Table of contents
Moving to Portugal from the USA means getting a Portuguese residence visa first, usually the D7 for retirees and passive income or the digital nomad visa for remote workers, and then running your finances in two countries. You keep filing US returns after you move, Portugal taxes you too once you’re resident, and the US–Portugal tax treaty decides who gets the first claim on income like Social Security. Medicare usually stops being useful the day you land.
Advisers and websites give Americans opposite answers on some of these points, especially Social Security. This guide shows what the treaty and the IRS actually say, then covers Medicare, bank accounts, the FBI check, your car licence, pets and a realistic timeline.
Moving to Portugal from the USA: which visa fits
US citizens can visit Portugal without a visa for up to 90 days in any 180-day period (European Commission), but to live there you apply for a residence visa through a Portuguese post in the US before you move. The right one depends on where your income comes from.
| Your income | Visa | 2026 threshold | In dollars, about |
|---|---|---|---|
| Social Security, pensions, rent, dividends | D7 visa | €920 a month for one adult, €1,380 for a couple | $1,030 and $1,545 a month |
| Remote work for US clients or employers | Digital nomad visa | €3,680 a month | $4,119 a month |
Requirements and documents are in our guides to the D7 visa and the digital nomad visa. Dollar figures use the European Central Bank rate of October 23, 2026 ($1.1193 per euro); leave a margin, because the dollar moves. Applications go to the Portuguese posts in the US (New York, Newark, New Bedford, Boston, San Francisco and the embassy in Washington), mostly through VFS Global offices in three cities: Washington, New York and San Francisco (where to apply; service providers).
The EU’s ETIAS travel authorization for visa-free visitors isn’t running yet, and no start date had been announced on the official ETIAS page when we checked.
US taxes don’t stop when you move
The US taxes its citizens on worldwide income wherever they live, so you keep filing a federal return after moving to Portugal (IRS). The deadline is still April 15, with an automatic extension to June 15 if you live abroad on the due date.
Portugal adds its own layer once you’re a resident there: spending over 183 days there within 12 months, or keeping a home you treat as your habitual residence, makes you tax resident (IRS Code, article 16). From then on Portugal taxes your worldwide income too, and the treaty plus foreign tax credits stop most income from being fully taxed twice. The non-habitual resident scheme isn’t open to people moving now (only a narrow transitional group can still register), and its successor, IFICI, doesn’t cover pension income.
Social Security can be taxed by both countries, with a credit
Article 20 of the US–Portugal tax treaty says US Social Security paid to a Portuguese resident “may be taxed” in the US. That wording doesn’t make it exclusive: Portugal, as your country of residence, can also tax it, and under Article 25 it must give you a credit for the US tax, within limits. Portugal isn’t among the treaty countries in IRS Publication 915 whose residents escape US tax on Social Security.
That’s why you’ll hear “only the US taxes it” from one adviser and “Portugal taxes it” from another: each describes half of the rule. Your actual bill depends on your other income and on how the two credits interact, so this is the one area where paying a cross-border tax preparer usually earns its fee.
Pensions, IRAs and government pensions follow different rules
Under Article 20(1)(a), pensions from past private employment are allocated for tax to the country where you live, Portugal. As a US citizen you still file in the US, so check how the credit applies. US government-service pensions, such as federal or military retirement pay, are generally taxed only by the US, unless you’re both resident in Portugal and a Portuguese national. How Portugal treats withdrawals from a 401(k) or IRA, including Roth accounts, isn’t settled in the treaty text in a way we can summarize safely; get advice before you start withdrawals as a Portuguese resident.
FBAR and Form 8938: two reports, two thresholds
If the combined balance of your accounts outside the US goes above $10,000 at any moment during the year, you file an FBAR with FinCEN (IRS). It’s due April 15, with an automatic extension to October 15. A Portuguese account holding the 12 months of funds US consulates ask for, about $12,357 for one person, usually crosses that line on its own.
Form 8938, under FATCA, is a separate report filed with your tax return, and it doesn’t replace the FBAR (IRS FATCA summary).
| Filing status, living abroad | Form 8938 if foreign assets exceed |
|---|---|
| Single | $200,000 on the last day of the year, or $300,000 at any time |
| Married filing jointly | $400,000 on the last day of the year, or $600,000 at any time |
Medicare usually won’t pay for care in Portugal
Medicare.gov states that Medicare usually doesn’t cover health care outside the US, and its narrow exceptions don’t fit someone living in Portugal. Once you’re a resident you can use Portugal’s national health service, and private insurance is an option on top.
The hard decision is Part B. If you drop it and later re-enroll, the penalty is 10% of the standard premium for each full 12-month period you could have had it, and it usually lasts for life (Medicare). The 2026 standard premium is $202.90 a month. Keeping Part B is insurance against moving back; dropping it saves money if you’re sure you won’t.
Social Security payments in Portugal
You can keep receiving Social Security after you move. Portugal appears on the Social Security Administration’s international direct deposit list, so benefits can be paid into a Portuguese account; check the current list before you switch. The US and Portugal also have a Social Security agreement, which matters mainly if you work in Portugal and want to avoid paying into both systems.
Banking and paperwork for Americans
Get a NIF first: Portugal’s tax number is the key to opening a bank account and many everyday steps. You can request it online through a representative; see getting a Portuguese NIF. Then open a Portuguese account and move the money your visa needs.
