Portugal blends old-world charm with modern ease, drawing expats with its affordability, safety, and relaxed lifestyle.
Many of the same reasons people move to Portugal—warm culture, walkable cities, public healthcare, and coastal beauty—also inspired my own move to Spain. But while the lifestyle is dreamy, it comes with trade-offs, especially around taxes and bureaucracy.
Here’s what you need to know if you’re considering a move.
🌍 Life & Culture Pros and Cons
Pro: The cost of living beats every other Western European country.
Portugal is one of the most affordable countries in Western Europe. Housing, utilities, groceries, and dining out all cost significantly less than in France, Italy, or Germany. Even compared to Spain, your euro stretches far here.
To put it in perspective, a meal at an inexpensive restaurant, housing, and monthly utilities often total less than what you might pay just for rent in most European capitals. If you’re fortunate enough to earn international wages or foreign pension, you’ll have more money in your pocket to enjoy Portugal’s vibrant culture and gorgeous landscapes.
- Inexpensive local lunch in Lisbon: €10
- 1-bed apartment outside city center: €500–€700/month
- Monthly utilities: €80–€120
Pro: Portugal has a a rich cultural and historical tapestry.
Portugal’s culture is layered and ever-present—wander Alfama’s tiled alleys in Lisbon, visit castles like Sintra’s Pena Palace, or catch a Fado show in a hidden tasca.
UNESCO-listed towns like Évora and Porto feel like living museums, while summer festivals across the country celebrate everything from sardines to saints. A few things to enjoy:
- traditional festas celebrating history through music, dance, and medieval fairs
- the sound of Fado luring you into a traditional tasca
- colorful street art adorning the older districts
Pro: Good food abounds—and it’s affordable.
Fresh markets are everywhere, selling seasonal produce at prices that make healthy eating affordable. Dining out is also a treat—Portuguese meals with wine and dessert often cost under €20.
But con worth noting: Eating out is tough for vegetarians. You’ll need to use those markets overflowing with fresh fruit and vegetables so you can cook affordable feasts at home.
Pro: It’s easy to make new friends.
Portugal is one of the friendliest countries in Europe. Locals are generally warm and helpful, and most expats say they feel welcomed quickly—especially in smaller towns.
In popular expat hubs like Lisbon, Porto, and the Algarve, you’ll find meetups, Facebook groups, and coworking communities that make it easy to connect. Here’s what to look for:
- Retiree clubs along the Algarve
- Digital nomad coworking hubs in Lisbon
- Weekly coffee meetups or language exchanges in mid-sized cities
Con: The language barrier is rough.
Portuguese is the primary language, and English won’t get you far outside tourist zones or big cities. Expect to need at least basic Portuguese for:
- Setting up services and paperwork
- Going to the doctor or post office
- Integrating socially, especially in smaller towns
Good to know:
- Many Portuguese under 35 speak some English, especially in Lisbon or Porto
- Duolingo helps, but real-world conversation practice is key
🗣️ Tip: Join a free “intercâmbio” (language exchange) when you arrive—it’s great for both learning and making friends.
Pro: Portugal has a top-notch healthcare system.
Portugal offers excellent healthcare—both public and private.
Public healthcare is widely available to residents, with foundational services provided by the Serviço Nacional de Saúde (SNS). And while private healthcare costs more than its public counterpart, it remains reasonably priced compared to other countries (far cheaper than most Americans can fathom) and offers personalized care and shorter waiting times.
- Public care (SNS): Affordable, high-quality services for residents. Small co-pays (usually €5–€20) for appointments and prescriptions.
- Private care: Faster appointments, modern clinics, and English-speaking staff. Still affordable—basic plans cost €40–€70/month.
💡 Tip: Many expats use a hybrid system—public for routine care, private for specialists and speed.
Pro: It’s a welcoming, diverse, and inclusive society.
Portugal ranks among the most progressive countries in Europe for:
- 🏳️🌈 LGBTQ+ rights
- ⚖️ Gender equality
- 🤝 General tolerance and friendliness
Locals tend to be open-minded, and cities host diverse communities. Expats from all walks of life report feeling welcome and respected here.
Con: You might have a hard time finding a job.
Job opportunities are limited—unless you’re in tech, tourism, or already working remotely. Salaries are low, and competition is high, especially for non-Portuguese speakers.
📉 Most expats who thrive here earn remote income.
- Teaching English or working in tourism: common for younger expats
- Tech jobs in Lisbon: more options, but still competitive
- Freelancers and digital nomads: make up a growing slice of newcomers
Pro: Crime is low and you’ll feel safe.
Portugal consistently ranks as one of the safest countries in the world. Violent crime is rare, and petty theft is lower than in other tourist hotspots.
