Good areas in Portugal for expats from USA?

Hello escapers8,

Welcome to Expat.com 😀

It sounds like an exciting journey ahead! I’m sure you will find all the information you need to make a well-informed decision about moving to Portugal.

Best of luck with your research, and do not hesitate to reach out if you need any help along the way! 😊

Also, be sure to check out: Living in Portugal: the ultimate expat guide for more insights!

Cheers,

Cheryl

Expat.com team

We are beginning to research moving to Portugal from the Seattle area. We are looking for a town or city large enough to have good health care, near the coast, moderate cost of living, good culture and art scene, and a reasonable number of other expats. Any suggestions? Also want good resources on tax consequences of moving to Portugal but still with US citizenship. -DS - @escapers8

Hi and Welcome,

Unfortunately  all the points in      "We are looking for a town or city large enough to have good health care, near the coast, moderate cost of living, good culture and art scene, and a reasonable number of other expats"       are subjective  = as in you don't  quantify ie put a number on each of  " near the coast, moderate cost of living or reasonable number of expats " so how can anyone give you reliant information?  I have no idea what YOU consider as a "moderate cost of living",  you take the mean average wage (before tax) in Portugal then possibly 50% of workers earn less but quite possibly they don't run air conditioners nor often eat out -  Quote "According to local statistical offices, the average salary in Portugal in 2025 is €1,294.1 per month before taxes " so would you consider that sufficient for a "moderate cost of living" ?  In reality only you can find answers for the questions you ask (ie properly doing research) and that is really only done by yourself spending time in Portugal and looking/collecting first hand information that is reliant to you on towns, houses, rentals, people, roads, trains, food shops, restaurants, festivals, bull fighting, tax offices banks, beaches, markets, parking fines, Super Bock, Fado, PeriPeri chicken, barking dogs, more barking dogs,   etc etc.

Good luck with your quest.

Maybe he or she is approaches the question by framing an impossible conundrum, hoping that as the frame of the conundrum is forced wider by the need to produce an answer, it will eventually produce one answer, and not the useless multitude of answers that a more reasonable question would have.  I'm from Seattle, too - it's how we do things.

As evidence, I adduce these two constraints:  the one you zeroed in on, "moderate cost of living", and then "good culture and arts scene."  A good culture and arts scene would logically point us to one of the principal cities - Lisbon, Porto - where the cost of living is certainly not moderate.

As we try to get out of that trap, we might look to Coimbra for example ... but it isn't near the coast.

My suggestion?  Chapala, Mexico.  20,000 American and Canadian expats can't be wrong.  You won't have to deal with learning to be able to understand people speaking in a foreign language, there are artists all over the place, etc.  If you're really into Portugal, of course, it isn't Portugal at all, but why would you care about that?

Hi there!

The most expensive areas In Portugal are Lisbon, Cascais, Algarve, Porto and most towns close to the coast. If you don't mind being 1 hour away by car or train from any of the above, you'll find better value in terms of housing prices (sale or rental) and lower cost of living, food, restaurants, etc.

Further away, 1.5 to 2 hours drive from those top places, and the prices will be lower still.

Setubal is a large town on the coast, 1 hour south of Lisbon, has a lot going for it and covers your requirements:

1. 3 scenic natural parks on the doorstep (Arrabida, Troia and Sado Estuary) with excellent beaches
2. Easy walk from town center to the beach, with buses to many more further along the coast
3. Good link to center of Lisbon by train or car, 1 hour, scenic journey over the Tejo / Tagus
4. 20 minute ferry crossing to the peninsula of Troia, with beaches... golf... horses... cycling... dolphins
5. One of the best food markets, ideal for foodies, fresh produce and fish just out of the sea
6. Large chain supermakets & shopping malls
7. Housing is not as cheap as chips but lower prices than Lisbon
8. Ok, some areas are a bit grotty but improving... gentrification in progress
9. Plenty of art & culture to enjoy but if you run out of options, just take the train to the center of Lisbon
10. Big problem might be the high earthquake risk in this area, same as Lisbon, but hey... it may never happen in our lifetime.

Visit, stay & explore. As they say you'll never want to leave.

To have something to compare with, you should also visist the Silver Coast (which is the coast north of Lisbon) with lots of different towns & villages, different vibes, different prices. See Ericeira, Sao Martino do Porto, Aveiro... and more. Visit in winter & summer to experience different weather and streetlife.

