7 things American expats wish they had known before moving to Portugal in 2025

1. The weather is good – but not “California perfect”

Portugal’s climate is one of the big selling points for Americans. Mild winters, long summers and plenty of sunshine are all part of the story. But many expats are surprised to discover that Portugal is not permanently warm, dry and sunny.

In the north and inland regions, winter can feel cold, wet and windy, especially in older houses built to stay cool in summer rather than warm in winter. Even in the Algarve, night-time temperatures can feel chilly from December to February, and damp air makes it feel colder than the thermometer suggests.

Spring can be surprisingly rainy – locals say “em Abril, águas mil” – and cities like Braga or Porto can have many more rainy days than Americans imagine when they think of “Mediterranean weather”.

2. Taxes can be higher than many Americans expect

Portugal once built a reputation as a tax-friendly haven for foreigners, thanks to regimes like the Non-Habitual Resident (NHR) program and historic policies on cryptocurrency. Over time, however, rules have shifted and several generous provisions have been tightened or removed.

Today, Portugal applies progressive income tax rates that can feel high compared with some US states, especially once national insurance, local taxes and other contributions are taken into account. Americans arriving with the idea that “Portugal is tax-free” are often surprised once they sit down with a cross-border tax adviser.

The good news is that Portugal has double-taxation agreements with the United States, which help avoid being taxed twice on the same income. But the overall picture is complex enough that serious planning is needed – particularly if you are considering combining work, pensions, rental income and investments like Golden Visa-eligible funds.

3. Residency can become a hidden expense line

On paper, Portugal’s income thresholds for visas such as the D7 (passive income) compare favourably with other Western European countries. That’s one reason why so many Americans decide to apply.

In practice, though, the full cost of obtaining and maintaining residency often includes:

• Visa and residence card fees for each family member;
• Private health insurance with EU-wide cover, especially before you are fully integrated into the national system;
• Legal fees to prepare and submit applications, which can be significant for more complex cases or Golden Visa structures;
• Renewal costs every few years, including new cards and updated documentation.

For Golden Visa investors, our Portugal Golden Visa fund route checklist for 2026 breaks down both the investment steps and the ancillary costs you should consider before applying.

4. Portuguese is harder than it looks – even if you speak Spanish

Many Americans arrive thinking Portuguese will be “easy enough”, especially if they already know some Spanish. But Portuguese has pronunciation rules, nasal vowels and regional accents that can be challenging even for experienced language learners.

The paradox is that English proficiency is high in cities like Lisbon and Porto. This makes it possible to live in a comfortable expat bubble for years without learning more than a few basic phrases.

Long-term, though, expats who invest in Portuguese – even at an intermediate level – typically report better integration, smoother dealings with bureaucracy and deeper relationships with locals. If you are considering eventual citizenship, language will also play a role in your eligibility.

5. Cultural quirks: late dinners, slower pace and driving habits

Portugal is culturally closer to Southern Europe than to the United States. That means a different relationship with time, food and bureaucracy.

• Dinners start late: it’s normal to see families leaving restaurants at 10–11 p.m.
• In some areas, small shops may close in the early afternoon or keep irregular schedules, particularly outside big cities.
• Driving styles can feel aggressive to Americans, and things like strict indicator use are not always observed in practice.

None of these issues are “deal-breakers” for most expats, but they are part of the cultural adjustment. A slower pace and longer meals can feel frustrating at first – and then become exactly what you love about living in Portugal.

6. Walkable, yes – but hills and calçada can be brutal

Lisbon, Porto and many coastal towns are wonderfully walkable by European standards. But walkability is not the same as “flat” or “easy”.

You will quickly get used to:

• Steep hills and long staircases in historical neighbourhoods;
• Traditional calçada portuguesa – beautiful stone pavements that can be slippery in the rain;
• Narrow streets and sidewalks that can be challenging with strollers or mobility issues.

The upside is excellent public transport in larger cities, including metros, trams, buses and even public elevators or funiculars in some hilly areas. Many expats find they can comfortably live without a car in Lisbon or Porto, which reduces their dependency on expensive fuel and parking.

7. Some things are cheaper than in the US – others are much more expensive

Many American expats are delighted by how affordable everyday pleasures can be in Portugal. A coffee and pastel de nata for a few euros, excellent wine under 5 €, fresh produce at local markets – all of this adds up to a high quality of life at a reasonable cost.

But other items are more expensive than in the US, such as:

• Electronics (phones, laptops, cameras);
• Imported brands and certain specialty goods;
• Fuel and tolls, if you own and drive a car regularly.

A realistic budget should reflect this mix: lower costs for food and local services but potentially higher costs for tech, transport and some international products.

Bonus: when the Portugal Golden Visa fund route makes more sense than a full move

“Not every American family wants to move to Portugal tomorrow. Some simply want to secure the option – and structure their capital – today.”

After considering these seven points, some Americans realise they love Portugal but are not ready to relocate full-time. In those cases, the Portugal Golden Visa fund route can be a powerful alternative:

• You commit €500,000 to a qualifying, CMVM-regulated fund instead of moving immediately;
• You secure a residency framework for you and your family with relatively low physical stay requirements;
• You give yourselves time to test Portugal gradually while maintaining careers, schooling and activities in the US.

If that sounds closer to your reality, start with our overview of trending retirement & Golden Visa destinations for Americans and then dive into our Portugal Golden Visa fund application checklist and era of global Golden Visas comparison. Together, they give you a clear framework for deciding whether you should move now, invest first, or combine the two over time.

Whether you are exploring the Portugal Golden Visa for EU residency or you simply want to allocate capital to private equity funds in Portugal, our Investor Relations team can help. We will walk you through CMVM-regulated fund options, clarify how they work for residency and for pure investment, and coordinate with trusted immigration and tax advisers. Schedule your confidential, no-obligation strategy call today.

André Bandeira

ab@explorerinvestments.com

Maria Campos Silva

mcs@explorerinvestments.com

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