Where Do Americans Live in Portugal in 2025?

Factors American Expats Should Consider Before Choosing Portuguese Cities

Choosing where to live in Portugal as an American is not just about the environment, it’s about matching your budget, way of life, and future goals. Before you decide on an area, consider these key factors:

• Job and business opportunities: Portugal’s job market is strong in IT, tech startups, customer service, call centers, tourism, and hospitality. Americans with specialized skills or remote work visas (Digital Nomad Visa or D8 Visa) have the best opportunities.
• Cost of living: Life in Portugal is 30 to 40 percent cheaper than in the United States. A US couple can live comfortably outside major cities on $2,500 to $3,000 per month. Rent is the main variable, but groceries, transportation, and utilities are significantly lower. To find out more, check our guide on the cost of living in Portugal vs USA.
• Language barriers: Portugal ranks 6^th in the Global English Proficiency Index. Although most people speak English, especially in major cities and tourist areas, you cannot truly integrate or handle the bureaucracy without Portuguese. Government agencies, such as AIMA, many banks, and utility companies often use Portuguese in their legal paperwork. The most critical requirement is for long-term status. To apply for permanent residency or citizenship after five years, you must demonstrate at least a basic A2 level of Portuguese proficiency by passing a language test.
• Safety and infrastructure: Safety rates for American expats are overwhelmingly positive. Portugal ranks 7^th on the 2025 Global Peace Index as one of the safest countries in the world. The main concern is pickpocketing and purse snatching, which can happen in the crowded tourist areas of Lisbon, Porto, and on public transit.
• Quality of education and healthcare: Portugal healthcare has public and private options, which expats can access. The public system (Serviço Nacional de Saúde or SNS) is almost free with few out-of-pocket costs, while private health insurance is over 80 percent cheaper than in the United States. There is also a stark difference in the price of education. For an American student attending a well-regarded Portuguese public university as an international student, the tuition costs are typically 75 to 90 percent lower than attending an out-of-state or private university in the US.
• Lifestyle preferences: Major cities like Lisbon and Porto offer the best job opportunities and networking possibilities, while coastal and suburban areas in the Algarve and Cascais can be an excellent choice for retirees and property investors. US citizens who prefer a more peaceful and traditional lifestyle opt for smaller towns and islands, such as Braga, Coimbra, Madeira, and the Azores.

Top 7 Locations for American Expats

So, where do most Americans live in Portugal? According to the latest data from AIMA, 19,258 American citizens are living in Portugal in 2024, compared to 14,129 in 2023, most of whom choose to settle in Lisbon, Porto, and the southern Algarve region.

Can’t decide which location suits your goals? Here are the seven hotspots and their main benefits.

1. Lisbon – the capital of business, innovation, and culture

Americans flock to the capital city because it combines a cosmopolitan lifestyle with career opportunities. It offers a high quality of life, affordability, and safety, with the largest expat community in Portugal.

Approximately 8,850 US citizens reside in the Lisbon Metropolitan area, which is around 46 percent of the American expat population. The most popular areas are Príncipe Real, Chiado, Avenidas Novas, and Baixa for a central lifestyle.

However, life in the capital comes at a cost. The monthly rent for a one-bedroom apartment in the city center is about €1,399 and €1,054 outside the central areas. House prices vary from €4,935 per square meter in Greater Lisbon to €6,934 per square meter in the city.

But, overall, the cost of living in Lisbon, is 38.3 percent cheaper than in Washington, DC, without accounting for rent, while rental costs are 44.6 percent more affordable. On groceries, American expats spend 43.2 percent less than they would in Washington, DC.

There are 36 international schools in Portugal’s capital, which is the largest concentration in the country. The private school tuition, ranging from €7,000 to €25,000 annually, is relatively affordable for American families. You can find the most popular choices in our guide on international schools in Portugal.

2. Porto – a slower pace of life, Port wine, and rich history

Many expats choose Porto because it is Portugal’s second-largest city, offering a slower pace of life and more affordable costs compared to the capital. The city is home to Port wine, stunning azulejos (painted ceramic tiles), and the historic centre of Porto, which is a renowned UNESCO World Heritage site.

Around 3,850 US citizens live in the wider Porto area, which is approximately 20 percent of the American expat population.

Americans can expect to spend between €786 and €1,041 per month on rent for a single-bedroom apartment. Property prices vary from €3,937 per square meter in Greater Porto and €4,385 per square meter in the city itself.

Overall, the cost of living in Porto is 39.7 percent lower than in Los Angeles, California, without including rent. At the same time, the cost of rent is 54.8 percent cheaper in Porto. English speakers can navigate well and enjoy multiple job opportunities, primarily in marketing, IT, and healthcare.

3. Braga – a traditional and peaceful lifestyle

Americans choose to live in Braga primarily because it offers the most authentic, traditional, and affordable living among Portuguese cities. American expats in Portugal who move here often settle in Maximinos, Sé, Cividade, and the surrounding areas.

Braga’s cost of living is significantly lower than Lisbon or Porto. Housing, groceries, and dining are all cheaper, making it a top location for American expats with families. A couple typically spends €2,285 per month on general living expenses (without rent). However, most Americans who choose this location usually have higher wages or have invested through the Portugal Golden Visa.

