I have lived in Portugal for 22 years. I came from northern Germany, for love, and I stayed because the country gave me more than I expected. Since 2010, my company Pearls of Portugal has helped people make the same move, many of them from the UK and the US. I have seen plenty of happy new residents, and some who went home disillusioned after a year.
So this is not just a list of facts. It is my personal view, with the facts you need to make a good decision, and with notes on what is different if you come from Britain or America. It has four parts: why I think Portugal is a great place to live, what you need to arrange, what decides whether a move works, and my practical tips for getting started.
Portugal is not paradise, and you should form your own view. But there are things I still notice every day after 22 years.
I live more healthily here than I did in Germany, and I hear the same from British and American clients. Part of it is the climate and spending more time outdoors, but much of it is the food: fish straight from the boat, fruit and vegetables that are local and ripe, markets where you buy from the grower. The simple Portuguese diet of fish, vegetables, pulses and olive oil does the rest. For Americans used to ultra-processed food and car-based living, the change is often dramatic.
Portugal still offers a slower rhythm: time for coffee, for conversation, for a proper lunch. At the same time, it is more digital than many expect: tax returns, invoices, digital ID, contactless payment almost everywhere. Things are slow mainly where people decide, not where systems run.
People are kind and polite with each other. There are idiots everywhere, but the everyday aggression I knew from Germany, and that many Americans describe from road rage to politics, is far less present here. Envy of other people’s success is also rare.
If you come with a UK or US income, savings or pension, your money usually goes further. Eating out, services, tradespeople, coffee and public transport cost less than in London or most US cities. But not everything: rents and property prices in Lisbon, Porto and the Algarve have risen sharply, cars and electronics often cost more, and electricity isn’t cheap. If you earn a Portuguese salary, prices feel much higher.
Coming from the North Sea coast, even Porto, which the Portuguese consider rainy, was a huge improvement: more sunshine, milder winters and spring in February. Further south it gets sunnier still, and very hot in summer. One surprise for British and American newcomers: Portuguese homes are often poorly insulated and rarely have central heating, so you can feel colder indoors in winter than at home.
The food, the festivals, the music, the hospitality, the calm: Portuguese culture is wonderful to live in. As a foreigner, you never fully arrive, not even after 22 years. And honestly, I am still annoyed by a constant level of unreliability: tradespeople who don’t show up, calls that are never returned, appointments that move. It comes with the package.
If you work in Portugal and pay contributions, you build up a Portuguese state pension, which replaces a much higher share of your previous income than the UK State Pension or, for many people, US Social Security. A Portuguese old-age pension requires at least 15 years of contributions, but insurance periods from other countries can often count towards that minimum: the UK still coordinates social security with EU countries after Brexit, and the US and Portugal have a social security agreement. Check your case with the UK’s Pension Service or the US Social Security Administration. More in our guide to retiring in Portugal.
There are always two questions: why do you want to leave, and why Portugal in particular? A move works far better when Portugal itself attracts you, not only when you want to get away. A personal crisis, a breakup, depression, frustration with politics at home or unemployment are not solved by a move alone.
Unlike EU citizens, British and American citizens need a residence visa to live in Portugal. As a visitor, you can stay 90 days in any 180-day period. The most common routes are the D7 visa for retirees and people with passive income, the D8 digital nomad visa for remote workers, and family reunification. After arriving with your visa, you apply for your residence permit with AIMA, the immigration agency. Plan generously: appointments and processing can take months. British citizens who were legally resident before 2021 are covered by the Withdrawal Agreement and have different rights. See also our articles on moving from the UK and on retiring in Portugal as a US citizen.
The NIF is the first step for almost everything, and you need it for your visa application too. Then open a Portuguese bank account: taxes, utilities and rent are practically only payable with a Portuguese IBAN. Americans should expect extra paperwork because of FATCA, and not every bank welcomes US clients. For large transfers from GBP or USD, a specialist currency provider is usually far cheaper than your bank.
Rent first. Leases usually run for at least a year, and landlords often ask for several months’ rent in advance if you don’t have a Portuguese income. Many of our clients didn’t want to commit for long at the start, and were later glad they had the time. Our rental service can search for you. When you are ready to buy, our Home Buyer’s Guide explains the process.
Portugal is cheaper than the UK and most of the US, but no longer cheap. Rents in Lisbon and Porto have moved closer to Western European levels; smaller cities such as Braga, Coimbra, Aveiro or Viseu and the interior are much more affordable. A set lunch (prato do dia) often costs €8 to €12, supermarket prices are not far below UK levels, and local markets are cheaper. Utilities and internet for an apartment are typically €100 to €180 a month, more in winter.
Salaries are much lower than in the UK or US; the 2026 minimum wage is €920 gross a month, paid 14 times a year. Realistic options are remote work for UK, US or international employers, self-employment with clients abroad, or qualified jobs in international companies in Lisbon and Porto. Read our guide on finding a job in Portugal as a foreigner.
