The number of American expats living in Portugal has reached record highs in recent years, with a huge leap in those registered as permanently living in Portugal, opting for the sunny climate, stable economic conditions and valuable healthcare it offers in abundance. According to the former Foreigners and Borders Service (SEF), there were 2,888 US nationals living in Portugal in 2017 and as of 2024, that number increased to 20,959 (The Portugal News)
So, why have so many US nationals chosen to swap the expansive states of the USA for a more petite European country on the Iberian Peninsula? Whether you’re simply intrigued by the increase of Americans moving across the pond to Portugal, or you’re thinking about making the move yourself, or perhaps retiring in Portugal from the USA, let’s take a deep dive into some of the main reasons so many are making the decision.
Why American Expats Are Choosing Portugal
Portugal’s global safety rankings
Perhaps one of the most significant factors contributing to an increase in American expats living in Portugal came in the wake of political changes and unpredictability within the USA, beginning in 2017 through to 2025. This led some Americans to consider relocating to countries with better perceived safety and a more predictable political landscape.
In Portugal, many individuals see a safe haven offering both political stability and a better quality of life. In the most recent Global Peace Index, Portugal ranked as the seventh safest country in the world and over the years it has consistently ranked in the top 10 safest countries in the world. The report is released annually by the Institue for Economics and Peace (IEP) and is based on 23 indicators that assess a country’s safety relating to Militarisation, Social Security and Safety and Ongoing Domestic and International conflict. According to Get Golden Visa, it looks at “political instability, level of distrust, the total number of homicides, the potential for terrorism, external and internal violent conflicts, and military expenditure”. Compared to America, Portugal offers a lifestyle benefitting from increased potential security and personal freedom, as well as more modern and inclusive cultures that feel safer for future long-term stability.
Quality of life & affordability
When you compare the cost of living in Portugal to the cost of living in the USA, Portugal comes out significantly on top. Daily expenses, including grocery shopping, dining out and public transportation are additionally a lot cheaper compared to America, while still offering a high-quality of life. Global Citizen Solutions outlines that the cost of living in Portugal is on average 39.2% less than in the US.
Residency and investment options
While American nationals can stay up to 90 days in Portugal without a visa, for those looking to make a more permanent move, you’ll need to apply for one of Portugal’s residency permits; the most common being the D2 Visa (good for business owners and entrepreneurs), D7 Visa (good for retirement) and the Golden Visa. Most of Portugal’s visas run for an average of five years, with the ability to then apply for citizenship at the end of the five year residency period. The common inclusions of Portugal’s residency visas include travelling around the Schengen Area visa-free or with minor restrictions and access to Portugal’s healthcare system. Eventually gaining permanent residency and citizenship after five years through the visa method is known as naturalisation, but of course, there are other ways you can be eligible—this includes through marriage to a Portuguese citizen, as well as through heritage, for example, if you have parents, grandparents or great-grandparents who are from Portugal.
High standards of healthcare and education
In Portugal, healthcare is far more affordable than in the US, so this is certainly a driving factor as to why many American’s decide to relocate across the pond. In particular, many American retirees see Portugal as a country where their pension will go a little bit further and medical expenses won’t be such a shock to the system. Both Portugal’s public and private healthcare are robust, with free healthcare available to expats who register with the National Health Service (SNS) and obtain a social security number. There may be some treatments that involve payments, but this is at a fraction of the cost that Americans would be likely to pay in their home country. Even private healthcare is low when compared to other countries, with the average private health insurance costing approximately €400 each year according to Global Citizen Solutions.
Education in Portugal spans both public and private options. Public schools are free to all residents, so if you are an American expat with a residency permit, you are free to enroll your children in Portugal’s public schools. However, it should be noted that the public schools follow a national curriculum, whereby lessons are taught entirely in Portuguese. A popular option for English-speaking students is to consider a private school, of which both Portuguese and international schools are available, with annual fees starting from approximately €6,000 (Global Citizen Solutions).
Welcoming culture and communities
Portugal’s welcoming culture and inclusive communities cannot be understated. A culture of hospitality and the prioritisation of community resides over Portugal, making the quality of life experienced here just that bit sweeter. As well as this, English is widely spoken throughout the country, making the cultural adjustment from America to Portugal far more streamlined, opening up more doors to connect with your neighbours and the local community.
Best Places to Live in Portugal for Americans
Whether you seek the energetic nature of an urban hub or the charm and relaxation of Portugal’s coastline, there are many highly attractive areas for American expats to choose as their home. While many expats opt for the metropolitan areas, including Lisbon and Porto for improved infrastructure, job opportunities and higher rental potential, the Algarve, including Lagos and Albufeira is favoured by retirees and families for its warm climate, beaches and golf courses. According to Portugal.com, roughly 46% of the American expat population reside in Lisbon, while 15% reside in the Algarve.
Retiring in Portugal from the USA
Yes, American nationals can retire in Portugal by applying for the D7 Visa, known as the Retirement or Passive Income Visa. You’ll need to provide proof of sufficient passive income, such as a pensions or rental income (approximately $1,200 or more per month) and after five years of holding the residence permit, you can apply for permanent residency or citizenship.
Alternatively, you can opt for the Golden Visa, but this requires an investment to be made into Portugal. Investment by real estate was previously an option, but was eliminated in 2023. The remaining eligible options include “transferring capital into investment or venture capital funds, research activities, or donations to support arts or cultural heritage, as well as an entrepreneurial option” (Quinta Heights).
It’s clear to see why there has been an increase in American expats moving to Portugal in recent years. Not only does the nation offer the dream destination of sun and sea, its cost of living and affordability when compared to America is second-to-none. Political stability paired with high-quality healthcare are additional factors that make it an attractive European country to call home.
If you’re thinking of moving to Portugal from the USA and/or relocating to the Algarve, why not explore our 1-4 apartments at Quinta Heights, or request more information from our team below.
