For years, Portugal was seen as an easy escape for Americans looking to stretch their retirement savings, enjoy Atlantic sunshine, and gain quick access to European residency.
The formula sounded simple: secure a long-stay visa, pay little tax under the Non-Habitual Resident regime, and maybe even apply for citizenship after five years.
That picture no longer reflects reality in 2025. Moving to Portugal is still possible—and for many, still worth it—but the process has become slower, stricter, and more expensive.
The country has replaced its old immigration authority (SEF) with a new agency, AIMA, which is facing record backlogs.
The generous NHR tax breaks that drew thousands of Americans have been scrapped, replaced by a niche incentive (IFICI) that only benefits a select group of professionals.
Meanwhile, minimum income thresholds for visas have jumped alongside Portugal’s rising minimum wage, and lawmakers are even debating whether to double the naturalization timeline from five to ten years.
This guide lays out the new reality of moving from the United States to Portugal. You’ll find the latest rules for each visa, a step-by-step breakdown of the relocation process, honest insights into costs and taxes, and a candid look at challenges like housing shortages and bureaucratic delays.
By the end, you’ll know what has changed, what to expect, and how to decide if Portugal is still the right choice for your next chapter.
Executive Summary of Critical 2025 Updates
Relocating from the United States to Portugal has never been more attractive in lifestyle terms—but never more complex in paperwork, costs, and long-term planning.
Four developments in 2025 define the new reality for American expats:
1. The AIMA Era: Immigration Backlogs
Portugal dissolved its old immigration agency (SEF) and replaced it with AIMA (Agência para a Integração, Migrações e Asilo).
The change was meant to modernize the system, but in practice it created a mountain of delays. With more than 400,000 cases pending, Americans arriving on visas like the D7 or D8 can wait many months beyond the 120-day entry visa before attending a biometrics appointment.
While the government promises to clear the backlog by late 2025, for now patience is a requirement, not an option.
2. The End of NHR: Enter IFICI (NHR 2.0)
Portugal’s beloved Non-Habitual Resident (NHR) tax regime closed to new entrants at the end of 2023. In its place, the government introduced IFICI—a narrow incentive for researchers, scientists, and tech innovators. For most US retirees and digital workers, the benefit is gone.
The majority of new arrivals now face Portugal’s standard tax rates, ranging from 12.5% to 48%, plus surcharges.
3. Visa Thresholds Rise with the Minimum Wage
Portugal’s national minimum wage rose to €870 per month in 2025. Visa requirements are pegged directly to this figure:
- D7 (Passive Income Visa): €870/month for the main applicant, plus extra for dependents.
- D8 (Digital Nomad Visa): Four times the minimum wage, now a steep €3,480/month.
This shift means Americans must show stronger proof of income and savings than in previous years.
4. Citizenship Law Uncertainty
Currently, Americans can apply for Portuguese citizenship after five years of legal residency.
A proposed bill in mid-2025 seeks to extend that period to ten years (seven for CPLP nationals like Brazilians).
The law has not passed yet, but if enacted, it would dramatically change the long-term appeal of moving to Portugal. For now, the five-year rule still applies—but expats should track this development closely.
Visa Pathways for US Citizens in 2025
For Americans moving to Portugal, the visa choice is the single most important decision.
In 2025, Portuguese consulates are enforcing stricter rules than ever. A critical change is the clear separation between passive income visas (D7) and active income visas (D8). In the past, some remote workers slipped through on the D7—this is no longer tolerated.
Applying under the wrong category is one of the fastest routes to rejection.
Today, there are three main pathways:
- D7 Visa – for retirees and those living on passive income.
- D8 Visa – for digital nomads and remote workers with active foreign income.
- Golden Visa – for investors who want EU residency with minimal time in Portugal.
The D7 Visa (Passive Income / Retirement Visa)
The D7 remains the classic option for American retirees, but the bar is higher in 2025. This visa is strictly for those who can prove passive, recurring income. Active salaries, freelance contracts, or consulting fees don’t qualify.
Income & Savings Requirements
- Main applicant: €870 per month (€10,440 per year).
- Spouse/partner: +€435 per month.
- Dependent child: +€261 per month.
On top of this, applicants must deposit at least 12 months’ worth of income into a Portuguese bank account before applying. For a single person, that’s €10,440 minimum on deposit. Consulates increasingly request stamped bank statements as proof.
Eligible Passive Income Sources
✔ Pensions and retirement distributions (401k, IRA, Social Security)
✔ Real estate rental income
✔ Dividends and interest
✔ Royalties from intellectual property
✔ Long-term fixed investments
Application Essentials
- Portuguese tax number (NIF) and local bank account (mandatory).
