Pros and Cons of Living in Portugal: What to Consider Before Moving

9 reasons to move to Portugal

Portugal offers a combination of practical advantages that make it attractive for relocation. These include factors that affect everyday life, long-term residence prospects, and opportunities for work, study, and travel.

1. High quality of life

Portugal ranks 8th out of 31 destinations for expats, according to the Expat Insider 2026 ranking. Portugal performs particularly well for personal finance, ease of settling in, and quality of life ^[1] Source: Expat Insider 2026 by InterNations: Overview of Portugal .

Average life expectancy in Portugal is 82.7 years, one year above the EU average. The country has a well-developed healthcare system. Free healthcare is available to children, pregnant women, retirees, and citizens who make contributions to the Social Security Fund.

74% of people in Portugal are satisfied with their quality of life, while 70% are optimistic about the future of themselves and their family, according to the European Parliament’s Spring 2026 Survey ^[2] Source: Spring 2026 Eurobarometer by the European Parliament published in July 2026 .

2. Affordable cost of living

Living costs in Portugal are lower than in neighbouring European countries. For example, groceries, clothing, and restaurant meals cost around 20% less than in Spain.

Average monthly expenses for one person are around €760, excluding rent. Rental of a one-bedroom apartment in central Lisbon costs approximately €1,450 per month.

3. Path to citizenship

Foreigners living in Portugal can become eligible for Portuguese citizenship. Since May 19th, 2026, the naturalisation route has increased to 7 years for nationals of EU Member States and Portuguese-speaking countries and 10 years for nationals of other countries.

A Portuguese passport opens visa-free or simplified entry to 185 countries.

4. Visa-free travel

Portuguese residents can travel without visas across 29 Schengen countries and freely stay there for up to 90 days out of any 180-day period.

The Schengen Area includes 25 EU countries as well as Iceland, Norway, Switzerland, and Liechtenstein.

5. Safety

Every year, the government publishes the Annual Internal Security Report, or RASI. According to the 2025 report, violent and serious crime decreased by 1.6%. Theft remains the most frequently reported offence ^[3] Source: Portugal Government: Annual Internal Security Report 2025 .

Portugal ranked 7th in the Global Peace Index for 2026 ^[4] Source: Institute for Economics & Peace: Global Peace Index 2026 . The country is also noted for the hospitality and friendliness of local residents towards foreigners.

6. Business opportunities

Portugal offers several advantages for entrepreneurs and investors. as an EU member state, it provides businesses with access to the EU Single Market of around 450 million consumers. Companies can sell goods and provide services across EU countries under common market rules, although sector-specific requirements may still apply.

Foreign entrepreneurs may use business activity as a basis for obtaining residence in Portugal. Depending on the project, they can apply through routes such as the D2 Business Visa or the Startup Visa.

Eligible startups may benefit from tax incentives, including reduced corporate income tax rates, investment tax credits, and exemptions or reductions of certain property and stamp taxes.

7. Quality education

The University of Lisbon is among the world’s top 300 universities in the QS World University Rankings 2027. Four more Portuguese universities ranked among the top 500: the University of Porto, the University of Coimbra, NOVA University Lisbon, and the University of Aveiro ^[5] Source: QS TopUniversitites: World University Rankings 2027 .

Tuition fees at Portuguese universities are relatively affordable. For example, students at the University of Lisbon pay around €3,000—3,500 per year.

8. Good environmental conditions

In 2025, renewable energy supplied 68% of Portugal’s electricity consumption, with hydropower and wind power accounting for the largest shares ^[6] Source: REN: Technical Data 2025 . The country phased out coal-fired power generation in 2021 ^[7] Source: Directorate-General for Energy and Geology of Portugal: Information on the closure of the Pego coal-fired power plant in 2021 .

Electric mobility is growing. In 2025, rechargeable vehicles accounted for around 34% of registrations, while fully electric passenger cars reached a 23.2% market share ^[8] Source: European Commission, European Alternative Fuels Observatory: Portugal: Record EV Sales in 2025 . Such vehicles produce no exhaust emissions while driving, helping reduce local air pollution in cities.

