Is Portugal the New American Dream? Half of US Expats Are Considering Giving Up Their Citizenship
A survey found that half of Americans living in or moving to Portugal would consider renouncing their US citizenship once they qualify for a Portuguese passport
Is Portugal the New American Dream? Half of US Expats Are Considering Giving Up Their Citizenship
A survey published in March 2026 asked Americans living in Portugal a simple question: once you have Portuguese citizenship, would you consider renouncing your US citizenship?
Nearly half said yes.
The survey, conducted by Portugalist.com across 200 US citizens either living in or actively planning a move to Portugal, found that 29.5% said they would definitely consider renouncing, with another 19.5% saying maybe. That is 49% of respondents open to walking away from their US passport permanently.
The Reasons Are Not What You Might Expect
The leading driver is political. Among those who said yes, 81.3% cited political reasons as the primary factor. That lines up with the broader pattern: as of 2024, there were 19,258 US citizens living in Portugal according to AIMA data, a number that has grown substantially since. The wave of Americans arriving in Portugal since 2022 has a distinct political dimension to it.
The second reason is more practical, and interesting. 38.5% of respondents already settled in Portugal cited the complexity and cost of the US global tax filing system as a critical driver for wanting to cut ties entirely. The US is one of only two countries in the world (along with Eritrea) that taxes its citizens on worldwide income, regardless of where they live. Even Americans who have lived in Portugal for years and pay Portuguese taxes still have to file US returns, navigate FBAR requirements, and potentially pay additional US taxes on income earned in Portugal. For many, renouncing is the cleanest way to resolve this permanently.
The Citizenship Math
Here is the catch: renouncing US citizenship requires first obtaining Portuguese citizenship, which requires a naturalisation period of residency.
Currently, that period is 5 years. The Portuguese government is actively trying to extend this to 10 years, which would dramatically delay the pathway for anyone who arrived recently.
The fee for renouncing US citizenship is also in flux. The US government is attempting to reduce the administrative fee from the current ,350 down to 50. But the survey makes clear money is not the primary barrier. People are not staying American because it costs ,350 to leave. They are staying American because they cannot get Portuguese citizenship yet.
James Cave, the founder of Portugalist.com, put it plainly: “A staggering number of Americans are ready to adopt Portuguese citizenship and that shows a serious level of commitment to Portugal. But they can’t make this commitment until they get Portuguese citizenship, something which looks increasingly harder due to backlogs and the government’s attempts to increase the naturalisation timeline from five to 10 years.”
35% Are Not Going Back
The survey also found that 35.5% of respondents do not expect to return to the US, a figure that rises to 44.2% among those who are already settled and living in Portugal. These are not people taking an extended sabbatical. They have decided Portugal is where they live.
This tracks with a broader pattern of American settlement in Europe driven by something more durable than lifestyle curiosity. Portugal has become, for a significant number of Americans, a permanent relocation rather than a nomadic stop.
What This Means If You Are Considering the Move
A few practical things to know if you are American and thinking about Portugal:
The Digital Nomad Visa (D8) is currently one of the most accessible entry paths. It requires proof of income of at least €3,480 a month (4x the national minimum wage), a clean criminal record, and a lease or accommodation proof in Portugal. The income threshold is high by Portuguese standards but is designed to ensure remote workers are financially self-sufficient.
The D7 Passive Income Visa is an alternative for those with investment income, retirement income, or other passive sources. Lower income thresholds than the D8, different documentation requirements.
AIMA processing times are long. The immigration agency has a well-documented backlog, and the fee increase announced earlier this year (see our AIMA fee update) has added to the complexity. Budget for 6-12 months between application and decision in some cases.
The tax consideration is real. Portugal’s NHR 2.0 tax regime (Non-Habitual Resident) offers a 20% flat tax on Portuguese-sourced income for qualifying new residents, which is genuinely competitive. However, Americans on NHR still face US tax obligations. The interaction between NHR and US tax treaties is complex enough to require specialist advice.
Banking. Proof of a Portuguese bank account is not technically mandatory for the Digital Nomad Visa application, despite what some rejections have cited. A recent appeal case confirmed this. Income documentation is what matters.
The Bigger Shift
Portugal has done something remarkable: it has become a destination where people do not just visit, or work for a year, but decide to stay permanently and eventually change their nationality.
That is different from being a “hot nomad destination.” It signals something more fundamental about Portugal’s quality of life, safety, healthcare system, and overall livability at a time when a lot of Americans are reassessing what they want their life to look like.
Whether or not the citizenship path eventually extends to 10 years, the underlying driver of the migration wave is unlikely to reverse quickly. Portugal has built real demand that goes well beyond the lifestyle influencer moment.
If you are researching a move, the best starting point is understanding which visa fits your income profile, then finding the right base city. Portugal’s mid-term rental market has the inventory to support long-stay remote workers across the country, not just in Lisbon.