10 Things US Expats Wish Knew: Retiring in PT

Published on 1st September, 2025

Portugal consistently ranks as one of the top retirement destinations globally. Its appeal to Americans is undeniable, offering a European lifestyle often at a fraction of the cost of major US cities. Yet, even with the best intentions, some aspects of the move can surprise new arrivals. Berkshire Hathaway HomeServices Portugal Property has guided many US citizens through their relocation and property purchase, and we’ve compiled this list to help you prepare.

1. Bureaucracy Can Be a Marathon, Not a Sprint.

Expert Commentary: While Portugal is welcoming, its bureaucratic processes (e.g., for visas like the D7 or D8 Digital Nomad visa, NIF numbers, bank accounts, residency permits) can be slower and more paper-intensive than in the US. Patience, meticulous preparation of documents, and often, professional assistance are key. Don’t expect things to happen overnight. Start visa applications well in advance.

2. Healthcare: Public vs. Private & Insurance Nuances.

Expert Commentary: Portugal has a good public healthcare system (SNS), which legal residents can access. However, many American retirees opt for private health insurance for more extensive coverage, quicker access to specialists, and English-speaking doctors. Understand the costs and coverage of private plans and factor this into your budget. For initial visa applications, proof of comprehensive health insurance is usually required.

3. Tax Implications are Complex: US Citizenship & Portuguese Residency.

Expert Commentary: This is a big one. US citizens are taxed on their worldwide income, regardless of where they live. Portugal also taxes its residents on their worldwide income. While a Double Taxation Agreement exists between the US and Portugal to prevent paying full tax in both countries, navigating it is complex. The Non-Habitual Resident (NHR) regime, which offered significant tax benefits, was officially ended in 2024 for new applicants, though some grandfathering rules may apply for those who had already initiated steps. For 2025, new tax residents will fall under standard Portuguese tax rules. Seek expert tax advice from professionals familiar with both US and Portuguese tax law before you move.

4. Cost of Living Varies Significantly by Region.

Expert Commentary: While generally more affordable than the US, the cost of living in Lisbon, Cascais, or prime Algarve areas is considerably higher than in smaller towns or inland regions. Research specific locations thoroughly. Groceries and local transport are often cheaper, but imported goods or dining in tourist hotspots can be comparable to US prices.

5. Learning Basic Portuguese Makes a Huge Difference.

Expert Commentary: While English is widely spoken in tourist areas and among younger generations, daily life (dealing with utilities, local shops, government offices) is much easier if you speak some Portuguese. It’s also a sign of respect and helps with integration. Many expats wish they’d started learning sooner.

6. Driving & Transportation: Differences to Expect.

Expert Commentary: If you plan to drive, be aware that roads can be narrower, parking in cities is challenging, and manual transmission cars are still common (though automatics are available). Portugal has excellent toll roads (with electronic toll collection systems like Via Verde) and a decent public transport network in major cities and between them.

7. Property Purchase Process: Similar but Different.

Expert Commentary: The property buying process involves notaries, promissory contracts (CPCV), and specific taxes (IMT, Stamp Duty). While similar in some ways to the US, the roles of professionals and the legal steps can differ. Using a reputable real estate agency like PortugalProperty.com and an independent lawyer is highly recommended to protect your interests.

8. Banking & Financial Transfers.

Expert Commentary: Opening a Portuguese bank account is essential. Transferring large sums from the US can involve paperwork and scrutiny due to international banking regulations (like FATCA). Plan these transfers and understand any associated fees or reporting requirements.

9. Cultural Differences: Pace of Life & Social Etiquette.

Expert Commentary: The pace of life in Portugal is generally more relaxed. Meals can be longer, and punctuality might be more flexible in social settings (though less so in business). Understanding local customs and social etiquette will enrich your experience. Politeness and a friendly demeanor go a long way.

10. The Golden Visa No Longer Applies to Real Estate (as of 2023/2024).

Expert Commentary: Many Americans were previously attracted by the Golden Visa program through property investment. It’s crucial to know that this route was significantly changed, and direct real estate investment no longer qualifies for the Golden Visa as of late 2023. Alternative investment routes for the Golden Visa exist (e.g., investment funds), but for residency through passive income or retirement, the D7 visa (or similar passive income visas) is the more common path. Always check the latest immigration rules on official government websites or with an immigration lawyer.

Retiring to Portugal can be an incredibly rewarding experience. By understanding these key points, American retirees can better prepare for the practicalities and embrace their new life in this beautiful country with greater confidence and ease.

Retiring to Portugal from the US? Key tips for 2025: Navigate bureaucracy, understand healthcare/taxes (NHR ended!), regional costs, learn Portuguese. Plan ahead! #PortugalRetirementUS

For more information, contact us at info@portugalproperty.com

Published in: Guide to Portugal / Portuguese Life