9. Mild climate

Portugal has mild winters and hot summers. Weather conditions vary by region: the north and centre receive more rainfall and have lower temperatures, while the south has longer and hotter summers. Lisbon has relatively mild temperatures throughout the year, averaging around +10°C in winter and reaching around +29°C in summer.

5 disadvantages of living in Portugal

Living in Portugal also comes with practical challenges that may affect everyday comfort, employment, and the residence process.

1. Climate extremes

Portugal has mild winters and hot summers, but the climate also has some drawbacks. Winters can be rainy and humid, while summer temperatures may rise to +40°C. Coastal areas can experience strong Atlantic winds, and weather conditions vary considerably between the north and south of the country.

2. Lack of central heating

Winters in Portugal are generally mild, so many houses and apartments do not have central heating. To keep warm, residents use air conditioners, electric heaters, and fireplaces. This can significantly increase electricity costs.

3. Unemployment

Portuguese companies often give preference to local specialists. Foreigners are more likely to be hired when suitable local candidates are unavailable. They can also often find seasonal work on farms and in the tourism industry.

4. Bureaucracy

Foreigners may encounter Portugal’s complex bureaucracy as early as the residence application stage. Applicants need to collect numerous documents, have them translated, and arrange certification where required. Long queues at government offices can also be an issue.

Portugal is working to improve the situation by moving many procedures online. For example, tax returns can be submitted, and enquiries to public authorities can be made through official government websites.

5. Possibility of residence refusal

Portuguese immigration authorities may reject an application if a foreigner:

• submits an incomplete set of documents;
• has no legal grounds for obtaining residence;
• violates immigration law.

A residence application may also be refused for reasons related to national security or other factors beyond the applicant’s control.

Which city in Portugal to move to

Lisbon is the capital and largest city of Portugal. It has a large international community. According to Portugal’s Agency for Integration, Migration and Asylum, 202,430 foreign residents lived in the municipality of Lisbon in 2024.

The city has well-developed infrastructure, including international schools, kindergartens, and the University of Lisbon. The international airport is located within the city and can be reached in around 20 minutes by public transport or car.

Because of its large population and busy transport network, Lisbon can feel noisy. Foreigners looking for a quieter and more relaxed lifestyle often choose other regions of Portugal.

Porto is Portugal’s second-largest city, with a history dating back to around 300 BC. Almost the entire historic centre is a UNESCO World Heritage Site.

Living in Porto is cheaper than in the capital. A one-bedroom apartment in the city centre costs around €1,140 per month to rent. Average monthly expenses for one person are around €700, excluding rent. By comparison, a similar apartment in Lisbon costs around €1,460 per month, while living expenses average €760.

Cascais is suitable for those who want to stay close to Lisbon but prefer living by the coast. The city is 25 km from the capital and can be reached by car, bus, or train.

Cascais was once a fishing village. After a port was built, the village developed into a town. Today, Cascais is a popular tourist destination, especially among local and international surfers. They come to train along the rugged Serra de Sintra coastline north of the town.

The cost of living in Cascais is higher than in Lisbon. Renting an apartment in the town centre costs around €1,560 per month on average.

Coimbra is around two hours from Lisbon. Other Portuguese cities can be reached from Coimbra by train or bus.

It is a relaxed university city with affordable prices, developed infrastructure, and prestigious universities. It is home to the University of Coimbra, Portugal’s oldest university, founded in 1290.

Coimbra is also known for its international schools, including Cambridge School and International House. Due to the large number of international students, English is more widely spoken there than in many other Portuguese cities.

Renting an apartment in Coimbra costs around half as much as in Lisbon. A meal at an inexpensive restaurant costs around €10 on average. In the capital, it costs around 30% more.

Funchal is the main city of the Madeira archipelago. It can be reached by plane from Lisbon, with the flight taking around two hours. During the tourist season, a ferry service also operates to the island from Portimão.

The cost of living and property prices are relatively low. Rental prices are around 10% lower than in Lisbon. A one-bedroom apartment in the city centre can be rented for around €1,330 per month.

