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Why Americans Are Moving to Portugal: 5 Cities to Live and Explore

Why Americans Are Moving to Portugal: 5 Cities to Live and Explore

Published on 2 April 2026 By Rui Costa

The Numbers Behind the Movement

Between 2021 and 2024, Portugal issued more than 50,000 residence permits to American citizens — a figure that would have seemed implausible a decade ago. The country consistently ranks first or second in global "best places to retire" indices, appears on virtually every digital nomad visa list, and has been the subject of more English-language real estate and relocation guides than any comparable European nation.

The movement is real, it is accelerating, and it is reshaping specific Portuguese cities in ways that are simultaneously exciting and contentious. Here is an honest assessment of the five cities where Americans are choosing to build their new lives — and what you need to know before joining them.

Lisbon: The Obvious Choice, With Caveats

Lisbon is where most people look first, and for good reason. It is one of the most beautiful capitals in Europe: seven hills, pastel-coloured buildings, the Tagus estuary, the world's finest custard tart. The international infrastructure is excellent — international schools, English-speaking medical practices, a sophisticated expat community, direct flights to most major American cities.

The caveats are significant. Rental prices have tripled in some neighbourhoods since 2018. A one-bedroom apartment in Príncipe Real or Chiado now costs €1,800–2,500 per month. The city centre feels increasingly like it is being curated for visitors rather than inhabited by residents. Genuinely affordable neighbourhoods — Mouraria, Intendente, Marvila, Beato — still exist but require patience and local knowledge to navigate.

Lisbon works best for those with higher incomes, a tolerance for urban density, or a specific professional reason to be in the capital. If your work is fully remote and cost of living matters, keep reading.

Porto: The Second City That Feels Like the First

Porto is where Lisbon-fatigued expats end up, and it consistently surprises them. The city is smaller — 200,000 people in the urban centre, 1.7 million in the metropolitan area — but not in any way that feels limiting. The food scene has matured dramatically in the past five years; the wine is extraordinary and cheap; the Atlantic is 15 minutes away; and rents run €300–500 per month less than equivalent Lisbon properties.

The Bonfim and Campanhã neighbourhoods offer the best combination of affordability and character. The Vila Nova de Gaia riverfront, once purely a wine lodge destination, is developing a restaurant and cultural infrastructure of its own. The airport has direct connections to most major European hubs; TAP flies direct to New York.

Cascais: The Family Choice

Thirty-five minutes west of Lisbon by train, Cascais has been an aristocratic resort town since the 19th century and now functions as the preferred base for expat families with children. The reasons are straightforward: several excellent international schools, a compact and safe old town, beaches within walking distance of the centre, and the best concentration of English-speaking services outside Lisbon proper.

Rents run higher than Porto but lower than central Lisbon — a large family apartment or house costs €2,000–3,500 depending on proximity to the beach. The seafront promenade to Estoril and the cycle path along the coast to Guincho are genuinely extraordinary, and the restaurant scene has quietly become one of the best in the Lisbon region.

Braga: The University City Option

Braga is Portugal's third city, a northern university town of 200,000 with a disproportionate number of baroque churches, a technology and startup ecosystem punching well above its size, and rents that would be considered affordable even by Portuguese standards. A modern one-bedroom apartment in the centre costs €600–900.

The city is less internationally connected than Lisbon or Porto — the airport is in Porto, 50km south — but this is increasingly irrelevant for remote workers. The pace is slower, the community smaller, and the winters wetter than the Algarve. For those prioritising cost, authenticity, and proximity to Vinho Verde country, it is an excellent choice.

Alentejo: The Slow Living Option

The vast interior plain south of Lisbon is where people come when they have decided they want to live differently. Évora, a walled Roman city of 55,000, is the largest settlement. Around it: cork oak forests, olive groves, wine estates, and small villages where the pace of life has not substantially changed in generations.

Americans who choose Alentejo tend to know exactly why: they want space, quiet, local food and wine at absurdly low prices, and a connection to land that is impossible in any city. A restored farmhouse or rural property with land costs less than a central Lisbon one-bedroom. The trade-off is isolation, limited English services, and a lifestyle that requires full commitment to integration.

The D7 Visa: How It Works

The D7 Passive Income Visa is the standard route for Americans not employed by a Portuguese company. Requirements: proof of regular passive income (pension, investment income, rental income, or freelance income) above approximately €760/month, proof of accommodation in Portugal, health insurance, and a clean criminal record. Processing time: 3–6 months. The visa leads to residency, which after five years leads to permanent residency or citizenship.

The Digital Nomad Visa (D8) is the alternative for remote workers employed by non-Portuguese companies, requiring proof of income above four times the Portuguese minimum wage (approximately €3,280/month as of 2025). Both routes have active communities of American applicants sharing current requirements and processing times online.

Where to Stay in Portugal — GoAway Hotel Picks

Finding the right base makes all the difference when you're exploring a new life in Portugal. GoAway lists accommodation across the country's main cities and the Algarve coast.