The Long Game: Why We’re Still Choosing Portugal (Even After the Rules Changed)
- itllbefunretiremen
- 6 days ago
- 4 min read
By Leslie – It’ll Be Fun
Lately, it feels like every conversation about Portugal starts the same way:
“Are you still staying?”
“Is Portugal still worth it?”
“Didn’t they change everything?”
And honestly — We get the anxiety.
First, the real estate Golden Visa ended. Then the Non-Habitual Resident tax program closed to new people. And in late 2025, the headline that really rattled nerves: citizenship timelines potentially stretching from five years to ten for immigrants.
If you’re skimming headlines, it sounds like Portugal is quietly slamming the door.
But here’s the truth, from people actually living it:
We’re staying.
And not out of denial — but because we’ve done the math and the soul-searching.
We Didn’t Come for a Passport. We Came for a Life.
Yes, waiting ten years for citizenship instead of five is frustrating. We won’t pretend otherwise. Five years felt like momentum. Ten years feels… bureaucratic.
But at some point we had to ask ourselves an honest question:
Were we here to collect documents — or to build a life?
We are legal residents. We are safe. We are home.
The passport has always been the bonus, not the foundation.
If living where we feel calm, healthy, and secure means waiting longer for a piece of paper, that’s a trade we’re willing to make.
The Real Anxiety Isn’t Citizenship — It’s Taxes
Let’s be honest: the real fear people have isn’t the passport timeline.
It’s what happens after NHR ends.
For us, NHR meant a flat 10% tax on pensions and IRA withdrawals for ten years — an incredible runway. But that runway has an end, and Portugal’s standard tax rates are no joke once you hit it.
So we aren't ignoring the cliff. We're planning for it.
Our Long-Game Tax Strategy (Real Life, Not Advice)
We’re not financial advisors — this is simply what made sense for us.
Because our home is paid for, we can live comfortably on Alan’s Social Security alone. That gives us something most people don’t have: choice.
So during our NHR years, we’re doing something very intentional:
We’re withdrawing aggressively from the IRA now — while the tax rate is low — and moving that money into a regular investment account.
Yes, we’ll pay capital gains tax on trades going forward.
But the money itself is now free from future income taxation.
That changes everything.
It means that when NHR ends, we’re not forced to keep pulling taxable income at Portuguese rates that could approach 48%. Instead, we shift gears.
Why Delaying Social Security Matters More Than People Realize
Because we can live on Alan’s benefit, Leslie’s Social Security is still growing — about 8% per year after full retirement age.
That does two powerful things:
It guarantees a much larger future monthly check
It creates a survivor safety net
If one of us goes first, the survivor steps up to the higher benefit. That single check alone would cover our basic living expenses — without touching investments.
That peace of mind is priceless.
And Yes — Wolf Is Central to This Plan
Wolf isn’t just “along for the ride.” He’s part of the reason this works.
He’s managed our investments with discipline and skill, and because of that, our long-term goal is to use some of these “liberated” funds to help him buy property here.
In today’s U.S. housing market, that kind of start is almost impossible for a 25-year-old. Here, it’s achievable — and meaningful.
What If Everything Changes? (Our Plan B)
People ask us all the time: “What if the U.S. forces you to choose between passports?”
If that unlikely scenario ever happens, we pivot — calmly.
At five years, we can apply for Portuguese Permanent Residency.
Permanent residency gives us the right to live here indefinitely, access healthcare, work, and come and go with flexibility. It’s not citizenship — but functionally, daily life barely changes.
And importantly: permanent residency does not automatically mean tax residency.
If we ever choose a more nomadic life later, Portugal remains our legal Plan B — without owning our worldwide income.
The Question Everyone Asks: “What About Inheritance?”
Portugal surprises people here — in a good way.
There is no inheritance tax for spouses or children.No hidden estate grab.
Wolf would inherit Portuguese assets at 0% tax, with only a small stamp duty on property.
And because of EU inheritance rules, we can choose U.S. law in our wills if we ever need to bypass Portugal’s forced heirship system.
In short: our son is protected — legally and financially.
So Why Not Spain, France, or Italy?
We’ve looked. Hard.
Spain doesn’t tax U.S. Social Security — and that’s real.But Spain does tax worldwide wealth, which quickly erases that benefit for retirees with savings.
France and Italy? Beautiful — but consistently more expensive, more bureaucratic, and less forgiving for English-speakers navigating daily life.
Portugal remains the rare balance:
No wealth tax
Lower everyday costs
Mild climate
Strong healthcare
And a culture that values calm over chaos
Why Americans Still Choose Portugal in 2026
Even with higher taxes, Americans keep coming — and it’s not because they can’t do math.
It’s because they’re optimizing for life, not spreadsheets.
Portugal feels safe.
It feels manageable.
It feels human.
It’s “Europe Lite” — without the intensity, protests, and friction people now feel in larger markets like Paris, Madrid or Barcelona.
And yes — Portugal is clearly signaling something new:
“You’re welcome — but this isn’t a free ride anymore.”
That creates a natural filter. The people arriving now are either financially prepared — or deeply aligned with the lifestyle.
We fall into the second camp.
The Bottom Line
The gold-rush era is over.
What’s left is something quieter — and better.
A place where we wake up feeling safe.
Where healthcare is a right, not a gamble.
Where our son has a future that isn’t defined by debt.
And where the long game still works — if you play it intentionally.
For us, that’s worth the paperwork.
It’ll be fun.— Leslie
Connect with us:
IG @itllbefungreer