Portugal Golden Visa: The Most Popular Choice for US Citizens

Americans are flocking to acquire the 4th most powerful passport in the world. Quick citizenship pathways coupled with the lowest annual stay requirements continues to appeal to US investors.

Luis I Bridge, Porto, Portugal

The Portugal golden visa program has become a top choice for Americans seeking residency abroad, and recent constitutional rulings have further strengthened the program.

In 2024, Yield Bridge named Portugal as the best golden visa program for investors because of the speed towards citizenship, it's minimum stay requirements, and their favourable tax conditions. And let's not forget the countries multifaceted beauty and friendly locals.

As with every EU golden visa, holders acquire free movement in all 27 EU countries and the Schengen region beyond, but Portugal also has the added benefit of great heathcare and educations systems.

When Spain announced the ending of it's Golden Visa Program due to public pressure, Portugal and Greece stepped in, offering high-end European living coupled with a smooth and friendly application process. Greece posted a 37% increase in American applications during Q4 2024 (Greece has one of the fastest golden visa processes, granting residency within 60 days). By June 2025, the Portugese government has seen a 72% increase in approvals, with Americans being the main recipients. The record number of applicants being approximately 5,000 more than the previous year.

Since it's creation in 2012, the Portuguese Golden Visa Program has raised more than €7 billion in domestic investment, with most of the participants being Chinese, Brazilian, and U.S nationals.

Non-Europeans can apply for fast-track residency through various options in Portugal, including a minimum €500,000 investment in eligible funds. This investment will qualify yourself, your children (age dependent), your partner, and your parents (age dependent). After five years of enrolment, the program then allows families to apply for citizenship.

Favorable Tax Treatments in Portugal for Americans

For US citizens, Portugal’s Golden Visa program offers a remarkably straightforward tax situation: Holding a Golden Visa does not make you a tax resident in Portugal.

Since the program requires only seven days of presence per year on average, Golden Visa holders typically don’t meet Portugal’s tax residency threshold of 183 days annually.

This means they have zero tax liability in Portugal on worldwide income, capital gains, inheritance, or gifts and no obligation to file Portuguese tax returns (unless they are earning taxable Portuguese-sourced income).

Capital gains from investment funds do not qualify as taxable local income in Portugal for non-residents, so US citizens won’t have to pay any local taxes, but they might have to pay taxes in the US depending on their specific case.

Unlike some European countries, Portugal has no wealth tax on global assets, and its inheritance tax system is particularly favorable – applying only a 10% stamp duty on Portuguese assets, with exemptions for spouses and direct descendants.

US citizens simply maintain their existing US tax situation – filing US returns, reporting worldwide income to the IRS, and paying US taxes as normal. This clean arrangement makes the Golden Visa particularly attractive for US citizens seeking European residency rights without complex international tax obligations.

The Removal of Property Purchase Requirements Explained

Portugal and Spain both removed property purchases as qualifying investments for their Golden Visa programs due to concerns about housing affordability and market pressures impacted by foreign investment.  

In Portugal, this change was part of the "Mais Habitação" law aimed at addressing the housing crisis. In place of property investment, authorities doubled down on more productive investment avenues. The fund investment route – introduced in 2015 – became the primary recommended path. Other less-used options, such as creating jobs, funding scientific research with €500k, or donating €250k to arts and heritage projects, remained legal alternatives. Nevertheless, the Portuguese Parliament’s 2023 decision clearly steered Golden Visa applicants toward business-focused investments instead of passive real estate holdings. The goal was to ensure foreign capital benefits Portugal’s economy (through startups, funds, and job creation) rather than just inflating housing prices. These reforms took effect by late 2023. As a result, new applicants now mostly pursue the Portugal Golden Visa via investment in funds. 

Pros, Cons and Solutions

The current surge in American interest stems from many affluent families looking for a Plan B in respect of residency. However, as noted by Yield Bridge in 2025, U.S applicants should consider the additional cost of application fees, biometrics, residence card issuance fees, due diligence costs, and renewal fees (every 2 years). Americans whom stay longer than 183 days a year would be open to double taxation, plus to obtain actual citizenship applicants would be required to learn the language to A2 level. 

In summary, European Visa Programs are here to stay, and interest in the Portugal’s Golden Visa will endure, although as with any investment, thorough due diligence is required. 

Interested in pursuing a Golden Visa Programs for you and your family? Speak with Yield Bridge to understand your options and receive a free consultation.