The Essential Guide for Expats in Portugal | Goldcrest

Imagine a life where the sun shines year-round, the locals greet you like old friends, and every day feels like a breath of fresh air. For expats in Portugal, this dream is a reality. From digital nomads to retirees to those craving a fresh start, people from all walks of life are drawn to this stunning gem on the Iberian Peninsula. Portugal, the EU’s westernmost country, offers an irresistible blend of charm, warmth, and an enviable pace of life that makes it more than just a destination—it’s a new way of living.

In this article, we’ll provide you with an essential guide to living in Portugal as an expat. We’ll delve into working remotely in Portugal, what to expect from living in the country as an expat, how to go about buying property, and practical information that you should be aware of if you are considering taking the plunge and moving to the sunny south, embracing the Mediterranean climate and lifestyle in Western Europe.

What To Expect from Living in Portugal as an Expat

The expat communities, level of safety, and the political climate in a country all strongly influence an expat’s experience living in a foreign country, and Portugal is no different. Once we dive deeper into these aspects, it becomes even clearer why Portugal is a popular choice among expats. Let’s take a look at the landscape for expats moving to Portugal to give you a better idea of what to expect.

How many expats are living in Portugal?

Portugal is home to expats from all over the world. It’s been reported that out of a population of approximately 10 million, in 2023 about 1,044,606 people were expats. 2023 alone saw a 129.9 percent increase in the number of new residence permits issued in Portugal, with Lisbon, Faro, and Setúbal recording the highest concentration of foreign residents.

In the hotspot locations, you should be able to meet many fellow expats easily enough. For example, in Lisbon and Porto, there are many meetup groups in the city, Facebook groups, and events.

In the Algarve, you similarly have many places to meet expats, for example, at a yoga or tennis class. It is good to get involved in activities to meet fellow expats. If you are looking into living in Portugal, you will find valuable insights in our e-book, Your Expert Guide to Buying Property in Portugal where we provide you with in-depth information on the buying process and what it is like to live in Portugal.

How many British expats are living in Portugal?

British expats are known to favor moving to Portugal, mainly for the affordable yet high quality of life, sunnier weather in mainland Portugal, and ease of migration. The 2023 Report for Immigration, Borders and Asylum indicates that British citizens are the fourth-most common expat nationality living in Portugal, with a population of around 47,409 in the country. This number is expected to increase year on year, as more foreigners discover the benefits of living as an expat in Portugal.

Is Portugal safe for expats?

Portugal is one of the safest countries in the world and currently ranks seventh on the Global Peace Index, which analyses all cultural, political, and economic factors that influence peace and safety within a country. While pickpocketing can be a challenge in dense tourist areas, the crime rates – and especially violent crimes – are extremely low. For an expat living in Portugal, this brings peace of mind and provides the freedom to live and move around the safe country without worry.

How is the political situation in Portugal?

Portugal has a stable political economy, with a parliamentary democracy and a multiparty political system. In the Freedom in the World 2024 global status report, Portugal scored 96 out of 100 points considering the different factors of political rights and civil liberties.

What language is spoken in Portugal and do people living in Portugal speak English?

Unsurprisingly, Portuguese is the main language spoken in Portugal. However, many locals and expats speak English well, especially in the popular expat cities. In fact, Portugal is ranked eighth on the Global English Proficiency Index for 2023 and is part of the “very high English proficiency” category on the index.

This means that the average expat in Portugal will be able to get by without being fluent in the Portuguese language. However, it will be useful to learn basic Portuguese to integrate into the local community, especially if you are planning to venture away from the major cities where fewer locals speak English fluently.

How did Portugal deal with COVID-19?

Portugal’s response to COVID-19 was notably proactive and focused on early interventions to control the virus’s spread. Forbes praised the country’s action during the pandemic, attributing early and decisive government action and the responsible behavior of the Portuguese people for Portugal being spared the worst of the devastation. The economy has since been recovering, with travel, tech, and innovation all on an upward trend to boost economic growth.

Visa Options for Expat Life in Portugal

The first and most important factor to consider when moving to a country is to determine how you are legally going to be able to reside in the country. If you are an EU national, the process of gaining a Portuguese residence permit is straightforward, given that it is free to live, work, and travel in the country. For non-EU citizens in search of a residence permit, the Portuguese authorities offer the following residency options, to cater to a wide range of expat profiles seeking to relocate to the country.

