includes earnings from freelance work, self-employment, or a salary from an employer outside of Portugal.
For a detailed breakdown of the requirements, application process, and timelines for the D7, D8, and D2 visas, click here.
D2 Visa
The D2 visa is designed for entrepreneurs who fit into one of the following categories: (1) individuals with an established business seeking to expand into Portugal; (2) those planning to start a new business in Portugal; (3) individuals aiming to acquire or invest in an existing Portuguese business; or (4) self-employed professionals intending to work in Portugal.
For those choosing the fourth option, it’s not necessary to establish a company in Portugal. Instead, you can continue operating as a self-employed individual, avoiding the costs of setting up a business entity. However, you will still need to demonstrate how your professional services will contribute and add value to Portuguese society. This is achieved through a comprehensive business plan, which is evaluated on several factors, such as economic, social, technological, and cultural impact. It is highly recommended to have service contracts with Portuguese clients as part of your application. Additionally, you must appoint a Tax Representative in Portugal, which can be a Portuguese friend rather than an accountant.
D3 Visa
The D3 visa is tailored for highly skilled professionals who have secured a job offer or employment contract with a Portuguese company, valid for a minimum of one year. This visa allows not only the visa holder but also their family members to enter Portugal and apply for a residence permit upon arrival. To qualify for the D3 visa, applicants must demonstrate either higher education qualifications or a minimum of five years of relevant professional experience.
After residing in Portugal legally for 18 months, you may also be eligible to apply for a European Union (EU) Blue Card. The EU Blue Card serves as a legal document enabling highly skilled professionals to work and travel freely within the EU, EEA, and Schengen areas, excluding Denmark and Ireland. Securing a valid employment contract with a Portuguese company, lasting at least one year, is a fundamental requirement for this visa.
Job Seeker (DP) Visa
The Job Seeker (DP) visa is designed for individuals looking to enter and stay in Portugal specifically to search for employment. This visa is valid for 120 days, with the option to extend it for an additional 60 days, and allows a single entry into Portugal. The holder is permitted to undertake subordinated work until either the visa expires or a residence permit is granted. If an employment contract with a Portuguese employer is formalised during this period, the applicant acquires the right to apply for a residence permit. If the visa expires without the applicant securing a job, they are required to leave Portugal. In such cases, a new application for this type of visa can only be submitted one year after the expiration of the previous visa.
Procedure and Timeframes
The procedure for obtaining the D2, D7, and D8 visas follow the same general steps, though the specific requirements differ for each. Below is an overview of the process for these visas. For guidance on the procedures for the D3 and Job Seeker (DP) visas, please don’t hesitate to contact us for assistance.
1. Book an Appointment: Schedule an appointment at your local Portuguese consulate or VFS Global Office in the States.
2. Gather Documents: Collect all required documents to meet the specific requirements of your chosen visa type. This usually takes 8–12 weeks but may take longer, particularly if you’re trying to secure a rental property in a highly competitive market. The timeframe will likely take longer if you’re handling the process on your own or if you’re working with a service provider who is less attentive.
3. Attend Visa Appointment: Attend your appointment with all necessary documents printed, organised, and ready for review.
4. Wait for Approval: The visa processing time typically takes 4–6 weeks, though this can vary depending on the consulate or VFS office and their current demand.
5. Collect Your Visa-Stamped Passport: Once approved, your passport will be stamped with a visa valid for four months and permitting two entries into Portugal.
6. Move to Portugal: Relocate to Portugal and await your appointment with AIMA (Portuguese Immigration Authority).
7. Attend AIMA Appointment: At this appointment, your four-month visa will be converted into a two-year residency permit.
8. Renew or Apply for Permanent Residency: If you wish to remain in Portugal after the initial two years, you can renew your permit for an additional three years. After this period, you may apply for permanent residency or Portuguese citizenship.
Meeting the Requirements and Formalities
Meeting the requirements involves fulfilling various formalities that can differ depending on how you prove you meet the criteria, your personal circumstances, and the consulate or VFS Global office you’re applying through. Although the requirements may seem straightforward at first glance, in reality, they can become quite complex and overwhelming. Every application is unique, and each applicant will face different questions or challenges based on their individual situation. The following examples and associated FAQs will help to illustrate the nuances of meeting these requirements.