Portugal has a tax-funded national health service (SNS), similar in principle to the NHS. Residents register at their local health centre and get a patient number. Care is good, but waiting times for specialists can be long, so many residents add private insurance, from a few dozen to several hundred euros a month depending on age. British state pensioners can usually register with the SNS using an S1 form from the UK. Medicare does not cover you in Portugal, so Americans need private insurance, which is also required for the visa. Private policies often exclude pre-existing conditions and may not accept new customers above a certain age.
This is where the most expensive mistakes happen. Once you live in Portugal, you are generally tax resident here and taxed on worldwide income, at progressive rates up to 48 %. The old NHR regime is closed to newcomers; its successor IFICI only covers certain qualified professions. UK government pensions usually remain taxable in the UK. US citizens stay taxable in the US on worldwide income and must report foreign bank accounts, although the US–Portugal tax treaty and foreign tax credits prevent most double taxation. Get advice in both countries before you move (see Part 4).
A UK licence can be used for a limited time after you become resident and must then be exchanged for a Portuguese one. Most US licences cannot simply be exchanged, so Americans should expect to take a Portuguese driving test. Importing a car is possible but often not worth it; see our guide on importing a car to Portugal.
Public schools are free and taught in Portuguese; Lisbon, Porto and the Algarve have many international schools, including British and American ones. Pets can come with a microchip, rabies vaccination and the required health certificate.
Not everything in Portugal works the way you imagine. There will be frustrating moments: with bureaucracy, tradespeople, house hunting, the language. If you know that beforehand, you will cope better than someone who expects an extended holiday.
In a couple or family, everyone has to want to go. I have often seen it: if only one partner really wants the move, tension builds quickly when challenges come, because the other is always holding back.
Many newcomers stay within expat communities. That is comfortable, but it makes integration much harder. The Portuguese are very family-oriented, so private friendships take time. My tip: join a football club, a choir, the volunteer fire brigade or a charity. Portugal is very community-minded, and taking part earns acceptance and helps your Portuguese.
Nobody speaks Portuguese perfectly as a foreigner, and many Portuguese switch to English quickly. But start, and set small goals. In my experience you are “street-fit” after six to twelve months: you can handle the bakery, the doctor and the plumber.
Know what you will live on and, if you still need to work, what you will do. I recommend bringing a budget for a full year, so you don’t put yourself under pressure. Ideally, work in something you have done before. I generally advise against starting a completely new venture, such as a café or holiday rental, without any experience in hospitality.
You don’t have to become Portuguese. Adaptation comes over the years, but never completely. What matters is understanding how things work here. Portugal is not as wealthy as the UK or the US, but that doesn’t mean people want to be lectured. Many newcomers get frustrated because they try to do everything the way they did at home, sometimes because they think they know better. That doesn’t go down well.
The region you know from holidays is not necessarily the best one for everyday life. A resort that buzzes in August can be almost empty in January. Think about doctors, airports, schools, culture, neighbours and nature.
Visit several regions before you move, ideally also outside the season. Our property scouting tours are designed for exactly that. If you have never been to Portugal, come and see it first. Every January we receive many enquiries from people who have watched a documentary or a TV show about life in Portugal and want to start over. We deliberately don’t take on such mandates until someone has experienced Portugal for themselves.
In Portugal, a first “no” is not always final. It often pays to stay politely, keep talking and ask again. The Portuguese do the same, and usually a free slot, an appointment or a solution turns up. The key is to stay friendly; raising your voice gets you nowhere.
If you can, spend time in both countries at first, so you don’t have to bet everything at once. Mind the visa and tax rules, which depend on where you actually live.
They are tempting at the start, but over time they can become a golden cage. Apart from my clients, I know perhaps three or four Germans in Porto. My Portuguese wife certainly helped me settle in. But I meet many people who, after years here, barely speak Portuguese. Everyone can live as they like, but for really arriving, it is poison. Online groups are useful for information, but live in the real Portugal.
Most tax advisers charge for the first meeting, so some people skip it. We regularly hear from people caught between two tax authorities, usually through carelessness. That is easy to prevent with advice in your home country and in Portugal before you move, and for Americans the US filing obligations make this even more important.
If you don’t know Portugal well yet or want to stay flexible, rent first. Buying has real advantages, but you should be sure about the country and the region. When you are, our buyer’s agent service represents you independently.
From the scouting trip to renting, your NIF and buying a home, we support you with 16 years of experience and a network of lawyers, accountants and tradespeople. Book a free consultation, and I’ll gladly share what 22 years have taught me.
Yes. British and American citizens need a residence visa, such as the D7 or the D8, and then a residence permit from AIMA.
It depends on region and lifestyle. Besides the visa requirements, I recommend bringing a budget for a full year.
As a resident, yes. British state pensioners can usually register with an S1 form; Americans need private insurance, as Medicare does not apply abroad.
UK licences must be exchanged after you become resident. Most US licences cannot be exchanged, so a Portuguese driving test is usually required.
Yes, US citizens remain subject to US tax filing. The tax treaty and foreign tax credits usually prevent double taxation.
English • Portuguese • Spanish • German
Fill out the form below, and we will be in touch shortly.