NOTE: I've sent you a private message with link for Tax info & other advice.

@escapers8

Hello @escaper8

I’m a Portuguese citizen and I change house recently. And those are some of the questions I try to find an answer. But it’s not easy to find all your preferences. Perhaps it would be be useful if you make an hierarchy first and than perhaps I can advice you.

Regards

Armando

@Mariza.says

In similar situation as Escsper8 and possibly getting residency in Portugal.  I am arranging a meeting for us with an attorney in Lisbon when we visit in April/May.  I am concerned about what kind of tax we would need to deal with besides our American taxes   Could you possibly send me that tax info as well.  We are in our 70s and also concerned with what would be needed to get health coverage. I believe we would need a private plan and am trying to get specifics on that as well.  I do know there is only one carrier I believe we could get being over 70.  I am also a German citizen (parents refugees from Holocaust) so getting residency should be easier for us.    Thank you.   Monica

@escapers8

I think a visit to Portugal would go a long way towards narrowing down your options.  My partner and I just got back from 10 days, and I absolutely fell in love with Ponte de Lima which wasn't on my radar at all before we went.  I did extensive reading on different towns and regions for months before going, and Aveiro, Leiria, and Coimbra were my top choices based on my online research.  After visiting my priorities totally changed. 

So while I don't think anything you read is going to be all that helpful, I will put in a good word for Ponte de Lima.  It's half an hour from Braga and an hour from Porto, so if you're willing to drive or take a bus there should be plenty to do in terms of the arts.  It's 30 minutes from the coast (is that close enough?).  Cost of rent is lower than elsewhere in the country, at least for what we were looking for. 

@FIRE_Expat

Curious about what drew you to Ponte de Lima? We're scouting at the end of May, focusing on the Silver Coast and Algarve, with a stop in Setúbal. Leaning toward Caldas da Rainha and Olhão, although Setúbal is also very interesting (but willing to be totally surprised). We're from San Diego now, but we're originally from the Bay Area - willing to pay the coastal premium, so it boils down to the weather, local community, and proximity to the outdoor activities we love.

It's sure a nice place.  The northern cities in Portugal have their own appeal.  History, architecture, culture, environment - different, and worth a look.  I'd put in a word for Guimarães, as well.

There's a climate issue, here, of course.  If the object is to be in the sunniest country in Europe, you'd probably steer clear of the north, because it's cooler and wetter there, for sure.  As we're at hopefully the tail end of weeks of wet, cold March weather here in central Portugal, I can relate - who needs this?   Who knows where things are going in the climate picture, though;  I wouldn't want to buy into Algarve real estate at this point.  Meanwhile, looking at charts for March weather in Ponte de Lima vs. Leiria, they get a half hour less sun, one more rainy day.  Hm.

@FIRE_Expat
Curious about what drew you to Ponte de Lima? We're scouting at the end of May, focusing on the Silver Coast and Algarve, with a stop in Setúbal. Leaning toward Caldas da Rainha and Olhão, although Setúbal is also very interesting (but willing to be totally surprised). We're from San Diego now, but we're originally from the Bay Area - willing to pay the coastal premium, so it boils down to the weather, local community, and proximity to the outdoor activities we love. - @gwalks

It's a complex answer.  Some of it comes down to logistics - we are traveling with 2 medium sized dogs, so we "need" a detached house with a fenced yard.  We have a pretty generous budget, but in many places (Setúbal, Lisbon, Porto, for example) our budget relative to the local rental market doesn't offer many options.  We lucked into finding a house that perfectly suits our needs near Ponte de Lima, so we spent a day driving and walking around town.  The pace there felt much slower than the areas in Coimbra, Braga, and Porto that we visited. 

What I'm about to say is in no way an indictment of these areas - just of the immediate areas around the properties we viewed.  In Braga and Porto in particular, we found neighborhoods with houses that would suit our needs, but they either had new houses going up all along the block or were adjacent to an industrial area.  Or they were near the heart of the city, with noise, traffic, and too many people (for us).  The houses we saw along the Silver Coast seemed like they'd lived a hard life, and some of the neighborhoods felt too touristy even in March. 