Example One: Proving Passive Income from Rent
What documentation is required to prove rental income? Does a lease agreement suffice, or do I need to provide proof of rental payments? How long should these payments be documented for? What if the lease is informal, but payments are consistent? Is ownership of the property required, or can the property be co-owned? If the property belongs to a family member but I manage it and collect the rent, is that acceptable? Do short-term rentals, sublets, or renting out a single room count? Should I provide gross or net rental earnings? Do any of the documents need to be notarised or apostilled?
Example Two: Proving Income from Remote Work
How can I demonstrate my earnings from remote work? What evidence is needed to show my employment is stable and long-term? What specific documents must I provide from my employer? How do I prove income as a freelancer? Is it necessary to have fixed clients? Are any of the documents required to be notarised or apostilled?
The complexity of the above is compounded by the fact that visa requirements and formalities are subject to frequent changes. This often leads to varying interpretations depending on the consulate handling the application. In reality, the checklist is rarely as straightforward as it appears, which is a key reason why many visa applications are rejected. For this reason, individuals who attempt the process on their own often find themselves seeking professional assistance along the way.
I mention this not to alarm you, but to give you a heads-up, as it’s often only after starting the process that this becomes clear. By addressing this now, hopefully you’ll consider the potential value of seeking professional help from the outset—saving you time, money, and most importantly, ensuring you avoid a failed visa application. While Facebook groups and online forums can offer insights, remember that what works for one person might not apply to your situation. To learn more about how we can assist you, scroll down to Section Seven below.
3. A Word on Some of the Main Visa Requirements for the D7 and D8 Visas
In this section, we will touch on some of the key requirements for the D7 and D8 visas, which are essential to understand before you begin your application process. For a comprehensive overview of all the requirements for the D7, D8, and D2 visas, click here to read our other article.
Accommodation
When you attend your visa appointment in the US, you will need to provide proof of accommodation in Portugal. This must be in the form of a 12-month tenancy agreement that has been officially registered with Finanças or through the title deeds of a property that you’ve purchased in Portugal. Please note that short-term rentals, such as Airbnb, are not accepted. The requirement to secure accommodation before your visa appointment in the US is one that often deters applicants, given that it needs to be arranged before you submit your visa application.
As part of our D7/D8 relocation package, we offer assistance in sourcing accommodation. This service typically involves a back-and-forth process where you provide us with your preferences, and we suggest suitable regions, cities, or towns based on those preferences. Once a location is chosen, we narrow it down to specific neighbourhoods, and then we send over a list of properties that meet your criteria. If you’ve never visited Portugal or the area you’ve chosen, we recommend opting for a rental property rather than purchasing a home right away.
Once you’ve reviewed the options, if you find a property you like, we can assist in negotiating with the landlord. A key focus during this process is determining the tenancy start date. Ideally, the start date should align closely with your intended move to Portugal to avoid paying for the property while it’s unoccupied. We will work with you to create a timeline based on your circumstances and target arrival date, aiming to ensure that the tenancy start date is as close as possible to your move date while allowing sufficient time to register the agreement with Finanças before your visa appointment. However, keep in mind that if you choose a high-demand area with a saturated rental market, such as Cascais, the competitive nature of these locations means we may have less flexibility with the start date, as properties are likely to be quickly taken by other tenants.
Travel insurance – Health Insurance
If you’ve started researching the visa process, you’ve likely encountered the terms “travel insurance” and “health insurance.” These terms are often used interchangeably, which can cause confusion. However, it’s important to understand the key differences between the two, as they each serve distinct purposes and have different requirements throughout your application process.
In short, you must have travel insurance in place by the time of your visa appointment in the States and health insurance in place by the time of your residency appointment at AIMA after you arrive in Portugal.
Travel Insurance
At your visa appointment, you’ll be required to provide proof of adequate travel insurance. The policy must include a minimum of €30,000 in medical coverage, covering necessary medical expenses and emergency medical assistance; it must be valid for at least four months; it should provide repatriation coverage, ensuring you can return to your home country in the event of a medical emergency; and it must cover the Schengen Area, with specific acknowledgment of coverage in Portugal.
