Why Portugal is a magnet for Americans: discover the Portugal Golden Visa advantage

The Portugal Golden Visa is a residency-by-investment program that has attracted thousands of individuals worldwide. Introduced in 2012, it allows non-EU citizens to obtain residency in Portugal.

To obtain Golden Visa applicants must invest at least €250,000 in the country’s economy. Investment options, such as funds and business ventures, provide not only residency benefits but also potential returns, making the Portugal Golden Visa a practical choice for those seeking both personal and economic advantages.

This Golden Visa is among the top 3 residence-by-investment initiatives chosen by US citizens, alongside similar programs in Malta and Greece. For example, in 2023, US citizens led the list of applicants for the Portugal Golden Visa with 567 approvals, surpassing other nationalities.

1. Pathway to EU citizenship. US citizens can apply for permanent residency or Portuguese citizenship after holding the Golden Visa for 5 years. This period begins from the date of submitting the first residency application, and any delays or processing time for the issuance of the residency permit are included.

Citizenship provides the right to live, work, study, launch a business in all 27 EU countries, as well as visa-free traveling to more than 170 countries.

2. Minimal residency requirements. The Portugal Golden Visa requires an obligatory stay in the country of only 7 days per year. This flexibility allows US citizens to maintain commitments in the US while meeting residency criteria.

3. Safe living environment with low crime rates. Portugal ranks among the world’s 10 safest countries, according to the Global Peace Index. Portugal boasts low crime rates, minimal gun violence, strict firearm regulations, and effective community-oriented policing, making it a secure and peaceful destination.

4. Political stability. Portugal enjoys a moderate political climate with minimal polarization, fostering consensus and cooperation for a balanced and stable environment.

5. Inclusive society with low levels of racism. Portugal promotes tolerance and has strong anti-discrimination laws. Updates to the legal framework in 2017 empowered the High Commission for Migration to handle complaints, initiate legal proceedings, and issue decisions efficiently.

For example, the commission addresses cases of workplace discrimination, where foreigners' complaints are reviewed and evidence is gathered. In one instance, an employer is required to pay compensation and implement diversity training, demonstrating the commission’s role in promoting inclusivity and enforcing anti-discrimination measures effectively.

6. LGBTQA+ rights protections. Same-sex marriage has been legal since 2010, and anti-discrimination laws ensure inclusivity and equality, making Portugal an appealing choice for LGBTQA+ individuals.

Orva and Jaela,

Family from Angola

How a same-sex couple secured their Portugal Golden Visas

Orva and Jaela sought a more inclusive environment and decided to relocate to Portugal. With the assistance of Immigrant Invest, they legally registered their marriage in Germany, enabling them to apply jointly for Portugal’s Golden Visa.

The couple’s journey highlights the opportunities Portugal offers to LGBTQA+ expats seeking a welcoming and legally supportive environment.

Learn a case

7. High quality of life with less focus on consumption and productivity. Portugal is known for its relaxed pace of life and friendly locals. The standard work week in Portugal is capped with a legal maximum of 8 hours per day, ensuring a balanced approach to work and leisure.

Whether settling in coastal cities like Lisbon and Porto or choosing a quieter life in the Algarve, Americans often find the high quality of life in Portugal. They can maintain their familiar lifestyle, with services like Amazon, international streaming platforms, and global brands readily available.

However, Portugal offers a refreshing change with its lack of rush and pressure, allowing residents to enjoy a slower, more fulfilling life.

​​Also, Portugal’s large and growing American expat community provides a supportive network for newcomers. In major cities like Lisbon and Porto, English is widely spoken, making day-to-day interactions, business, and socialising easier for those not fluent in Portuguese.

8. Lower cost of living. Living in Portugal is approximately 30—40% cheaper than living in the US, depending on the city and lifestyle.

Renting a one-bedroom apartment in a city center costs about €1,300. In smaller towns or suburban areas, rents drop to around €800—900.

For a couple, expenses would generally range from €2,500—3,000 per month, while families with children might need €3,500—4,500, accounting for larger housing and education costs.

