Pros and Cons of Living in Portugal: The Complete List Updated

Portugal is a beautiful country in southwestern Europe, bordered by Spain to the north and east and the Atlantic Ocean to the west and south. It has become an increasingly popular destination for expats due to its sunny climate, relatively low cost of living, and slow pace yet high quality of life.

In this article, we'll discuss some of the pros and cons of living in Portugal, the residency requirements, and the importance of getting your national tax identification number (NIF) as a resident of Portugal.

12 Advantages of Living in Portugal

The country stands out as a highly sought-after destination for expatriates due to the numerous benefits of living in Portugal. First, there’s a pleasant climate, offering a balance of warm summers and mild winters. Second, the cost of living in this European country is relatively affordable, extending to several aspects of daily expenses, including transportation, groceries, and leisure activities.

The country also boasts a reputation for being one of the safest in the world, with low crime rates and a welcoming atmosphere contributing to a sense of security. In addition, Portugal's good food, welcoming people, rich cultural heritage, diverse landscapes, and historical sites add an enriching dimension to daily life.

1. Warm climate

Basking in an impressive 300 days of sunshine annually, Portugal is a paradise for those in pursuit of sun-soaked days. Consider Lisbon, for instance, where winter brings an average of ten hours of sunlight, a striking departure from the overcast days prevalent in Northern European countries.

Portugal has a Mediterranean climate, with long, hot summers and mild winters. Cities in the north of Portugal get colder and have more rainfall in winter, and as you go southwards, the temperatures become even hotter.

The northern region of mainland Portugal experiences an average temperature of 10-12°C during the winter. Places in southern Portugal, such as the Algarve region and Alentejo enjoy a slightly warmer climate of 16-18°C.

Generally, Portugal's great weather means that you can enjoy outdoor activities and sunshine all year round.

Be mindful, though, that Portuguese houses can get quite cold in winter, so make sure there is good insulation and central heating.

2. Friendly and welcoming locals

Portuguese life is famous for its welcoming and friendly locals, and you’re sure to be greeted with warm hospitality and a genuine desire to help. From bustling cities to quaint villages and coastal towns, the Portuguese are well known for their laid-back and welcoming nature.

They’re usually ready and willing to strike up a conversation, offer recommendations of where to go, or share their thoughts on the best food and drink wherever you are. Portuguese people also have a strong sense of community and highly value friendships, which makes Portugal the special country it is.

3. English is widely spoken

Although the official language in Portugal is Portuguese, several locals speak English, especially in major cities and tourist regions such as Lisbon and Porto.

According to the 2022 EF English Proficiency Index (EF EPI), which takes into account 100 countries and regions around the world, Portugal has the eighth-highest English proficiency among non-native speakers in the world. This makes Portugal a preferred destination for North American and British expats.

And while many people in Portugal speak English, learning Portuguese is valuable for immersing oneself in the local culture.

4. High quality of life

Portugal is recognized for offering a wonderful quality of life. The country's natural scenery, including its stunning beaches and picturesque countryside, provides a serene backdrop for daily living.

Life in Portugal is marked by a laid-back and relaxed atmosphere, promoting a sense of happiness and tranquility among its residents. The healthcare and education systems are highly regarded, ensuring that individuals have access to top-notch services and opportunities for personal development.

Additionally, the welcoming and hospitable culture of Portugal fosters a sense of belonging and community, making it easy for newcomers to feel accepted and integrated. These factors collectively contribute to Portugal's reputation as a desirable destination for those seeking a high standard of living in both the Mediterranean region and southern Europe as a whole.

5. Safety and low crime rate

Portugal ranked 5th among the top 10 safest countries in Europe in the annual Global Peace Index (GPI), released by the Institute for Economics and Peace in 2022. Violent crime in Portugal is rare, and petty crimes such as pickpocketing are generally less common than in many other European cities.

Portugal is also the 7th most peaceful country in the world after Iceland, Denmark, Ireland, New Zealand, Austria, and Singapore (2023 GPI). Factors such as political stability, low crime rates, and harmonious relationships with other countries all contribute to a sense of safety in daily life.

6. Rich culture and history

Portugal's cultural richness and historical depth have profoundly impacted the global stage. Over the centuries, this country has been shaped by several civilizations, including the Romans, Visigoths, and Moors, each leaving an enduring legacy.

