Disclaimer: the above image belongs to Global Residence Index.
In the last three years, thousands of US citizens have moved to Portugal, attracted by cheap real estate, tax advantages, public health and education systems, security and the relaxed lifestyle, at a time when the possibility of remote working has gained strength. But now this trend is changing due to several reasons, such as rising house prices, new bureaucratic challenges and the end of golden visas in Portugal.
For several years, Portugal created mechanisms to attract new foreign residents to the country, such as the golden visa in 2012 and the visa for digital nomads in 2022. And the strategy worked: the number of foreign residents in Portugal has increased in recent years to around 700,000, a record. And between 2018 and 2022, the number of US residents has more than tripled to 9,794, according to Bloomberg.
But now, this trend seems to be reversing. Many expats are considering leaving the country for various reasons, from the rising cost of living to rising house prices (to buy and rent), as well as bureaucratic changes and language barriers.
In addition, Portugal is losing attraction for foreigners who want to move to the country, since the Government has advanced with the proposal to end golden visas in the "Mais Habitação" programme, in order to lower house prices. Nonetheless, visas for digital nomads continue to work, with Portugal having granted 930 visas in just six months - and it's North American citizens that receive the most, the same publication reports.
There are reports from various services and consultants pointing to a decrease in the number of foreigners looking to live in Portugal. In fact, the Get Golden Visa platform registered a 37% drop in the number of enquiries from Americans in the first quarter of 2023 compared to the same period in the previous year, which reflects the drop in interest in living in our country.
In this scenario, there are expats who are letting the American dream of buying a house and living in Portugal fall by the wayside. And they are even looking to other destinations, such as Spain and France, to re-establish their lives. Others are even packing their bags and returning to the USA.