9. Strong education system. Portugal offers diverse options, from international schools to renowned universities, making the country family-friendly. Esteemed institutions include:

• University of Lisbon is known for its research in science, technology, and the humanities with a wide range of programs for students;

• University of Porto is ranked among the top universities in Portugal and globally recognized for its excellence in engineering, business, and health sciences;

• NOVA University Lisbon offers strong academic programs in fields like business, law, and medical sciences;

• University of Coimbra is renowned for its historical campus and scholarly disciplines in law, medicine, and the humanities.

10. World-class cuisine. Portugal boasts an array of traditional dishes, such as seafood, salted cod. Pastel de nata, a beloved dessert, is a creamy custard tart with a crispy, caramelised crust, originally created by monks and now enjoyed worldwide.

Michelin-starred restaurants in Lisbon, Porto, and the Algarve offer innovative culinary experiences.

11. Cultural events and UNESCO heritage sites. A mild climate and welcoming expatriate community enhance life in Portugal, offering a vibrant backdrop for cultural festivities and exploration of world-renowned landmarks.

Locals enjoy year-round participation in events and visits to iconic sites such as Festa de São João in Porto and Festas de Lisboa.

Portugal’s UNESCO World Heritage Sites further enrich its cultural appeal, including:

• the Tower of Belém in Lisbon, a symbol of Portugal’s Age of Discoveries;

• the Monastery of Batalha, a Gothic masterpiece commemorating the 1385 Battle of Aljubarrota;

• the Historic Centre of Porto, known for its stunning architecture and riverside charm;

• the Cultural Landscape of Sintra, famous for its romantic palaces and lush gardens.

Combined with a welcoming atmosphere and engaging community, these landmarks and events make Portugal an exceptional place to live and explore.

Investors must have no criminal history in their home country or Portugal. Background checks are conducted, and a police clearance certificate is required.

US citizens applying for the Golden Visa must demonstrate that investment funds are legally obtained and that they have no debts in Portugal.

Applicants are required to hold valid health insurance that provides coverage in Portugal, ensuring access to healthcare for any medical needs.

Eligible family members include:

• spouses or legally recognized partners in a registered marriage or in a common-law marriage for at least 2 years;

• children, if over 18 must be registered with investor at the same address and study at a university, not married;

• parents of the applicant or spouse, if under 65 years old — dependent on the investor.

All family members over 18 years old must provide a clean criminal record certificate.

Applying for Portugal residency as a US citizen involves various costs, which depend on the investment type.

Real estate options have been discontinued as of October 2023. The Portugal Golden Visa currently offers 5 main investment options:

• €250,000 — cultural investment towards the preservation of Portugal’s cultural heritage, including support for arts, architecture, or heritage conservation projects;

• €500,000 — investment in a qualifying investment fund, which may focus on sectors like technology or renewable energy;

• €500,000 — investment in scientific or technological research conducted by public or private institutions in Portugal;

• €500,000 — business investment in an existing Portuguese company or a new business that creates or sustains at least five jobs for Portuguese residents;

• opening a company that will create at least 10 jobs without minimum sum requirement.

US citizens must maintain their chosen investment for at least 5 years to retain residency rights. Selling the company or fund units before this period may result in the loss of residency status.

American applicants for the Portugal Golden Visa should account for several costs, including the initial investment, government fees, professional assistance, and ongoing expenses.

Government fees. Application processing fee is €605, or $638, per main applicant and per family member. This fee is paid when submitting the initial application.

Residency permit issuance fee is €6,045, or $6,300, per person for the initial residence permit. This is a one-time fee required upon approval.

Residency renewal fee is €3,023, or $3,200, per person, paid every two years upon renewal of the residence permit.

Administrative fees. Legal fees vary depending on the law firm or agency representing the applicant. Some documents, such as birth and marriage certificates, must be translated and notarized, typically costing €500—1,000, or $527—1,055, depending on the volume and complexity.

Additional expenses. Health insurance is required for the primary applicant and family members. This cost varies depending on the insurance provider but generally ranges from €400 to 1,500, or $422—1,580, per year per person.

Costs for trips to Portugal to complete biometric appointments, view investments, and fulfill residency requirements will vary by individual circumstances.