Keep at least one US account and card open: you’ll need it for US tax refunds, Social Security if you don’t switch deposits, and US bills. Before you change your address, ask your US bank and broker whether they restrict accounts for customers living abroad.
The FBI check, step by step
- Request an Identity History Summary from the FBI ($18) with fingerprints (form I-783).
- Have it apostilled. A federal document normally goes to the State Department, which charges $20 per authentication (22 CFR 22.1); confirm the current routing on travel.state.gov.
- Submit it less than 90 days after it was issued, as the US consular checklist requires, so request it close to your appointment.
Your driver’s license
US licences can be exchanged for a Portuguese one. Once your residence permit is issued, you can drive on your US licence for 90 days and should file the exchange within that time. From 90 days up to two years you can still exchange it but can’t drive on the US licence; after two years you need a practical exam (IMT).
Bringing your dog or cat
Pets need a microchip first, then a rabies vaccination, then a 21-day wait after a first vaccination before they travel (USDA APHIS; European Commission). An accredited vet completes the EU health certificate, which USDA must endorse, and Portugal asks for 48 hours’ notice of the pet’s arrival. New EU certificate models apply from October 2026, so confirm the current form and its validity window with your vet, along with whether a rabies titer test also applies.
A realistic timeline from the US
| When | What to do |
|---|---|
| 6 to 9 months before | Choose the visa, check your consulate’s checklist, start your NIF and bank account |
| 4 to 6 months before | Secure 12 months of housing; talk to a cross-border tax preparer about Social Security and pensions |
| 3 months before | Decide on Medicare Part B; start the pet’s microchip and vaccination if needed |
| 2 to 3 months before | Request the FBI check and apostille, timed for your appointment |
| Appointment | Submit at the consulate or VFS center; the law gives the consulate 60 days to decide |
| Arrival | Request your AIMA appointment within the visa’s four months; open your FBAR file for the year |
| After the permit | Exchange your driver’s license within 90 days (you can’t drive on the US licence after that); register with the health service |
Common mistakes Americans make
Before you become resident, Portugal taxes non-residents on Portuguese-source income at flat rates, such as 25% withholding on employment and pension income (IRS Code, article 71). That’s not the rate residents pay, which is a common confusion in online guides.
For costs, neighborhoods and healthcare once you’re settled, our Portugal moving guide covers the country side of the move, and retiring in Portugal covers retirement budgets and where Americans settle.
Frequently asked questions
Answers to the questions Americans ask most before moving.
Do Americans pay taxes in both the US and Portugal?
Yes. You keep filing US returns, and once you’re tax resident in Portugal you file there too. The treaty and foreign tax credits prevent most double taxation, but they don’t remove the need to file in both.
Is Social Security taxed in Portugal?
It can be. The treaty lets the US tax it, lets Portugal tax it as your country of residence, and requires Portugal to credit the US tax, within limits.
Does Medicare cover me in Portugal?
Usually not. Plan on Portugal’s national health service plus private insurance, and decide on Part B before you go.
Can I keep my US bank accounts?
Yes, and it’s worth keeping at least one. Report foreign accounts on the FBAR, and ask your US bank whether it limits accounts for customers living abroad.
How long can an American stay in Portugal without a visa?
Up to 90 days in any 180-day period across the Schengen area. Living there longer needs a residence visa.
Can I use my US driver’s license in Portugal?
For 90 days from the issue of your residence permit, and you should file the exchange in that time. You can still exchange it up to two years, but you can’t drive on the US licence after the first 90 days.
Do I need a lawyer to move to Portugal from the US?
Not for the visa itself; nothing in the official checklists requires one. A cross-border tax preparer is often the better investment, because of Social Security, pensions and two sets of returns.
Moving to Portugal from the USA works when the money side is planned as carefully as the visa: know how your Social Security will be taxed, decide on Medicare before you leave, and set up your FBAR the year your Portuguese account opens.
Sources
- U.S. citizens and resident aliens abroad
- Summary of FATCA reporting for U.S. taxpayers
- Report of Foreign Bank and Financial Accounts (FBAR)
- United States–Portugal income tax convention
- Publication 915: Social Security and equivalent railroad retirement benefits
- Medicare coverage outside the U.S.
- Avoid late enrollment penalties
- U.S.–Portugal Social Security agreement
- International direct deposit countries
- ETIAS
- Pet travel from the United States to Portugal
- Non-commercial movement of pets from non-EU countries
- Residence visa: necessary documentation
- Short-stay visas and visa-free travel (EU visa policy)
- External service providers
- Where to lodge a visa application
- Residency visa checklist (US applicants, 06.11.2025)
- Identity History Summary request form I-783
- 22 CFR 22.1, schedule of fees (authentications)
- IRS Code, article 16 (tax residence)
- IRS Code, article 71 (withholding for non-residents)
- Ofício Circulado 20276/2025 (IFICI)
- Exchanging licences: deadlines and other situations
- Euro foreign exchange reference rates
This guide is general information, not legal, tax or financial advice. Immigration and tax rules change often and depend on your circumstances. Check the official sources above and speak to a licensed professional before you apply or move. Read how we research and review in our editorial guidelines.
