Avoid These 4 Costly Mistakes When Moving to Portugal

Moving to Portugal is exciting—but it’s also a big transition, and the learning curve can be steep. As expats who’ve made the leap ourselves, we’ve learned a lot the hard way (and through some smart advice).

Here are four common mistakes people make when moving abroad to Portugal—plus how to avoid them so you can start your new chapter with fewer surprises and headaches. 

You can also watch out full video on this topic here - 

Mistake #1: Not Filing Proper Taxes

Before moving to Portugal, one of the most important things you can do is understand your tax obligations—not just in Portugal, but also in your home country. Tax rules for expats are complex, and they vary depending on your specific situation.

This isn’t something you can easily Google. We strongly recommend hiring a tax advisor familiar with both U.S. and Portuguese tax law (especially if you’re moving abroad after 50 and have retirement accounts or investments). Before our move, we booked two consultation calls with a firm called Fresh Portugal (not affiliated, just a helpful starting point for us).

The bottom line? A few hundred dollars in expert advice can save you thousands in costly mistakes, missed deadlines, or penalties. You cannot have too much information about how this move will affect your personal tax situation, so we definitely advocate for making that investment up front.

Mistake #2: Not Understanding Banking and Investment Rules

Banking in Portugal works differently than in the U.S. For example, credit cards—especially AmEx—aren’t widely accepted. If you rely on points from your rewards cards for travel or business expenses, be prepared for a shift in how you make purchases.

Investing is another area where rules change once you’re living abroad. Certain funds and ETFs available in the U.S. may no longer be accessible to you once you become a Portuguese resident. If you’re an active investor or planning to live on investment income, talk to a broker who understands international residency laws and expat financial planning.

These changes aren’t dealbreakers—but they’re easier to manage when you’re informed beforehand.

Mistake #3: Underestimating the Cost of Moving

Life in Portugal can be extremely affordable, but people often overlook the cost of getting here.

Depending on your situation, the move itself can be surprisingly expensive. Visas, flights, temporary housing, storage, shipping, legal help—it adds up fast. We don’t regret what we spent, but we do wish we had budgeted more realistically upfront.

If you’re in the research phase, don’t just look at cost of living—also plan for the cost of relocation. Being financially prepared makes the entire transition smoother.

Mistake #4: Trying to Do It All Yourself

With the availability of information through Google search, YouTube, Facebook groups, and ChatGPT — we’re living in the golden age of free advice. However, there are limits to what general research can offer. This is especially true regarding legal, financial, or immigration-related issues.

This is where hiring experts is worth every penny. Whether it’s a bilingual tax specialist, an immigration lawyer, or someone who understands self-employment laws in Portugal, getting professional help can save you stress and money in the long term.

Don’t underestimate the value of community, either. Other expats are an incredible source of real-world insight. Whether it’s Facebook groups, local meetups, or connections made through our course, staying plugged into the expat community can be a true lifeline.

Our advice? Surround yourself with experts, expats, and education—the three E’s of moving to Portugal!

Learn more

Speaking of the three E’s—if you’re planning your own move, check out our free Moving to Portugal Mini-Guide, a 10-day email series covering visas, healthcare, language, housing, and more. Download the free guide here →

Or, explore our complete Moving to Portugal online course for step-by-step support and expert guidance. Sign up for the course here →

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Photo by Leon Bublitz on Unsplash