These diverse influences have formed Portugal's unique cultural identity, evident in its traditions, customs, and artistic expressions.

The Roman legacy is evident in the remnants of ancient structures like bridges and roads scattered across the landscape, showcasing their engineering prowess and influence. The Visigothic era left its mark on Portugal's religious landscape, with the construction of churches and monasteries reflecting their architectural style and religious practices.

Similarly, the Moorish influence is evident in the intricate tile work, known as azulejos, adorning many buildings and structures throughout the country.

Beyond architectural influences, Portugal's cultural heritage is also reflected in its traditions and celebrations, such as Fado music, a soulful genre that captures the essence of Portuguese identity.

The country's history is not just tied to its physical landscape but also extends to its people, who carry on centuries-old traditions and customs passed down through generations.

Despite the passage of time and the influence of modernization, Portugal remains deeply rooted in its cultural and historical heritage, serving as proof of its enduring legacy and significance on the world stage.

7. Beautiful scenery

The country's warm weather and varied landscapes, which range from pristine beaches to rolling hills, make it the perfect destination for nature lovers, water sports aficionados, outdoor enthusiasts, and anyone who enjoys going outside to explore.

Portugal is renowned globally for its stunning landscapes, which encompass a variety of breathtaking scenery. This picturesque country boasts captivating countryside vistas, charming historic cities brimming with centuries-old landmarks, and remarkable regions celebrated for their scenic beaches.

Living in Portugal means being surrounded by these beautiful places, which offer residents and visitors alike an abundance of natural beauty to explore and enjoy. From the golden shores of the Algarve Coast to the serene beauty of the Silver Coast, Portugal's diverse landscapes cater to a wide range of interests and activities.

Whether you're a nature enthusiast, a water sports lover, or simply someone who appreciates the outdoors, Portugal's beauty makes it an ideal destination for outdoor adventures and exploration.

8. Excellent food and wine

Renowned around the world for its amazing cuisine and wine, Portugal is a true paradise for foodies.

Portuguese cuisine is a blend of Mediterranean and Atlantic influences, with a strong focus on fresh produce and local ingredients such as olive oil.

The country is particularly famous for its seafood dishes like grilled sardines and bacalhau (salted codfish), as well as its hearty stews and succulent meat dishes, catering to a wide range of palates.

Portugal also has a long tradition of producing world-class wines like Port, Vinho Verde, and the full-bodied reds of the Douro Valley.

An integral part of the country's culture and lifestyle, Portugal's varied culinary offerings are definitely worth trying.

9. Attractive tax system

Portugal has an attractive tax system for expats, particularly through its Non-Habitual Resident (NHR) tax regime. This tax regime is designed to attract foreign residents, including retirees and professionals, by providing them with an array of benefits.

Under the NHR program, individuals who qualify can enjoy benefits such as either a tax exemption or a flat 20 percent tax rate on their foreign-sourced income for a ten-year period. Portugal also offers reduced income tax rates for startups and innovative companies and exemptions on certain types of income. Additionally, the country has a favorable tax regime for foreign investment.

10. Affordable cost of living

Portugal is known for its affordable living cost, especially compared to other countries in Western Europe.

Utility costs, including electricity, water, and gas, are reasonable, as well as grocery prices, especially for locally produced items. Dining out is also relatively inexpensive in Portugal compared to other European countries, with a wide variety of restaurants offering affordable options.

Public transportation in Portugal, such as buses, trams, and the metro, is affordable and efficient, making it easy to get around the cities.

In addition, Portugal offers quality healthcare at a fraction of the cost of healthcare in many other Western countries.

It's important to note that while Portugal is known for its overall affordability, costs can vary depending on the region, with Lisbon and the Algarve often having slightly higher living costs compared to smaller cities and rural areas.

Additionally, individual spending habits and lifestyle choices will play a significant role in determining the overall cost of living in Portugal.

According to Numbeo, a single active person living in Lisbon has an estimated monthly cost of €593.64 without rent. The costs are lower when we compare the same estimated monthly costs for a single person living in London, €1,089.13 without rent.

Although the average income is lower than in other Western European countries, the cost of living in Portugal is also way lower, making the balance positive.

Below are some examples of average prices in Portugal. But make sure to consult individual cities for more specific prices.