Ponte de Lima itself felt much more relaxed to me.  I'm sure it gets crazy during the summer, particularly when there are festivals.  But the pace in March felt relaxed.  I could walk or bike the trails next to the Lima river every sunny day and be happy, or kayak or paddleboard along the river itself.  There are more than enough shops and restaurants, and with Braga and Viana do Castelo about 30 minutes away (and Porto about 60), things like concerts, theater, and hospitals aren't too far. 

All of us who are moving together prefer cooler temperatures, so the "bad" weather in the north doesn't detract for us.  Even in winter when it's rainy and cloudy it's nowhere near as bad as places I've happily lived in the US. 

My main point though was to emphasize how difficult it is to search for a place to live remotely.  I read and watched videos for dozens, maybe 100 hours describing what it's like to live in various places around Portugal, and thought I had a good idea.  And then when I actually got there, my top choices had things we didn't like and a place I hadn't given any thought to felt more like home than anywhere I've ever lived. 

@mozwoeld

If you have a German passport (EU passport) you won't need to get a residency visa. Just pack your bags, get a flight and move to any country in the EU block. This is called Freedom of Movement enjoyed by all EU citizens.

Once in Portugal you can register as a resident and get a residents card, if you intend to stay there longer than 180 days each year and if you do, you'll become a resident of Portugal and a taxpayer of Portugal.

If you don't intend to stay longer than 180 days each calendar year, you may come and go as you please, without the need to declare all your worldwide income and pay taxes in Portugal. You can buy or rent property in Portugal without being a resident, but the property would be considered a second home.

Regarding tax:

If you stay more than 180 days each year in Portugal, you'll be a resident and you'll be required by law to declare all your worldwide income to the portuguese Tax Office (Finanças), including any income that is exempted from tax elsewhere, or already taxed elsewhere, including income received & taxed in US.

You won't be taxes twice on same income but you may be taxed the difference when the tax paid in the US is lower than the equivalent tax in Portugal.

Please note that some types of retirement income that are exempt of tax in the US may not be exempt in Portugal. And taxes in Portugal are notoriously high.

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You are advised to consult a portuguese accountant experienced in international taxes before you move to get a clear picture of your situation.

How abt getting a map of this country and take a couple of months to travel around? Want to consider the central region?  https://portugalportogallo.wordpress.co … e-to-live/

@Mariza.says

The reason we would need to be residents (my husband does not have German citizenship) is because we need health insurance while over there.  It is different than just travel health insurance.  My husband had crohns  and had had a liver transplant and doing great but he can't be without insurance plan over there.

@Mariza.says

I did watch the video.  Not much on retirees but might contact the man you mentioned.  You just know the name from the video or you know people that have used him. 

@Mariza.says

I listened to the video which was great.  Not much for retirees but I might try and contact or meet with that accountant.  Do you just know him from the video or know people that have used him.   I think it  woukd be good to connect with an accountant.  Again thanks so much for suggestions.

@mozwoeld

  I'm afraid I don't know the accountant, or even which country he's working from. I thought it might be useful just to give you an idea about US expat taxes wherever they are in the world.

You probably already know that all US citizens are required to file taxes in the US, even when they live & work outside the US.

About healthcare in Portugal:

There's the public healthcare SNS founded by the government through taxes, and there's the private healthcare sector with many different providers, and they all operate as profit-making businesses. Private healthcare insurance gives you access to certain private services but not all, depending on your insurance contract.

Private healhcare is a business, they don't have emergency departments with all the set-up in place and emergency teams ready in waiting, to receive patients at short notice.

If you have an emergency, you'll always be taken to the public service hospitals of the SNS even if you have private insurance cover, and a few times last summer patients have died while waiting to be seen, because there were not enough doctors & specialists to provide emergency life-saving care. You may have to wait many, many hours... depending how busy they are, just to be seen.

There is a very SERIOUS shortage of medical staff at all levels in the SNS (public health service) and you might not be able to get the care you need, when you need it. And when human resources are low, priority will be given to younger age groups, as we have experienced recently with an elderly relative.

Even when you have private medical insurance, you'll always depend on the public service SNS for emergencies.

Portugal is not a good place to live if you depend on healthcare. It's an ongoing problem not likely to be solved any time soon, because portuguese doctors are leaving for better paid jobs abroad.

There is a very SERIOUS shortage of doctors & medical specialists all over Europe.

I don't have experience of all countries but France has much better healhcare than Portugal, and many portuguese doctors are working there now.