Pros and Cons of Living in Portugal as an Expat in 2025

Feeling the pull to join the one million plus expats in Portugal? You are not alone. There are many advantages to living in Portugal, like the relaxed pace of life, beautiful beaches across the Atlantic, and the affordable cost of living compared to other Western European countries. Portugal is well set up for digital nomads, entrepreneurs, retirees, and those looking to raise a family.

However, living in Portugal may come with some challenges, too. Language barriers can be tricky to navigate, bureaucracy processes can be slow, and the major tourist areas can get congested during peak seasons. So, it’s important to weigh both sides to see if it’s the right move for you.

If you’re considering a move to Portugal, keep reading to discover the pros and cons of living in Portugal as an expat. We’ll also delve into the logistics of how to move to Portugal and the best places to stay.

Pros of Living in Portugal

For many expats who are thinking about moving to Portugal, pros and cons lists are an important part of the decision. What counts as a “pro” or a “con” often depends on your lifestyle and personal priorities.

If you’re planning to move with children, the quality of education will be a significant factor. Whereas if you’re thinking about retiring in Portugal, pros and cons relating to healthcare, and the climate might inform your decision.

First, let’s explore the advantages of living in Portugal:

1. High quality of life

According to the Global Citizen Solutions Quality of Life Index, Portugal ranks sixth in the world for the quality of life it offers. Portugal’s environmental sustainability, the cost of living, infrastructure, and personal and political freedoms.

While residents generally enjoy a slow pace of life, you can still get your fix of the hustle and bustle in cities like Lisbon or enjoy a more laidback lifestyle in places like the Algarve. In this way, every lifestyle preference is catered for.

2. High level of safety with low crime rates

Portugal is the seventh safest country in the world according to the 2024 Global Peace Index, underscoring the country’s commitment to peace and social harmony.

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, the low crime rates and Global Peace Index ranking brings peace of mind and provides the freedom to live and move around the safe country without worry. This makes Portugal one of the most attractive destinations globally for both living and tourism.

3. Affordable cost of living

As with any country, the cost of living in Portugal varies depending on the area you live in and the lifestyle you lead. In general, however, the cost of living in Portugal is relatively low compared to other Western European countries.

The table below will give you an idea of the average prices that make Portugal an affordable country.

*Numbers are estimates and can differ from city to city.

4. Warm climate year-round

While the weather does vary from region to region, Portugal enjoys a mild Mediterranean climate that is generally warm. The Algarve is known for its warm summers and very mild winters, perfect for those who prefer sunny weather. Lisbon and Porto generally experience hot, dry summers and short, rainy winters.

The warmest season in Portugal lasts from around mid-June to late September, with daily average temperatures exceeding 25 degrees Celsius (78 degrees F). These months are also the sunniest and bring with them a lot of outdoor activities like water sports and golf.

5. Excellent public and private healthcare

Portugal spends between nine and eleven percent of its GDP per annum on healthcare. Because of this high investment into healthcare in the country, the Portuguese healthcare system (Serviço Nacional de Saúde) is generally excellent.

Medical care is free at public hospitals and available to Portuguese residents and Portuguese citizens. Europeans can also make use of the European Health Insurance Card (EHIC).

In healthcare clinics with private health insurance, you can generally benefit from a higher level of service and the ability to get appointments faster than in public hospitals. There are different private health insurance policies available in Portugal, offering different packages at different prices, usually starting at around €30 to €40 for basic plans and going up to €300 or more for more premium and comprehensive options. Most of them cover a good portion or the full cost of the treatment.

Americans moving to Portugal will be pleasantly surprised by the affordability of private health insurance options in Portugal compared to the USA, where private health insurance starts at over $450 (about €395) per month. You can uncover the secrets of the Portuguese healthcare system in our easy-to-digest guide, put together by our partners, Global Citizen Solutions.

6. High quality education system and international schools

The quality of primary, secondary, and tertiary education is exceptionally high in Portugal, leading many young families to relocate here for education prospects for their children.

The Portuguese education system provides a mixture of private and public schools as well as 51 prestigious international schools in Portugal, mostly clustered in Lisbon, Porto, and the Algarve. An international school in Portugal will offer a range of curricula (including an American or British curriculum) and multiple languages.

The Portuguese government also continuously invests in its school facilities and educational materials for public schools, ensuring a high standard of education. Meanwhile, the private sector generally has a smaller class size, more extracurricular activities, and more modern facilities.

Degrees from Portuguese universities are recognized across the EU, making it easier for graduates looking to work in other EU countries. Many university courses are taught in both Portuguese and English, although English courses are not available at all universities in Portugal.