Accommodation

The cost of renting or buying property in Portugal varies depending on the location and size of the property. In Lisbon, the average rent for a one-bedroom apartment in the city center is between €850 and €1800 per month, while a similar apartment in a smaller city like Braga would cost between €500 and €680 per month.

To buy real estate, you can expect to pay anywhere from €1,100 to €6,000 per square meter, depending on the property's location, but prices may be lower or higher than this average, considering restoration projects or luxury villas with huge plots of land.

Food and drink

Portugal is famous for its delicious food and wine. The Portuguese diet is full of fresh produce and, of course, also offers excellent Portuguese wine.

In traditional Portuguese restaurants, a meal will cost between €6 and €15 per person. A three-course meal for two in a mid-range restaurant costs between €25 and €70. A cappuccino costs between €0.70 and €3, and half a liter of domestic beer costs between €1.50 and €4.

Food and drink in supermarkets are equally affordable, with a liter of milk costing, on average, €0.77, a loaf of bread €1.18, and one kilogram of oranges around €1.33.

Public transport

Portugal offers an excellent and reliable public transport network, which comprises buses, trams, metro services, trains, ferries, and boats.

Efficient, comfortable, and easy to navigate, Portugal's public transport is an affordable way to get around.

A single ticket for a bus or metro ride is between €1.25 and €2.35, depending on the city and length of the journey, and a monthly pass can cost between €30 and €40. Taxis are also relatively cheap, with starting fares from around €3.50.

Entertainment

Portuguese culture is rich, and its history is astonishing. No matter where you are, there is always something to do and see. Many activities are also free, such as visiting beaches, going on hikes, and exploring public monuments and buildings. Some museums and art galleries are also free of charge, so even if you’re on a tight budget, you won’t miss out.

Attending festivals and fairs is usually free. Generally speaking, you can expect to pay between €5 to €10 per person for entry to a museum or an attraction, and a cinema ticket costs between €6 and €9.

Healthcare

Portugal has a fantastic private and public healthcare system. Its public health service is similar to that in the UK or Canada and is free or low-cost to legal residents of Portugal. Fees can range between €5 and €20; however, dental care and plastic surgeries are not covered.

Private medical care is more expensive, and you will have to pay monthly or annually for private health insurance. Private health insurance gives you access to private clinics and doctors, and depending on personal circumstances, the annual fee can be between €400 and €1000 per person.

11. Excellent education system

Portugal’s education system is exceptional, and many expats of all kinds benefit from this once they have their Portuguese residence permit. The country offers free education for every child who can attend its public schools - this means that families should learn Portuguese to access this.

It's also worth mentioning that Portuguese universities have excellent track records and reputations. The prestigious Universidade NOVA de Lisboa, for instance, is in the QS ranking of the world's top 50 universities for those under 50 years old. Six more universities are in the QS rankings 2023 of Top Global Universities.

There are also 51 international schools in Portugal, spread across seven vibrant cities. The majority of these educational institutions are concentrated in the Greater Lisbon area, Porto, and the picturesque Algarve region.

Ideal for North American and British citizens, these international schools offer exceptional educational standards, often holding accreditations from esteemed global organizations. Fostering a multicultural environment, they provide students with opportunities to engage with peers from diverse backgrounds, fostering openness, empathy, and respect for different cultures.

12. Quality healthcare system

Portugal maintains a healthcare system that integrates both public and private services. The public healthcare sector is managed by the Serviço Nacional de Saúde (SNS), Portugal's national healthcare system.

According to the Global Health Expenditure 2022 report, Portugal allocates approximately 9.53 percent of its GDP annually to healthcare. Public hospitals in Portugal provide free medical services for both citizens and residents.

On the other hand, private clinics offer medical care for a fee, ensuring faster appointments and delivering high-quality services than public facilities.

The private healthcare sector in Portugal is also highly regarded, with a range of health insurance options tailored to individual needs, offering diverse coverage and pricing. Health insurance plans in Portugal are generally more affordable compared to those in other Western European countries. That's why many foreign citizens supplement public benefits with private insurance that costs around €50 per month or less.

It's worth noting that almost all healthcare professionals in Portugal's private system are proficient in English.

5 Disadvantages of Living in Portugal

No country is perfect, and every place has drawbacks and disadvantages. It’s for the individual to decide whether the following are dealbreakers or if you can compromise on them.

1. Language barrier

Around a third of Portuguese people speak English, especially in major cities and tourist regions. Under the EF English Proficiency Index, Portugal is the ninth most proficient country in the world when it comes to speaking English.

