Amid the reelection of President Donald J. Trump, many affluent Americans are setting their sights on opportunities abroad. Their top choice is Portugal, Europe’s westernmost country, which is experiencing a notable surge in residency requests.
“We’ve already seen a 50% increase in American families moving to Portugal this year, but following the U.S. election results, inquiries have tripled, with Americans now making up over 25% of international expat inquiries,” said Paul Stannard, founder of Portugal Pathways, a relocation organization supporting wealthy expatriates. “Many seek guidance on navigating the relocation process, from property and location scouting to education, wealth management, tax planning and integration support….”
Added Colleen Showalter, founder of Portugal The Place, which assists people moving to Portugal: “We’re seeing record inquiries from U.S. citizens seeking support. As an American family who moved to Portugal years ago, we understand the questions people face as they consider relocating their lives, businesses and pets to Portugal.
“Having someone who understands the process is key to easing the challenges of location scouting, property research and navigating residency requirements. It’s essential for families to do their research and consult professionals who not only know Portugal but also understand the specific needs of Americans relocating to Portugal.”
Why Portugal? Ranked seventh on the Global Peace Index, 22nd on the World Index of Healthcare Innovation, 24th in education by U.S. News & World Report and 44th in GDP-PPP (gross domestic product measured by purchasing power parity) by Global Finance Magazine, Portugal also has a classic Mediterranean climate, with more than 300 days of sunshine annually, although it actually lies on the Atlantic Ocean.
For those of us who count ourselves among the country’s descendants, the culture — which draws on its historical place as a nexus of the three Abrahamic faiths — may hold the greatest appeal. The fado, or Portuguese blues, contains melismas that echo the music of Islam and Judaism, faiths that played a role in the country’s development, just as the prized textiles and tiles (azulejo) contain nonfigurative, filigree elements that recall Judaica and Islamic arts. Some of the churches and cathedrals also contain architectural elements emblematic of al-Andalus, the Muslim civilization that ruled the Iberian Peninsula — of which Portugal is part, along with Spain — from 711 to 1492.
The food is an unexpected delight perhaps, a classic Mediterranean diet with an emphasis on fish — the Portuguese are sea-crazy — fruits, vegetables, legumes and olive oil. But there are particular treats, like the col verde (kale soup); linguiça (spicy paprika sausage); bacalhau (salt cod fish stew); cod-fish cakes; beef kabobs; porridge with tuna or fried into sticks; and custard tarts, to name a few. The staple is, of course, pão, or bread, in its most basic form a floured, doughy creation made into loaves and individual rolls and bought fresh daily. On its most elevated plane is massa sovada, the sweet bread that is a doughy, sugary slice of heaven, particularly at Christmastime. (Look for these and other items at Portuguese markets and restaurants in Westchester County as well as restaurants in Fairfield County.
Add in the country’s mix of multicultural cities and piquant countryside and coastline, and you have the recipe for a top 10 place on the happiness index.
Like other savvy “Mediterranean” countries, Portugal is sweetening the pot. One key attraction is the Golden Visa residency-by-investment program, which grants residency rights to those who invest €500,000 ($536,500) in one of Portugal’s government alternative investment funds approved for Golden Visa. The program requires only a seven-day annual stay in Portugal, allows freedom of movement across 29 Schengen-area countries and offers a streamlined path to citizenship after five years.
Additionally, Portugal’s Non-Habitual Residency (NHR) tax status — although set to phase out soon — has historically offered favorable tax rates for expats. However, tax benefits should not be the primary incentive for U.S. citizens as they remain liable for U.S. taxes even when living abroad, due to the U.S. practice of citizenship-based taxation.
The Portuguese government is seeking to offset that with a new tax scheme for 2025, known as the NHR 2.0 tax status, aimed at attracting entrepreneurs, researchers, high-skilled professionals and scientists.
Additionally, it plans to introduce a 0% tax rate on the first €35,000 ($37,093) of income for individuals under 35, along with incremental tax adjustments. This is another initiative to lure talent to Portugal, following the growing number of entrepreneurs who are choosing the country as their European base for both life and business.
Nonetheless, Portugal is not without its challenges. The mitigating climate that keeps winters rainy and summers hot also keeps ocean temperatures cool and dwellings often unheated and moldy. The cash-based economy, with its bureaucracy, unemployment and spotty infrastructure, may also offer a lower and slower standard of living than wealthy, credit card-happy, got-to-have-it-now Americans are certainly used to.
And while the country ranks eighth in the world in English proficiency on the EF English Profiency Index (EF EPI), you’ll need some Portuguese, with its tricky pronunciations, for official transactions. It helps if you know another Romance language, particularly Spanish, although you should never assume that they are the same.
Sasha Young Da Silva, a cross-border tax and estate planning lawyer at Concepcion Global, added that relocating to Portugal requires navigating complex tax, estate and financial planning considerations:
“Moving abroad is a significant step for U.S. citizens, especially with ongoing tax obligations and logistical challenges. Still, the demand for what Portugal offers is undeniable.”
