Americans Moving to Portugal: What It Actually Involves

Americans are now one of the largest groups moving to Portugal, and the reasons repeat: cost of living, healthcare, safety, and a European base that does not require speaking German or French to function. The practical path is well trodden. It is also slower and more paperwork-heavy than most Americans expect, because the United States does not produce documents in the format Portugal wants.

This is what the journey actually looks like from the US side.

Which visa most Americans use

Three routes cover the overwhelming majority:

• D7 — if your income is passive. Social Security, a pension, rental income, dividends. The threshold is pegged to the Portuguese minimum wage, with roughly 50% more for a spouse and 30% per child. This is the retiree route and the most common.
• D8 — if you work remotely for a US employer or US clients. The threshold is four times the minimum wage, in the region of €3,000 a month. Make sure you apply for the residency version, not the temporary stay version, if you intend to stay.
• D2 — if you are starting a business or freelancing with Portuguese clients.

Our full visa guide covers the thresholds, timelines and the Golden Visa in detail.

The documents, and why Americans find this the hard part

Every document you submit must be apostilled and, in most cases, translated into Portuguese by a certified translator. In the US, apostilles are issued at state level by the Secretary of State of whichever state issued the document — not federally. A federal document, like an FBI background check, is apostilled by the US Department of State.

This trips people up constantly. If you were born in Ohio, married in Nevada and currently live in Texas, you are dealing with three different state offices, each with its own processing time and fee.

What you will typically need:

• FBI criminal background check — the federal one, apostilled by the US Department of State. Start this first; it takes the longest.
• Birth certificate, apostilled by the issuing state.
• Marriage certificate if applicable, apostilled by the issuing state.
• Proof of income — twelve months of statements showing it is stable and recurring.
• Proof of Portuguese accommodation.
• Proof of health insurance valid in Portugal.

Criminal record certificates have a limited validity window, so sequencing matters: get the slow documents moving early, but do not obtain time-limited ones so far ahead that they expire before your appointment. See our apostille and translation guide for the detail.

Taxes: the thing that separates Americans from everyone else

The United States taxes its citizens on worldwide income regardless of where they live. Moving to Portugal does not end your US filing obligation. You will likely file in both countries and rely on the US–Portugal tax treaty and the Foreign Earned Income Exclusion or Foreign Tax Credit to avoid paying twice.

There are also reporting requirements that catch people out — notably FBAR, which requires reporting foreign bank accounts above a threshold, and FATCA. These are reporting rules, not tax bills, but the penalties for ignoring them are severe. Some Portuguese banks are also reluctant to take US clients precisely because of FATCA paperwork.

The old NHR tax regime closed to new applicants in 2024; its replacement, IFICI, is narrower and targets qualified professionals in science, technology and R&D.

This is the one area where trying to do it yourself is a false economy. Use an accountant who handles US–Portugal cases specifically.

Practical differences that take adjusting to

• Bureaucracy is in person and on paper. There is rarely a website that resolves things. Expect to visit an office, take a ticket, and come back.
• Nothing is open 24 hours. Shops close, Sundays are quiet, and August slows the entire country down.
• Housing is smaller and colder. Central heating and screens on windows are not standard. Appliances are smaller.
• Tipping is modest. Rounding up or leaving a euro or two is normal; 20% is not expected.
• Healthcare feels alien in a good way. The cost of a visit or a prescription will seem like a mistake the first few times.
• Driving licences. US licences must be exchanged within a window of becoming resident. Leave it too late and you may have to sit the Portuguese test, in Portuguese.

How much Portuguese you actually need

In Lisbon, Cascais and the central Algarve you can function in English for a long time, and many Americans do. The constraint shows up in three places: dealing with Finanças, dealing with AIMA, and dealing with a health centre — the three institutions that determine how smoothly your life goes.

There is also the long game. Portuguese citizenship requires A2 Portuguese, proven through the CIPLE exam. Plenty of Americans arrive intending to learn, coast on English for four years, then discover they need a language qualification with a deadline attached. Starting during the visa wait — which is months of doing nothing anyway — is the obvious move.

Common questions

Which visa do most Americans use to move to Portugal?

The D7 if income is passive, such as Social Security, a pension, rental income or dividends, and the D8 if working remotely for a US employer or US clients. The D2 covers people starting a business in Portugal. The D7 is the most common route for retirees.

Do I still pay US taxes if I live in Portugal?

Yes. The United States taxes citizens on worldwide income wherever they live, so moving to Portugal does not end your filing obligation. Most Americans file in both countries and use the US-Portugal tax treaty, the Foreign Earned Income Exclusion or the Foreign Tax Credit to avoid being taxed twice, and must also meet FBAR and FATCA reporting rules.

Who issues an apostille for US documents going to Portugal?

It depends on the document. State-issued documents such as birth and marriage certificates are apostilled by the Secretary of State of the issuing state, while federal documents such as the FBI background check are apostilled by the US Department of State. Documents from different states must go to each state separately.

Can I live in Portugal as an American without speaking Portuguese?

Day to day in Lisbon, Cascais or the central Algarve, largely yes. It becomes a real obstacle at Finanças, at AIMA and at health centres. Portuguese also becomes compulsory if you pursue citizenship, which requires A2 level proven through the CIPLE exam.

Please note: immigration, tax and residency rules in Portugal change frequently, and are applied differently from one office to another. Everything here is general information written in good faith, not legal or financial advice. Confirm your own situation with AIMA, a Portuguese consulate, or a qualified professional before acting on it.