And while English is widely spoken by Portuguese residents, it may not be enough in more rural areas, especially if you want to be fully integrated as an expat.

So, learning basic Portuguese is highly recommended, as it can significantly enhance your experience and quality of life.

Knowing European Portuguese will make everyday tasks like grocery shopping, visiting the doctor, or dealing with administrative matters much easier. Speaking the local language can help you integrate into the community, make friends, and build meaningful relationships with locals.

2. The bureaucracy

Navigating the bureaucracy is, unarguably, one of the main downsides of living in Portugal as an expat.

This can be a daunting task, characterized by its sluggish and intricate nature. For expats accustomed to streamlined processes elsewhere, grappling with the complexities of Portuguese bureaucracy can be particularly frustrating.

From obtaining your Portuguese residency permit to setting up utilities or registering vehicles, each bureaucratic procedure may entail a maze of paperwork, long waiting times, and intricate regulations.

Without the guidance of specialists or local experts, understanding these bureaucratic hurdles can seem overwhelming.

Moreover, language barriers may further exacerbate the challenges, especially for expats who are not proficient in Portuguese.

Despite efforts by the government to streamline administrative processes in recent years, bureaucratic inefficiencies persist in certain areas, contributing to delays and frustrations for both residents and newcomers alike.

However, with patience, perseverance, and perhaps the assistance of experienced professionals, expats can gradually acclimate to the intricacies of Portuguese bureaucracy and successfully navigate its challenges.

3. Unemployment rates

Unemployment in Portugal remains a significant concern, with varying factors influencing the job market dynamics. While the average salary in Portugal is relatively low compared to many Northern European countries, the landscape is evolving, particularly in major urban centers like Lisbon and Porto.

In comparison to other European countries, Portugal ranks in the middle of the unemployment statistics, with Spain topping the table with over 12 percent. Portugal's unemployment rate was 6.1 percent at the end of last year, compared with 4.4 percent in Ireland and 3.1 percent in Malta.

International companies are increasingly setting up operations in Portugal, drawn by factors such as lower operating costs and a skilled workforce. This influx of international companies not only brings exciting job opportunities but also contributes to improving salaries, especially in sectors such as technology, finance, and tourism.

However, the extent to which individuals can secure higher-paying positions depends on factors such as their proficiency in the Portuguese language, their qualifications, and the sector they are employed in.

Despite the positive developments, challenges persist, particularly for those without specialized skills or language proficiency.

Additionally, the cost of living must be taken into account when evaluating Portuguese salaries, as what constitutes a comfortable income varies depending on individual circumstances and regional disparities.

Efforts to address unemployment and improve job opportunities continue, but navigating the job market in Portugal necessitates a nuanced understanding of salary dynamics, job sectors, and regional variations.

4. A high influx of tourists

While living in Portugal, you’ll notice that during the vibrant summer months, the country becomes a magnet for tourists, drawing crowds, particularly to its picturesque seaside towns and coastal resorts.

However, the heightened tourism activity also means that popular destinations can feel overcrowded during the peak season, as streets, beaches, and attractions become bustling with visitors from around the world.

For Portuguese residents, navigating through the crowds of tourists may require a bit of patience and flexibility, especially in popular tourist spots.

Despite the crowds, the allure of Portugal's stunning landscapes, rich cultural heritage, and warm hospitality continue to captivate travelers, ensuring that the country remains a top destination for summer getaways.

5. Housing prices

One significant disadvantage of living in Portugal, particularly in major cities like Lisbon, is the soaring housing prices. As Portugal's popularity as a destination for expatriates and investors has surged in recent years, the demand for housing, particularly in urban centers, has outpaced supply.

This imbalance has led to a steep rise in property prices, making it increasingly challenging for both locals and newcomers to afford suitable accommodation.

The competitive housing market in cities like Lisbon often results in inflated rental and real estate prices, putting a strain on household budgets and limiting housing options, especially for individuals with modest incomes.

Moreover, the gentrification of certain neighborhoods has further exacerbated the issue, pushing out long-time residents and altering the social fabric of communities.

While efforts have been made to address the housing affordability crisis, such as the implementation of rent control measures and incentives for affordable housing developments, the issue persists, posing a significant obstacle for those seeking to establish roots in Portugal's vibrant urban centers.

