Thinking about making the big move from the USA to Portugal? You’re not alone! Portugal’s stunning scenery, warm weather, and relaxed lifestyle have attracted a growing number of Americans in recent years. While it’s easy to fall in love with Portugal at first glance, there are some practical things you should know before making the leap. Moving to a new country always brings surprises, and understanding the less obvious aspects of life in Portugal will help you transition smoothly. In this guide, we’ll cover 10 key things Americans need to know before packing their bags for Portugal—beyond the usual clichés.
1. The Weather Isn't Always Perfect
Portugal is often praised for its sunny, Mediterranean-like climate, and for good reason! Most of the country enjoys mild, pleasant weather for the majority of the year. Southern areas, like the Algarve, boast over 300 days of sunshine annually, making it a paradise for sun-lovers. However, Portugal’s weather can vary, offering a diverse climate for those who appreciate different seasons.
In the north, places like Porto and Braga are known for cooler winters and occasional rain, creating lush, green landscapes that are perfect for nature enthusiasts. Even in these cooler regions, the winters are mild compared to other parts of Europe, rarely dropping below freezing. In the Algarve, winter days hover around 50°F (10°C), and while older homes may feel a bit chilly, the region’s outdoor lifestyle continues year-round.
Portugal’s Atlantic coastline is also unique. While the beaches are stunning and perfect for a sunny getaway, the Atlantic Ocean tends to be cooler than the Mediterranean, which some may find refreshing. Wherever you choose to settle in Portugal, you can expect to experience a comfortable mix of sunshine, rain, and mild temperatures. With a variety of climates to choose from, Portugal truly has something for everyone.
2. Taxes Can Be Higher Than You Expect
Portugal is becoming a go-to destination for expats, not just for its beautiful landscapes but also for its favorable tax regimes. Programs like the Non-Habitual Resident (NHR) regime offer significant tax breaks on foreign income, allowing expats to enjoy up to 10 years of reduced taxes. This is particularly beneficial for retirees, investors, and digital nomads who are looking to make the most of their income while living abroad.
It's important to understand that relocating to Portugal doesn't exempt you from your US tax obligations. The United States operates under a citizenship-based taxation system, which means all US citizens and Green Card holders who meet the minimum reporting requirements must file a federal tax return, no matter where they reside. Many US expats living in Portugal are also subject to Portuguese taxes, and as of 2024, there have been significant changes to the tax landscape. We advise you to consult one of our tax advisor partners to navigate these complexities effectively.
3. Residency Costs Can Add Up
One of the great things about moving to Portugal is the variety of visa options available, including the D7 visa for those with passive income, like retirees. While the income requirement is relatively low, around €1,200 per month, it’s important to account for additional costs to ensure a smooth transition.
Private health insurance is a key requirement, with coverage of at least €30,000 for your residency application. Fortunately, private health insurance in Portugal is far more affordable than in the U.S., with monthly premiums ranging from $200 to $900, depending on your age and needs. Additionally, while legal fees for visa applications can range from €2,000 to €3,000 per person, these are one-time costs, and renewing your residency permit after a couple of years is straightforward and affordable. With a bit of financial planning, the overall cost of residency in Portugal is manageable and well worth the investment in your new life abroad.
4. Portuguese Is Harder to Learn Than You Think
While many Portuguese people, especially in larger cities like Lisbon and Porto, speak English, learning Portuguese will make your experience even richer. Portuguese might be more challenging to pick up than other languages, especially due to its unique pronunciation and regional accents, but the reward is significant.
Understanding even basic Portuguese opens the door to deeper cultural integration, helps you navigate daily life with ease, and is highly appreciated by the locals. The good news is that there are plenty of resources available, from language apps like Duolingo and Babbel to local classes and language exchange meetups with native speakers. While it might take some time to feel confident, learning Portuguese is an investment in making Portugal truly feel like home, and the locals will love your efforts!
5. Cultural Quirks Can Be Surprising
One of the most delightful aspects of moving to Portugal is adjusting to the slower, more relaxed way of life. While some American expats might be surprised by certain cultural quirks—such as siesta time, when shops close between 1 p.m. and 3 p.m. for lunch—these habits are part of what makes Portugal so charming. Embrace the afternoon pause as a time to slow down, enjoy a leisurely meal, and rest before the evening activities begin.
Another cultural shift is the timing of dinner. In Portugal, meals are social events that start late, with many restaurants filling up around 9 p.m. and dinners often lasting hours. It’s an opportunity to enjoy long, relaxed conversations over delicious Portuguese cuisine. And when it comes to driving, expect a faster pace on the roads, with fewer signals and a bit of creativity in parking! Once you get used to these little differences, you’ll appreciate the laid-back vibe that defines daily life in Portugal.