Health Insurance
Once you’ve obtained your visa and moved to Portugal, you’ll need to arrange health insurance prior to your residency appointment at AIMA. It’s best to set this up a few months in advance, as many providers have a waiting period before the coverage becomes active.
After becoming a resident, you can register for the Portuguese public health system (SNS). While you can technically cancel your private health insurance after converting your visa into a residency permit, we strongly recommend keeping it. Private health insurance is relatively inexpensive, especially compared to the US, and offers excellent value. It also provides quicker access to medical services, including specialist care for both urgent and non-urgent appointments. Additionally, English is widely spoken at private hospitals and medical centres, though it may be less common in public hospitals.
FBI Check
One of the requirements for the D7 and D8 visa is that you must provide an FBI background check, which must be issued within 90 days of your visa appointment. Current processing times can be found on the FBI website, and they vary depending on whether you submit your request online or by mail, with the online option being faster.
4. Things to Consider Before Moving
Relocating to Portugal is an exciting opportunity, but it requires careful planning to ensure a smooth transition. Beyond the visa application process, there are several important factors to consider. Deciding where to live, exploring schooling options if you have children, arranging the logistics of shipping personal belongings, and understanding the process of bringing pets to Portugal, if relevant, are all key elements to address in advance. In this section, we’ll provide an overview of these considerations to guide you in making well-informed decisions and ensuring a smooth transition for your move.
Where to Live
Choosing somewhere to live is, of course, a significant decision and also one of the key requirements for the D7 and D8 visas, as you’ll need to provide proof of a registered rental agreement or property purchase at your visa appointment in the US. To help guide your choice, we’ve categorized this section into three groups—families, young professionals, and retirees—based on locations that often align with their preferences and lifestyles. That said, the places mentioned are by no means exclusive to these groups; each has broad appeal and could suit a variety of circumstances.
Families
Cascais
Located along the Portuguese Riviera, Cascais offers a perfect blend of coastal charm and urban convenience. The town boasts beautiful beaches, a lively marina, and an array of exceptional seafood restaurants. Cascais is renowned for its charming cobbled streets, historic architecture, and vibrant atmosphere, making it a delightful place to call home. Families are particularly drawn to Cascais due to its wide selection of outstanding international schools and family-friendly environment. With a thriving expat community and a wealth of amenities, Cascais offers a soft landing for those moving to Portugal. The town provides a relaxed coastal lifestyle while being just a 30-minute drive or train ride from Lisbon and less than 20 minutes from the historic town of Sintra.
Tavira
Tavira, located in the eastern Algarve, is a scenic town renowned for its relaxed pace of life and authentic Portuguese atmosphere. Unlike the more bustling tourist spots in the region, Tavira retains its traditional character, without the heavy commercialisation of places like Albufeira or Portimão. Families can enjoy a peaceful coastal life here, with more affordable property prices compared to other parts of the Algarve or hotspots like Lisbon and Cascais.
One of Tavira’s standout attractions is Ilha de Tavira, a tropical-like island just a 10-minute ferry ride from the town centre along the scenic Gilão River. The island features a stunning white sand beach—often regarded as one of the Algarve’s best—and a selection of relaxed eateries, making it an ideal destination for a day out.
There is one international school in the town that caters to children aged 4–18, with additional options available across the Algarve. Tavira is also just a short drive from Faro, the largest city in the Algarve, offering excellent connectivity and an international airport that ensures easy access for travel.
Porto
Porto, Portugal’s second-largest city, offers families a vibrant yet more relaxed alternative to Lisbon, with more affordable property prices. Housing options range from contemporary apartments in the city centre to larger homes in quieter suburban neighbourhoods, making it appealing to families seeking space and convenience. The city is well-connected with an excellent public transport system, including trams, metro lines, and buses, making it easy to get around.
Porto’s location on the Douro River provides ample opportunities for weekend escapes, whether by boat or car, to explore charming riverfront towns and renowned wineries in the Douro Valley. The city is also within easy reach of stunning beaches, offering a mix of urban and coastal experiences. Porto is also home to three English-speaking international schools, as well as French and German schools, ensuring a variety of educational options.
