Living in Portugal offers numerous advantages, such as over 300 days of sunshine annually, friendly locals, a relaxed lifestyle, and relatively low cost of living. However, there are a few drawbacks to consider. Learning the Portuguese language is advisable, as well as carrying cash for local establishments. Additionally, adapting to unheated Portuguese houses may be necessary. Overall, Portugal presents an attractive option for expats, but it's important to be aware of these potential challenges.

Benefits of Residing in Portugal (Pros)

Portugal offers a warm climate, beautiful Atlantic Ocean beaches, affordable cost of living, high-quality education and healthcare systems, and attractive tax benefits for expats.

1.Warm Climate

Portugal offers a warm and sunny climate, making it an ideal destination for nature lovers and those seeking a mild and pleasant weather. With an average of ten hours of sunlight during winter in cities like Lisbon, Portugal provides a significant contrast to the colder climates of Northern European nations. Whether you settle in the north or the south, you can expect mild winters and sunny, warm summers throughout the country.

2. Affordable Cost of Living in Portugal

Portugal offers a significantly lower cost of living compared to countries like the UK, Ireland, Scotland, France, Germany, and neighboring Spain. It is one of the most affordable countries in Western Europe, particularly for expats and digital nomads. In fact, the cost of living in Portugal is approximately 42% less than in the US. Additionally, you can find top-quality real estate properties, restaurants, groceries, and commodities in Portugal at affordable prices. If you're interested in working remotely, you may find the ultimate guide about working remotely in Portugal helpful.

Look at the following table to become more familiar with the price average in Portugal.

3. Safety and Low Crime Rate:

Portugal is widely recognized as one of the safest countries in the world. In 2022, according to the World Population Review, Portugal ranked 3rd among the safest countries globally. Additionally, it secured the 4th position in the Global Peace Index, highlighting its overall peacefulness.

Compared to other European nations, Portugal boasts a remarkably low crime rate. When you choose to live in Portugal, you'll experience this firsthand. The Portuguese people are known for their friendliness and extend a warm and kind welcome to guests. Even if you find yourself in need of assistance and don't speak Portuguese, you'll often encounter individuals who will make an effort to communicate with you in English and offer guidance.

Moreover, the abundant sunlight that shines upon Portugal throughout the day may contribute to the positive demeanor of its people. It is believed that this exposure to sunlight fosters a general sense of well-being, appreciation for life, and a tendency to greet others with a smile. 

4. Incredible Diversity

Portugal boasts an extraordinary diversity that captivates its residents. Spanning 1800 km of coastline, the country offers a myriad of landscapes and lifestyles to explore.

For those seeking respite from summer's heat and bustling crowds, the northern region of Portugal beckons. Here, cool weather prevails, and tranquility abounds. The area is renowned for its numerous national parks and winter ski slopes, making it an ideal haven for nature enthusiasts with a sporty inclination.

If vibrant city life is what you crave, look no further than the multicultural and dynamic cities of Porto and Lisbon. These major European hubs pulsate with energy, offering an array of co-working spaces, businesses, cultural activities, restaurants, bars, and discos. Boredom will be a foreign concept in these vibrant urban landscapes.

For those yearning to embrace a serene countryside existence, Central Portugal holds the key. Here, the lifestyle is characterized by a relaxed and unhurried pace, and the cost of living is comparatively lower than in other parts of the country. It's an idyllic setting for those who relish scorching hot weather.

The southern region of Portugal, particularly the Algarve, represents the epitome of sun-drenched beaches, breathtaking landscapes, and a laid-back way of life. The allure of this region has ensnared not only countless expats but also numerous celebrities.

5.  Exemplary Education

Portugal's education system boasts excellence, providing families with a wealth of options for schools and universities. Renowned for its high quality, the Portuguese education system garners international recognition, attracting numerous international students who choose to pursue their studies in Portugal. Moreover, as a member of the European Union (EU), Portugal enables graduates to effortlessly work in any EU country.

Portuguese citizens benefit from free education, while legal residents, including Golden Visa residents, have the opportunity to enroll their children in Portuguese schools. The higher education system in Portugal adheres to the standards of the European Bologna System, and it is considered one of the most affordable higher education systems within the European Union. Most universities offer courses in both Portuguese and English, accommodating a diverse student body.

