“How do I move to Portugal?” is one of the most common questions we hear at Freedom Files from Americans who dream of enjoying affordable, high-quality European living. 

And the data doesn’t lie:

No wonder Americans want to escape and spend their golden years in a literal golden climate (Portugal receives more sunshine than almost all other European country!):

• Healthcare has become prohibitively expensive.
• Housing now costs more than ever before.
• And the everyday cost of living is exceptionally high compared to just five years ago. 

Due to its close proximity to the U.S. as well, Portugal has emerged as a compelling option for American retirees and investors alike.

Why is Portugal a Retiree’s Paradise?

Portugal consistently earns top rankings among global retirement destinations. Every year, thousands of Americans decide to move their lives to this Mediterranean country. 

Here’s a deeper look into why they choose Portugal over their many alternatives:

• Affordable Living — The cost of living in Lisbon is often half that of major U.S. cities like Chicago (comparison below). And, Lisbon is Portugal’s most expensive city (and Chicago is not America’s). This lower cost of living allows retirees to live a higher quality lifestyle for less than they spend in the United States. From rent and healthcare to dining out and entertainment, every dollar stretches farther in Portugal.

• World-Class Healthcare — Portuguese healthcare systems rank among Europe’s best, matching the quality standards found in the U.S. but at way lower prices. Private health insurance plans in Portugal range between €500 and €1,000 annually. Affordable, reliable medical care for less. That’s a nice equation.
• Sunny Mediterranean Climate — Portugal’s Mediterranean climate closely resembles California’s: Mild winters, warm summers, and abundant sunshine throughout the year. If you desire more time outside, these favorable weather conditions will really improve your lifestyle no matter where you’re from in America.
• Safety & Stability — With low crime rates, a relatively stable political environment, and a welcoming expat community, Portugal proudly stands as the seventh safest country globally.

• Strong Expat Community — Almost 15,000 Americans currently live in Portugal, primarily concentrated in Lisbon, the Algarve, Madeira, and the Azores. If you’re worried about finding community wherever you move in the world, Portugal should quell those concerns. 
• Convenient Travel — Direct flights from Portugal (Lisbon, Faro, Porto, Madeira, and the Azores) to major U.S. east coast cities make it easy for Americans to stay connected with family, manage business or investment commitments, and travel back and forth without hassle.

The Limitations of a Portuguese Tourist Visa

U.S. citizens with a valid passport can visit Portugal visa-free for up to 90 days within every 180-day period. No need for a visa application or anything. This is an illustration of the powerful American passport.

However, you do not have the right to stay in the country for more than 180 days in a year, which rules a permanent relocation out from your goals – unless you upgrade to temporary residency in Portugal.

While ideal for short-term visits or exploratory trips (which the Freedom Files recommends before you make any large investments either in time or money), a tourist visa does not permit long-term residency or provide a path to citizenship. 

For a permanent life in Portugal or at least trips of more than three months at a time, you’ll need to pursue these different visa solutions:

How to Stay in Portugal Legally

Portugal offers visa options for several financial situations, employment statuses, and lifestyle preferences. Don’t forget that the Freedom Files can walk you through these options in your 100% personalized Freedom Consult as well:

Option 1: Portuguese D7 Retirement Visa

Perfect for retirees or those with stable passive income (especially pensions and/or social security payments), the D7 visa is straightforward and popular among Americans:

• Income Requirement — You must be able to prove that you have at least €900 (US$970) monthly from retirement income, pensions, rental property income, or dividends or €10,440 (US$11,250) in savings. If applying with a spouse, you must be able to show at least €5,220 (US$5,630) more as well.
• Accommodation Requirement — You must prove a lease or property purchase as part of your visa application. 
• Tax ID — A NIF (Fiscal Identification Number) is required for your visa application in Portugal. Your immigration lawyer – ahem, the Freedom File – can help you with this.
• Health insurance — During the application process, you must have travel insurance and a private health insurance policy in Portugal. Then, once you become a resident, you can either maintain your private health insurance plan or buy a cheaper public plan.
• Temporary Residency — The D7 Visa provides initial temporary residency, with eligibility to apply for permanent residency or Portuguese citizenship after five years of residency in the country.
• Key Benefits — Full residency rights, affordable healthcare access, and freedom to live, work, and study anywhere in Portugal.

Note: Maintaining residency under this visa requires becoming a tax resident of Portugal. In fact, successful applicants must spend at least 12 months in Portugal in the first two years of residency and 28 months every three years after their first visa renewal.

If you do not want to become a tax resident of Portugal, this is not the right visa for you.

Option 2: Portuguese D8 Digital Nomad Visa

Still actively working remotely or semi-retired? With two viable sub-options, the D8 Digital Nomad Visa might perfectly suit your lifestyle.