7. Thriving startup and tech scene

Portugal is fast becoming one of Europe’s hottest tech hubs, attracting entrepreneurs, investors, and digital nomads from around the world. Cities like Lisbon and Porto are buzzing with innovation, fueled by government schemes like the introduction of the Digital Nomad Visa, a strong talent pool, and a thriving startup ecosystem.

The country hosts Web Summit, one of the world’s largest tech conferences, solidifying its reputation as a global innovation center. Lisbon’s Unicorn Factory, a flagship innovation center, has already produced major startup success stories, while Porto is emerging as a key player in AI and deep tech.

8. Healthy work-life balance

Portuguese culture emphasizes a good work-life balance, allowing workers to enjoy personal time with family and friends, and to pursue their personal interests and hobbies.

You’ll often see employees enjoying relaxed lunch breaks, and weekends are typically reserved for rest, leisure, and socializing.

Paid vacation is also well respected, with many workers taking time off during the summer or around traditional holidays. This approach helps create a more balanced and fulfilling lifestyle, which many expats find refreshing.

9. No restrictions on foreign property ownership

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 Portugal 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.

10. Ease of immigration with many visa options available

The Portuguese government has made a range of visa options available over the years, making it easy for expats to move to the country. Some of the more popular options include the Golden Visa for investors, the Digital Nomad Visa for remote workers and freelancers, and the Passive Income Visa for retirees.

11. Attractive tax incentives

In the wake of the successful NHR program ending, the new IFICI (Tax Incentive for Scientific Research and Innovation – or NHR 2.0) is a new tax benefit available in Portugal to eligible expats.

It is a special tax regime that grants tax benefits to highly qualified professionals who become tax residents in Portugal. Eligible income is taxed at a fixed 20 percent rate, while foreign-source income is generally exempt but must be reported. This results in significant tax savings for those who qualify.

For more information on the qualifying criteria of this tax incentive, see our article on Portugal’s NHR 2.0 tax regime.

12. Accessible transportation and well situated for travel

Public transportation in Portugal is convenient and of high quality, especially in large cities. That said, many people use a car or ridesharing apps like Uber and Bolt to get around.

For keen travelers, there are international airports in Lisbon, Porto, and Faro. Each international airport has good links, so you can easily explore Europe for a weekend getaway or even further afield.

13. Many options for entertainment, recreation, and outdoor activities

Portugal is host to endless sights and activities to keep you entertained during your time there. In 2024, Portugal received 24 World Travel Awards for its attractions, beaches, and resorts. Included in the list of winners was Lisbon, taking the title of Europe’s leading city destination for 2024.

You can swim in the Atlantic Ocean, explore the mountain ranges, visit castles and fortresses, and go hiking. You could even take your lead from the locals who enjoy fishing, surfing, and diving.

Alongside this, Portugal’s nightlife is a world of its own, and there is always something to do once the sun goes down. Keen shoppers will also find excellent shopping options, including luxury shopping in Portugal.

14. World-class food and a rich wine culture

Portugal is a dream destination for food and wine lovers. Whether it’s the crispy, custard-filled pastel de nata or the freshest seafood straight from the Atlantic, Portuguese cuisine is all about bold flavors and simple, high-quality ingredients.

In fact, Lisbon was crowned Europe’s Best Culinary City Destination in 2024, a well-earned title for its mix of Michelin-starred restaurants, cozy neighborhood tascas (family-run traditional restaurants), and innovative chefs.

The country’s thriving wine scene is just as impressive, with the Douro Valley’s world-famous Port wine, and the crisp Vinho Verde from the north.

15. English is widely spoken

Many Portuguese people speak English very well, with Portugal ranking sixth on the EF English Proficiency Index. This makes it easy to communicate even if you are not fluent in the Portuguese language. English-speaking expats like Americans living in Portugal will be able to adapt quickly without having to learn basic Portuguese before moving.

16. Welcoming locals and diverse expat community

The friendly locals and warm hospitality of the Portuguese people add to the appeal of life in Portugal, creating a welcoming atmosphere for tourists and expats who have come to call Portugal their home.

Family and community ties are deeply valued in Portugal, and social gatherings often revolve around sharing meals and traditions.

In the major expat areas like Lisbon, Porto, and the Algarve, Portugal expat communities are growing and thriving. You’ll find a diverse mix of expats from around the world, such as America, Brazil, Spain, the UK, and beyond.

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

17. Stunning beaches and natural beauty all around

Portugal’s entire coastline stretches for 1187 km, with plenty of gorgeous picture-perfect beaches for surfers and water sports enthusiasts. The country boasts many stunning Blue Flag beaches, known for their pristine waters and environmental quality, from the golden cliffs of Praia da Marinha to the massive waves of Nazaré.

