‘Moving to Portugal as an expat’ has become one of the most appealing choices in recent years. With its affordable lifestyle, welcoming communities, and Mediterranean climate, Portugal consistently ranks among the safest and most peaceful countries in the world, currently ‘#3 globally in safety’ and ‘#4 in peace’, according to the Global Peace Index.
Whether you’re drawn by the sun-soaked beaches of the Algarve, the historic charm of Lisbon and Porto, or the relaxed pace of life, ‘Portugal offers a unique blend of European culture and expat-friendly living conditions’. That’s why thousands of ‘digital nomads, retirees, and remote workers’ are moving to Portugal each year.
In this guide, you’ll discover everything you need to know about ‘moving to Portugal as an expat’ , from residency and visa options to healthcare, cost of living, and the best cities to call home.
What to Discover in This Guide?
Pros and Cons of Living in Portugal as an Expat
Wondering if Portugal is the right fit for your expat journey? Here’s a quick look at the advantages and challenges of living in Portugal as a foreigner.
Pros: Why Expats Love Living in Portugal
- Climate Conditions: Excellent climate with over 300 days of sunshine, especially in the Algarve
- Cost of Living: Affordable cost of living compared to the US, UK, and most of Western Europe
- Safety: Low crime rates and a welcoming, peaceful culture.
- Healthcare: Access to universal healthcare and affordable private options
- Location Opportunities: Strategic location in Europe with quick access to Spain, France, and the rest of the EU
- Expat Community: Growing digital nomad and retiree communities
- Investment Options: Real estate investment opportunities and property ownership rights for foreigners
-
Banking Procedures for Expats in Portugal: If you are going to Portugal as an expat, it is an understandable process to open a bank account there. We can say that having a local bank account in Portugal makes your everyday transactions easier and helps you manage your finances better.
You only need to remember to get an NIF (tax identification number) before going to a bank branch to open an account in Portugal.
- Tax Benefits for Expats: Portugal’s Non-Habitual Resident (NHR) tax regime offers major tax benefits to new residents, including a flat 20% income tax rate for qualifying professions and exemptions on foreign income like dividends and rental earnings. Available for up to 10 years, the NHR program is a key incentive for expats seeking tax-efficient residency in Portugal.
- Education Options: Portugal offers a strong education system with both public and private options, including many international schools. Expats can choose from French, German, American, and British curricula, while recent government investments have improved public school quality and graduation rates.
Cons: Challenges Expats Might Face
- Bureaucracy & Formal Processes: Bureaucracy can be slow and paperwork-heavy, especially during immigration and banking processes.
- Network & Professional Opportunities: The job market is limited in many sectors unless you’re fluent in Portuguese or work remotely.
- Language: Language barrier outside of major cities; English is not always spoken in local municipalities.
- Healthcare & Other Public Services: Public sector services (e.g., postal, healthcare wait times) can lack efficiency compared to other EU countries.
- Tip: Most of the cons are manageable, especially if you’re prepared, patient, and open to learning Portuguese.
For most expats, Portugal’s advantages far outweigh its drawbacks, making it a preferred destination for retirement, remote work, and lifestyle relocation.
The Cost of Living for Portugal Expats (Updated 2025 List)
Source: Numbeo
Highlights Summary of 'Cost of Living Index'
Portugal offers an affordable cost of living for expats. In particular, both individual and family expenses are significantly more favorable compared to major cities in Europe and the US.
Although Lisbon and Porto have higher living costs than other parts of the country, they are still more affordable than many Western European cities.
According to the Cost of Living Index, Portugal scores 41.2, approximately 30% lower than the US. Rent prices are around 40% more affordable.
Living in Portugal vs the US: 2025 Cost of Living Breakdown
Source: Numbeo
Highlights Summary for 'Daily Costs in Portugal'
- Groceries & dining are significantly cheaper-food costs are ~30-60% lower, and restaurants about 32-38% less expensive than in the USA.