Young Professionals
Lisbon
Lisbon is quickly becoming a favourite destination for digital nomads, offering a dynamic blend of professional opportunities and lifestyle benefits. With numerous coworking spaces and Wi-Fi-friendly cafes providing reliable and fast internet, it’s the perfect for remote work. As a digital nomad hub, it also hosts plenty of networking events, making it easy to build connections and friendships with like-minded professionals. Adding to its appeal is a favourable year-round climate, with mild winters and sunny summers, allowing residents to enjoy outdoor cafés and riverside promenades throughout the year.
When you’re ready for a break from the city buzz, head across the river to Costa da Caparica, where a variety of bohemian-style beach clubs and excellent surf await
Ericeira
Ericeira, a charming Portuguese fishing village just 45 minutes from Lisbon, has become a popular destination for young professionals seeking a more relaxed beachside lifestyle. Known for its laid-back vibe, the town offers some of the best waves in Europe, making it a haven for surfers of all levels.
Despite its small size, Ericeira features a surprising number of coworking spaces, making it an attractive choice for digital nomads. Co-living options are also abundant, helping foster a strong sense of community while offering networking and collaboration opportunities. The town blends a peaceful coastal atmosphere with the modern amenities and connectivity that professionals need.
Lagos
Lagos, located in the sunny Algarve, is a fantastic option for young professionals looking to enjoy a mix of beach life and a laid-back atmosphere while still being well-connected. Known for its stunning beaches and great climate, Lagos offers milder winters and less rainfall than other parts of Portugal. While it’s lively during the summer months, Lagos becomes quieter in the winter, which may suit those seeking a peaceful environment during the off-season.
With a more affordable cost of living compared to Lisbon and Ericeira, Lagos is an appealing option for young professionals. Though there are fewer coworking spaces than in larger cities, the relaxed pace of life, ample outdoor activities, and a friendly, welcoming community make Lagos a fantastic place to live and work remotely.
Retirees
Tomar
Tomar, located in central Portugal, is an ideal choice for retirees seeking a peaceful and affordable town with rich history and natural beauty. Its compact size makes it easy to navigate, with most amenities within walking distance, ideal for those looking to enjoy a relaxed, low-maintenance lifestyle. The town enjoys a mild climate, with warm summers and mild winters, offering year-round comfort.
Surrounded by olive groves, vineyards, and forests, Tomar is a picturesque town steeped in history. It’s often described as a living museum, with its medieval castle, the Convent of Christ (a UNESCO World Heritage site), and other fascinating historical landmarks. Tomar is also more affordable than many larger cities in Portugal, with a variety of properties available for rent or purchase at reasonable prices.
Coimbra
Coimbra, located centrally between Porto and Lisbon, is an excellent choice for retirees seeking a charming, easy-to-navigate city with a lively atmosphere. Home to one of the world’s oldest universities, Coimbra seamlessly blends rich history with youthful energy. The city is known for its maze of narrow streets, quaint shops, and local eateries, offering a taste of traditional Portuguese life.
The peaceful riverside setting offers a relaxed environment perfect for enjoying daily life. With many amenities within walking distance, Coimbra provides all the conveniences retirees need, without the hustle and bustle of larger cities. With excellent transport links to Porto, Lisbon, and other parts of Portugal, Coimbra offers easy access to explore the rest of the country. Additionally, it’s just a 45-minute drive from the coast, which features a variety of beautiful, less crowded beaches.
Carvoeiro
For a quiet life in the Algarve, Carvoeiro offers the perfect blend of tranquillity and charm. Situated away from the bustling tourist spots, this picturesque coastal town retains its traditional fishing village roots, giving it a cozy and authentic atmosphere. Often considered somewhat of a hidden gem, Carvoeiro is known for its breathtaking coastline and stunning cliffside views of the Atlantic Ocean.
