For high-net-worth individuals (HNWIs) in the U.S., financial security should be a given. However, many of them—especially those living in high-cost areas—find themselves in a paradox: they are undeniably wealthy, but the lifestyle that wealth affords in places like New York, San Francisco, or Los Angeles is riddled with stress, exorbitant costs, and diminishing returns on quality of life.

As an American living in Portugal and working in luxury real estate, I’ve seen firsthand how a shift in location can drastically alter one's relationship with wealth. The reality is that while real estate in Portugal isn’t cheap, the overall cost of living is far more reasonable than in major U.S. cities. More importantly, Portugal offers a level of lifestyle balance, security, and cultural richness that is increasingly hard to find in the U.S.—even for the affluent.

The Illusion of Wealth in High-Cost U.S. Cities

Let’s talk numbers. In Manhattan, $10 million might get you a nice apartment. In San Francisco, a well-situated home can easily run $5 million or more, with property taxes and maintenance adding another six figures annually. A luxury lifestyle in these cities—private schools, staff, travel, dining—requires an income that would be considered extreme wealth in a lot of places, but I hear repeatedly from clients that they felt like they were constantly working just to keep up.

Why? Because in the U.S., the more you make, the more you spend—not just on luxuries but on basic necessities. Property taxes in New York and California can be shattering. Healthcare costs, even with premium insurance, can add up to tens of thousands per year. Even something as simple as private security, which many HNWIs in major cities now deem essential, is another layer of financial and mental strain.

More importantly, the intangibles—quality of life, safety, ease of living—often feel out of reach despite financial success. High crime rates, political instability, and the increasing feeling that you’re always on the hamster wheel make many question what their wealth is actually affording them beyond material comforts.

Portugal: A More Sophisticated Take on Wealth

This is where Portugal enters the conversation. Many of my high-net-worth clients have found that relocating or investing here allows them to truly enjoy their wealth, rather than just manage its expenses. Lisbon, Porto, Comporta and select areas of the Algarve have become hotspots for those looking for a refined, European lifestyle with less financial strain and significantly more personal freedom.

Let’s break it down - Real Estate That Makes Sense In Lisbon’s most exclusive neighborhoods—Avenida da Liberdade, Príncipe Real, and Estrela

You can acquire a historic, beautifully renovated apartment for €2 million to €4 million. That same budget in New York might get you a small pied-à-terre in a high-rise. Villas in Cascais, Portugal’s answer to La Jolla, or Comporta, the new Hamptons, offer oceanfront luxury with privacy, security, and space—often for less than the cost of an equivalent home in Miami or LA.

Property taxes are another game-changer. In Portugal, annual property taxes are a fraction of what they are in high-cost U.S. states. Instead of paying $100,000+ per year in property taxes on a luxury home in California, a comparable estate in Portugal might carry an annual tax bill closer to $5,000 to $10,000.

A More Reasonable Cost of Living—Fine dining in Portugal is less than half the price in major US cities. A Michelin-star meal in Lisbon can cost €150 per person, whereas a similar experience in Manhattan can easily exceed $500. Quality domestic wine costs a fraction of what you’d pay in the U.S. And while luxury goods and bespoke services are available at the highest level, they come without the exorbitant markups found in places like Beverly Hills or Miami.

Private education for families is another area of significant savings. International schools in Lisbon and Cascais, offering world-class curriculums, cost a fraction of top-tier U.S. private schools—typically €15,000 to €25,000 per year compared to $50,000+ in places like New York or San Francisco.

Wealth Without Worry

One of the biggest concerns my clients express about the U.S. is safety. Portugal consistently ranks among the safest countries in the world. Violent crime is rare, and unlike many major U.S. cities, there’s no sense of needing constant security. Walking through Lisbon at night doesn’t carry the same risk assessment that cities like LA or Chicago now require.

Additionally, healthcare is world-class and costs a fraction of the U.S. system. For HNWIs accustomed to paying top-dollar for concierge healthcare in the U.S., private healthcare in Portugal offers equivalent or better care at a fraction of the cost. Routine check-ups, high-end specialists, and elective procedures are all accessible without the inflated premiums and billing nightmares of the American system.

A Legacy Investment

For those thinking beyond personal lifestyle, Portugal also offers a compelling investment and legacy planning opportunity. The Golden Visa program—while recently revised—still provides a clear path to EU residency through strategic real business investments. More importantly, owning property in Portugal isn’t just about securing a second home; it’s about diversifying assets into a stable, appreciating European market that is increasingly attractive to global investors.

For families, the ability to give children an EU passport and access to the world’s top universities at a fraction of the cost of American colleges is another major incentive. And for retirees or those considering early retirement, Portugal’s favorable tax structures can significantly enhance long-term wealth preservation.

The Bottom Line: A Smarter Way to Live Well

High-net-worth individuals don’t just seek wealth—they seek control over their time, security in their investments, and a lifestyle that reflects their success. Portugal offers all of this, but with a level of ease and sophistication that’s becoming harder to find in the U.S.

It’s not about giving up luxury—it’s about redefining it. Instead of spending millions just to maintain a status quo lifestyle in the U.S., investing in Portugal offers a way to truly enjoy wealth: stunning properties, a world-class lifestyle, lower stress, and a financial environment that respects long-term prosperity.

As more affluent Americans reach the conclusion that simply “having money” isn’t enough if that money doesn’t buy them peace of mind, Portugal stands out as an obvious choice. Whether as a primary residence, a second home, or a strategic investment, it offers something many in the U.S. have lost sight of: true wealth is about living well, not just spending well.

Author

Anne Brightman is a native Texan living in Portugal and is founder and CEO of Brightman Group Real Estate. With a passion for Portugal and expertise in property sales, she offers clients the ideal customer journey.  

Anne Brightman