-
Utilities (electricity, water, etc.) cost ~€110 monthly-around 38% lower than in comparable US apartments .
-
Digital services are affordable-broadband internet around €36/month and mobile ~€19/month.
-
Public transit (monthly passes) is roughly €40 (~30% cheaper than in the US) .
-
Rent remains the largest expense: ~€750 for a 1BR outside Lisbon, rising to €1,000+ in city centers (Lisbon/Porto) .
How to Move to Portugal: Portugal Residency for Non-EU Citizens
If you’re a non-EU citizen planning to move to Portugal, there are several residency options available that can lead to permanent residency and even citizenship. Portugal remains one of the most accessible countries in Europe for expats seeking a long-term home.
How to Get Residency in Portugal as a Non-EU National
Before moving to Portugal, non-EU/EEA/Swiss nationals must apply for a long-term visa that fits their situation (e.g., passive income, work, investment).
After legally residing in Portugal for 5 years, you become eligible to apply for permanent residency.
General Requirements for Living an Expat in Portugal
- Be at least 18 years old
- Legally reside in Portugal for at least 5 consecutive years
- Avoid being absent from Portugal for more than:
- 6 months in any 12-month period, or
- 12 consecutive months over the total stay
By fulfilling these conditions, you’ll be on track to apply for either permanent residency or Portuguese citizenship, depending on your chosen visa path.
Portugal Golden Visa Program
The Portugal Golden Visa is a popular residency-by-investment program that offers non-EU citizens the chance to live, work, and study in Portugal-with the added bonus of visa-free travel within the Schengen Area.
What is the Portugal Golden Visa?
By investing in approved funds or projects in Portugal, you can secure a 5-year residency permit with minimal stay requirements-just 7 days per year on average.
One of the most popular routes is through investment funds, where the minimum threshold starts at €500,000.
Who is Eligible for Portugal Golden Visa?
You can apply for the Golden Visa if you:
- Are a non-EU/EEA or Swiss citizen
- Are at least 18 years old
- Have a clean criminal record
- Make a qualifying investment (e.g., venture capital funds, R&D, company shares)
What’s New in 2024?
The Golden Visa program remains active in 2024, with recent updates making it even more attractive:
- You can now apply for Portuguese citizenship after 5 years, starting from the date of your initial application, not just approval.
- This is considered one of the fastest citizenship tracks in Europe.
- If you’re seeking a flexible path to residency and EU citizenship, the Portugal Golden Visa continues to be a top-tier option.
Portugal D7 Residency Visa
The Portugal D7 Visa, also known as the Passive Income Visa or Retirement Visa, is a residency route designed for non-EU citizens who can demonstrate a stable source of passive income. It’s especially popular among retirees and financially independent expats looking to enjoy Portugal’s high quality of life, pleasant climate, and affordable cost of living.
This visa is ideal for individuals who:
- Are retired with a regular pension
- Receive rental income, dividends, or other passive earnings
- Are not actively employed, but can support themselves financially
Minimum Income Requirements for 2024-2025
To qualify, you must prove a minimum annual passive income of €8,460 (which equals the Portuguese minimum wage x 12 months).
Here’s a breakdown:
- Single applicant: €8,460/year
- Married couple: ~€12,690/year
- Each dependent child: ~€2,538/year
Alternatively, applicants can also demonstrate savings in a Portuguese bank account to reinforce financial stability.
Key Benefits of the Portugal D7 Visa
- Eligible for permanent residency after 5 years
- Option to apply for Portuguese citizenship
- Access to public healthcare (SNS) and education
- Freedom to travel within the Schengen Zone
- No investment required
Note: A minimum stay requirement applies. You must spend at least 183 days per year in Portugal (or prove you have a habitual residence).
Whether you’re planning to retire in Portugal or relocate for a slower-paced lifestyle while maintaining your income from abroad, the D7 Visa offers a flexible and affordable path to European residency, without the need for large investments.