General documents checklist. US citizens applying for the Portugal Golden Visa must provide documents to verify identity, financial standing, and legal eligibility. Below is the checklist of essential documents:

1. Valid passport with at least six months of validity beyond the application date.

2. Proof of legal residence in the US, such as a driver’s license or recent utility bill.

3. Clean criminal record issued by the FBI or an equivalent national authority, dated within 90 days of submission.

4. Proof of health insurance coverage that is valid in Portugal, ensuring healthcare access during residency.

5. Número de Identificação Fiscal — a Portuguese tax identification number, which can be obtained through a Portuguese lawyer or local tax office.

6. Documentation of the specific investment, whether fund units purchase documents or business creation papers, demonstrating compliance with Golden Visa requirements.

7. Marriage or birth certificates for dependents.

8. Completed official application forms for the Golden Visa, including all relevant personal and investment details.

9. Recent passport-sized photos of the main applicant and all dependents that meet Portuguese government photo standards.

Apostille certification. Identity documents, such as birth and marriage certificates, must be authenticated with an apostille to be accepted in Portugal.

FATCA and IRS reporting requirements. US applicants must comply with the Foreign Account Tax Compliance Act, FATCA and may need to complete IRS forms to disclose overseas investments. Key requirements include:

• reporting foreign financial assets exceeding specified thresholds based on filing status and residency;

• disclosing specified financial assets, such as foreign bank accounts, investment funds, and certain foreign-issued insurance or annuity contracts;

• meeting filing thresholds starting at $50,000 for single taxpayers in the US, with higher limits for married or overseas residents.

Non-compliance with FATCA can result in significant penalties. Applicants should consult tax professionals to ensure full compliance with FATCA and other IRS obligations.

The country offers a high quality of life paired with a cost of living much lower than in many parts of the US, making it an attractive destination for US citizens seeking an affordable and enriching lifestyle.

Access to fresh local produce, affordable healthcare, and a relaxed pace of life further enhances Portugal’s appeal for expats.

US citizens must comply with US tax laws, including filing income, estate, and gift tax returns and paying estimated taxes, whether living in the US or abroad. US income tax applies to global income, regardless of residence.

Portugal differentiates between tax residents and non-residents, with distinct tax obligations for each.

Tax residents. Individuals spending over 183 days in Portugal during a tax year or maintaining habitual residency are taxed on their worldwide income in Portugal.

Non-residents. Individuals spending less than 183 days in Portugal without a habitual residence are taxed only on Portuguese-source income.

Tax treaty between the US and Portugal. You are not required to pay US income taxes on your Portuguese-source income. This is because the US and Portugal have a bilateral tax treaty.

Key points of the treaty include:

1. The treaty allows US citizens to claim credits on their US tax returns for taxes paid in Portugal, which helps prevent double taxation on income.

2. US citizens must still report worldwide income on their US tax returns, but they may offset taxes paid in Portugal through Foreign Tax Credits.

3. The treaty may reduce or eliminate withholding taxes on specific types of income, such as dividends or interest, depending on individual circumstances.

Social security taxes. US citizens working in Portugal may need to pay Portuguese social security taxes. However, the absence of a totalization agreement between the US and Portugal means expats could face social security contributions in both countries.

Annual tax filing obligations. US citizens with a Portugal Golden Visa must file annual US tax returns, regardless of their residence. Tax residents in Portugal must also file Portuguese tax returns on worldwide income.

1. Portugal is increasingly popular among Americans, with approximately 10,000 US citizens now residing in the country due to its affordable cost of living, mild climate, and safe environment.

2. The Portugal Golden Visa is a residency-by-investment program that allows US citizens to gain residency by investing in Portugal’s economy, with options starting at €250,000.

3. The Golden Visa requires holders to spend only 7 days per year in Portugal, making it flexible for US citizens who maintain commitments elsewhere.

4. After holding the Golden Visa for 5 years, residents can apply for Portuguese citizenship, granting them full EU mobility.

5. The Portugal Golden Visa offers diverse investment pathways, including contributions to cultural preservation, business investments, and job creation, tailored to different financial profiles and preferences.

6. Living in Portugal is generally more affordable than in the US, with lower costs for housing, food, healthcare, and education, providing a comfortable lifestyle on a moderate budget.

7. Portugal is known for low crime rates, political stability, and inclusivity, providing a peaceful environment with a low level of discrimination.