The Short-Stay D8 Visa grants residency for just a single 12-month period. The D8 Residency allows for a stay of up to two years before renewing the visa for another three years.

• Income Requirement — Prove stable remote income exceeding €3,480 (US$3,750) per month from a permanent contract or freelance employment. Additionally, you must prove about €10,500 (US$11,360) in savings or €15,750 (US$17,000) if entering Portugal with your spouse.
• Other Requirements — As with the D7 Visa, applicants must prove accommodation in Portugal, health insurance coverage, and a clean criminal record. If you’re traveling with your spouse, you must also demonstrate a marriage certificate.
• Who It’s For — Ideal for remote professionals, freelancers, or semi-retired individuals with stable active income interested in establishing a European base.
• Residency Benefits — Provides comprehensive residency rights, healthcare access, and after five years, eligibility to apply for permanent residency and Portuguese citizenship.

So if you still have stable income from employment or a business, the D8 Digital Nomad Visa may be your best route to enter Portugal. However, like the D7 Visa, it requires substantial time on the ground to maintain, which means you’ll become a Portuguese tax resident. 

In a future article, we’ll discuss what that means for your global tax situation (hint: it’s not all bad!).

Option 3: Portuguese Residency by Investment (Golden Visa)

Portugal’s Golden Visa is one of the world’s most sought-after, most popular Residency by Investment programs, highly attractive to investors due to its flexible requirements:

• Investment Options — Either donate €250,000 (US$270,000) to approved cultural or artistic projects or invest €500,000 (US$540,000) into approved funds or a local business that creates at least ten jobs. After five years, you’re able to access and withdraw the funds.
• Minimal Stay Requirements — Spend an average of only seven days per year physically in Portugal. This way, you can qualify for Portuguese citizenship without ever becoming a tax resident.
• Pathway to Citizenship — After five years of maintaining your investment (not in the case of a donation) and your visa, you can apply for permanent residency or Portuguese citizenship. To be eligible for citizenship, you must speak Portuguese at an A2 level or better or be taking online/in-person courses.

Due to the complexity of this process, we strongly recommend seeking trusted professional assistance like the Freedom Files to navigate all the legal and investment requirements.

But if you have the funds, you want citizenship in the European Union for all its benefits, you require flexibility, and you do not want to become a tax resident in a second country, the Portugal Golden Visa is by far one of your best options available. There’s a reason it’s popular.

Achieving Portuguese Citizenship

After five years of legal residency (as outlined above, physical presence requirements differ on each visa), you can qualify for Portuguese citizenship by naturalization. 

Acquiring Portuguese citizenship grants you one of the world’s strongest passports, unlocking visa-free travel to over 185 countries (just a few more than the American passport grants access to) and residency, labor, education, and healthcare rights across the entire European Union. It’s essentially like having 27 passports instead of just one.

Niche Options: Citizenship by Descent & Family Reunification

• Citizenship by Descent — If your parents or grandparents are Portuguese, you may qualify directly for citizenship. No presence or language requirements whatsoever. If you have this option available to you and you don’t yet have citizenship in the European Union, take it.
• Family Reunification Visa — Spouses or immediate family members of current Portuguese citizens can fast-track their residency and citizenship journey.

Quality of Life in Portugal

Cost of Living

Despite rising costs in popular areas like Lisbon and Algarve, Portugal remains significantly more affordable than major American cities, particularly regarding housing, healthcare, and everyday expenses. Food and wine, some of the best in the world, is exceptionally cheap for U.S. retirees.

Healthcare

Residents have access to universal public healthcare. However, most Americans have affordable private insurance plans that expedite access to the care and procedures they need while in Portugal.

Safety

Portugal is notably safe, ranking seventh globally according to the Global Peace Index, with minimal crime rates and a stable economy and political environment. Often, U.S. retirees find the peace of mind in Portugal that they had missed in America.

English Proficiency

English is widely spoken in larger cities and tourist areas. However, learning some basic Portuguese will significantly ease your daily life and errands in more rural communities.

Bureaucracy

Navigating the Portuguese bureaucracy and slower lifestyle can be challenging. But professional assistance from the Freedom Files simplifies these processes, which will make your transition smoother and less stressful.

“How Do I Move to Portugal?”: The Stress-Free Solution

Moving abroad requires careful planning, diligent partnerships, and expert support. Freedom Files simplifies this process by helping you choose the right visas for your situation, managing immigration, understanding tax implications, selecting housing that fits your budget and comfort level, and connecting you with both expats and locals in your new community.

Take the first step toward the life you worked so hard for and earned. Schedule your Freedom Consult or check out our free guide “How to Retire to Portugal.” Your dream retirement in Portugal awaits.