Despite its small size, the town has a reasonably sized expat community and hosts a weekly market, adding to its welcoming feel. Carvoeiro is also just a short drive from the historic towns of Silves and Monchique, both rich in culture and history, making them ideal for day trips. Whether you’re seeking a peaceful retreat or easy access to charming nearby towns, Carvoeiro offers a perfect balance for those looking to experience the quieter side of the Algarve.
Schooling Options
American families, assuming they do not wish to homeschool, have two main options when it comes to schooling in Portugal: local public schools or private international schools. Public schools in Portugal are free and provide language support, making them a genuine choice for families keen on cultural and linguistic integration. However, most Americans choose to enrol their children in an international school, with English-speaking environments and familiar curricula.
There are over 50 international schools in Portugal, with notable clusters in the Lisbon area, the Algarve, and Porto—reflecting the regions most popular among expat communities. The Greater Lisbon Area, in particular, offers the highest concentration of international schools, with 20 institutions in total. Cascais, Estoril, and Sintra host many of these, located within a 30-minute drive of each other. Among them is the Carlucci American International School of Lisbon in Sintra, the only school in Portugal recognised by the US Department of State. Factors to weigh when choosing a school include the curriculum, teaching approach, facilities, location, and affordability. Ultimately, the proximity of schools will largely depend on where your family decides to settle, as educational options vary significantly by region
While some international schools in Portugal come with fees akin to those of elite American institutions, there are also a number of more affordable options available, ensuring a broader range of choices for families. For many, private education represents an additional expense compared to free state schools in the US. However, Portugal’s relatively low cost of living can make it easier for families to manage this cost within their budget.
Shipping
After obtaining your visa, you will likely want to ship your belongings to Portugal. There are numerous shipping companies in the US, and we can help you source a reliable one based on our clients’ experiences. We strongly recommend applying for a baggage certificate, which allows for duty-free importation of your household and personal effects. To qualify, your items must be imported within 12 months of your residency in Portugal. You can organize your belongings into one or two shipments, depending on your needs.
It’s important to note that obtaining duty-free status requires adherence to several formalities. As part of our comprehensive relocation package, we can assist you with this process to ensure everything is handled smoothly and efficiently.
Bringing Pets
Once your visa is secured, you can start planning to bring your pet(s) to Portugal. The country welcomes dogs, cats, and ferrets, and the process is fairly straightforward, as long as you carefully follow the timing requirements.
Your pet will need to be microchipped with an ISO-compliant microchip and vaccinated against rabies. The rabies vaccination must be administered at least three weeks before departure, and it must remain valid (within one year). An animal health certificate must be obtained from a registered veterinarian within 10 days of travel. Additionally, you must notify the Traveler’s Entry Point at least 48 hours before arrival. You can bring up to five pets, each of which must be at least 15 weeks old. Thankfully, pets traveling via commercial airlines do not need to be quarantined.
As an example, TAP Air Portugal allows dogs and cats up to 17 lbs to travel in the cabin, while pets between 17 lbs and 70 lbs will need to be transported in the hold. Fees for pet transport are generally reasonable, making it easier to bring your pet along.
5. Life in Portugal
Life in Portugal offers a refreshing change of pace, with a mix of stunning landscapes, a rich cultural scene, and a warm, welcoming atmosphere. While there is a lot of bureaucracy to navigate when moving here, the country’s many positives more than make up for it. From its picturesque coastlines lined with world-renowned beaches to the stunning terraced hillsides of the Douro River, adorned with vineyards, Portugal offers a quality of life that’s hard to beat. The mild winters and sunny, warm summers make it an attractive place to live year-round.
Portugal is also one of the safest countries in the world, ranking 7th in the 2024 Global Peace Index (GPI), making it an ideal destination for families, retirees, and anyone seeking a safe and secure environment. The culture is lively, the food is delicious, and the pace of life is relaxed—everything combines to create an enjoyable and fulfilling atmosphere for those who choose to call this country home.
Cost of Living
Portugal is often regarded as one of the most affordable countries in Europe, particularly when it comes to leisure and entertainment, utilities, transport, and groceries. Grocery prices, in particular, are significantly lower compared to those in the US. As for dining out, this is also remarkably affordable. A typical Portuguese meal at a neighbourhood restaurant, including a jug of wine, can often cost less than €10. At a mid-range restaurant in Lisbon, for example, meals typically range between €15 and €25.
