A Little Advice… Here’s Exactly What It’s Like Living in Portugal as an Expat

Last updated on February 21, 2024 by Shannon

Portugal’s blend of traditional charm and modern convenience beckons to expats keen to call the country home. Chief among the reasons to live in Portugal is the affordable cost of living, the welcoming community, and the rich cultural heritage.

My own transition to living in Spain happened for many of the same reasons you’re researching living in Portugal. Both countries boast beautiful beaches, a vibrant cultural scene, and a relaxed pace of life that I, along with many others, find appealing. These are cultures with phenomenal work-life balance and solid public healthcare, but woefully high tax rates.

Pros and Cons of Living in Portugal

As Portugal gains popularity as a top destination for expats, it’s important to consider both the benefits and the drawbacks of living here.

There are certainly challenges to living in Portugal, but my many expat friends living there find the pros far outweigh the cons. That said, only you can decide if you feel the same way—some of these disadvantages may simply be a non-starter for you.

The lifestyle in Portugal makes a compelling case for living there, but aspects of life in Portugal—namely the high taxes and bureaucracy—meant it’s not the right place for all digital nomads, retirees, and expats. Here’s what you need to know.

Pro: The cost of living beats every other Western European country.

If you’re looking to stretch your euros, Portugal greets you with a smile. Your wallet feels heavier here than in the other Western European countries—even compared to the cost of living in Spain, which is saying a lot. The fact is, your money goes further for life’s essentials in Portugal.

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.

Con: You’re not going to make as much money.

As much as expats in Portugal love the low cost of living, that perk comes with a lower average salary scale. In particular, if you work outside of the tech industry, your earnings in Portugal will likely be modest compared to a similar position in, say, New York, London, or Berlin.

This pay disparity for may influence your ability to save money and might require adjusting your lifestyle expectations if you’re planning to both move to Portugal and work locally. Average monthly salaries are often more than €500 less compared to other European cities.

So, while living costs are lower, so is your earning potential. As a result, expats working in Portuguese industries such as agriculture, tourism, and manufacturing make less, and have to come to terms with this disadvantage unless they are working remotely for a non-Portuguese company.

Pro: Good food abounds—and it’s affordable.

Let’s talk about your daily bread—and fish, and wine! Groceries in Portugal are a steal, with local markets offering fresh produce at prices that keep your kitchen stocked without draining your account. The way southern Europeans shop is far different than the U.S.—every neighborhood has huge fruit and vegetable markets overflowing with affordable produce. It’s the exception, not the rule, to stock a freezer with pre-packaged foods.

And dining out is affordable too; a tasty Portuguese meal with friends with all the works—drinks, desserts, and hours of conversation is a fraction of the price of just dinner elsewhere.

One con worth noting: Eating out is tough for vegetarians. But those markets overflowing with fresh fruit and vegetables mean you can cook affordable feasts at home.

Pro: You can take advantage of expansive expat tax benefits.

While Portugal is celebrated for its affordable cost of living, taxes are quite high for those not benefiting from specific expat tax breaks. Luckily, Portugal offers attractive tax benefits for expats, particularly through the Non-Habitual Resident (NHR) program, which provides tax advantages for the first ten years of residency on foreign income, including pensions, dividends, and royalties.

Con: You’ll wade through crowds in touristy areas.

Let’s not dice words: Portugal is trendy, especially the Algarve, Lisbon, and Porto. During the summer months, tourists will crowd the streets, beaches, and attractions, making your day-to-day life harder.

And if you’ve chosen to live in these hotspots, living costs temporarily inch closer to those of other European places, transport overflows, and restaurants require reservations.

Pro: Portugal has a a rich cultural and historical tapestry.

Picture yourself meandering the winding streets of Lisbon’s Alfama or the historic centers of Porto and Évora, UNESCO World Heritage sites that serve as windows to bygone eras. When you live in Portugal, you’ll spend weekends exploring ancient castles, like the hilltop Pena Palace in Sintra, and monasteries that echo tales of Portugal’s Age of Discovery.

In every corner of Portugal, expats can enjoy traditional festas celebrating history through music, dance, and medieval fairs . Whether it’s the sound of Fado luring you into a traditional tasca or the colorful street art that adorns the older districts, Portugal’s dynamic culture is a one of the biggest pros for my expat friends living there.

Con: Bureaucracy and paperwork bog down every aspect of life.

The bureaucracy of living in Portugal can be quite complex. Navigating the paperwork for residency permits and dealing with local government requirements seems like a labyrinth.

Count on needing patience to undertake the administrative steps of your residency application, but you’ll also need it for the most mundane tasks of life. Establishing services like electricity and water can involve a series of forms and sometimes, in-person visits to an endless number of different offices.

And when it comes to buying property, you’ll need to do a significant amount of due diligence. The legal processes and elaborate web of bureaucracy to obtain the necessary approvals will test your resilience.

Pro: The sunny climate is aces.

Imagine basking in average year-round temperatures between 47°F to 83°F, making every season a delight in this idyllic Mediterranean climate. The southern regions are especially warm with dry summers, while the north boasts more cool and rainy conditions.