- Walkable cities with safe nightlife
- Low gun violence
- Stable political environment
🚨 Tip: In big cities, watch your bag on public transport—pickpocketing still exists.
Con: You’ll wade through crowds in touristy areas.
Portugal is trendy—and with that comes crowds. In summer, cities like Lisbon, Porto, and much of the Algarve are flooded with tourists. Expect:
- Higher prices in peak season
- Packed public transport and beaches
- Restaurant bookings required in advance
If you settle in popular cities, you’ll need to adjust to the seasonal influx—or find your quiet corners.
🧭 Tip: Want a quieter pace? Consider lesser-known areas like Tavira, Tomar, or the Alentejo countryside.
Pro: Expat communities are ripe for the picking.
No matter where you land, you’ll likely find a friendly expat crew.
- Lisbon & Porto: coworking events, digital nomad networks
- Algarve: large retiree and part-time resident groups
- Mid-sized towns: smaller communities, often tighter-knit
🤝 Whether you’re looking for social meetups or school networks, there’s likely a Facebook group or WhatsApp chat waiting for you.
🛠️ Practical Realities & Infrastructure Pros and Cons
Pro: Remote work infrastructure is solid in cities and growing
Portugal has become a magnet for digital nomads for a reason: reliable Wi-Fi, affordable coworking spaces, and modern coffee shop culture. Cities and many mid-sized towns offer:
- Fast fiber internet (up to 1Gbps in cities)
- Coworking spaces with daily or monthly passes
- Communities like Remote Portugal and Outsite with housing and social events
🌐 Tip: If you’re heading to a small town, check internet coverage before signing a lease—ask for speed test screenshots.
Con: Portugal no longer offers broad tax breaks for new expats.
Portugal was once famous for its generous Non-Habitual Resident (NHR) tax Portugal’s popular Non-Habitual Resident (NHR) program ended for new applicants in 2024. It has been replaced with a narrower regime known informally as NHR 2.0 or IFICI (Incentivo Fiscal à Investigação Científica e Inovação), which is limited to certain high-skilled professionals—not remote workers or retirees.
Here’s what’s important for most expats to know:
- Foreign income is generally taxed. If you’re a digital nomad earning from a U.S. or global client base, Portugal will tax your worldwide income once you’re a tax resident.
- The new regime applies only to select professions like researchers, academics, IT professionals, and startup founders hired under qualifying contracts in Portugal.
- Foreign pensions are taxed at Portugal’s standard progressive rates (up to 48%), and digital nomads pay standard rates unless they qualify for this limited regime.
- You must report all global income to the Portuguese tax authorities—even if it’s partially exempt under a tax treaty.
💡 Bottom line: Unless you’re moving to Portugal under a qualified job contract in a government-approved sector, expect your global income—including remote freelance work—to be taxed at Portugal’s standard rates.
Pro: Portugal offers excellent public transportation in cities.
Portugal’s urban infrastructure may be patchy in rural areas, but cities like Lisbon, Porto, and Coimbra have efficient, affordable public transit systems. You can easily live without a car in these hubs thanks to:
- Trams, metro, and buses with frequent service
- Cross-country train travel (Lisbon to Porto in 3 hours)
- Rideshare apps and carshares like Bolt and Free Now
🚉 Tip: If you plan to travel often within Portugal, get a reloadable Viva Viagem or Andante card for discounts.
Con: You’re not going to make as much money.
Portugal’s low wages reflect its cost of living. Average monthly salaries hover around €1,100–€1,300, which is often €500–€1,000 less than salaries in Northern Europe or the U.S.
Unless you’re working remotely or in tech, you’ll likely earn less than in your home country. Local jobs in tourism, education, or agriculture pay modestly, and often require a lifestyle adjustment for expats.
Con: The property market is feeling the expat squeeze.
Portugal’s housing market has surged, especially in Lisbon, Porto, and the Algarve. Thanks to foreign investment, short-term rentals, and Golden Visa buyers:
- Rent prices have doubled in some areas since 2015
- Local wages haven’t kept up with housing costs
- Long-term rentals can be hard to secure without local connections
It’s still cheaper than Paris or London, but Portugal’s not the secret deal it once was.
🏡 Tip: Look inland—towns like Castelo Branco, Beja, or Viseu offer more affordable housing and an authentic pace of life.
Con: Bureaucracy and paperwork bog down every aspect of life.
Portugal’s bureaucracy is notoriously slow and paper-heavy. Common pain points:
- Setting up utilities or phone plans
- Getting your residency permit or NIF (tax number)
- Buying property or registering a car
Even small tasks can require in-person visits, long waits, and multiple documents. Patience is not optional—it’s essential.
📂 Tip: Learn the term “carimbo” (stamp). You’ll need a lot of them.
