Buying property in Portugal as an American

A practical guide to buying property in Portugal as an American, covering the buying process, costs, visas and how to protect yourself against currency risk.

Portugal has long been one of Europe’s most welcoming destinations for Americans. From Lisbon’s cosmopolitan energy to the relaxed Algarve coastline and the vineyards of the Douro Valley, it combines lifestyle, value and security. Yet for all its advantages, buying property abroad involves different laws, languages and financial systems – and without the right advice, small mistakes can become costly. This guide explains the process of buying property in Portugal, the visa options available, and how to safeguard your budget against exchange rate changes.

Contents

• Why Americans are drawn to Portugal
• Visa and residency options
• The Portuguese home buying process
• Property buying costs in Portugal
• Taxes for US citizens in Portugal
• Managing currency risk
• Settling into life in Portugal
• Frequently asked questions

Why Americans are drawn to Portugal

Portugal’s sunshine, safety and affordability have made it a favourite among Americans seeking a home abroad. It offers some of Western Europe’s lowest living costs, high-quality healthcare and an English-speaking population, especially in coastal areas. You’ll also find a mix of modern apartments, restored townhouses and rural retreats at prices that remain lower than in France or Italy.

The Portuguese government actively encourages foreign investment, with residency programmes that allow long-term stays for retirees, remote workers and investors. Add in the country’s mild climate and direct flights from several US cities, and it’s no surprise that Portugal’s expat population continues to grow.

Visa and residency options

Americans can stay in Portugal for up to 90 days in any 180-day period without a visa. For longer stays, you’ll need to apply for one of Portugal’s long-stay visas. The most popular are the D7 visa and the Digital Nomad visa.

D7 Visa (Passive Income Visa): Ideal for retirees or those with regular income from pensions, investments or property. Applicants must show proof of stable income – usually at least the equivalent of Portugal’s minimum wage (€820 per month for individuals, higher for couples or families) – along with proof of accommodation and private health insurance.

Digital Nomad Visa: Designed for remote workers earning from non-Portuguese sources. Applicants must show a minimum monthly income of four times Portugal’s minimum wage (around €3,280 per month in 2025).

Golden Visa (Investor Visa): While Portugal’s property investment route ended in 2023, the Golden Visa remains available for specific business or cultural investments. For property buyers, the D7 remains the primary route.

After five years of legal residence, Americans can apply for permanent residency or Portuguese citizenship. Portugal also allows dual citizenship, so you don’t have to give up your US passport (source: SEF).

The Portuguese home buying process

The buying process in Portugal is straightforward but requires careful attention to legal details. Working with a qualified lawyer fluent in English and Portuguese is essential. Here are the main steps:

1. Budget and finance: Decide on your price range and get mortgage advice early. Non-residents usually need a 20–30% deposit, and it’s vital to account for currency fluctuations when transferring funds from the US.
2. Find a property: Use reputable estate agents registered with AMI licences. Local agents can advise on up-and-coming areas and the true market value.
3. Make an offer and sign the CPCV: Once your offer is accepted, a promissory contract (Contrato de Promessa de Compra e Venda) is signed, and a deposit of 10%–30% is usually paid. Both buyer and seller are then legally bound to complete.
4. Due diligence: Your lawyer checks the property’s legal status via the Land Registry (Conservatória do Registo Predial) and ensures there are no debts or disputes.
5. Final deed and payment: The final deed (Escritura Pública de Compra e Venda) is signed before a notary, and the balance is paid. At this stage, currency transfers should already be arranged to avoid delays or rate changes.

Property buying costs in Portugal

Buying costs are generally lower than in many European countries, but you should budget around 8–10% of the property price for fees and taxes.

Ongoing costs include annual municipal property tax (IMI), typically between 0.3% and 0.8% of the taxable value, and utilities, insurance and community fees. If you rent out your property, income tax applies, with rates up to 28% for non-residents (source: Portuguese Tax Authority).

Taxes for US citizens in Portugal

Portugal and the United States have a double taxation treaty, which ensures you don’t pay tax twice on the same income (US Treasury). Residents of Portugal are taxed on worldwide income, while non-residents are taxed only on Portuguese earnings.

Portugal offers the Non-Habitual Resident (NHR) regime, giving eligible newcomers beneficial tax treatment for ten years. However, this scheme is being revised for 2025, so new applicants should seek professional advice before relocating (Finanças).

French-style forced heirship rules do not apply, and inheritance tax is minimal in Portugal, limited mainly to distant relatives or non-family heirs.

Managing currency risk

When buying in euros with dollars, exchange rates can change dramatically between offer and completion. A €500,000 home could cost you $25,000 more if the euro strengthens by just five cents. To protect your budget, you can fix your exchange rate in advance with a forward contract through Smart Currency Exchange.

Smart’s experts help you:

• Lock in a preferred rate to secure your budget
• Set rate alerts to capture favourable market moves
• Transfer funds securely for deposits, fees and completion

With careful planning, you can eliminate uncertainty and focus on enjoying your new home.

Settling into life in Portugal

Portugal’s warm climate, welcoming locals and slower lifestyle help Americans settle easily. Learning some Portuguese will enhance your experience, though English is widely spoken. The healthcare system ranks highly in Europe, and public transport is affordable. Many expats join social clubs or volunteer groups to meet new people.