Why U.S. Investors Should Consider Moving to the Algarve in Portugal

April 16, 2025

Why U.S. Investors Should Consider Moving to the Algarve in Portugal

With financial uncertainty in the air, there’s never been a better time for US investors to consider a move to Portugal. The recent introduction of direct flights from Newark to Faro has made this transition more accessible than ever.

As someone deeply familiar with the Algarve’s real estate market and lifestyle, I can attest to the region’s unmatched appeal for those seeking both investment opportunities and a higher quality of life.

Direct Flights from Newark to Faro: A Gateway to Opportunity

The announcement of direct flights between Newark and Faro by United Airlines has opened new doors for US residents interested in relocating or investing in Portugal. These flights, set to operate four times weekly, offer a seamless connection between the bustling United States and the serene Algarve.

Departures from Newark are scheduled at 9:35 PM, arriving in Faro at 9:50 AM the following day, while return flights leave Faro at 11:40 AM and land in Newark by 3:00 PM local time.

The flight duration is approximately 7 hours and 30 minutes—a relatively short journey for transatlantic travel. Ticket prices vary depending on travel class and season. Economy fares start at around $672 for round trips, while business class tickets can exceed $3,000 during peak months.

This direct route eliminates long layovers and simplifies access to one of Europe’s most desirable destinations.

Why Move to Portugal? Benefits That Speak Volumes

Relocating to Portugal isn’t just about escaping the daily grind; it’s about embracing a lifestyle that prioritises well-being, security, and opportunity. Here are some key benefits that make Portugal an attractive destination for US residents:

Tax Incentives

Portugal’s Non-Habitual Resident (NHR) program is a significant draw for foreign nationals. This program offers reduced tax rates on foreign income for up to ten years:

Foreign pensions are taxed at a flat rate of 10%.
Certain professions, such as IT specialists or consultants, qualify for a reduced income tax rate of 20%.

Additionally, US expats can leverage the Foreign Earned Income Exclusion (FEIE) to exclude up to $130,000 of their foreign-earned income from US taxation in 2025. The Foreign Tax Credit allows them to offset US tax liabilities with Portuguese taxes paid, creating a favourable financial landscape for retirees and professionals alike.

Safety and Stability

Portugal ranks 7th globally on the Global Peace Index, making it one of the safest countries in the world. Unlike the US, issues such as gun violence or political instability are virtually unheard of here. This peace of mind is especially appealing for families and retirees looking for a secure environment.

Accessibility to Europe

Living in Portugal places you within easy reach of Europe’s cultural capitals. Weekend trips to Paris or Rome are just a short flight away. Faro Airport connects you not only to Newark but also to countless European destinations, making international travel effortless.

Mediterranean Climate

The Algarve enjoys nearly 300 days of sunshine annually—perfect for outdoor enthusiasts or anyone who appreciates year-round warmth. Whether it’s lounging on pristine beaches or exploring scenic hiking trails, the weather here is an undeniable perk.

Affordable Cost of Living

Compared to major US cities, Portugal offers a significantly lower cost of living. Rent for a three-bedroom apartment averages €1,630 ($1,780), compared to over €3,830 ($4,180) in cities like New York. Healthcare is high-quality yet affordable, and dining out won’t break the bank either.

Investment Opportunities in Portugal

Portugal has long been a hotspot for international investment due to its stable economy and welcoming policies toward foreigners. While recent changes have altered some aspects of residency programs like the Golden Visa, opportunities remain abundant for savvy investors.

Golden Visa Program Updates

As of October 2023, Portugal’s Golden Visa program no longer accepts real estate investments as qualifying routes for residency. Instead, applicants must pursue alternative investment options such as:

A minimum €500,000 investment in scientific research institutions.
A €250,000 donation toward cultural heritage projects.
Creation of at least ten jobs through business investments.

These changes reflect Portugal’s commitment to addressing housing affordability while still attracting foreign capital through other avenues.

Real Estate Market Trends

Although real estate no longer qualifies under Golden Visa criteria, it remains an attractive investment option due to high rental yields and steady appreciation rates—especially in luxury markets like Quinta do Lago and Vale do Lobo.

Properties here are ideal for vacation rentals or second homes that promise both lifestyle benefits and financial returns.

A Day in the Algarve: Living the Dream

Picture waking up in your sunlit villa overlooking the Atlantic Ocean. After breakfast on your terrace, you head out for a round of golf at one of Quinta do Lago’s award-winning courses or stroll through charming towns like Tavira with their cobblestone streets and historic architecture.

Lunch might feature fresh seafood paired with local wine at a beachfront restaurant—a culinary experience that rivals any Michelin-starred establishment back home. Afternoons could be spent hiking along cliffs adorned with wildflowers or simply relaxing by your pool under clear blue skies.

Evenings bring vibrant cultural events or quiet moments watching the sunset over golden sands—a lifestyle that feels like perpetual vacation yet is entirely attainable as part of daily life here.

Practical Steps for Relocation

If you’re considering making the move from the US to Portugal, here’s how SARDO Property Buying Agency can help you to get started:

Research Residency Options: Explore visas like the D7 Passive Income Visa or Digital Nomad Visa if you don’t meet Golden Visa criteria.
Plan Your Finances: Consult with tax advisors familiar with both US and Portuguese systems.
Visit First: Book one of those new direct flights from Newark and experience life here firsthand.
Let us assist you: We understand the Portuguese market and specialise in the Algarve luxury property arena, by appointing SARDO to act on your behalf you are putting your property search in our trusted, experienced hands. We save you time and money in your property search.

Relocating to Portugal isn’t just an investment decision—it’s an opportunity to redefine your lifestyle amidst stunning landscapes and welcoming communities.

With direct flights simplifying travel and numerous incentives sweetening the deal, now truly is the perfect time to make this move.

So why wait? The sunny Algarve awaits!