It's good news for Americans looking to make Portugal their home through its golden visa program. A recent announcement by the Portuguese government to increase taxes on foreign nationals buying homes in the country is unlikely to impact golden visa holders. Plus, the Portuguese government's recent ratification of its new immigration law also benefits golden visa applicants. Here's what to know.
Bloomberg reports that the Portuguese government intends to raise the tax on houses purchased by non-residents in the country. The Portuguese Prime Minister, Luis Montenegro, announced after a cabinet meeting that this was just one of the measures the government intends to implement in order to ease the housing crisis that Portugal, its neighbor Spain, and many other European countries are facing; there simply aren't enough affordable homes for residents.
Other measures the government intends to implement include offering tax incentives for young homeowners and speeding up the time required to obtain a construction permit.
Portugal is one of the most popular countries in the world for expats. Its climate and low cost of living are a draw, but the government has also introduced a very popular digital nomad visa, and it has one of the most popular golden visa schemes in the world—both of which have enticed American expats to choose Portugal as their new home.
Many analysts believe the severe housing crisis has been fueled by overtourism, short-term rentals, and foreign property investments. For this reason, Portugal removed the property investment option from its golden visa program, and it is now only possible to invest in other asset classes.
Spain, for exactly the same reason, ended its golden visa program. In addition, the Spanish government has taken extra steps, including removing 65,000 Airbnb listings and proposing a 10% tax on foreign property buyers. Some Spanish cities have gone a step further in order to ensure local residents can find affordable housing. Barcelona, for instance, intends to ban all 10,000 of its short-term rentals by 2028.
Portugal came in second place in CNTraveler's 2024 Reader's Choice Awards, after Japan, on its 20 Best Countries in the World. The country is politically stable, has low crime rates, and in 2024, the Institute for Economics and Peace ranked Portugal number seven in the world in terms of safety, as part of its Global Peace Index. In Mercer's 2024 Quality of Living report, Lisbon ranked 27th as the best city for expats, out of 241 globally.
What's more, the Happy City Index 2024 ranked Porto, Portugal’s second-largest city after its capital, at number 21. The index measures indicators across health and the economy, as well as access to green space and pollution, and it looks at public transport networks and road traffic accidents.
Portugal offers a lot more than many American cities for your dollar per square meter. Rent in Portugal is 24% lower than the average in the U.K., and it can be up to 50% cheaper than rental averages in the U.S. In addition, Americans have benefited in recent years from an increase in the number of direct flights from the U.S. to Lisbon and its second city, Porto.
Portugal’s golden visa is an attractive program. In return for a minimum of $525,000 (€500,000) investment in funds, people are granted residency and have the right to apply for citizenship after five years of being a golden visa holder. It is here that Portugal’s golden visa program differs from a golden passport program, where, in the latter, holders obtain immediate citizenship. The only golden passport program in Europe, in Malta, was recently ordered to shut its doors. Portugal has been one of the main winners of this decision.
Portugal golden visa holders are only required to spend two weeks in the country each year, and in return, they have free movement across all 27 EU countries and the Schengen Area beyond, which includes Switzerland. 2025 has seen a record number of applications, many of whom are Americans.
According to information from the country's Agency for Integration, Migration and Asylum, in the first half of 2025, the Portuguese government saw a 72% increase in approvals, with Americans the main recipients. The government approved a record number of applicants, 4,987 more than the previous year, many of whom might be enticed to apply quickly because the Portuguese government has proposed extending the minimum residency period for citizenship from five to ten years.
Americans are a booming market for Portugal, as seen by the recent launch of a new golden visa fund explicitly targeting U.S. citizens by LXL Ventures that has just been approved by the Portuguese regulator.
The new announcement on real estate taxes is unlikely to heavily impact golden visa applicants. Patricia Casaburi, CEO of Global Citizen Solutions, a consultancy specializing in residency and citizenship by investment, says that the announcement primarily affects property investors rather than golden visa applicants. “Existing applicants with residence permits are considered local residents, so they remain unaffected. Since real estate is no longer a qualifying route for the golden visa program, from an investment migration perspective, the fundamentals remain unchanged.” Casaburi adds that the government has clarified that emigrants are exempt, “demonstrating the government's balanced approach, protecting those who've already committed to making Portugal their home.”
Bárbara Queirós, Managing Director of Goldcrest, a real estate consultant in Lisbon, says, “for non-resident buyers considering property in Portugal, this measure primarily signals the government's commitment to addressing housing pressures—a trend we’ve seen mirrored in mature markets such as the U.K., Netherlands, Singapore, and Australia. Spain is considering similar measures, though it has yet to enact them. Historically, these policies tend to cause short-term recalibration in buyer behavior, followed by a return to stability as international investors adapt to the new framework.”
Last week, the Portuguese government also voted to bring in changes to the upcoming immigration laws after a Constitutional Court ruling in August.
The original proposal was that immigrants would need to wait two years before bringing family members with them to Portugal, in a move that intended to reduce the number of people able to seek residency in the country.
The court ruling in August found this to be unconstitutional, and as the General Counsel for Global Citizen Solutions, Joana Mendonça explains, “golden visa holders maintain immediate family reunification rights without waiting periods. This differentiation was constitutionally validated in August and explicitly preserved in this approved law.”
Portugal’s golden visa program continues to thrive and holders will remain unaffected from new real estate tax measures targeting foreign buyers. Recent immigration law updates further solidify the program’s benefits, allowing families to relocate and travel together. With its affordable living, safety, and high quality of life, Portugal remains a top destination for Americans.