We tackle the essential financial aspects of relocating from the United States to Portugal, breaking down cost of living, banking requirements, tax implications, and ongoing US obligations.

• Portugal offers 40-74% lower cost of living compared to the US, varying dramatically between expensive coastal cities and affordable inland regions
• Housing costs reflect this split – Lisbon one-bedrooms average $1,200-1,500 while similar inland properties cost around $400-450
• Opening a Portuguese bank account requires obtaining a NIF (tax ID number) first, with banks like Activo Bank often recommended for English services and lower fees
• Portugal's Non-Habitual Resident (NHR) tax program closed January 2024, replaced by the narrower IFESAI program targeting scientific and innovation professionals
• The IFESAI program eliminates NHR's favorable 10% tax rate on foreign pensions, significantly impacting retirees
• US citizens must continue filing American tax returns while living abroad, using the Foreign Earned Income Exclusion or Foreign Tax Credit to avoid double taxation
• Expats must report foreign financial accounts exceeding $10,000 through FBAR filings and potentially file additional FATCA forms

For more information, see Financial Planning for Moving to Portugal.

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Moving, Working, and Investing for Americans Abroad