6. Some Goods Are More Expensive, But Local Finds Are Cheaper
While you might notice that some items like electronics and gas are a bit more expensive than what you’re used to in the U.S., this is balanced by how affordable many other things are in Portugal. Daily necessities like fresh fruits, vegetables, and local products are incredibly inexpensive. Enjoying a coffee with a delicious pastel de nata costs less than €2, and dining out can be a regular treat without breaking the bank. Plus, Portugal’s famous wines are not only world-class but also available at bargain prices! While it’s a good idea to bring your tech gadgets from the U.S., you’ll quickly fall in love with how affordable life’s simple pleasures can be in Portugal. With smart budgeting, your overall cost of living will likely still be much lower than back home.
7. Walking Is an Adventure in Portugal’s Beautiful Cities
Walking through Portugal’s picturesque cities is more than just a mode of transport—it’s a journey in itself! Cities like Lisbon and Porto are known for their stunning views, historic streets, and iconic cobblestone sidewalks. Sure, the steep hills and cobbled pavements might take a bit of getting used to, but every climb rewards you with breathtaking vistas, charming cafés, and a true sense of discovery. These old-world streets are perfect for wandering and exploring hidden gems. And if you need a break from walking, Portugal’s excellent public transport system, with its trams, metros, and buses, will easily get you where you need to go. Whether you're walking or riding, you’ll find getting around Portugal is both scenic and efficient, making daily life an adventure.
8. High Demand for Property in Popular Areas
The high demand for property in popular areas like Lisbon, Porto, and the Algarve is a testament to how desirable Portugal has become as a place to live. As more expats discover the appeal of Portugal, property prices in these areas have risen, meaning you're entering a market that's hot for a reason.
With beautiful weather, cultural richness, and a high quality of life, it’s no wonder so many people are looking to settle here. But don’t worry—if prime areas are competitive, there are still plenty of affordable options in smaller, equally charming cities like Braga, Coimbra, or Évora. These towns offer all the perks of Portuguese living—beautiful architecture, rich history, and a welcoming community—without the higher price tags. So, whether you're renting or buying, Portugal offers diverse options for every budget, making it easy to find the perfect home for your lifestyle.
9. Public Healthcare May Not Be Immediate
Portugal’s healthcare system is one of the many reasons why expats love living here. It’s affordable, high-quality, and easily accessible once you have your residence permit. While it’s true that you’ll need private health insurance during your initial months, the cost is far lower than what you’d expect in the U.S. Private insurance plans in Portugal range between €40 and €100 per month, giving you access to excellent care while you wait for public coverage.
Once you’re eligible for the public healthcare system, you’ll enjoy extremely low out-of-pocket costs for doctor visits, specialist consultations, and prescriptions. Whether you stick with private insurance or transition to the public system, Portugal offers a healthcare experience that combines quality with affordability. With both options available, you’ll always have the flexibility to choose the type of care that suits your needs. To help you compare your options, we can put you in touch with one of our partners specialized in healthcare coverage.
10. Portugal’s Bureaucracy Can Be Slow
Portugal is known for its relaxed pace of life, and that laid-back attitude sometimes extends to bureaucratic processes, too. While things like applying for a visa, opening a bank account, or registering for healthcare might take longer than you expect, it’s all part of adopting the local lifestyle. The slower pace allows you to focus on what’s important—enjoying life’s moments without the constant rush. While paperwork might move a little slower, the reward is living in a country that values work-life balance and quality of life. Plus, there are countless expat groups, legal advisors, and services available to guide you through the process, so you’re not alone.
Once you’ve gone through the paperwork and processes, you’ll be able to relax and fully enjoy everything that Portugal has to offer, from its stunning landscapes to its rich culture. Patience really pays off in a country where life is meant to be enjoyed at a slower pace.
Conclusion - Moving to Portugal
Moving to Portugal from the USA is a life-changing experience, filled with the promise of new adventures, a better quality of life, and the chance to immerse yourself in a vibrant culture. While there are some things to adjust to, like taxes, language barriers, or the slower pace of bureaucracy, these are small trade-offs for the incredible benefits that come with living in such a beautiful and welcoming country. Whether it’s the affordable cost of living, the stunning landscapes, or the warmth of the local people, Portugal offers something for everyone. By understanding these key things before you move, you can set yourself up for success and fully enjoy your new life in Portugal.
Ready to start your adventure?
Lagos Homes is your reliable partner for all your real estate needs in Portugal. We go beyond helping you find your dream property, offering expert guidance across all aspects. Do you have any inquiries? Feel free to contact us now!
Legal: Visa, NIF, Residency, NHR