Along the Algarve’s coast, Portugal’s beaches—and 300 days of sunshine each year—play host to expats relaxing and surfing their days away. In the mountainous north, the hiking and scenic drives provide glimpses of nature you won’t find in any pricey cities.

Con: The property market is feeling the expat squeeze.

The gentrification problem is real, and your desire to live in Portugal is part of the issue. The popularity of Portugal among expats and investors has led to increased pressure on the property market, particularly in desirable areas such as Lisbon, Porto, and the Algarve. As happens in all expat havens, demand has driven up property prices and rental costs, making it more challenging for newcomers (and locals) to find affordable housing.

While still lower than in many other Western European countries, the rising costs in the property market are a significant consideration for those looking to move to Portugal—it’s not even remotely the cost-of-living deal you would have found even just five years ago. But there are still some good deals to be found! You just have to look a lot harder for them, and consider living in more local areas.

Pro: It’s easy to make new friends.

Portugal is renowned for its friendly people and welcoming atmosphere, particularly in smaller towns and villages. The Portuguese value social interaction and hospitality, making it easier for you to integrate and feel at home. There are also huge expat communities in the more popular areas—retirees in along the Algarve, expats and digital nomads in the cities, and a mix throughout the interior.

Con: The language barrier is rough.

Few of us took Portuguese as our second language in high school, but it is the primary language spoken here, and you’ll need to learn it. While English is spoken in many tourist spots and by the younger population, navigating daily life, particularly in rural areas, requires Portuguese language skills.

This is particularly true if you want to integrate into the local community, work at a company in Portugal, access local health services, and even just set up your utilities. Plan on enrolling in Portuguese language classes when you arrive, and taking part in conversation exchanges.

Pro: Portugal has a top-notch healthcare system.

European healthcare, in general, is great, and Portugal’s system stands out for its quality and accessibility. Public healthcare is widely available to residents, with foundational services provided by the Serviço Nacional de Saúde (SNS). It’s both comprehensive and cost-effective—expats have access to essential medical care at an affordable price point.

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.

Con: You might have a hard time finding a job.

Outside of the prominent tech and tourism industries, job opportunities in Portugal can be scarce and the competition for available positions is high. There’s a lower demand for expats than in other fields, and often a preference for hiring locals. This is mostly because having a strong command of Portuguese is essential in the job market.

If you’re moving to Portugal with plans to work locally, you really need to research and possibly reach out to prospective employers beforehand. Most digital nomads I know who moved to Portugal did so with remote-based income, which also means salaries pegged to higher cost of living countries, meaning their income goes far.

Pro: Crime is low and you’ll feel safe.

Portugal’s low crime rates make it one of the safest countries in the world, creating an environment where you’ll live with peace of mind. Expat families, digital nomads, and retirees find tranquility in their everyday lives here.

In public spaces, the sense of security is palpable. You can stroll the streets, relax in the parks, and engage in nightly outings with few concerns regarding violent crime.

The strong social fabric and stable political climate in Portugal contributes to the sense of safety experienced by residents and travelers alike. This profoundly effects life quality for expats, where the focus is on living well and enjoying what the country has to offer.

Con: Infrastructure and public services vary throughout the country.

The quality of infrastructure and public services depends on where you are in the country. This is particularly true when you venture outside Portugal’s well-equipped urban hubs.

Rural roads aren’t always well-maintained, public transportation services are less frequent and comprehensive in smaller towns, and internet connectivity often lags in smaller areas.

While urban centers like Lisbon and Porto offer the amenities most expats and retirees expect, Portugal’s picturesque countryside often comes with trade-offs in convenience.

Pro: Anywhere in the country offers access to natural beauty and outdoor activities.

Portugal’s long and skinny shape means you can access most any part of Portugal in hours. You can live by the water and day trip to the mountains for a great hike. Start the day sipping wine in the country’s expansive inland vineyards, then visit Peneda-Gerês and meander lush forests and by crystal-clear lakes before nightfall. And for great tapas, just plan a quick trip over the border into Spain.

Con: Prepare for seasonal weather extremes.

Enjoying Portugal’s balmy weather also means signing up for seasonal weather extremes that are only becoming more frequent due to climate change. The intense summer heat, particularly in the Alentejo and Algarve regions, can peak to sweltering temperatures.

In contrast, the north of Portugal is known for its wet winters, receiving substantial rainfall that can impact your day-to-day life. If you’re accustomed to drier climates, the dampness can be a challenge and might dampen your outdoor plans.

When I hiked the Camino de Santiago a few years ago, Portugal was on fire for many weeks during a freakish July heat wave. It was scary for all.

Pro: Expat communities are ripe for the picking.

Cities like Lisbon and Porto, along with the picturesque Algarve region, host well-established expat groups—you can count on meeting new friends able to acclimate to your new surroundings.

Count on a number of social events—from casual coffee meetups to professionally-organized gatherings, you can count on always finding something on the calendar.

Whether your a retiree in Portugal for your golden years, or a digital nomad family settling into the local school system, I’ve always relied on these communities as invaluable resource hubs.