Portugal Digital Nomad Visa (D8 Visa)
The Portugal Digital Nomad Visa, officially known as the D8 Visa, is a newly launched residency option designed for remote workers and freelancers who earn active income from clients or employers based outside Portugal.
This visa offers the opportunity to live and work legally in Portugal, while enjoying one of Europe’s most affordable, sunny, and expat-friendly destinations.
Who is Eligible for the Portugal D8 Visa?
You can apply for the Digital Nomad Visa if you:
- Work remotely for a non-Portuguese company or clients
- Are self-employed or a freelancer
- Can prove a monthly income of at least €4,389 (as of 2024)-which is 4x the Portuguese minimum wage
Income can come from: - A fixed employment contract
- Freelance/consulting clients
- Company dividends, if actively involved
Tax Advantages for Digital Nomads
Portugal offers favorable tax conditions for digital nomads:
- 0% tax on foreign-sourced income
- 20% flat tax on income earned in Portugal (e.g., if you offer services to local clients)
- Option to apply for the Non-Habitual Resident (NHR) regime for additional benefits (note: pending 2024 reform updates)
Key Benefits of the D8 Visa
- Legal residency in Portugal with access to public services
- Eligibility to bring family members
- Path to permanent residency and citizenship after 5 years
- Full access to Portugal’s public healthcare system (SNS)
- Freedom to travel across the Schengen Area
There are two pathways:
- Temporary stay visa (up to 1 year)
- Residence permit (initially 2 years, renewable)
Important: You’ll need to submit proof of income, a valid employment contract or business activity, international health insurance, and an NIF (Portuguese tax number).
If you’re a remote professional seeking a European base with low living costs, rich culture, and strong expat networks, the Portugal D8 Digital Nomad Visa is a standout option.
Portuguese Citizenship for Expats
Many expats who move to Portugal eventually aim to become Portuguese citizens-gaining the right to live, work, and travel freely throughout the European Union. Fortunately, Portugal offers a relatively accessible path to citizenship, even compared to other EU countries.
The requirements for applying for Portuguese citizenship as a Portuguese Golden Visa holder differ.
You can also apply for citizenship by descent in Portugal if you have at least one parent or grandparent who was born in Portugal.
You can have dual citizenship if your native country also allows it. However, Portugal allows dual citizenship when you meet the criteria
How Long Does It Take?
You can apply for Portuguese citizenship after legally residing in the country for 5 years. This applies to most residency types, including:
- Golden Visa holders
- D7 Passive Income Visa holders
- D8 Digital Nomad Visa holders
- Residents with work or family visas
Note: Time spent on a valid temporary residence permit counts toward the 5-year requirement.
General Requirements for Expats
To apply for citizenship, you must:
- Have legally resided in Portugal for at least 5 years
- Hold a valid residence permit
- Demonstrate basic proficiency in Portuguese (A2 level)
- Have no serious criminal record
- Show ties to the Portuguese community (e.g., through employment, property, or integration)
- Citizenship by Investment (Golden Visa)
If you’re a Portugal Golden Visa holder, you are now eligible to apply for citizenship 5 years from the date of your initial residency application, not just the approval date. This change, implemented in 2024, makes it one of the fastest investment-based citizenship routes in Europe.
Citizenship by Descent
You may also qualify for Portuguese citizenship if you have:
- A parent or grandparent born in Portugal
- Proof of direct lineage and family ties
This route does not require residency in Portugal and follows a different legal process.
Dual Citizenship in Portugal
Portugal allows dual citizenship, meaning you can keep your original nationality if your home country also permits it. This provides added flexibility for expats who want to maintain strong ties to both countries.
Becoming a Portuguese citizen means more than just a passport, it opens the door to EU rights, universal healthcare, and visa-free travel to over 180 countries. Whether you’re investing, retiring, or working remotely, Portugal makes naturalization a realistic and achievable goal for expats.
American Expats in Portugal
American expats also prefer Portugal’s high-quality life, climate, and relaxed lifestyle. American expats mostly prefer Lisbon, the capital city of Portugal. It became a hub for American expatriates and digital nomads. Porto, Algarve, and Cascais follow the preferences of American’s Portugal expat life.