Cost of living in Portugal

Prices in Portugal are lower than in many Western European countries. Average monthly expenses for one person are around €677, excluding rent ^[9] Source: According to the Numbeo database . In France, the comparable figure is around €933.

Rental costs in Portugal depend on the region, property type, and location. Housing is more expensive to rent in major cities such as Lisbon and Porto.

Across Portugal, a one-bedroom apartment costs around €910 per month in a city centre and €725 outside the centre ^[10] Source: According to the Numbeo database . By comparison, similar rental properties in the UK are around 28—31% more expensive.

Property purchase prices average around €6,810 per square metre in central Lisbon and €4,590 per square metre in central Porto ^[11] Source: Numbeo database: Lisbon vs. Porto .

Buying property in Portugal may generate rental income, particularly in areas with strong demand from residents and tourists. Gross rental yields vary by location and property type and are generally around 4—8% ^[12] Source: Global Property Guide: Portugal: Gross Rental Yields .

Average rental and property purchase prices in Portuguese cities

City	Monthly rent	Price per 1 m²
Cascais	€1,565	€6,185
Lisbon	€1,465	€6,811
Funchal	€1,336	€4,263
Porto	€1,141	€4,589
Braga	€819	€2,225
Coimbra	€777	€2,472

Food prices in Portugal are relatively low compared with many Western European countries. For example, 1 kg of local cheese costs around €10, while 1 kg of beef costs around €13.

Alcohol and tobacco are relatively expensive, as they are subject to both VAT and specific excise duties. A pack of cigarettes costs around €5.60.

Transport. A one-way ticket on local public transport costs around €2. The standard taxi fare is around €0.98 per km.

Utility costs depend on the property and household consumption. Basic utilities for an 85 m² apartment cost around €120 per month on average, including electricity, heating, cooling, water, and waste collection.

Kindergartens and schools. A private kindergarten costs around €442 per month. Tuition at an international primary school averages around €10,300 per year.

Residents can enrol their children in public schools without paying tuition fees. Additional costs, such as school meals, may apply and can depend on the family’s income.

Higher education in Portugal is generally subject to tuition fees. International student fees are set by individual universities and programmes. For example, at the Faculty of Sciences of the University of Lisbon they pay €3,500 per year for bachelor’s and master’s programmes in the 2026/2027 academic year.

Non-EU citizens who have legally resided in Portugal for more than two years continuously by January 1st of the year of application are generally no longer classified as international students. They may study under the same tuition rules as domestic students. For example, tuition under the general regime at the University of Lisbon is €697 per year.

Internet and mobile services. A monthly mobile plan with calls and more than 10 GB of data costs around €18. Unlimited home Internet costs around €36 per month.

Living conditions in Portugal

Living conditions in Portugal vary between large cities, coastal areas, and smaller inland towns. Lisbon and Porto offer the widest choice of healthcare facilities, schools, public transport, and everyday services, while residents of smaller towns may rely more on private cars and travel to larger cities for specialised services.

Healthcare is available through both public and private providers. The public system covers a broad range of medical services, but waiting times for consultations and non-urgent procedures can be long. Private clinics are widely used for faster appointments and access to specialists.

Education includes public, private, and international schools. Public schools teach mainly in Portuguese, while international schools usually follow British, American, or International Baccalaureate programmes. Most international schools are located in Lisbon, Cascais, Porto, and the Algarve.

Infrastructure. Major cities have developed public transport systems, healthcare facilities, schools, universities, shopping centres, and other everyday services. Lisbon and Porto are connected with other regions by rail and motorway networks and have international airports. 

Infrastructure is generally less extensive in smaller towns and rural areas, where a car may be more convenient for everyday travel.

Safety is generally not a major concern in everyday life. More common risks include pickpocketing and theft in tourist areas and on public transport rather than violent crime. as in other Southern European countries, residents should also take seasonal risks such as heatwaves and wildfires into account.

Attitudes towards foreigners. Portugal has a large international population, particularly in Lisbon, Porto, the Algarve, and Madeira. Foreigners are a familiar part of everyday life in these regions, and international communities are well established.