Con: Your new home is wholly dependent on tourism.

Portugal’s charm and climate draw millions of tourists each year, making the tourism industry a significant contributor to the economy in your chosen home. While this provides various benefits, there are certain drawbacks to consider.

Chiefly, you’re looking at economic fluctuations caused by seasonal jobs and seasonal services—and those huge crowds mentioned earlier. The pandemic was devastating for many tourism-based economies, including Portugal.

Pro: You’ll applaud Portugal’s environmental sustainability efforts.

Portugal is at the forefront of environmental sustainability, meaning it’s an ideal place for those who prioritize eco-friendly living. The country has made significant strides in renewable energy, with a substantial portion of its electricity generated from wind, solar, and hydro sources.

This commitment to the environment extends to conservation efforts and public transportation systems designed to reduce carbon footprints. Living in Portugal means being part of a community that values and actively works towards a sustainable future—yay. 🙂

Pro: It’s a welcoming, diverse, and inclusive society.

Portugal has an open and inclusive society, it welcomes people from all walks of life. The country ranks highly in terms of LGBTQ+ rights, gender equality, and overall tolerance.

If your short list of requirements for places to live includes a country where diversity is celebrated and rights are protected, Portugal stands out as a beacon of inclusivity. This atmosphere fosters a sense of belonging and community among residents, and it makes it a great place to raise a family as well.

Frequently Asked Questions

Is living in Portugal worth it?

If you read through those cons and none of them felt like deal breakers, then it’s a compelling proposition for both digital nomads and retirees. Life there in Portugal is characterized by its relaxed pace of life, welcoming communities, and the relatively low cost of living compared to other Western European countries.

The country’s rich cultural tapestry, from the melancholic strains of Fado music to the intricate patterns of Azulejos tiles, adds layers of depth to everyday existence. Portugal’s commitment to sustainability and the great outdoors, with its emphasis on preserving natural beauty and promoting a healthy lifestyle, aligns well with contemporary values for a lot of the younger generations.

The quality of life, especially in terms of access to stunning landscapes, fresh cuisine, and a mild climate, is a significant draw. But if you crave the constant stimulation of larger, more cosmopolitan cities, you might grow to regret your choice to relocate.

What are the common challenges faced by expats in Portugal?

The language barrier is a real hurdle for most every expat living in Portugal who isn’t yet fluent. While English is widely spoken in tourist areas and among the younger population, a basic grasp of Portuguese is needed for daily interactions, bureaucratic processes, and truly connecting with local communities.

The bureaucracy in Portugal, much like in other Southern European countries, can be labyrinthine and slow-moving. Administrative tasks, such as securing residency, setting up utilities, or navigating the healthcare system, require patience and persistence.

How easy is it for foreigners to adapt to the Portuguese lifestyle?

Portugal’s culture, with its emphasis on family, food, and leisure, can be a warm embrace for those coming from more reserved or fast-paced societies. The Portuguese are known for their friendliness and hospitality, often going out of their way to make newcomers feel welcome.

Embracing the local lifestyle means slowing down, appreciating the small moments, and being open to new experiences. Learning some Portuguese helps a lot. That said, the expat community in Portugal is thriving, offering a network of support for those navigating the transition, but the depth of one’s adaptation often correlates with their engagement with Portuguese life beyond these enclaves.

What are the best places to live in Portugal?

These places stand out for their unique qualities, lifestyle offerings, and community spirit—most expats should start their research with one of these spots when researching where to live.

1. Lisbon: The capital city, known for its vibrant cultural scene, historic architecture, and thriving expat community, offers an urban lifestyle amidst ancient charm.
2. Porto: Portugal’s second city, famous for its stunning riverside vistas, port wine heritage, and a perfect blend of tradition and modernity.
3. Algarve: A southern coastal region beloved for its breathtaking beaches, golf resorts, and mild climate, appealing to retirees and beach lovers alike.
4. Coimbra: A city steeped in academic tradition, home to one of the oldest universities in Europe, offering a blend of youthful energy and historic beauty.
5. Braga: Known as the “Portuguese Rome” for its rich religious history, Braga combines ancient architecture with a dynamic, young population.
6. Évora: A UNESCO World Heritage site in the heart of the Alentejo region, Évora is encircled by medieval walls and filled with historic charm.
7. Madeira: An archipelago known for its lush landscapes, mild climate, and welcoming community, ideal for those seeking a subtropical island life.
8. Cascais: A coastal town near Lisbon that offers a blend of luxurious living, stunning beaches, and a relaxed lifestyle, popular among both locals and expats.
9. Sintra: Nestled in the foothills of the Sintra Mountains, this town is famed for its fairy-tale palaces, misty climate, and enchanting forests.
10. Aveiro: Often referred to as the “Venice of Portugal,” Aveiro charms with its canals, colorful moliceiros boats, and Art Nouveau buildings—it’s a unique coastal living experience.

This travel story (A Little Advice… Here’s Exactly What It’s Like Living in Portugal as an Expat ) first appeared on the A Little Adrift Travel
Blog, thank you for following the journey. 🙂