As a US citizen, you can obtain permanent residency in Portugal having a reasonable salary from outside of Portugal or passive income. So you can be eligible for Portugal’s D7 or D8 Visa options.
When it comes to taxes, you need to file both US taxes and Portugal taxes while living in Portugal. Portugal comes forward with the cost of living expenses as well. It is one of the most affordable countries located in Western Europe. Living in Portugal is around 40% cheaper than living in the US.
British Expats in Portugal
If you are from the UK, you can apply for the Portugal Golden Visa or other visa types, such as D7 and D8, in Portugal, depending on your situation.
Portugal has been a major holiday destination for British citizens and many expats, an attraction to discover. British citizens who prefer to buy property in Portugal chose the Algarve for many years, especially when it’s an approach to retirement.
Language is one of the factors when expats chose a destination to reside. For example, in Portugal, Porto comes forward with English being the best spoken in this city. The cost of living comparison ends with Portugal being more advantagous for the Brits. Local purchasing pwoer in the UK is around 90% higher than in Portugal when compaerd. So, without a doubt, Portugal is a lot cheaper than the UK.
Retiring to Portugal
Retirees prefer discovering Portugal as it offers affordable living, a pleasant climate with beautiful nature and a relaxed lifestyle. D7 Visa is actually a specific retirement visa and is available if you can prove that you have a pension that provides sufficient passive income for you.
A monthly budget of $1,500 to $2,000 is sufficient for a pleasant living for retiring in Portugal, although life in a metropolis such as Porto or Lisbon may necessitate a little more income, about $2,500 to $3,000.
Downside of Retiring to Portugal: A 2025 Expat Perspective
-
Bureaucracy and Administration
Government processes can be slow and inefficient. Expect delays with permits, healthcare, and paperwork. -
Language Barrier
English is not widely spoken outside tourist areas. This can affect daily life, especially in healthcare and local services. -
Climate Variability
Summers can be very hot, and winters cold in homes without central heating. Utility costs may increase during extreme weather. -
Housing Issues
Many older homes lack insulation or modern heating. Property prices are rising in popular areas like Lisbon and the Algarve. -
Public Transport and Infrastructure
Transport outside cities is often limited. Access to healthcare and other services in rural areas can be challenging. -
Reduced Tax Incentives
Some expat tax benefits, like reduced pension taxes, have been rolled back. This affects retirees relying on foreign income. -
Tourism and Crowds
Tourist seasons bring heavy crowds and price hikes. Peaceful living may be disrupted in coastal or popular towns. -
Distance from Home
Portugal is far from North America. Travel can be costly and time-zone differences may impact communication.
Where to Live in Portugal: Best Cities for Expats
Portugal offers a wide range of options for expats-from vibrant capital cities to peaceful coastal towns. Whether you’re a retiree, remote worker, or relocating with your family, here are some of the best places to live in Portugal:
Lisbon
In summary, Lisbon provides expats with a great quality of life. We own this quality lifestyle due to its moderate temperature, rich culture, variety of food, and large expat community. However, like with any international relocation, there are benefits and drawbacks to becoming an expat in Lisbon.
Aside from being safe, Lisbon is very open and welcoming to visitors. Whether you are an immigrant or a resident, you will have your own area in the city.
While the basic cost of living in Lisbon is roughly 1,700 Euros per person per month, ultimately, you will most likely require between 2,300 and 2,500 Euros to live well in the capital city.
Cascais
Cascais’s emphasis is on fundamental factors such as safety and security, which are critical for both residents of mainland Portugal and foreigners. Welcoming expat community and world-class international schools distinguish Cascais from other locations.
Relocating your family and settling in a distant nation as an expat can be challenging. Fortunately, Cascais’ popularity among expats is most likely due to a sense of shared experience and community. So you can share similar experiences with other foreigners.
Porto
English is commonly spoken, so you do not necessarily speak fluent Portuguese unless you wish to integrate more.