As immigration has increased, it has also become a more prominent topic in Portuguese public debate, so attitudes are not uniformly positive across the population.

Integration into local life is generally easier with knowledge of Portuguese, although newcomers can manage many everyday situations in English. 

Portugal has a high level of English proficiency and ranked 6th globally in the 2025 EF English Proficiency Index among countries and regions where English is not the native language ^[13] Source: EF English Proficiency Index: Global Ranking of Countries and Regions 2025 . English is widely spoken in larger cities and is commonly used in tourism, international business, and services. 

Portuguese becomes more important for deeper integration and when dealing with public authorities, healthcare providers, landlords, and local businesses.

Taxes in Portugal

Foreigners become Portuguese tax residents if they spend more than 183 days in the country during any 12-month period. They may also qualify as tax residents if they have a home in Portugal that is intended to serve as their habitual residence. Tax residents generally pay tax on their worldwide income.

Tax non-residents are people who spend fewer than 183 days a year in Portugal but receive income from sources in the country.

The main taxes in Portugal include:

• personal income tax;
• social security contributions;
• stamp duty;
• capital gains tax;
• property taxes;
• VAT. 

Some rates are progressive and depend on the taxpayer’s income.

Personal income tax rates for residents range from 12.5 to 48% in 2026. The lowest rate applies to taxable income of up to €8,342, while the highest applies to income above €86,634.

Tax rates for non-residents depend on the type of Portuguese-source income. A 25% rate applies to certain categories of income, while other income may be subject to different rates.

VAT rates depend on the territory. In mainland Portugal, the rates are 6%, 13%, and 23%. In Madeira, they are 4%, 12%, and 22%, while in the Azores they are 4%, 9%, and 16%.

Portugal has double taxation agreements with many countries, including the United States and the United Kingdom. These agreements help prevent the same income from being taxed twice and may allow tax paid in one country to be credited against tax due in the other.

Main taxes for Portugal residents

Tax	Individuals	Companies
Personal or corporate income tax	12.5—48%	19%
Social Security contributions	11%	23.75%
VAT	—	4—23%
Capital gains tax	28% or 12.5—48%	Generally included in taxable corporate income
Stamp duty	0.8—10.8%	0.8—10.8%
Property transfer tax	0—8%	0—8%
Annual municipal property tax	0.3—0.45%	0.3—0.45%

How to move to Portugal

To move to Portugal, foreigners obtain residence in the country. Depending on the residence route, applicants may invest in the economy, demonstrate a stable income, enrol at a Portuguese university, or move to the country for work.

Golden Visa

Portugal Golden Visa, or residence by investment, is available to foreigners who invest in the country’s economy:

1. €250,000+ in the preservation or restoration of national cultural heritage.
2. €500,000+ in investment fund units, a Portuguese business, or scientific research.

Another option is to establish a company and create at least 10 jobs in Portugal. The law does not set a minimum investment amount for this option.

Close family members may obtain residence together with the investor. These include a spouse or partner, children under 26, and financially dependent parents.

Portugal residence by investment is granted for 2 years and can then be renewed for further 2-year periods. Investors do not need to live in Portugal permanently to maintain residence. They generally need to spend at least seven days per year in the country.

D7 Visa

Portugal residence for financially independent persons is obtained through the national D7 visa. Applicants demonstrate a passive income of at least €920 per month and register their address in Portugal. They also deposit at least €11,040 in a Portuguese bank account.

Applicants may include family members in the D7 visa application: a spouse or partner, children under 21, and parents. The income requirement increases by 50% for each additional adult and by 30% for each child.

Portugal residence for financially independent persons is valid for 2 years and can then be renewed for another 3 years. To maintain residence, foreigners must spend either 18 consecutive months or a total of 16 months in Portugal during the 2-year period.

Obtaining Portugal residence through the D7 visa takes at least 18 months.

Digital Nomad Visa

Portugal residence for digital nomads is obtained through the Digital Nomad Visa. Applicants demonstrate monthly income of at least €3,680, savings of at least €11,040 in a bank account and register their address in Portugal.