The Portugal Golden Visa Program

The Portugal Golden Visa, introduced by the Portuguese government in 2012, has become one of the most popular and successful residency-by-investment programs in the world. The Golden Visa scheme provides investors with an entryway to other EU member countries and the opportunity to become a Portuguese citizen.

As part of the residency process, investors must make a qualifying investment to be eligible for the program. There are a number of different pathways to qualifying for the Portugal Golden Visa Program, with the most popular being through investment funds.

The D7 Visa

For American expats considering moving to Portugal and obtaining permanent residency with their own funding, the Portugal D7 Visa, also known as the passive income visa, is your best option. Through this visa, the Portuguese government allows non-EU citizens to obtain residency in Portugal as long as they have sufficient means in the form of passive income to support themselves during their stay in Portugal.

The D7 Visa is a great option for retirees and entrepreneurs interested in moving to Portugal, without having to make a major financial investment.

You can also secure residency through marriage and by studying. Other popular visa options to consider include the D2 Visa for entrepreneurs and the D8 Visa for digital nomads, among others. You can contact our partners at Global Citizen Solutions for a full analysis of which visa option may be best for you.

Where will you find expats living in Portugal and how can you find accommodation?

Some of the areas most favored among expats in Portugal include Lisbon, Porto, the Algarve Region, and the Silver Coast. Later in the article, we’ll highlight these locations to help you see where you could picture yourself living.

But first, it’s good to have a game plan when you’re on the hunt for housing. When trying to find suitable accommodation in Portugal, working with a buyer’s agent is crucial. A buyer’s agent works on your behalf to analyze your needs, budget, and the full local real estate market to find the ideal home for you. This can be your secret weapon when seeking out good value deals in up-and-coming locations. Below we explore some of the other key considerations and insights for finding your dream home in Portugal.

Can expats buy property in Portugal?

As an expat, Portugal allows you the same rights to purchase property as a Portuguese citizen. There are no restrictions. However, there is a procedure to follow, which includes getting your own NIF number (Número de Identificação Fiscal), a tax identification number used for financial transactions in Portugal. It will also help to open a Portuguese bank account to save on transaction costs. If you’re working with a buyer’s agent, they will be able to advise you further on this process too.

House prices in Portugal

House prices in Portugal are very affordable when compared to other countries in the European Union. However, the Lisbon region and the Algarve region have their own price range compared to the rest of the country so bear this in mind. In Lisbon, the Portuguese capital, the average asking house price for a house in the city was €6,009 per square meter. In Porto, hot on Lisbon’s heels as the coolest city is the county, house prices stood at €4,296 per square meter.

In the Algarve, you will be able to find some spectacular properties, and average prices stood at €3,897 per square meter in 2023. The Alentejo, where the Portuguese locals spend their holidays, is a great place to consider with cheaper property prices if you are looking for a quiet escape in the heart of the Portuguese countryside.

Note that luxury buyers can expect to pay significantly more. Despite this, even luxury property in Portugal tends to be more affordable than in other European countries.

Finding the Best City to Live in Portugal

Portugal is a diverse country with many exciting cities and beautiful landscapes. Determining what you are looking for will help you hone in on the Portuguese city you will find perfect for living in Portugal. For example, to be in a bustling city, Lisbon is the place to be, the Algarve is for the sunseekers, and the Silver Coast is for those looking for a more authentic Portuguese experience. Here, we outline some of the most desirable locations in the country. For a rundown of our ten favorite spots, our article on the Top Ten Places to Live in Portugal will offer more insight.

There are many other potential locations, so it is worth speaking with a Goldcrest advisor who can discuss the best option for you – you can book a call in seconds.

Lisbon

Portugal’s cosmopolitan capital, Lisbon, has a diverse population and exciting, vibrant cultural scene that makes it a top choice for expats who are considering moving to Portugal. The Portugal LGBT expat community is also well established and thriving in Lisbon.

Its proximity to beautiful beaches, its claim as the sunniest capital in Europe, and the thriving art scene each create a unique city where something always seems to be going on. The architecture of the city is also very special. These days, there are several trendy coffee shops and brunch spots to work from, so remote workers can mix up their work habits. There are also several co-working spaces in the city to consider – also very good ways to meet fellow expats and Portuguese people from all walks of life.

There are several neighborhoods in Lisbon to consider, and our article, Best Neighborhoods in Lisbon, will guide you through some of the best spots to live in central Portugal.