6. Exceptional Healthcare

Portugal's commitment to healthcare is evident in its allocation of approximately 9.53% of its GDP to the sector, according to the Global Health Expenditure 2022.

Public hospitals in Portugal provide free medical care to both citizens and residents. Private clinics, on the other hand, offer expedited appointments and premium services at a fee. Various health insurance policies are available in Portugal, offering diverse packages at different price points. Many of these policies cover a significant portion of treatment costs.

In certain cases, private clinics also offer telephone consultations, which can prove invaluable and life-saving.

7. Appealing Tax System

Portugal's tax policy positions the country as a highly sought-after destination for expatriates, investors, and self-employed professionals alike. After residing in Portugal for 183 days, expats can take advantage of the Non-Habitual Residency (NHR) tax system.

The Portugal NHR tax regime offers a host of tax benefits over a 10-year period. These benefits include special personal income tax treatment, exemption from taxation on most foreign source income, a flat rate of 20% for specific Portuguese source incomes (related to certain professions and self-employment) instead of the normal Portuguese income tax rates that can reach up to 48%. Additionally, the regime provides tax exemption for gifts or inheritance to direct family members, no wealth tax, and unrestricted remittance of funds to Portugal.

8. Proficiency in English

While Portuguese is the official language of Portugal, the prevalence of English speakers across the country is noteworthy. Whether you're in tourist areas or hospitals, you'll always find someone fluent in English. According to the recent EF English Proficiency Index (EF EPI), which assesses proficiency among non-native speakers in 100 countries and regions worldwide, Portugal boasts the seventh-highest English proficiency.

9. The real estate market in Portugal is experiencing significant growth.

When considering a move to another country, a crucial question to ask is, "Can I buy property as a foreigner?" In the case of Portugal, the resounding answer is "yes."

Portugal boasts a thriving and affordable real estate market, with a wide range of attractive properties available. Whether you're interested in purchasing a brand-new apartment in Lisbon, renovating an old countryside barn, or acquiring a beachside villa, there are plenty of options to suit your needs. Moreover, the prices remain stable with minimal market fluctuations.

For detailed information, please refer to our comprehensive guide on purchasing property in Portugal.

10. Various immigration programs provide residency opportunities in Portugal

Portugal has established itself as a renowned destination for expatriates, known for its welcoming nature and various immigration initiatives. The immigration processes in Portugal are designed to be remarkably uncomplicated, guaranteeing a smooth and convenient transition for individuals relocating to the country and seeking residency visas. Among the most popular immigration pathways available for expats interested in living in Portugal are the esteemed Portugal Golden Visa program and the D7 visa.

Drawbacks of Residing in Portugal (Cons)

Similar to any other country, Portugal has its share of advantages and disadvantages. While there are certainly positive aspects to living in Portugal, it's important to acknowledge the drawbacks that some individuals residing there may experience. Below are a few common grievances voiced by certain residents of Portugal:

1. Language Barrier: 

One of the main disadvantages of living in Portugal is the need to learn Portuguese. While English may be sufficient for basic interactions in tourist areas, dealing with governmental offices and conducting official business generally requires fluency in Portuguese. This can be challenging for expats who do not have a strong command of the language, making it difficult to navigate administrative procedures and get things done without assistance.

2. Limited Card Payments: 

Despite the advancements in technology, Portugal still relies heavily on cash transactions. While the Multibanco system is widely used, acceptance of international cards like Visa and MasterCard may be limited, especially in smaller establishments or more rural areas. This means that it's important to always have cash on hand for everyday expenses, as some businesses may not accept card payments.

3. Lower Salaries: 

Compared to other European countries, Portuguese salaries tend to be relatively lower. This can be a significant drawback for expats seeking high-paying job opportunities or expecting a similar income level to what they may be accustomed to in their home countries. While there are increasing opportunities with international companies, especially in cities like Lisbon and Porto, it's important to research and consider the potential impact on personal finances.