Porto is often less expensive than other European capitals such as Vienna and London. However, it can be slightly more expensive when comparing Porto to other Portuguese cities. You can live with an average monthly wage of €1,500 to €2,000 comfortably in Porto.
If you want to live in Central Lisbon or Porto, you don’t need a car as parking is tough to locate. However, you can still find so much to see and do there that you will most likely only use it on weekends.
Algarve
Tavira, Vilamoura, Lagos, Faro, Albufeira, Alvor, and Ferragudo are home to many foreign residents in the Algarve.
In Algarve, a monthly budget of €1,200–€1,500 will allow you to live rather well. To live comfortably, a couple might need at least €2,400 per month. However, in more rural areas, your spending might be as low as €1.400 a month.
Is Portugal a Good Place to Live?
Portugal’s warm culture, beautiful environment, and low cost of living have attracted expats from all over the world, including British nationals and Americans. The Portuguese government provides a shortened road to Portuguese citizenship through residency programs, whilst the Golden Visa program encourages investors from Europe and elsewhere.
Portugal has something for everyone, whether you’re looking for a lively expat community in Lisbon or a tranquil retreat in the countryside. Portugal is an excellent place to begin your expat adventure, thanks to its helpful expat community network and the increasing expat job market.
So take the plunge and join the thousands of expats who have made Portugal their new home. You will not be disappointed.
Smaller Cities & Hidden Gems
- Coimbra: A university town with history, culture, and affordability.
- Evora: Inland city rich in heritage and local experiences.
- Aveiro: “The Venice of Portugal,” with canals and quiet charm.
- Braga: Family-friendly with strong infrastructure and good schools.
These locations offer authentic local life with fewer crowds and lower prices-ideal for slow-living expats.
No matter your budget, lifestyle, or professional situation, Portugal offers a diverse range of places to live-each with its benefits for expats.
Why Portugal Is a Top Expat Destination?
Portugal continues to stand out as one of the most attractive destinations for expats worldwide. Its combination of mild climate, safety, affordability, healthcare, and EU access makes it especially appealing to retirees, remote workers, and families alike.
From the thriving international communities in Lisbon and Cascais to the peaceful coastal charm of the Algarve, Portugal offers something for everyone, whether you’re seeking opportunity, lifestyle, or long-term security.
With accessible residency programs like the D7 Visa, D8 Digital Nomad Visa, and the Golden Visa, plus the possibility of Portuguese citizenship in just five years, Portugal makes it not only possible-but practical- to build a new life abroad.
Ready to start your expat journey? Portugal may just be the best decision you’ll ever make.
Contact Form
Frequently Asked Questions
Where do most expats live in Portugal?
The most popular destinations for expats include Lisbon, Porto, Cascais, and the Algarve. These regions offer international communities, modern amenities, and a high quality of life.
How much is rent in Portugal?
Rent depends on the city and location:
Lisbon: €1,200–€1,800 for a one-bedroom apartment
Porto: €800–€1,200
Algarve: €700–€1,000
Compared to other Western European countries, rent in Portugal is relatively affordable.
Is healthcare free in Portugal?
Public healthcare is subsidized but not entirely free. Legal residents have access to the public system (SNS) with low-cost services. Private health insurance is also available starting from €30 per month.
Do people speak English in Portugal?
English is widely spoken in urban and tourist areas such as Lisbon, Porto, and Cascais. In smaller towns and rural regions, basic Portuguese may be necessary for daily interactions.
Can expats buy property in Portugal?
Yes, there are no restrictions on foreign property ownership in Portugal. Expats can purchase apartments, houses, land, or commercial properties freely.
How do I get a residence permit in Portugal?
Portugal offers several visa options:
Golden Visa: For investors placing at least €500,000 in eligible assets
D7 Visa: For individuals with passive income or retirement pensions
D8 Visa: For remote workers earning sufficient income from outside Portugal.
Each visa can lead to long-term residency and citizenship after five years.
