FAQ for American Plan B Clients

The D8 Digital Nomad visa was specifically built for your situation. The D7 was designed around passive income (rental, dividends, pension, royalties), so a W-2 remote salary fits the D8 more cleanly. That said, many US W-2 employees with significant additional passive income still qualify for the D7 and prefer it because of the lower income threshold (~$920/mo vs ~$4,200/mo for D8). On your free consultation we look at your full income picture and tell you which path the consulate is most likely to approve for your specific case.

Realistic 2026 timelines for Americans:

• Portugal D7 / D8: 3-5 months to residency card. Citizenship (under the new law signed May 13, 2026) is now 10 years after legal residency.
• Caribbean CBI (Grenada, St Kitts, Antigua, Dominica): 4-6 months from engagement to passport in hand. No physical relocation required.
• Portugal Golden Visa: 12-18 months for the residency card due to AIMA processing backlogs.

The single biggest variable for D7/D8 Americans is Portuguese consulate appointment availability in your state. San Francisco, Washington DC, and Boston consulates often run 2-4 month backlogs. We work with all US consulates and route your file to whichever has fastest capacity.

D7 — for passive income (retirees, FIRE investors, landlords). ~$920/mo minimum. Requires moving to Portugal.

D8 — for active remote work (employees, freelancers, business owners). ~$4,200/mo minimum. Requires moving to Portugal.

Golden Visa — investment-based (€500,000+ into Portuguese funds). No physical move required, just 7 days per year in Portugal. Best if you want EU residency rights without relocating full-time.

All three lead to the same Portuguese residency status and the same 10-year path to citizenship under the May 2026 law.

Yes. The US is one of only two countries that taxes citizens on worldwide income regardless of where they live (Eritrea is the other). You will continue filing IRS Form 1040 every year until you renounce US citizenship or die. Living abroad does NOT exempt you from US tax obligations.

However, two mechanisms substantially reduce or eliminate the actual tax owed: (1) the Foreign Earned Income Exclusion (~$126,500 in 2026 for actively-earned income if you meet physical presence or bona fide residence tests), and (2) the Foreign Tax Credit, which credits Portuguese taxes paid against US tax liability. The US-Portugal tax treaty prevents true double taxation.

The original NHR (Non-Habitual Resident) regime closed to new applicants at end of 2023. Portugal replaced it with IFICI (often called “NHR 2.0”), formally the Tax Incentive for Scientific Research and Innovation. IFICI offers a flat 20% tax rate on Portuguese-source qualifying income and exemption on most foreign-source income for 10 years — but eligibility is narrower than the old NHR.

Qualifying activities focus on STEM, R&D, qualified investment funds management, and certain high-value professions. Whether your remote US work qualifies depends on your occupation code and employer’s sector. We pre-screen IFICI eligibility on your free consultation so you know before applying.

This is the area where generic citizenship-consultants give the weakest answers, so here’s the real picture:

• US Social Security: Per the US-Portugal tax treaty, US Social Security is generally only taxable in the US. Portugal cannot tax it.
• 401(k) distributions: Treated as pension income. Under IFICI, may qualify for favorable treatment. Without IFICI, taxed at Portuguese progressive rates with US foreign tax credit applied.
• Roth IRA: Watch out — Portugal does not formally recognize the US Roth structure. Distributions may be taxable in Portugal even though they are tax-free in the US. We strongly recommend tax planning before your Portugal move date.
• US brokerage / capital gains: Portugal taxes worldwide capital gains for residents. Your US 1099-B activity becomes Portuguese taxable income. The Foreign Tax Credit applies, but planning is required to avoid surprises.
• PFIC risk: If you buy Portuguese mutual funds (including some Golden Visa qualifying funds), the IRS may treat them as Passive Foreign Investment Companies, triggering punitive US taxation. Always check PFIC status before investing.

We work alongside US-Portugal CPAs who specialize in dual taxation. We do not give tax advice ourselves — we connect you with specialists who do.

By itself, no. A Caribbean second passport does not affect your US tax status because the US taxes based on citizenship, not residency or passports. As long as you remain a US citizen, you continue worldwide reporting.

Where it matters: a second passport gives you the option to renounce US citizenship later if you ever choose to. Many of our high-net-worth clients hold a Caribbean passport for years before deciding whether renunciation makes financial sense for their situation.

The “exit tax” (technically the expatriation tax under IRC 877A) applies if you renounce US citizenship AND meet any of three thresholds: net worth >$2M, average annual US tax liability >$201K (2026 figure), or failed to certify 5 years of tax compliance.

If triggered, the IRS treats you as having sold all your worldwide assets at market value the day before renunciation. You owe tax on the unrealized gains above an exemption (~$890K in 2026). Retirement accounts and trusts are handled separately.

Important: Most of our clients who get Caribbean CBI never actually renounce. They hold the passport as optionality, not as an immediate tax move. The decision is highly individual and we connect you with international tax counsel before you make it.

