Portugal attracts American citizens
Americans are discovering the huge potential that Portugal offers to live, work, study, and invest. The coastal country is friendly and offers great conditions for citizens who value democracy, making it a top choice for those seeking a more peaceful and safe lifestyle. We have prepared a dossier that explains everything you need to know.
LISBON, PORTO AND CASCAIS IN THE TOP 3
Lisbon – The capital of Portugal is a vibrant and cosmopolitan city known for its unique architecture, gastronomy, nightlife, and proximity to beaches. The average price of property in Lisbon varies depending on the location, size, and condition of the property, but in general, the average price per m2 of an apartment is €4,218*.
Porto – Portugal’s second-largest city is famous for its Port wine, historic architecture, and artistic and cultural scene. Porto has a lower cost of living than Lisbon, and the average price per m2 of an apartment is €3,953.5*, depending on the location and condition of the property.
Cascais – This is a coastal city located west of Lisbon, known for its stunning beaches, pleasant climate, and quality of life. Cascais is a popular option for those seeking a peaceful life near the sea, with average purchase prices of €6,667 per m2.
WANT TO BUY A HOUSE IN OUR COUNTRY? KNOW THE BENEFITS
There are numerous benefits that American citizens have when buying a house in Portugal. Find out what they are.
Taxes and IRS: Portugal offers a favorable tax regime for non-habitual residents (NHR), which can result in significant benefits for Americans buying a house in the country. NHRs may qualify for a fixed 20% tax rate on income from Portuguese sources related to work, as well as being exempt from tax on foreign-source income for a period of 10 years. In addition, there are tax exemptions for pension income, dividends, and capital gains. This can result in substantial savings compared to tax rates in the United States.
Health: Portugal is known for having a high-quality and affordable healthcare system. Americans who buy a house in Portugal can benefit from the Portuguese public healthcare system, which is considered one of the best in Europe. Citizens and permanent residents in Portugal have access to free or very low-cost healthcare services, which can be an advantage compared to the high costs of healthcare in the United States.
Safety: Portugal is considered one of the safest countries in the world. The crime rate is low compared to many other countries, including the United States. This can provide Americans buying a house in Portugal with a sense of security and tranquility.
Cost of living: The cost of living in Portugal is generally lower compared to many areas of the United States, especially in popular cities like Lisbon and Porto. Americans can find more affordable prices for goods and services, including housing, food, transportation, and leisure, which can result in a better quality of life in Portugal. However, it is important to note that buying a house in Portugal as a foreigner can involve complex legal and tax issues. It is advisable to seek specialized legal and tax advice when considering buying a house in Portugal to fully understand the benefits and obligations involved.
I WANT TO LIVE IN PORTUGAL. WHAT KIND OF VISA DO I NEED?
Americans who want to live in Portugal for more than 90 days need to apply for a residence visa. There are several types of residence visas, depending on the purpose of your stay in the country, such as:
- D1 Visa
Residence visa for employed workers: for those who want to work in Portugal as employees of a company;
- D7 Visa
The translation of the remaining text is:
Residence permit for self-employed work: for those who wish to start their own business in Portugal;
- D2 visa
Residence permit for investment: for those who wish to invest in Portugal, such as acquiring real estate or investing in a company;
- D4 visa
Residence permit for students: for those who intend to attend a course in Portugal, lasting more than 90 days.
- Digital Nomad visa
A visa that allows remote workers, freelancers, or online business owners to live, work, and travel freely in and out of the US.
To apply for a residence permit, Americans should contact the Portuguese consulate in their country of residence or the Immigration and Borders Service in Portugal.
WHAT ARE THE RISKS/COSTS IF I SELL MY HOUSE IN PORTUGAL?
There are some risks and costs associated with selling a property in Portugal by an American citizen, such as:
- The seller may be subject to capital gains taxes in Portugal and the United States, depending on the situation. It is important to consult a tax professional in both countries to understand the specific tax implications of the sale;
- The seller will have to pay some fees and expenses related to the sale, such as real estate agent commission, notary costs, in case of mortgage settlement and registration, and municipal taxes;
- The fluctuation of the exchange rate between the euro and the US dollar may affect the value that the seller receives from the sale;
- Real estate laws and regulations in Portugal may be different from those the seller is accustomed to in the United States. It is important to obtain professional legal assistance to ensure that all legal and regulatory procedures are properly followed.
- The seller may face language and cultural barriers when negotiating the sale of the property with Portuguese buyers. It is important to have a real estate agent or lawyer who speaks the local language fluently and is familiar with the cultural and business practices in Portugal.
Selling a property in Portugal by an American citizen can be complex and involve risks and costs. It is important to seek legal and professional assistance to ensure that the transaction is properly carried out and that the seller’s interests are protected.
AM I ALONE IN THIS?
Of course not. Studies show that American nationals are at the top of property investors in Portugal. See for yourself:
Among these, there are several famous Americans who have bought houses in Portugal in recent years, attracted by the beauty of the country, relaxed lifestyle, and tax benefits for non-habitual residents. Some of the American celebrities who have bought houses in Portugal are:
George Clooney and Sharon Stone.
They are neighbors in Melides, in the Costa Terra Golf & Ocean Club development. This 200-hectare development is owned by the American company Discovery Land.
Nicole Kidman and Keith Urban.
They bought a river-view apartment in Lisbon, in Parque das Nações.
John Malkovich.
The renowned movie actor bought a house in Lisbon in 2019.
Christhian Louboutin.
He settled in a palace in Alfama and opened a hotel in the famous Comporta, in Alentejo.
Scarlett Johansson.
She bought an apartment in Príncipe Real.
Michael Fassbender and Alicia Vikander.
They settled in Alfama in 2016.
Monica Bellucci.
She has a house next to the São Jorge Castle.
However, it’s not just Lisbon and Comporta that have potential for investment. See the map below for the average sales value per m2 in various regions of the country.
Easy, isn’t it? Take a chance, we’re waiting for you… and we’re pretty good at speaking English too!
Source: Casafari.pt, *the values per m2 refer to the period between 26/01/03 and 26/04/2023.
Author: Achille Simo, Real Estate Consultant and Cátia Pinheiro, International Partnerships, both @Coldwell Banker City