What do I need to live in Portugal?

The requirements to live in Portugal depend on your purpose for moving (e.g., work, study, retirement), your personal circumstances, and your country of origin.

As a citizen of the European Union (EU), for instance, there is a lot less paperwork involved, and the process is less time-consuming than if you're coming from outside the EU.

Non-EU and non-EEA citizens can expect a longer process and more bureaucratic steps before moving to Portugal.

Fortunately, there are several immigration schemes available to non-EU citizens looking to move to Portugal, and we'll list some of these visas in the section below.

Living in Portugal as an EU-citizen

If you come from an EU country, you can enjoy freedom of movement and the right to work and live in any of its member states, including Portugal.

To obtain a residency card, you will have to show proof of the following:

Valid health insurance
Financial independence
National Tax Identification Number (NIF)

Living in Portugal as a non-EU citizen

Non-EU citizens need to go through a few more administrative hoops before they can get a residency card. Several visas are available, such as the Portugal Golden Visa, the D7 Passive Income Visa, and the Digital Nomad Visa.

To explore the best option for you and any dependents, our residency and citizenship division, Global Citizen Solutions, is here to help you, talking you through Portuguese residency and Portuguese citizenship. You may also want to read our guide on the Portugal Work Visa.

The Importance of the NIF Number

The Número de Identificação Fiscal (NIF) is your tax identification number that every person wishing to take part in any kind of business transaction in Portugal needs, as stipulated by the Portuguese government. The nine-digit number is a unique tax identification number that is issued by the Portuguese tax authority. Without this number, whether you’re an EU citizen or a non-EU citizen, you will find it challenging to live an expat life in Portugal.

You'll need a NIF for almost everything you do in Portugal, including:

Renting or leasing accommodation
Buying or selling property
Getting your health insurance in Portugal
Opening a Portuguese bank account
Signing contracts for utilities, a mobile phone, or Internet contracts
Earning income via work or a business
Registering online with the tax authority
Paying taxes in Portugal as an expat
Studying in Portugal
Taking out any kind of loan
Buying a car or applying for a driving license
Becoming a Portuguese tax resident
Inheriting assets in and from Portugal

Getting a NIF number should, therefore, be on top of your list when you come to live in Portugal. It’s free to apply for; however, you may have to pay for services during the application process or if you’re using a tax representative.

Bottom line: is Portugal a good place to live?

In summary, Portugal is a beautiful country with many advantages for those who decide to live there and make it their new home. Naturally, as with every place, there are some disadvantages, but overall, the pros by far outweigh the cons.

With its sunny climate, affordable cost of living, high quality of life, stunning beaches, cities, and towns, as well as its welcoming locals, Portugal has something for everyone. For those ready to make a move, expert help is always at hand.

To learn more about the first steps, including getting your NIF number, contact us for more information.

Living in Portugal: Recommended Reading

The following blog posts can help you in your journey moving to Portugal:

Frequently Asked Questions About Living in Portugal

Can a US citizen live in Portugal?

Yes, an US citizen can move to Portugal. They can apply for a residence permit and Portuguese visa corresponding to their purpose of stay, such as for work, study, or retirement.

How much money do you need to live comfortably in Portugal?

The exact amount will vary depending on personal lifestyle, location, and circumstances. In a nutshell, the Portuguese immigration authorities require proof that you have sufficient means to support yourself. As of 2023, this was set at the monthly minimum wage level of €887 ($966.51) per month.

How many British expats live in Portugal?

The British are currently the second-largest expat community in Portugal, with a total of 46,238 residents. There are a lot of British expats living in Portugal, particularly in places like the Algarve, Lisbon, and Madeira.

Can a foreigner live in Portugal?

Yes, foreigners can live in Portugal under various circumstances and visa/residency options. Portugal has specific immigration policies and programs that allow foreigners to reside in the country for various purposes.

Is it a good idea to live in Portugal?

Living in Portugal is a great idea. The country boasts a pleasant weather with mild winters and warm summers, affordable cost of living, high quality of life, an efficient healthcare system, low crime rates, and a welcoming culture.

Do a lot of Americans live in Portugal?

Yes, a growing number of Americans are choosing to live in Portugal, attracted by its quality of life, affordable cost of living, and pleasant climate. There are currently over 7,000 Americans living in Portugal currently.

Pros and Cons of Living in Portugal: The Complete List