Americans can get by with English in Braga, especially in student and business areas, but will need basic Portuguese to handle local authorities, like the tax office (Finanças), health centers (centro de saúde), or long-term rental contracts.

4. Cascais – luxury living near the sea

Americans who prefer a luxury lifestyle, are often moving to Portugal’s coastal towns, like Cascais. This seaside town offers convenient access to Lisbon and luxury properties for affluent retirees, families, and digital nomads.

Cascais is one of Portugal’s wealthiest municipalities. It is famous for its well-maintained infrastructure, beautiful parks, luxury marinas, world-class golf courses, and upscale boutiques. It is part of the Lisbon region, west of the capital city.

Overall, the cost of living in Cascais is higher than the national average, with monthly expenses of €2,580 to over €4,100. However, it is 46.6 percent cheaper than San Francisco without including rent.

5. Algarve – a top choice for American retirees with passive income

The Algarve is one of the best American expat hubs in Portugal for retirees, digital nomads, and families with children. The region boasts over 300 days of sunshine per year, stunning beaches, breathtaking cliffs, and world-class golf courses. There are 12 international schools in the area.

Living in Faro, the capital, offers many job opportunities and real estate investments. Compared to other European countries, the Algarve offers a lower cost of living than the United Kingdom, France, and Germany.

Approximately 15 percent of the American expat population has settled in southern Portugal, with most choosing a life abroad in Lagos, Albufeira, and Portimão.

6. Madeira & Azores – island living surrounded by natural beauty

Americans who live in Portugal, but prefer an island lifestyle, often choose Madeira or the Azores.

Madeira is generally seen as the more developed, cosmopolitan, and digitally connected of the two, making it highly attractive to remote workers and retirees seeking mild weather and good infrastructure.

The Azores archipelago (especially the main islands of São Miguel and Terceira) appeals to Americans looking for a quieter, more isolated lifestyle focused purely on nature and, often, a return to family roots.

Both Madeira and the Azores are significantly more affordable than major US cities; however, the Azores are generally cheaper than Madeira, particularly in terms of housing and property costs. You can read more about the cost of living in Portugal in our ultimate guide.

The Portuguese people are very welcoming to expats, making it relatively easy for US citizens to integrate and live a comfortable life.

7. Coimbra – great choice for students and American expats on a budget

Coimbra is a city in central Portugal, and it is an excellent choice for American expats and students on a budget, offering a high quality of life at a fraction of the cost of Lisbon and Porto. A single person spends approximately €650 per month, excluding rent.

The house prices in Portugal, especially in Coimbra, are lower than in major cities and the Algarve region. Many expats settle in Praça da República, Celas, and Baixa.

Coimbra has a more relaxed, low-pressure pace of life compared to the constant hustle of major capitals, which many Americans find appealing for retirement or remote work. There is a large student population and an expat community that often speaks English. However, it is best to learn basic Portuguese if you want to connect with the local community.

Where Different Types of American Expats Tend to Settle

When it comes to living in Portugal, here are a couple of quick facts that can help you make an informed decision.

• For retirees and families with children: Lisbon, Porto, and the Algarve region, mainly around Lagos, Albufeira, Portimão are a top choice for US expats. They offer excellent safety, good schools, and family-friendly amenities.
• For digital nomads and young professionals: Remote workers and entrepreneurs are in Lisbon, Porto, and Madeira, where career opportunities, coworking spaces, and city life meet modern infrastructure.
• For students and Americans on a budget: Coimbra or Braga are the most affordable options with a welcoming local community.
• For luxury investors: Americans who prefer an upscale living and Portugal luxury real estate prefer Lisbon, Comporta, and Melides with beautiful views and premium services.

How to navigate Portugal’s tax landscape as an American expat?

After you decide on an area you want to settle, here are a couple of factors to consider when it comes to paying your taxes.

• Obtain your NIF number first: Your Portugal NIF (Número de Identificação Fiscal) is necessary when opening a Portuguese bank account, signing a lease, and being named on a utility bill for your residence. Without it, you will not be able to file a tax return.
• Tax residency test: If you spend 183 days or more in Portugal or have a permanent home in the country, you will qualify as a tax resident of Portugal. Therefore, if you intend to travel before becoming a tax resident, plan your travel accordingly to avoid establishing intra-country residence status sooner than intended. For more details, check our article on moving to Portugal from the USA.
• AIMI thresholds: Owners of real property valued over €600,000 are subject to an additional tax (AIMI) each year beginning in June. Alongside the AIMI thresholds, buyers must budget for two types of Portuguese property taxes: the one-time charges at the time of purchase (IMT, the progressive property transfer tax, and stamp duty) and the ongoing annual tax (IMI) paid every year of ownership. You can read more about property taxes in Portugal in our comprehensive guide.

Goldcrest: How We Can Help You

If you plan to enter the Portuguese real estate market, a buyer’s agent like Goldcrest can provide the latest market insight, source off-market properties, and negotiate prices. Our team works on behalf of the buyer, so that you can find a property that suits your budget and lifestyle.

We also have a wide network of local experts, including real estate agents, tax advisors, and contractors, ready to help you build your dream home. Contact us today and make a wise investment.