Family members may obtain residence together with the digital nomad, including a spouse or partner, children under 30, and financially dependent parents.

The Digital Nomad Visa is valid for 4 months. During this period, the applicant enters Portugal and applies for residence. The first residence card is issued for 2 years. To renew residence for another 3 years, the holder must demonstrate that they have spent either 18 consecutive months or a total of 16 months in Portugal during the two-year period.

Obtaining residence for digital nomads takes at least 18 months.

Startup Visa

Portugal Startup Visa is available to entrepreneurs who plan to launch an innovative project in the country. Applicants submit a business plan and enter into an agreement with an accredited business incubator.

Up to 4 business partners may obtain residence together with the startup founder. Family members apply for residence through family reunification.

The Portugal Startup Visa is valid for 4 months. During this period, applicants enter Portugal and apply for residence. The first residence card is issued for 2 years, while subsequent cards are issued for 3 years.

Work Visas

Foreigners move to Portugal with D1 or D3 Work Visas. The D1 visa is intended for employees who have signed an employment contract with a Portuguese company. The D3 visa is for highly qualified professionals, including scientists, engineers, doctors, and IT specialists.

Both visas are valid for 4 months. During this period, applicants enter Portugal and apply for a 2-year residence permit. The residence card can then be renewed for another 3 years.

Business Visa

Residence through the D2 Business Visa is available to foreigners who buy or establish a business in Portugal. Applicants must be over 18 and demonstrate a minimum monthly income of €920. Entrepreneurs establishing a company submit a business plan. Those buying an existing business provide the company’s financial and incorporation documents.

The visa is also valid for 4 months. During this period, the applicant enters Portugal and applies for residence. The first residence card is valid for 2 years. To maintain the status, the holder must generally spend at least 6 consecutive months in Portugal during a year.

Student Visa

Residence for study is available to international students. They obtain a D4 visa if their studies last more than 1 year. Applicants provide proof of enrolment at an educational institution, a bank statement, proof of accommodation, and health insurance. The validity of the residence card depends on the duration of the study programme.

Residence for family reunification

Residence through family reunification is available to family members of a Portuguese citizen or resident, including spouses, children, and parents. An exception applies to residents staying in Portugal for study or professional training, who may generally reunite only with a spouse or partner and children.

Obtaining residence through family reunification takes at least 3 months. The residence card is issued for 2 years and can then be renewed for another 3 years.

Residence on humanitarian grounds

Residence on humanitarian grounds is available to foreigners who face danger in their country of residence. Refugee status may provide access to state support, including accommodation, food, and healthcare.

People seeking international protection may apply if they meet the relevant legal requirements. Residence granted to recognised refugees may be valid for up to 3 years.

How to obtain permanent residence and citizenship in Portugal

Permanent residence is available to foreigners who have lived in Portugal for 5 years, generally spending at least 183 days per year in the country with residence status. An exception applies to investors, who only need to spend 7 days per year in Portugal.

Portuguese citizenship can be obtained by naturalisation after 10 years from the date the state fee for the residence application is paid. Applicants must also demonstrate Portuguese language proficiency at A2 level.

Citizenship is also available by birth, descent, repatriation, and marriage. The status can be passed on to descendants.

A Portuguese passport provides visa-free access to 185 countries, including the United States, Japan, and the United Kingdom.

Checklist for moving to Portugal

1. Foreigners can move to Portugal by obtaining residence on one of several grounds, including investment, family reunification, employment, study, starting a business, or humanitarian grounds.
2. To obtain residence by investment, an applicant invests at least €250,000 in the Portuguese economy. Eligible family members may obtain residence together with the investor.
3. Holders of Portuguese residency can travel visa-free within the Schengen Area.
4. Portugal is one of the more affordable countries in the EU. The minimum monthly income benchmark is €775.
5. Lisbon has a large international community and is one of the most popular destinations for foreigners moving to Portugal.
6. Foreigners may apply for Portuguese citizenship after 10 years of residence.
7. Disadvantages of living in Portugal include a humid climate, the lack of central heating in many homes, and unemployment.