After raising their children in the small town of Macungie, Pa., near Allentown, Ann and Matt Miller dreamed of a new chapter far from the Rust Belt, one where they could stroll to bakeries, visit the beach and embrace a slower pace of life. As recent empty nesters, and with Mr. Miller, a union steamfitter eligible to retire this summer at age 55, the couple started exploring whether their dream could become a reality.
“If we are going to downsize and move, we thought we would make a big move,” said Ms. Miller, 52, who works remotely as a medical-science liaison for a genetic testing laboratory based in Utah. “We have been to some places in Europe and enjoy the European culture and lifestyle and want to explore it more. We had read about Portugal as a nice place to retire and took our first trip over in 2023 and loved what we saw.”
Over the past decade, thousands of U.S. citizens have taken advantage of Portugal’s “golden visa” program, which offers residency in exchange for qualifying investments. The program once allowed applicants to qualify by purchasing real estate, but Portugal ended that route in 2023.
The Millers are taking another path, the D7 visa, with which non-E.U. citizens receiving passive income — which may be from pensions, rental income or dividends — can legally live in the country.
But rising interest in Portugal has coincided with a sharp increase in home prices, especially in major cities. What the Millers found months ago could be hard to come by today.
They started their search in Lisbon, but quickly realized they couldn’t afford what they wanted there. So they sought out professional help with the Ei! Migration Agency, whose owner, Gilda Pereira, suggested they look at Setúbal, a small city about an hour outside of Lisbon.
“Setúbal wasn’t on our radar, because we were thinking closer to Lisbon, but we decided to check it out,” said Ms. Miller.
The port city with about 120,000 residents has become increasingly popular among foreigners and Portuguese alike for its maritime culture and seafood, protected natural areas and comparatively affordable cost of living: A typical two-bedroom apartment in Setúbal can cost around €300,000, compared with roughly €450,000 in Lisbon. The town is anchored by an old-world fish market, and its sandy beach is dotted with restaurants serving choco frito, or fried cuttlefish, the regional specialty. A reliable commuter rail line connects Setúbal to Lisbon in under an hour.
The Millers first visited in January of 2025. “There was no turning back,” said Ms. Miller. “We loved the area, the waterfront, how walkable it was, its proximity to Lisbon and the people.”
On subsequent visits, they saw several apartments with Carla Carvalho, an agent with Ei!. After they returned to the United States, Ms. Carvalho continued to send video tours of new options.
They sought a two-bedroom, two-bathroom apartment within walking distance of a grocery store, cafes and a park. They wanted a well-maintained building and a unit that was “as turnkey as possible,” said Mr. Miller. A view would be great.
Their budget topped-out at around €350,000 ($406,000) and they were preapproved for a loan by a Portuguese bank, a strong negotiating position.
Among their options:
No. 1
Under Budget with a Nice View
This two bedroom, one-and-a-half bath condo was closest to the center of town, about a five-minute walk. On the fifth floor of an eight-story building, it had a small balcony off one bedroom, offered an expansive view of Setúbal and a glimpse of the ocean, and had parking for residents. But the galley kitchen was simple and uninspired, and the bathrooms were outdated and worn.
The asking price, under budget at €288,000 ($329,000) left room for renovations, including potentially turning the half bath into a full bath. However, the Millers were wary about how much that could cost and how hard it would be to undertake in a new country.
No.2
Open Kitchen with a Living Room Balcony
This two-bedroom, two-bathroom apartment on the fourth floor of a well-maintained, modern building with only a few units per floor, was about a 10-minute walk from town. There was only street parking and the building was on a main road, which could be noisy.
The kitchen was “American style,” with an island that opened to the living room. In the back of the living room was a balcony with just enough room for a bistro set, overlooking a parking lot and dilapidated buildings. The asking price was the highest of the three, €335,000 ($388,000).
No. 3
First Floor with a Garden Terrace
This three-bedroom, two-bathroom unit was on the first floor of a building that was the farthest from town, but just a five-minute walk from the rail line to Lisbon. The apartment included two garage parking spots. Inside was a renovated galley kitchen, a spacious living room and a separate laundry area. A backyard terrace was the highlight, with a built-in brick barbecue and a covered space that the former owners used as a home gym.
The terrace had a question mark over it: It backed up onto the ruins of an old building slated for restoration. But they did not know when construction would begin and end, or how intrusive it would be. The asking price was €325,000 ($372,000).
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