Portugal D7 / D8 (single applicant, 5-year horizon):

• Government and consulate fees: $1,500 – $3,000
• Our service fee: typically $5,000 – $8,000 (one-time)
• Annual residency renewal & compliance: $500-$1,000/year
• Required private health insurance: $1,000-$2,500/year
• 5-year total: $11,000 – $22,000

Caribbean CBI via donation (single applicant):

• Government contribution: $200,000 – $250,000 (non-refundable)
• Due diligence + government processing: $10,000 – $25,000
• Agent / legal fees: $15,000 – $25,000
• 5-year total: $225,000 – $300,000 (cost is upfront, no recurring fees)

Caribbean CBI via real estate:

• Property purchase: $270,000 – $400,000+ (recoverable)
• Fees and government: $40,000 – $60,000 (non-recoverable)
• Mandatory hold period: 5-7 years before resale
• Realistic resale value after hold: 60-85% of purchase price (varies by development)
• 5-year net cost: $80,000 – $180,000 depending on property performance

Yes, after the mandatory hold period (typically 5-7 years depending on country). Resale value depends heavily on which approved development you purchase. Branded resorts like Six Senses, Park Hyatt, and Cabrits tend to retain 70-90% of value due to ongoing rental yields and brand recognition. Lesser-known projects can drop to 50-60% of purchase price.

We only recommend developments we have personally vetted for resale liquidity. We provide a realistic 5-year projection and exit-strategy plan as part of our real estate due diligence — not just citizenship paperwork.

Portugal D7 / D8: Spouse, minor children (under 18), dependent children up to 26 if in full-time education, and dependent parents (yours or spouse’s) over 65. Siblings are not eligible.

Caribbean CBI: Most generous family inclusion in the world. Spouse, dependent children (some programs accept up to age 30 if in education or with disability), parents and grandparents (typically over 55 or 65), and in some programs siblings. Antigua & Barbuda and St. Kitts have the broadest family definitions.

Income thresholds and government fees scale up per dependent. We model the full per-person cost for your specific family structure on the free consultation.

Yes, the D7 and D8 are residency visas that expect genuine residence. The minimums under Portuguese law:

• Year 1-2: No more than 6 consecutive months outside Portugal, and no more than 8 non-consecutive months total in any 2-year period
• Tax residency: Triggered at 183+ days per calendar year in Portugal
• For Portuguese citizenship eventual qualification: Court interpretation is consistent: most of each year (~183+ days) for the full 10-year period under the new law

If you want EU residency rights without actually living there full-time, the Portugal Golden Visa is the right product: only 7 days per year required.

This is the most misrepresented topic in our industry, so here’s the truth.

Yes, Grenada has held an E-2 treaty with the United States since 1989, and Grenadian citizens can apply for the E-2 visa. However, the AMIGOS Act passed by US Congress in late 2022 fundamentally changed the rules. Beginning under AMIGOS:

• You must have been domiciled in Grenada for at least 3 continuous years before applying for E-2 at a US consulate
• “Domicile” means real residence and ties to Grenada, not just holding the passport
• Simply getting Grenadian citizenship by investment then immediately applying for E-2 no longer works

If you are an American already, you should be skeptical of any consultant who sells you Grenada CBI primarily on the E-2 angle without explaining AMIGOS. There are still legitimate strategies (genuine relocation to Grenada for 3 years, or using Grenada citizenship for other purposes), but the old “instant E-2 path” is closed.

This is the most important risk question and most competitors avoid it. The European Union has signaled increasing pressure on the Caribbean CBI programs — particularly those with weaker due diligence histories — threatening Schengen visa-free travel suspension.

Current standings as of May 2026:

• St. Kitts & Nevis: Strongest due diligence in the region, lowest geopolitical risk. Passport mobility to 156 countries.
• Grenada: Solid track record. China visa-free is a unique feature among Caribbean passports.
• Antigua & Barbuda: Some past compliance issues but improving. Five-day visit requirement helps with EU optics.
• Dominica: Lower entry price but more EU scrutiny. Some recent program reforms in 2024-2025 to address concerns.

If Schengen access were suspended for any program, existing passport holders would still hold their citizenship — what changes is travel, not citizenship status. We track regulatory signals continuously and update clients on which programs face the most EU pressure before they invest.

Properly prepared applications have rejection rates below 5%. Top reasons for denial:

• Insufficient or inconsistent income documentation (the biggest cause)
• Health insurance coverage that does not actually meet Portuguese requirements
• Criminal background issues (even minor — a single DUI can require additional explanation)
• Document apostille errors or missing FBI background check
• Mismatch between stated purpose (passive vs active income) and the chosen visa type
• Incomplete proof of accommodation in Portugal

When we represent a client, we pre-screen every document before submission. We have not had a properly-prepared D7 or D8 file rejected to date. If something is wrong, we tell you before you submit — not after.