Pro: You’ll applaud Portugal’s environmental sustainability efforts.
Portugal is a leader in environmental sustainability. Over 60% of its electricity comes from renewable sources, including wind, solar, and hydro.
- 🌿 Strict coastal conservation laws
- 🚆 Efficient public transit in cities
- 🚯 Bans on plastic bags and single-use packaging
If eco-conscious living is important to you, Portugal is a solid match.
🌦️ Climate & Lifestyle Pros and Cons
Pro: The sunny climate is aces.
With over 300 days of sunshine a year in the Algarve, Portugal is a haven for sun-seekers. The climate varies by region:
- South: Dry, hot summers (often 30–35°C / 86–95°F)
- North: Cooler and wetter, especially in winter
- Coastline: Mild year-round with ocean breezes
Whether you’re into surfing, hiking, or just café-hopping outdoors, Portugal’s climate makes it easy to live outside.
Pro: Anywhere in the country offers access to natural beauty and outdoor activities.
Portugal’s compact geography means easy access to nature:
- 🌊 Surf beaches in the Algarve
- ⛰️ Hiking trails in Peneda-Gerês
- 🍷 Wine country in the Douro Valley
- 🌿 Forests and waterfalls within day-trip range from major cities
Whether you’re into weekend hikes, surf lessons, or vineyard visits, it’s all within reach.
Con: Prepare for seasonal weather extremes.
Portugal’s climate is generally mild—but climate change is making seasonal extremes more intense.
- 🥵 Summer heat in the Algarve and Alentejo regularly hits 40°C (104°F) or higher
- 🌧️ Northern Portugal sees long stretches of rainy, damp winters
- 🔥 Wildfire risk is growing in dry inland areas
Tip: Look for homes with good insulation and air conditioning—many older buildings lack both.
Frequently Asked Questions
Is living in Portugal worth it?
Yes—for many people. Portugal offers a high quality of life at a relatively low cost compared to other Western European countries. If you value safety, culture, great weather, and access to nature, it’s hard to beat.
But it’s not for everyone. If high wages, fast bureaucracy, or a bustling cosmopolitan lifestyle are deal-breakers, Portugal may fall short.
Why is Portugal a digital nomad hotspot?
Portugal consistently ranks as one of the top destinations for remote workers—and for good reason. With fast internet, strong expat networks, affordable living, and cities that are easy to navigate without a car, it offers an ideal setup for digital nomads. Here’s a quick look at why so many choose to base themselves here:
| Feature | What You’ll Find in Cities |
|---|---|
| 🚇 Public Transport | Metro, trams, buses, rail (Lisbon–Porto ~3 hrs) |
| 🌐 Internet Speeds | Fiber up to 1 Gbps in most areas |
| 💻 Coworking Spaces | Dozens in Lisbon, Porto, Coimbra |
| ☕ Café Culture | Reliable Wi-Fi + remote worker hubs |
| 🚗 Car-Free Living | Easy in cities—no car required |
| 🚌 In Rural Areas | Sparse transit, slower internet—check ahead |
📌 Pro Tip: Always run a speed test or ask landlords for proof of Wi-Fi speed before signing a lease in smaller towns.
What are the common challenges faced by expats in Portugal?
- Language barriers—outside of Lisbon and Porto, English isn’t widely spoken
- Bureaucracy—slow, paper-heavy processes
- Jobs—limited local employment, especially without fluent Portuguese
Most challenges are surmountable with patience, preparation, and a willingness to adapt.
How easy is it for foreigners to adapt to the Portuguese lifestyle?
Fairly easy, especially if you:
- Join local or expat communities
- Learn basic Portuguese
- Embrace the slower pace and local traditions
Portugal’s social culture, strong family values, and love of food and festivals can help newcomers feel at home quickly.
What are the best places to live in Portugal?
Here’s a quick cheat sheet:
| Place | Best For |
|---|---|
| Lisbon | Culture, city life, digital nomads |
| Porto | Charm, affordability, wine lovers |
| Algarve | Retirees, sun, beach towns |
| Coimbra | Students, families, culture |
| Braga | Religious history, young vibe |
| Évora | History buffs, slower living |
| Cascais | Luxury coastal living |
| Sintra | Nature lovers, proximity to Lisbon |
| Madeira | Island life, subtropical climate |
| Aveiro | Scenic canals, coastal lifestyle |
Whether you’re a digital nomad, retiree, or remote worker, Portugal offers an enviable mix of lifestyle perks and practical benefits. But knowing the pros and cons ahead of time can help you avoid surprises and settle in more smoothly.
👉 Curious about how much it actually costs to live in Portugal?
Check out my detailed Portugal Cost of Living Guide with real prices from expats across the country.