According to a study by NUMBEO the cost of living in the US, including rent, is 62.8% higher than in Portugal. Rent prices are 78% higher, and grocery costs are 74% higher. However, these are averages and rent in hotspot areas can be much higher than the national average. It’s also important to note that private healthcare in Portugal is significantly more affordable than in the US, as mentioned above.
Cultural Differences
One aspect our clients often highlight after moving to Portugal is the overwhelming sense of safety. Many note the stark difference in feeling at ease, even when walking alone at night in major cities—a contrast that can feel unfamiliar at first but quickly becomes one of Portugal’s most appreciated qualities. It’s not unusual to see people, including women, strolling alone late at night, a testament to the country’s overall sense of security.
When it comes to greetings, the Portuguese are known for their warmth and affection. Physical gestures are an important part of daily life, and it’s common to greet someone with a kiss on each cheek, known as “beijos.” This friendly custom is a reflection of the country’s close-knit and welcoming culture.
Daily life in Portugal also brings its quirks. Instead of queuing in lines, many establishments, such as bakeries, banks, and clinics, use a numbered ticket system. At first, this might seem unusual to newcomers from the US, but it quickly reveals itself to be an efficient and fair way to wait your turn—no more standing uncomfortably in line!
Time is perceived differently in Portugal compared to the US. While Americans tend to be punctual and schedule-oriented, the Portuguese have a more relaxed attitude. Both social gatherings and formal events can often begin later than planned, as rigid timeliness isn’t a cultural norm. This more fluid concept of time can take some adjustment, but understanding this cultural trait helps avoid frustration and fosters patience.
Portugal’s deep connection to its traditions is reflected in its many holidays and festivals. While the US celebrates mostly secular holidays like Thanksgiving or Independence Day, Portugal’s calendar is filled with religious observances and local festivals. Each region often honours its patron saint with a dedicated day, marked by unique festivities that showcase the area’s cultural heritage. There’s a total of 13 public holidays in Portugal.
Language is an obvious difference between the US and Portugal. While English is increasingly spoken, especially in the more touristy areas, taking the time to learn a few basic Portuguese phrases is a thoughtful way to show appreciation and respect for the local culture.
Tax
Understanding your tax obligations after moving to Portugal is essential. Navigating the complexities of tax requirements, especially the overlap between US and Portuguese systems, can be extremely challenging to manage alone. Seeking professional advice is strongly recommended. While we do not offer tax or financial advice, the information below is intended as general guidance for you to consider.
Finding a reliable and trustworthy accountant in Portugal is notoriously difficult, for reasons we won’t delve into here. However, as part of our relocation package, we provide a tax consultation with a trusted Portuguese accountant who is highly experienced in managing the interplay between US and Portuguese tax systems.
In general, you become a tax resident in Portugal if you spend more than 183 days in the country within a given tax year. Even if you are classified as a tax resident in Portugal, as a US citizen or Green Card holder, you are still required to file US taxes. The United States is one of only two countries that mandate their citizens to file taxes in their home country, even after moving abroad.
Although there is a double taxation treaty between the US and Portugal, the “saving clause” contained within it means that the US can still impose taxes on its citizens after they move abroad. Fortunately, however, there are two crucially important tax advantages which can apply here – the Foreign Earned Income Exclusion (FEIE) and the Foreign Tax Credit (FTC). Both are essentially designed to help protect you from double taxation under the bilateral agreement between the two countries. The FEIE allows US citizens in Portugal to exclude up to $126,500 of foreign-earned income from US taxes, with this amount adjusted annually for inflation. Meanwhile, the FTC applies only to income taxes and helps mitigate double taxation by providing a dollar-for-dollar credit or an itemised deduction for taxes paid to foreign governments.
Additionally, Portugal’s NHR 2.0 regime offers further benefits. Designed to attract highly qualified professionals, this program provides favourable tax breaks, including a flat 20% personal income tax rate and exemptions on certain foreign-sourced income, such as employment earnings, interest, dividends, and real estate gains. These benefits are valid for 10 years. While the updated NHR regime is less generous than its predecessor, it remains an attractive option for many Americans moving to Portugal, offering meaningful reductions in tax liability.