Consider also Cascais real estate, the bustling seaside town, a short 30-minute drive from the bright lights of Lisbon, which is also an excellent option, particularly for lifestyle buyers.

Porto

With the Douro River spread out before you, the colorful, historic city of Porto is continually increasing in popularity. More affordable than Lisbon, over the years, Porto has even come to challenge Lisbon as the most beautiful city in the country and is a perfect place to live as an expat in Portugal.

The historic city has been the inspiration for JK Rowling’s Harry Potter novels – see the Livraria Lello Bookshop – and there are many hip coffee shops and trendy bars, given that the city is a buzzing university town.

When it comes to living in the city, there are several options. If you want the hustle and bustle of the city, you can live in the historic center. Elsewhere, Foz do Douro provides you with the best of both worlds – the sea and the city – and would be an excellent option. Particularly if you are moving with a family, there are spacious houses, and you can take walks along the long promenade with spectacular views of the Atlantic.

The Algarve

The beautiful Algarve is one of the best places for expats living in Portugal. With constant sunshine, spectacular scenery, and some of the most stunning beaches, you will be able to enjoy an active lifestyle the entire year. If you are a lover of watersports or golf, you can find excellent options. Some of the best surf spots and championship golf courses can be found in the south of Portugal. For golfers, the Old Course Golf Club at Dom Pedro Golf in Vilamoura is a fan favorite, while surfers can try Zavial and Castelejo beaches for amazing swells.

If you are undecided on the best areas of the Algarve for you, in the center, you will be able to find luxurious Algarve real estate options with all the perks that you could want – a swimming pool, security, and a private gym. For the adventurous, consider the Western Algarve, where you have excellent water sports locations.

The east, close to Tavira, is where you will find a more ‘authentic’ Portugal, which is quieter and less touristy. Each could provide an excellent place to live for an expat in Portugal.

The Silver Coast

For those looking for an authentic Portuguese region, the Silver Coast may be just the perfect place for you. Along the east coast of Portugal, just north of Lisbon and extending 150 kilometers north, beyond Nazaré, is a beautiful stretch of scenery – rugged coastlines, picturesque towns, and pristine beaches.

The Silver Coast provides property investments at an affordable cost, close proximity to the historic cities in Central Portugal, and incredible Portuguese food – particularly seafood. There are incredible properties on the Silver Coast that have sweeping views of the Atlantic Ocean.

In many towns on the Silver Coast, there remain vibrant traditions. Take Nazaré, for example, where the fishermen’s wives still wear their colorful traditional skirts, wooden clogs, and black headscarves. Fishing is synonymous with the Silver Coast and in many of the towns you can see the fishermen drying their catch in the sun. As you would expect, this part of Portugal is home to some of the very best fish and seafood dishes in Europe, fresh from the ocean.

Cost of Living for Expats in Portugal, Western Europe

Living in Portugal as an expat is relatively cheap compared to other European countries. If you’re considering living in Portugal as an American, the cost of living in Portugal is almost 38 percent lower than in the United States. Living costs will invariably depend on an expat’s average salary and spending habits. In general, a coffee will cost you around €1.79, and a hearty Portuguese meal in a tasca (Portuguese restaurant) will cost you no more than €10.

However, you should keep in mind that if you venture into luxury restaurants in major cities like the Lisbon region and Algarve coast, be prepared to pay international prices. You should also note that the cost of living in Lisbon can be more expensive than in the rest of Portugal, but even so, you should be pleasantly surprised by the prices. Household essentials are generally cheaper than in another European country, particularly if you buy locally.

Culture and Customs in Portugal

Family and community ties are deeply valued in Portugal, and social gatherings often revolve around sharing meals and traditions. Soulful Fado music is part of the local culture and popular in cities like Lisbon and Porto, providing a window into the country’s rich artistic heritage.

The Portuguese are generally welcoming and known for their hospitality, making it easy for expats to feel at home. In Portuguese culture, daily life tends to be relaxed, with locals often savoring a slower pace of life.

Celebrations and festivals are abundant, from the lively Carnival in February to local saints’ festivals throughout the summer, offering a chance for many expats to connect with both tradition and the Portuguese love for good food, music, and community.

Portugal also has progressive LQBTQ+ rights and laws, in addition to Pride festivals and events, making it a welcoming place for members of the community.

At the end of the day, there are so many good reasons why over one million expats have decided to make Portugal their home and many more continue to do so.