- Proof of 12-month accommodation (lease or deed).
- Private health insurance with at least €30,000 coverage.
- Apostilled FBI background check.
- Personal statement explaining reasons for relocation.
Residency Obligations
A D7 residence permit requires real presence in Portugal. Holders must not be absent more than six consecutive months (or eight months total in a year). In practice, authorities expect at least 183 days/year in the country.
This makes the D7 a full relocation visa, not a part-time foothold. For Americans seeking EU residency but not ready to move full-time, the Golden Visa is a more suitable alternative.
The D8 Visa (Digital Nomad Visa) – The Remote Worker’s Path
Launched in late 2022, the D8 Visa has become the mandatory pathway for US citizens who plan to live in Portugal while working remotely. Unlike the D7, which is for retirees and passive income earners, the D8 is designed specifically for remote employees, freelancers, and business owners earning active income from abroad.
Income & Savings Requirements
- Main applicant: €3,480 per month (4× Portugal’s minimum wage of €870).
- Dependents: The primary income threshold doesn’t rise with family size, but applicants must show additional savings in a Portuguese bank account:
- Spouse/partner: +€5,220 (50% of annual minimum wage).
- Each dependent child: +€3,132 (30% of annual minimum wage).
This setup ensures families can realistically support themselves without relying on local employment.
Eligible Income Sources
✔ Remote salary from a foreign employer
✔ Freelance or consulting contracts with foreign clients
✔ Payments from a foreign-registered business you own
Proof & Documentation
Applicants must provide evidence that their income is consistent and derived from professional activity outside Portugal. Typical documents include:
- Employees: Work contract, employer’s letter authorizing remote work from Portugal, 3–6 months of payslips.
- Freelancers/entrepreneurs: Client contracts, invoices, bank statements, business registration documents.
Two Modalities of the D8
- Temporary Stay Visa – Valid up to 1 year, renewable, but usually does not lead to permanent residency.
- Residency Visa – The main track for relocation. Starts as a 4-month visa to enter Portugal and attend an AIMA appointment. Leads to a 2-year residence permit, renewable for 3 more years, and then eligibility for permanent residency or citizenship (after 5 years under current law).
Application Essentials
Like the D7, applicants must first secure:
- A Portuguese NIF and bank account.
- Proof of accommodation (lease or deed).
- Health insurance with €30,000+ coverage.
- Apostilled FBI criminal background check.
Residency Obligations
The D8 is intended for full-time residency. Holders must spend at least 183 days/year in Portugal to maintain status. It’s not a part-time option like the Golden Visa.
The Golden Visa (Investor Residency) – Minimal Stay, Maximum Flexibility
Once defined by real estate investment, Portugal’s Golden Visa was overhauled in 2023. Property purchases no longer qualify, but the program remains attractive for Americans who prefer a financial foothold in Europe without committing to full-time relocation.
Current Investment Options (2025)
- Investment Funds: Minimum €500,000 in a qualifying Portuguese-domiciled fund (venture capital, private equity, etc.), with at least 60% invested locally.
- Cultural Contribution: Donation of at least €250,000 to an approved arts or cultural heritage project.
- Scientific Research: Contribution of at least €500,000 to certified institutions in Portugal’s research system.
- Job Creation: Create 10 full-time jobs in Portugal, or invest €500,000 in a company that creates or maintains at least 5 jobs for 3 years.
Processing Delays & the Citizenship Clock
AIMA backlogs have stretched Golden Visa approvals to 3 years or more. Normally, that would undermine the appeal—but a 2024 nationality law fix changed the rules: the 5-year countdown to citizenship now starts when the application is filed and fee paid, not when the residence card is issued. This ensures investors don’t lose years to bureaucracy.
Physical Stay Requirement
The Golden Visa requires only 7 days per year on average in Portugal (or 14 days across each 2-year permit). This makes it the lightest residency obligation of all Portuguese visas.
Who It’s For
The Golden Visa is ideal for:
✔ High-net-worth Americans who want EU residency with minimal time commitment.
✔ Investors focused on long-term access to citizenship rather than daily life in Portugal.
✔ Families seeking a backup plan in Europe without uprooting immediately.
Deconstruction of the Relocation Process: A Step-by-Step Guide for 2025
Moving from the United States to Portugal is no longer a quick leap—it’s a careful, multi-stage process.
Each step has its own pitfalls, especially with AIMA delays and Portugal’s competitive housing market.
Here’s what the journey looks like in 2025:
Step 1: Preparatory Steps from the US (Months 1–3)
Get a NIF (Número de Identificação Fiscal)
- The NIF is your Portuguese tax number. You need it to open a bank account, rent property, sign contracts, and apply for a visa.
