Why Are So Many Americans Moving to Portugal?

Increasingly, Americans are planning to leave the country in search of better living conditions elsewhere in the world. Especially after the emergence of Covid-19. The pandemic has further increased the list of reasons for a change of home

Why Leave The United States?

There are many complaints from Americans: in areas where there are enough jobs, housing is more expensive. Where there is good infrastructure, taxes are prohibitive. If taxes are low, public services leave something to be desired. Sometimes commuting to other regions is difficult. Or the climate doesn’t help. Healthcare in the United States is expensive. Local politics are also not to the liking of many.

Among all the reasons, one stands out: most Americans want to make better use of their retirement income in places with a lower cost of living, mild climate, along with access to quality public services- particularly, places where it is easy to feel healthier, happier, and also less stressed than in the United States. A desire that can easily be fulfilled, and not only by wealthy citizens.

There are no official statistics on the numbers of emigration in the United States, but it is possible to find some research that shows that the desire to live as an expatriate has conquered more and more Americans. International Living, a resource created in the US to guide people who want to move to another country, saw access to its website grow by 1,600% at the beginning of the Covid-19 pandemic.

Portugal As One Of The Favorite Destinations

For some time, many Americans considered New Zealand as a destination to live. In 2020, according to Immigration New Zealand, a total of 250,000 Americans looked into how to leave the US and move to the Pacific island. However, more and more Americans are realizing that there are options that are closer, less expensive, and with much easier visa requirements to meet. Like Portugal.

The latest Global Retirement Index points out that Portugal is the 4th best country in the world to live as a retiree in 2022. The country moved up one place from last year, and is currently second only to Panama, Costa Rica, and Mexico. In other words, Portugal is the best country in Europe for retirees in 2022, according to this survey. It is one of the most accessible countries on the continent, where many people speak English, especially in major cities and on the coast. Portugal is the 7th best English proficient country in the world, according to the 2021 “EF English Proficiency Index” ranking. In addition, Portugal has sunny beaches, rich cuisine and excellent wines, good quality medical care, safety, as well as spectacular architecture. It is a special place to get the most out of your pension.

Portugal Is a Safe Country

Portugal has some of the lowest levels of violence in Europe, according to the European Union Agency for Fundamental Rights. In 2021, Portugal was ranked the 4th most peaceful country in the world, according to the Institute for Economics and Peace (IEP), which assesses levels of world peace.

Cost of Living in Portugal

According to the website numbeo.com, the cost of living in Portugal is, on average, 30% lower than in the United States, excluding rent. This item, specifically, can cost half as much in the European country compared to the American one.

Lisbon x San Francisco x New York: Comparison of Living Costs

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Taxes in Portugal for Non-Residents

Regarding taxes, the Portuguese government has also been taking measures to make the country a welcoming place for expatriates. Through the Non-Habitual Residence Status (NHR) new residents can get 10 years of tax benefits, with lower taxation on pensions obtained abroad already taxed or not taxed in the country of origin. Through the Golden Visa, created in 2012, it is possible to obtain a residence permit from investments in Portugal, such as capital transfers or acquisition of real estate.

Tax Regime for Non-habitual Residents (RNH) in Portugal: know it all

Learn now how to obtain your Golden Visa and live in Portugal. Talk to one of our consultants.