This guest blog was written by Fam.on.the.run
Are you looking to make an international exit but don’t think you have the resources to do so? American citizens can move overseas even when they’re not enormously wealthy or able to leverage employer sponsorship. Maybe you don’t have the $50k+ that Spain requires for residency, or even the $25k necessary to make it official in Mexico. Well, then Portugal is an obvious option,
Famous for Pastel de nata, Piri Piri chicken, and of course, port wine, Portugal is not only the oldest country in Europe, but it’s also the fastest, easiest, and most affordable of the bunch to obtain not just a permanent residence – but CITIZENSHIP.
The Scoop
Portugal is well-known for its Golden Visa. This type of Visa provides permanent residence to anyone willing to purchase property worth at least $331k USD through the end of 2021. But regular folks need not buy their way in. For those of us with less capital and/or a liquidity preference, Portugal offers a program similar to Spain’s Non-Lucrative Visa. It’s known as the D7. And guess what? As is the case on most other measures, Portugal is more affordable than Spain!
Whereas Spain requires savings of $54,900 for a family of four AND recurring income, Portugal requires only one or the other and significantly smaller amounts. More specifically, a family of four must substantiate savings of at least $39,615 OR an average monthly income of $1438 or more. And while Spain seems to be moving in the direction of disqualifying remote workers in favor of retirees, Portugal does not, which means you can live there AND work there on a remote basis for up to five years. At that point, you will become eligible for permanent residence OR citizenship, provided you meet various other requirements (like language proficiency). Note: As of this writing, in order to get a D-7 VISA, one adult will have to prove they have funds for 12 months or approximately $9,700. For other scenarios, see https://www.globalcitizensolutions.com/portugal-d7-visa/
So, between the logistics of living and working there long-term, the relative ease of obtaining an EU passport after as few as five years, and the favorable tax landscape, we think Portugal is a terrific choice for overseas living.
Quality of Life
As the most affordable nation in western Europe, Portugal offers ex-pats whose income is sourced overseas, the opportunity to achieve a high standard of living without sacrificing the quality of life. No rat races here! If anything, Portugal’s laid-back, easy-living approach to almost everything is a liability in the eyes of some, as is the bureaucracy.
And those beaches! With 516 miles of coastline, Portugal offers sunny shores of every kind, from bar-lined city beaches to wide golden sands. In particular, the Algarve and The Azores (a group of islands) have many spectacular beaches.
So now we know how Portugal stacks up on three out of five of the factors influencing our thinking: Logistics/legalities? All good. Cost of living? Even better. Climate? Think California (the good and the bad).
Culture
But what about culture? Well, that’s a mixed bag, if I’m being honest. Sign me up for the food & wine, the focus on family, and the pace of life. The dog doo-do, the second-hand smoke, and the sour disposition that some people claim the Portuguese are given to? Well, now you’re starting to lose me. No place is perfect though, right? Right.
Schooling
And as for schooling? In short, we’re in good shape. Similar to Spain, Portugal offers A LOT of options, including a plethora of international schools and bilingual private schools. By some accounts, the state schools in Portugal are not as supportive of Portuguese language learners as those in some other nations. However, I’ve connected with a few ex-pat families who have sent their children to a state school and sing its’ praises, so it’s well worth looking into further.
Final Thoughts: Taxes!
As if all that wasn’t attractive enough, Portugal sets itself apart on one other measure: Taxation. Recognizing the immense value that immigrants provide via the investments they make in their new home, Portugal devised their Non-Habitual Resident (NHR) program. This is a tax scheme that exempts foreign-sourced income from taxation and provides a flat tax of 20% on income earned in Portugal, for up to 10 years.
So, that’s how Portugal stacks up for ex-pats. We considered our top five factors – legalities, schooling, cost of living, culture, and climate, and showed you how good an option Portugal is for international living. To learn how four other countries stack up, check out our Instagram posts at https://www.instagram.com/fam.on.the.run/
Note: Neither US health insurance nor Medicare will cover you in Portugal. You’ll likely have to invest in private international health insurance.
About the Author
Our guest blogger and host of Fam.on.the.run on Instagram, sold their home in October 2020. At that time, they left Colorado, USA to embark on a family gap-year adventure. At first, they traveled within the US and then spent six months in Croatia, before deciding on an indefinite period abroad instead! They are now considering five locations – each with its merits, and each with its challenges. Indeed, they are hard at work, because a right and proper international move is enormously different from a semi-nomadic gap year.
References
Global Citizen Solutions: Portugal D7 Visa: the Ultimate Guide
Resources
I.R.S.: Taxpayers Living Abroad
U.S. Department of State – Bureau of Consular Affairs: International Travel
U.S. Department of State – Bureau of Consular Affairs: Smart Traveler Enrollment Program
US Embassy & Consulate in Portugal: U.S. Citizen Services