- Americans can obtain it remotely through licensed providers (around $150). You’ll need a passport copy and US proof of address.
- Turnaround: usually under a week.
Open a Portuguese Bank Account
- Mandatory for D7 and D8 visas, since savings must be deposited locally.
- Can be done online with some banks (Millennium BCP, ActivoBank), but many applicants find it easier during a short trip to Portugal.
- Documents: passport, NIF, US address proof, income proof, and FATCA forms (W-9).
Secure Accommodation
- The toughest step. A 12-month lease or deed is required for visa approval.
- In Lisbon/Porto/Algarve, demand is high and landlords often ask for multiple months’ rent in advance or a Portuguese guarantor.
- Workarounds:
- Plan an exploratory trip for in-person viewings.
- Use a relocation agent to negotiate.
- Book a medium-term rental (3–6 months)—often accepted by consulates as proof.
Step 2: Visa Application in the US (Months 4–6)
Document Package
- Completed national visa form.
- 2 recent passport photos.
- Valid US passport.
- Proof of NIF & Portuguese bank account.
- Portuguese bank statement showing minimum savings.
- 12-month rental contract or deed.
- Proof of passive/active income (D7 vs D8).
- Apostilled FBI background check.
- Private health insurance (€30,000 coverage minimum).
- Flight reservation showing intended entry date.
- Personal statement explaining your relocation goals.
Submission & Processing
- Applications go through VFS Global centers in the US (serving your consular jurisdiction).
- VFS checks documents, then forwards to the Portuguese consulate (Washington DC, San Francisco, New York, etc.).
- Official estimate: 60 days. Reality in 2025: 60–90 days, sometimes up to 12 weeks.
Step 3: Arrival in Portugal & the AIMA Appointment (Months 7+)
The 120-Day Entry Visa
- Issued in your passport after consulate approval.
- Valid for 4 months, usually with 2 entries.
- Purpose: to let you enter Portugal and attend your AIMA biometrics appointment.
The AIMA Appointment
- Biometrics (photo & fingerprints) + verification of all original documents.
- Some visas arrive pre-printed with appointment details (rare, best-case).
- Most require self-scheduling after arrival—currently very difficult due to backlogs.
- Wait time: often months beyond the 120-day visa validity. The government issues automatic extensions, so you won’t be illegal, but re-entering Schengen can be tricky until your residence card arrives.
Receiving the Residence Card
- After the appointment, expect 2–4 months for the card to be produced and mailed.
- Only once this card is in hand is your residency process officially complete.
Financial & Lifestyle Integration in 2025
Securing a visa is just the beginning. The real challenge for Americans comes after arrival—balancing the legal requirements with the financial realities of life in Portugal. In 2025, higher rents, a tighter rental market, and the end of the old tax perks mean expats need to budget more carefully than ever.
One of the most common mistakes is assuming that meeting the legal minimum income (such as €870/month for a D7) is enough to live comfortably. In practice, the cost of living in Lisbon, Porto, and the Algarve can be double or triple the official threshold.
A single person in Lisbon often needs at least €2,000/month to cover rent, bills, and a modest lifestyle. Families face even greater pressure, with three-bedroom apartments in Lisbon frequently exceeding €2,500/month.
Here’s a breakdown of estimated monthly costs for 2025:
Taxation for American Expats – The Post-NHR World
For years, Portugal’s Non-Habitual Resident (NHR) regime was the golden ticket for Americans.
It offered retirees a flat 10% tax on pensions and allowed certain professionals to pay just 20% on qualifying income. That era ended in late 2023.
In its place, Portugal introduced IFICI (often nicknamed NHR 2.0). Unlike its predecessor, this scheme is narrowly targeted.
It applies only to a small pool of professionals in science, technology, research, and certified innovation sectors. For most newcomers—retirees, remote workers, passive investors—IFICI is not an option.
Standard Tax Rules in 2025
For the majority of Americans relocating in 2025, becoming a tax resident means paying under Portugal’s progressive IRS (Imposto sobre o Rendimento das Pessoas Singulares) system.
You are considered a resident if you spend more than 183 days per year in Portugal.
Here are the brackets for 2025:
Healthcare System Navigation
One of the major advantages of relocating to Portugal is access to its high-quality and affordable healthcare system.
For US citizens, the process of integration comes in two stages: private coverage before arrival and public coverage once residency is confirmed.
Stage 1: Private Insurance for Visa Approval
To apply for a D7, D8, or Golden Visa, you must show proof of private health insurance valid in Portugal and across the Schengen Area. The policy must include at least €30,000 in medical coverage and remain valid for your entire initial stay.
