Portugal’s Expat Dream Meets Reality: Rising Costs and New Rules
In recent years, Portugal’s low cost of living, visa programs, sunny climate and access to other European countries have made it a sought-after destination for Americans seeking to move abroad.
That trend accelerated even before the November 2024 election and a raft of executive actions that have rolled back protections for the LGBTQ and transgender community. Official figures show that the number of Americans living in the southern European country soared from around 3,000 in 2017 to more than 14,000 in 2023.
Reasons people give for making the move include the desire to flee a rising cost of living, political polarization, concerns about access to healthcare, and personal safety. Portugal certainly meets those expectations.
According to Global Citizen Solutions, a company that advises on international relocation, a couple can live comfortably in Portugal on between $2,500-$3,000 per month, outside major cities. The national healthcare system offers low or no-cost care to legal residents. The Global Peace Index ranked Portugal among the top ten safest countries in the world. Portugal is also ranked among the most LGBTQ-friendly. The country approved same-sex marriage in 2010, LGBTQ couples have adoption rights, and there is strong legislation prohibiting discrimination on sexual orientation and gender identity in employment, housing, healthcare, and public services.
Housing costs rising
However, Portugal’s very popularity has led to major changes. House prices have risen steadily in recent years, and will continue to increase because of demand, according to Fortune magazine. Idealista, a major property company in Portugal, reported prices increased by 6.5 percent in the year ending February 2025. Prices are highest in the major cities of Lisbon, Porto, and the southern district of the Algarve. Monthly rent for a one-bedroom apartment in Lisbon center starts at around 600-700 euros ($700-$820), according to Portugalist.com, but they can be tough to find.
House prices are lower in cities like Viana do Castelo, in northern Portugal, Santarem in central Portugal, and Castelo Branco, in the east near the Spanish border. It’s also possible to find much lower prices in country areas, but many properties require significant renovations.
Visas and a change to citizenship requirement
There are multiple ways to relocate to Portugal. The D7 visa is available if you have “passive” income such as social security, pension or rental income. Applicants must provide an array of official documents, including proof of income. The VFS Global website, VFSglobal.com explains the process. The Golden Visa program which allowed applicants to obtain residency through investment in property, has been changed. It now requires applicants to invest between 200,000 and 500,000 euros in either a cultural organization or specified funds.
The D8, or “Digital Nomad” visa is available for applicants who can work remotely. Applicants must show proof monthly income of 3,480 euros, or about $4,000.
This year, the Portuguese government approved a major change to the requirements for obtaining Portuguese citizenship. Portugal is a member of the European Union and is covered by the Schengen agreement. This means, Portuguese citizens can travel visa-free and work anywhere within the EU.
Under new rules foreigners will need to complete 10 years of residency in Portugal before applying for citizenship, replacing the previous five-year requirement. The new rules include stricter language requirements, a civic knowledge test and applicants must sign a pledge to uphold the Portuguese constitution. Children born in Portugal to foreign parents are not automatically citizens.
Some useful websites
Visa information
Portugal D7 Visa for US Citizens: Benefits and Obtaining Process
Useful tips on daily life in Portugal
Portugal Living: What You Need to Know about Living in Portugal