
Portugal is a popular retirement destination for an increasing number of Americans. The cost of living, agreeable climate, low crime rate, and friendly people are often cited as the key attractions. But Portugal, like many other countries, is experiencing changes that affect its affordability, and the processes that foreigners must follow to obtain legal residency.
According to recent reports, the number of foreigners living in Portugal has risen from around 400,000 in 2017 to more than 1.5 million by the end of 2024. That is in a country with a total population of 10.7 million! The increase has prompted calls for changes in the rules governing foreigners seeking Portuguese citizenship. Under a law passed in late October, the minimum legal residency period for naturalisation increases from five to ten years for most applicants. The new rules will require applicants to pass a civics test and a language test.

Property prices climbing
The cost of purchasing a property in Portugal has also risen sharply in the last few years. Eurostat, the statistical office of the European Union, reported that Portugal saw a 16.3 percent year-over-year increase among the member states in the first quarter of 2025. That compares with a 5.7 percent in the EU overall.
I have lived in central Portugal for six years. When I was house-hunting in 2019, there were a lot of acceptable homes available for between 100,000 to 150,000 euros. Now, that range is more like 250,000 to 300,000. I say “acceptable” because many homes on the market have been empty for several years, are in badly run-down condition, or have severe dampness and mold problems. All of which means a big investment to make them comfortable.
Rental rates have also jumped as foreign investors have flocked to Lisbon. The Portuguese capital has become a magnet for investors wanting to purchase for short-term rentals, making it tougher and tougher to find long-term options. The average monthly rent for a one-bedroom apartment in Lisbon starts from around 600 to 700 Euros, but 1,000 Euros is more typical.
Still an attractive prospect
Despite rising prices and legal changes that make relocation more complicated, Portugal remains a highly popular place for retirement. A report published earlier this year said the number of Americans living in Portugal rose from 14,129 to in 20223 to 19,258 in 2024, a 36 percent increase, according to Portugal’s Agency for Integration Migration and Asylum (AIMA). Some reports have said the number is even higher.

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