Bureaucracy and Slow Pace: 

Portugal is often criticized for its bureaucratic processes and slow pace of life. Dealing with administrative tasks and obtaining official documents can be time-consuming and require extensive paperwork. Processes like applying for a driving license or making appointments for official matters may take longer than expected. The relaxed pace of life, while appealing to some, can also be frustrating for those accustomed to more efficient and faster systems.

Inadequate House Insulation: 

Portugal's housing stock often lacks proper insulation, leading to issues with temperature control. During the winter months, houses can feel cold and damp due to poor insulation and humidity retention in the walls. It may be necessary to invest in additional heating solutions, such as heaters, to maintain a comfortable living environment. Furthermore, the lack of soundproofing in many Portuguese houses can result in noise disturbances from neighbors or even within the same dwelling, which can be bothersome for individuals who value peace and quiet.

It's important to note that while these are considered disadvantages, they may vary in their significance and impact depending on individual preferences, experiences, and specific locations within Portugal.

What are the popular immigration schemes for non-EU citizens who want to move to Portugal?

There are two popular immigration schemes available for non-EU citizens who wish to move to Portugal: the Portugal Golden Visa and the D7 visa.

The Portugal Golden Visa program offers residency in Portugal to applicants and their families in exchange for making certain economic investments in the country. These investments can include purchasing property, investing in a Portuguese business, or creating jobs for Portuguese citizens. By participating in the Golden Visa program, individuals can obtain Portuguese residency and eventually become eligible for permanent residency or citizenship.

The D7 visa is another option for non-EU citizens who want to move to Portugal. This visa is suitable for those who can support themselves financially during their stay in Portugal without needing to engage in employment. To qualify for the D7 visa, applicants must demonstrate that they have a stable passive income, such as pensions, investments, or rental income, that meets the minimum requirements set by the Portuguese government.

FAQ

Which country offers more advantages for expats: Spain or Portugal?

Portugal offers more advantages to expats compared to Spain due to its smaller population and area. It provides affordable living, easier residency requirements, access to social activities, and a pleasant climate throughout the year. Additionally, Portugal is known for its friendliness, ranking highly in that aspect.

How much money is needed to live comfortably in Portugal?

Portugal's income and education indicators score relatively low on the OECD better life scale. However, the country performs well in terms of water and air quality, surpassing the OECD average.

For a single person or students living in Lisbon, the estimated monthly living costs, excluding rent, are around €533.91. In contrast, a family of four can expect to spend approximately €1,872 per month. Keep in mind that housing costs, including rent or mortgage, will be a significant portion of the budget, along with other expenses like utilities and household costs.

Is it a worthwhile decision to move to Portugal?

Absolutely! Moving to Portugal offers numerous benefits, such as a beautiful climate, affordable cost of living, high-quality education and healthcare systems, cultural diversity, low crime rates, and attractive tax schemes for expats.

Are foreigners treated well in Portugal?

Foreigners are warmly welcomed in Portugal, and the Portuguese people are known for their friendliness. English is widely spoken by most locals, making communication easier. In fact, Portugal ranks at the top among European countries in terms of friendliness, according to InterNations Expats Insider.

What are the drawbacks of living in Portugal?

While there are many advantages to living in Portugal, there are also some disadvantages. As a foreigner, one challenge is the need to learn Portuguese to interact with governmental offices where the language is commonly used. Additionally, it's advisable to have cash on hand since some places may not accept Visa or MasterCard. Unlike most European countries, Portuguese houses often lack heating systems, requiring adaptation to non-insulated walls during winter.

Are there any dangers associated with living in Portugal?

Living in Portugal is generally safe, with the country ranking 3rd among the safest countries in the world according to the World Population Review in 2022. The locals are kind, friendly, and helpful. However, like in any tourist destination, petty crimes such as pickpocketing can occur in larger cities, so it's important to remain vigilant.

What are the downsides of retiring in Portugal?

Some drawbacks of retiring in Portugal include slow bureaucracy, the complexity of understanding double taxation, cold winters in certain regions, the difficulty of learning Portuguese, cultural shock for newcomers, a slower pace of life, and a high influx of tourists.