Moving from the US to Portugal in 2025

Over the past decade, the political climate in the U.S. has become increasingly polarized. As a result, recent elections have spurred a significant uptick in Americans looking to leave the country. Portugal has been a top destination for expats for years, with the American population in Portugal tripling recently. While the initial wave of U.S. expats settled in Lisbon, their presence has now expanded across the entire country—including the islands of Madeira and the Azores.

We believe that much of the current excitement about moving to Portugal will fade, as many people realize that relocating to a new country is not as easy as it seems. However, we do expect two distinct groups to emerge. The first group consists of those who were already considering leaving the U.S. but view the political climate as the final push they needed. The second group consists of those who don’t plan to leave the U.S. but want a solid Plan B—securing another residency, possibly a second citizenship, and even a property so that they can relocate at a moment’s notice if needed.

As tax consultants regularly advising Americans moving to Portugal, we at Veyra have put together a guide for both groups.

Moving to Portugal from the US in 2025

Visa Options in Portugal – D7, D8, and Others

Portugal remains the easiest gateway to European residency.

The D7 Visa, also known as the passive income visa, is the most common route for Americans moving to Portugal. It is designed for individuals who have a stable passive income that meets the minimum wage in Portugal (just under €1,000 per month). This income can come from dividends, rental properties, interest, or pensions.

For those with LLCs or S-Corps, the classification of income can be a bit more nuanced. Whether income is seen as active or passive depends on both the nature of the revenue and how it is framed in the visa application process.

Unlike Spain’s Non-Lucrative Visa (NLV), the D7 does not prevent expats from working later. However, highlighting employment income in an application can lead Portuguese consulates to reclassify the application under the D8 Visa instead.

The D8 Visa, or Digital Nomad Visa, is another popular choice for Americans. It requires a higher income threshold, but most professionals in the U.S. can easily meet this requirement.

Beyond these, Portugal offers multiple other residency paths:

• The D3 Visa for highly qualified professionals with a job offer in Portugal.
• The Entrepreneur Visa for those looking to start a business in Portugal.
• And other lesser-known but viable routes.

Portugal’s immigration system is still relatively welcoming, particularly for Americans. Unlike Spain or Italy, Portugal takes a more relaxed approach, often allowing applicants to submit missing documents later in the process. However, professional assistance is highly recommended to ensure a smooth transition.

Tax Treatment – NHR 2.0 for Americans in Portugal

The famous Non-Habitual Resident (NHR) regime officially ends in 2024, to be replaced by a new regime, TISRI, in 2025.

TISRI retains many of NHR’s benefits, but there’s one major difference: pension income is no longer tax-advantaged. Instead, it will now be taxed at progressive rates, significantly increasing the effective tax burden on retirees.

Additionally, TISRI is not automatic and requires some level of participation in the local economy, such as joining the board of a startup.

While this may seem like an added hurdle, we believe that, in the long run, it’s a positive shift. The main downside of NHR was that it created an expat bubble—foreigners who benefited from tax breaks but didn’t engage with Portuguese society. This led to resentment from locals who saw expats as a factor driving up housing prices.

TISRI encourages integration, making it easier for expats to establish deeper roots in Portugal. At Veyra, we are already working with funds and local startups to ensure our clients can leverage the new system with minimal hassle.

For those concerned about retirement income, we have developed tax-efficient investment strategies to mitigate the new changes.

Plan B: For Americans Who Want the Option to Move to Portugal Later

Golden Visa & Second Citizenship – Portugal Still Offers the Best Path

In today’s world, having backup options is critical.

Contrary to popular belief, Portugal’s Golden Visa program is still active and remains the best in Europe. While direct real estate investments no longer qualify, it is still the fastest track to EU citizenship (application possible after five years) and requires only seven days of physical presence per year.

With the Golden Visa, investors gain unrestricted access to the Schengen Zone while keeping their U.S. residence, making it an ideal Plan B.

Importantly, the EU is applying pressure on Golden Visa programs, meaning they may not be around forever. However, once an investor starts the process, they are grandfathered in and protected from future changes.

Investment Options for the Golden Visa

The most robust Golden Visa option today is a €500,000 investment in an eligible fund. Many of these funds are low-risk, offering solid returns with minimal liquidity until the process is complete. Interestingly, some funds now provide Bitcoin exposure, allowing crypto investors to maintain their positions while securing European citizenship.

For investors with less liquidity, alternative options exist, such as:

• Borrowing against assets outside Portugal.
• Investing in government-approved cultural projects.

However, “cheaper” options tend to be riskier, and investors should assume that the lower-cost paths come with trade-offs.

Choosing the right fund is no easy task, but at Veyra, we thoroughly vet all Golden Visa investment opportunities and can connect clients with the most reliable providers.

Helping Americans Navigate Portugal’s Challenges

At Veyra, we have an experienced tax team advising Americans moving to Portugal.

Moving to Portugal is not always easy.

Culturally, Portugal operates at a slower pace than the U.S. Many service providers and government offices do not respond to emails—sometimes not on the same day, sometimes not at all. Much of the bureaucracy is handled over the phone, and officials have a great deal of discretion. A banker or a government worker may have their own “policy,” which can change based on their mood.

Legally, Portugal does not recognize many U.S. structures. For example:

• ROTH IRAs are not tax-free in Portugal.
• LLCs are not necessarily pass-through entities.

Americans often expect Portugal to work like the U.S., but it doesn’t. Those who come with an open mind and patience will find Portugal rewarding. Those who bring an attitude of entitlement and constant frustration may quickly be told to go back to where they came from.

At Veyra, our expertise lies in bridging the cultural and legal gaps between Portugal and the U.S., making the transition as seamless as possible.

If you’re serious about moving to Portugal—or just want to secure your options for the future—we can help you navigate the process the right way.

Because when it comes to international freedom, having a plan is everything.

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