Expat Academy

How to retire in Portugal as an American

The D7 and Golden Visa, Portugal's residence tests, how Portugal taxes Social Security and IRAs now that NHR is closed, healthcare and housing, for Americans retiring to Portugal.

Updated · Expat Academy · Education, not advice

1 EUR = 1.1193 USD · 1 USD = €0.8934 ECB euro foreign exchange reference rate, 23 Oct 2026

Euro amounts are converted at this rate and are estimates. Currency moves change what your life in Europe costs in dollars: a weaker dollar makes it more expensive.

Portugal has been one of the most popular destinations for American retirees for a decade. Two things have changed recently: the NHR tax regime is closed to new retirees, and the Golden Visa no longer accepts real estate. Here's the picture in 2026.

First decide: move, or spend seasons

  • Move and become a Portuguese resident: a D7 visa, a residence permit, Portuguese returns on your worldwide income, and US returns as before.
  • Stay a US resident and spend seasons in Portugal: as a visitor, or with a Golden Visa, while keeping every residence test pointing to the US.

The D7 visa

  • Income: the minimum wage for you, €920 (about $1,030 today) a month in 2026, 50% more for a spouse and 30% for each child.
  • Savings: usually about a year of the requirement in a Portuguese bank account.
  • A NIF, a Portuguese bank account and a home before you apply.
  • The permits: a 120-day visa, then a two-year residence permit, then three-year renewals; permanent residence after five years, citizenship after ten.

Check your margin with the free Portugal D7 Visa Income Checker, and read the D7 income requirement.

Portuguese tax residence

More than 183 days in any 12-month period, or a home kept as your habitual residence even with fewer days. Residence starts on the day you arrive, so the year splits. See Portugal's tax residency rules.

How Portugal taxes US retirement income

Pensions and IRA withdrawals are taxed on a scale from 12.5% to 48% after a €4,587 (about $5,134 today) deduction per person; interest, dividends and gains at a flat 28%. US Social Security is the open question. See Does Portugal tax US Social Security and 401(k)s?.

No wealth tax, and little inheritance tax

Portugal has no wealth tax, and spouses, children and parents pay no inheritance tax; other heirs pay a 10% stamp duty. Property brings the yearly IMI and, above €600,000 (about $671,580 today) per person, AIMI.

Healthcare and the cost of living

Residents register with the national health service (SNS); many keep private insurance for faster access. Housing has risen fastest in Lisbon, Cascais, Porto and the Algarve; the Silver Coast, Coimbra and the interior cost much less. See the cost of living in Portugal for retirees.

The Golden Visa

For part-year residents, a €500,000 (about $559,650 today) investment in a qualifying fund gives a residence permit that asks for only seven days a year in Portugal. See the Portugal Golden Visa for retirees.

Questions

Can a US citizen retire in Portugal?

Yes. Most retirees use the D7 visa, which needs regular passive income of at least the Portuguese minimum wage (€920 a month in 2026), 50% more for a spouse, usually about a year of that in a Portuguese bank, a NIF and accommodation.

Is the NHR tax regime still available to retirees?

No. The non-habitual resident regime, with 10% on foreign pensions, closed to new residents. Its successor, IFICI, is for certain jobs and doesn't cover pensions, so new retirees pay the normal rates.

Does Portugal tax US Social Security?

The treaty says the US may tax it; advisers read it two ways on whether Portugal also taxes it. Many preparers treat it as taxable in Portugal with a credit for the US source tax.

Can I keep my home in the US and spend part of the year in Portugal?

Yes, as a visitor for up to 90 days in 180, or with a Golden Visa, which asks for only seven days a year in Portugal. Either way, watch the 183-day count and the habitual-home test.

Go deeper

  • P1 Portugal's residence tests Free preview: Portugal makes you tax resident with more than 183 days in any 12-month period, or with a home kept as your habitual residence, whatever the days. Residence starts on the day you arrive, so the year splits.
  • P2 The D7 visa, step by step: Portugal's passive-income visa: the minimum wage for you, 50% more for a spouse and 30% for each child, about a year of it in a Portuguese bank, a NIF and a home. A 120-day visa, then a two-year permit, renewed for three.
  • P4 Portuguese income tax on your US income: Portugal taxes residents on worldwide income: pensions and IRA money at a scale from 12.5% to 48%, after a specific deduction, and interest, dividends and gains at a flat 28%. The old NHR regime is closed to new retirees.

Sources

Education, not advice. This guide explains general rules as of the date above. Rules change every year; confirm your own situation with a qualified adviser in the US and in France.