Climate
Although Portugal’s coastline is along the Atlantic Ocean, its climate is more similar to that of Mediterranean countries. With hot summers and mild winters, it’s appealing to those seeking a pleasant climate year-round.
Portugal is a relatively small country—about 7 times smaller than Texas and more than 4 times smaller than California. As a result, regional climate variations aren’t drastic. The northern regions, like Braga and Porto, tend to be slightly cooler and wetter than central Portugal, such as Lisbon. In contrast, the Algarve enjoys more sunshine, generally higher temperatures, and less rainfall. Overall, the climate in Portugal is temperate, rarely reaching extreme heat or cold. However, occasional summer heatwaves can bring high temperatures, though these are usually short-lived.
Is it Necessary to Have a Car in Portugal?
There isn’t one straight answer to this question of course, as it largely depends on your lifestyle and where you choose to live. For example, if you live in Lisbon or Porto, you’ll likely need a car less than if you were to settle in a town like Tomar. Lisbon’s extensive public transport system includes buses, trams, the metro, trains, and even ferries to cross the river. It’s easy to use, inexpensive by both American and European standards, and often more practical than driving. In fact, owning a car in Lisbon could even be discouraged due to the difficulty of finding parking and the significant traffic.
If you live outside the major cities, a car may be more convenient, depending on your circumstances and how you plan to spend your free time. However, even if you live in Cascais, a scenic coastal train ride will get you to Lisbon in under 40 minutes for less than €2. In other areas, Portuguese rail services are reliable, and the FlixBus coach service, which connects over a hundred destinations—including Porto and even Madrid—is both exceptionally affordable and convenient.
In the Algarve, there is a railway line covering the 139 km between Vila Real de Santo António and Lagos. However, while the journey takes under 90 minutes by car, it takes over 3 hours by train. Additionally, the train doesn’t extend to all major towns in the Algarve, such as Tavira. Accordingly, living in the Algarve may present a stronger case for owning a car than living in areas within the Greater Lisbon district, for example.
6. Residency Renewal
As mentioned, your D7 or D8 visa is initially valid for four months and will be converted to a residency permit upon arrival in Portugal. This residency permit is valid for two years, after which it must be renewed, and you will be issued a 3-year residency permit. To qualify for renewal, you must still meet the same criteria as when you applied for the initial visa, such as meeting the passive or active income requirements. Additionally, you are required to spend at least six consecutive months, or eight non-consecutive months, in Portugal during this period. Once your 3-year residency permit expires, you may apply for permanent residency or citizenship.
7. How We Can Help
Navigating Complexity: Moving to Portugal can be complex and time-consuming. Requirements frequently change, bureaucracy is often excessive, and there is rarely one straight answer. Attempting the process on your own can be overwhelming, and advice from online forums and Facebook groups may not always be reliable. Many people share their own experiences or those of others, but what worked for them may not necessarily apply to your situation. It’s important to remember that every application is distinct.
Comprehensive Packages: Our all-in-one visa packages are designed to be comprehensive and transparent. Unlike many firms that charge extra for essential services like obtaining your NIF, setting up a Portuguese bank account, or finding accommodation for your one-year lease, we include all these services and more. Our packages also cover post-move support, such as a tax consultation with a trusted Portuguese accountant.
Personalised Assistance: Relocation Simplified was founded by me, Lewis, a British lawyer living in Portugal. I work closely with clients on a personal level, ensuring clear communication and a smooth transition. Since there is a significant time difference between Portugal and the US, especially with the West Coast, I don’t adhere to rigid office hours. While a typical relocation company in Portugal may close at 5pm, it’s not unusual for me to be on the phone with clients at 11pm in the evening and during weekends. This flexibility allows me to provide exceptional customer service and keep the process moving efficiently. As your dedicated relocation partner, I will ensure your move to Portugal is as seamless and stress-free as possible.
Get in Touch: Contact us today to book your free consultation and start your journey to Portugal with confidence.