&lt;p&gt;The strong dollar, easy access to visas and low taxes are helping Portugal become one of the world’s most desirable retirement destinations, as more Americans head across the Atlantic to spend their golden years on the &lt;a href=&quot;https://www.idealhomesportugal.com/property-for-sale/algarve&quot;&gt;Algarve&lt;/a&gt; coast.&lt;br&gt;&lt;br&gt;&lt;/p&gt;
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        &lt;img src=&quot;/media/fgqbnbph/shutterstock_2140287597.jpg&quot; alt=&quot;US Portugal&quot; class=&quot;no-full-width max-width-100&quot; /&gt;
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&lt;p&gt;&lt;br&gt;Property-buyers from the US, whose savings and income are in dollars, have seen their buying power rocket in the past year, thanks to the shifting exchange rate. In October 2022, the dollar was close to the strongest it has ever been against the euro, having hit parity with Europe’s single currency in July.&lt;br&gt;&lt;br&gt;Chris White, owner of Ideal Homes Portugal, gives his thoughts on this US influx: “&lt;em&gt;The buying power of Americans in the Algarve has strengthened significantly in the past year&lt;/em&gt;. &lt;em&gt;Based on today’s [October 11&lt;sup&gt;th&lt;/sup&gt;] rate of €1/$0.97, a Portuguese house with a price tag of €500,000 is around $90,000 cheaper than a year ago, when the rate was €1/$1.15. A buyer could use this extra money upgrade to a larger property, or add upgrades to their chosen home. This saving also transfers to day-to-day living costs, and we are seeing that with our resident American clients whose income is dollar based.”&lt;/em&gt;&lt;br&gt;&lt;br&gt;Equally attractive to American retirees is the privilege of paying a reduced rate of tax, thanks to Portugal&#39;s Non-Habitual Residence (NHR) regime, a tax relief scheme available to foreign nationals who haven’t lived in Portugal within the previous five years. Key benefits include the exemption of most foreign sourced income, including dividends, interest and rental income, from Portuguese tax for 10 consecutive years, with foreign pensions taxed at a flat rate of just 10 per cent.&#160;&lt;br&gt;&lt;br&gt;Joe and Terri Eley, a retired couple from Seattle, are typical of Americans who are now enjoying the unexpected drop in the cost of living in Portugal. They swapped Seattle for a new life in the Algarve in 2021 when they arrived in Portugal for the first time and moved into a new three-bedroom apartment in Lagos. They agreed to purchase the property for €450,000 a year before leaving the USA, as they did all their research remotely.&lt;br&gt;&lt;br&gt;Joe said &lt;em&gt;“Lagos itself is not too big and is a perfect mix of old and new. It has every amenity you could need in a modern city. The climate is just right too, warm but not humid. We’re just 12-15 minutes’ walk from the old town, five minutes from the marina and restaurants and even less from the medical clinic.”&lt;/em&gt;&lt;br&gt;&lt;br&gt;The couple are revelling in the famously relaxed Portuguese lifestyle and say they have met lots of fellow expats, mainly American and British, adding that it has been years since they had such a busy social life. Equally, they say the locals are wonderful and the friendliest people they have met.&lt;br&gt;&lt;br&gt;&lt;/p&gt;
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        &lt;img src=&quot;/media/nd2l2pji/shutterstock_1477276700.jpg&quot; alt=&quot;Lagos Marina&quot; class=&quot;no-full-width max-width-100&quot; /&gt;
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&lt;p&gt;&lt;em&gt;Lagos Marina&lt;/em&gt;&lt;/p&gt;
&lt;p&gt;&lt;br&gt;Representative of most retired foreigners from outside the European Union, the Eleys were able to enter and get residency in Portugal by obtaining a D7 visa. Often referred to as a Retirement Visa or Passive Income Visa, holders of a D7 may not be employed in Portugal but instead must have a minimum foreign income of approximately €8,500 p.a.,&#160;plus 50 per cent of this amount for a spouse and 30 per cent for each dependent. The application process usually begins at the Portuguese Consulate in your country of origin. Once in Portugal, holders should apply for a residency permit and after renewing this for five consecutive years can then apply for permanent residency status.&lt;br&gt;&lt;br&gt;Another visa option geared towards high-net-worth and more transient foreign citizens is Portugal’s much-publicised Golden Visa. A type of residency-by-investment visa, this grants residency to successful applicants who invest in qualifying property or other specified capital investments. Holders are required to spend just seven days in Portugal in their first year and not less than 14 days in subsequent years, and as such are not obliged to become tax resident in the country. The benefits of a Golden Visa are transferrable to family members and after five years of residency, the main holder can apply for permanent residency or Portuguese citizenship.&lt;br&gt;&lt;br&gt;In addition, younger economically-active Americans might be better suited to Portugal’s new digital nomad visa, which launches on 30&lt;sup&gt;th&lt;/sup&gt; October 2022. To be eligible, applicants must be employed remotely and have an income of four times the Portuguese minimum wage. &lt;br&gt;&lt;br&gt;&lt;em&gt;As Chris White says “Not many countries can compete with Portugal’s incredible lifestyle, with its friendly resorts, beautiful coastline and world-class amenities.&lt;/em&gt; &lt;em&gt;Now add the financial bonuses of the exchange rate and low tax, as well as availability of visas, and it’s not difficult to understand why we are helping so many Americans realise their dream of buying and living in Portugal.”&lt;/em&gt;&lt;br&gt;&lt;br&gt;If you&#39;re thinking of moving to Portugal, &lt;a href=&quot;https://www.idealhomesportugal.com/contact-us&quot;&gt;talk to our team now&lt;/a&gt;.&lt;/p&gt;

Why Portugal is the new retirement heaven for Americans

The strong dollar, low tax rates & easy access to visas are making Portugal one of the world’s most desirable retirement destinations as more Americans head across the Atlantic to spend their golden years in the Algarve.