Most expats opt for international plans that cover emergencies, hospital care, and repatriation, which cost anywhere from €40–€100 per month depending on age and coverage level.
This requirement ensures that new arrivals are not a burden on the state system before they are fully registered as residents.
Stage 2: Registering with the Public SNS
Once your residence permit is issued, you become eligible for Portugal’s Serviço Nacional de Saúde (SNS), the public healthcare system. Registration is straightforward:
- Go to your local health centre (Centro de Saúde).
- Bring your residence card, NIF (tax number), and proof of address.
- Receive your Número de Utente (SNS user number), which grants access to public services.
The SNS is tax-funded and offers comprehensive coverage.
While emergency care is free, routine appointments usually require a small co-payment (taxa moderadora). For example, a general practitioner visit costs about €4.50, and specialist visits range from €7–€10.
Prescriptions are heavily subsidised, making medication costs significantly lower than in the US.
Why Many Expats Keep Private Coverage Too
Although the SNS is reliable, wait times for non-urgent procedures and specialist consultations can be long.
Many expats maintain a private insurance plan alongside their SNS coverage to ensure quicker access to English-speaking doctors, private hospitals, and faster diagnostic testing.
Local private insurance is relatively affordable, with premiums often between €50–€150 per month, depending on age and benefits.
Public vs Private Healthcare in Portugal (2025)
While Portugal’s SNS system guarantees affordable, universal care, it doesn’t always provide the speed or convenience expats are used to in the US.
This is why many newcomers choose to combine public coverage with private insurance.
The public system covers the essentials at minimal cost, while private plans offer faster appointments, English-speaking doctors, and access to private hospitals.
The table below highlights the main differences:
Residency & Citizenship Pathways
For most Americans moving to Portugal, the ultimate goal is either permanent residency or a second passport.
Portugal offers both, but the rules and timelines are changing, and anyone relocating in 2025 should be clear about what’s required.
Permanent Residency
After holding temporary residency for five continuous years, you can apply for permanent resident status. This grants you the right to live and work in Portugal indefinitely, without the frequent renewals tied to temporary permits. To qualify, you must show:
- Financial stability: Proof of consistent income or savings.
- Accommodation: Evidence of adequate housing.
- Clean record: No serious criminal convictions.
- Language proficiency: Passing a Portuguese exam at the A2 CEFR level (basic conversational skills).
Permanent residency is often the preferred choice for those who want stability without the full naturalisation process.
Citizenship
A Portuguese passport is one of the most powerful in the world, allowing visa-free travel across the EU and much of the globe. Under current law (late 2025), you can apply for citizenship after five years of legal residency. Importantly, a 2024 reform confirmed that the citizenship clock starts ticking from the date you submit your first residency application, not from when your residence card is finally approved. This is a crucial safeguard for Golden Visa investors and anyone caught in AIMA’s backlog.
Requirements for naturalisation include:
- Five years of continuous legal residency (as of now).
- Portuguese language exam (CIPLE) at A2 level.
- Clean criminal record, with no convictions punishable by three years or more under Portuguese law.
- Integration into the community, typically shown through residence, family ties, or work in Portugal.
The Proposed Change (2025 Draft Law)
A draft law introduced in mid-2025 has raised concern among expats. If passed, it would extend the residency requirement for naturalisation from five to ten years for most foreign nationals, including Americans. Citizens of Portuguese-speaking countries (Brazil, Angola, Mozambique, etc.) would have a reduced requirement of seven years.
As of now, this law is still under debate in Parliament. Until it passes, the five-year rule remains valid. However, it represents a real possibility that the path to a Portuguese passport could become significantly longer.
FAQs
Conclusion
Relocating from the USA to Portugal in 2025 is no longer the simple, tax-friendly adventure it once seemed.
The process has become more demanding, with higher income requirements, slower administration under AIMA, and the end of the broad NHR tax regime. At the same time, citizenship rules may be shifting toward a longer timeline, adding uncertainty for those aiming for an EU passport.
Yet, Portugal continues to offer something rare: a safe, welcoming country with high-quality healthcare, strong infrastructure, and an enviable quality of life.
For Americans prepared to navigate the paperwork, budget realistically, and integrate into Portuguese society, the move can still deliver exactly what so many are seeking — stability, sunshine, and a base in Europe.
The key takeaway is simple: if you approach the journey with patience, realistic expectations, and professional guidance where needed, Portugal remains one of the most rewarding destinations for a fresh start abroad.
Ready to Secure Your Portugal Golden Visa?
At Movingto, we offer independent advice, compare all major EU programs, and connect you with vetted legal partners — with teams on the ground in Lisbon, Barcelona, and Milan.
Book a Free Consultation
.svg)