Beyond the coast, Portugal’s natural landscapes are just as breathtaking. The Serra da Estrela mountains, Douro Valley vineyards, and volcanic beauty of the Azores and Madeira provide endless outdoor adventures, making Portugal a top destination for nature lovers.

18. Rich culture and history

Portugal offers a rich cultural heritage shaped by centuries of history, from ancient Roman ruins to medieval castles and Moorish architecture. The country’s traditions are woven into daily life, from Fado music and colorful festivals, to museums, historic towns, and UNESCO World Heritage sites.

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.

Cons of Living in Portugal

As with any country in the world, the advantages of living there will be accompanied by some drawbacks. When moving to any country, including European countries, it is crucial to understand these drawbacks so that you have a realistic idea of what to expect.

Here are some of the bad things about living in Portugal and the downsides of the Portugal lifestyle:

1. Navigating the language barrier and learning Portuguese

While the English language is widely spoken in Portugal, it is less spoken in rural areas and where there are fewer expats and tourists.

Plus, many people in government offices speak Portuguese and are not familiar with English, making it more challenging to get things done if you or someone with you does not speak a basic level of the Portuguese language.

It would be best to familiarize yourself with the local language to fully immerse yourself in the country and culture. While this can be daunting, it’s never a bad idea to learn the official language of the country you live in. If you are to learn Portuguese, locals usually go out of their way to assist you with mastering the language.

2. The need to carry cash

While credit cards are generally accepted in urban areas, many local businesses only accept cash. This creates a need to carry cash with you at all times and visit the ATM quite often. It is also recommended that you open a Portuguese bank account in the first few months of arriving in Portugal to minimize transaction fees.

3. Lack of central heating

Apartments are generally cold inside during the winter, as the older properties generally have no central heating system. When looking for a property to rent or purchase, pay special attention to insulation and other heating amenities that will help keep you warm in colder weather.

4. Congested tourist areas and seasonal fluctuations

Living in Portugal means sharing its beauty with the tourists who visit the country. While tourism is great for the economy, it can make everyday life in popular spots like Lisbon, Porto, and the Algarve a bit overwhelming—especially during peak season.

If you value peace and quiet, you might find yourself seeking out lesser-known towns or adjusting your routine to avoid the crowds.

5. Bureaucracy and pace of life can be slow

Portuguese bureaucracy is a point of concern whether you’re a Portuguese citizen, a Portuguese resident, or a foreigner. Appointments can be difficult to get, applications can move slowly, and paperwork takes time. This is important to remember if perhaps you are used to a faster pace in your home country.

Portugal’s slow pace of life may not appeal to everyone and could also need some getting used to.

6. Time zone differences

Portugal operates on Western European Time, which can be a blessing or a challenge depending on where your work or family is based. For Americans living in Portugal and working remotely for a US company, for example, late-night or early-morning meetings might become part of your routine.

7. Limited job opportunities in certain industries of the job market

While there are opportunities for expats to find work in Portugal, it can be challenging, especially if you do not speak Portuguese.

In industries like finance and in corporate positions, salaries tend to be lower than in other Western European countries and the USA. Many expats and locals find success in tech and tourism sectors, but if your field isn’t in high demand, securing a well-paying job might be tough. Speaking fluent Portuguese is often a requirement for non-tech or non-digital roles, adding another challenge for newcomers.

A silver lining is that, through Portugal’s Digital Nomad Visa, you can live in Portugal while working remotely for a foreign employer, giving you access to more career options.

8. Occasional extreme weather in summer

Particularly in inland areas, temperatures can reach uncomfortable highs in the summer months. If you’re planning on living in these areas of Portugal, it’s best to plan for heatwaves.

9. Long waiting times in public health facilities

While Portugal has a high-quality public healthcare system, the wait times for securing an appointment can be long. If you need medical appointments urgently, private healthcare may be a better option.

10. Petty crime is present in tourist areas

While Portugal is generally safe, petty crimes like pickpocketing can occur in busy tourist spots, especially in cities like Lisbon and Porto. Staying alert in crowded areas and keeping valuables secure is important.

11. Lack of access to healthcare and transport in rural areas

In more remote parts of Portugal, public transportation can be limited, and access to healthcare services may involve long travel times. This can be a challenge for those without a car or with ongoing medical needs.

12. Increasing cost of housing in major expat cities

Housing prices in Portugal have been rising steadily, particularly in popular expat and tourist destinations. This can make it difficult to find affordable long-term rentals or property to buy, especially in urban centers and along the coast.

Living in Portugal Pros and Cons: Side-by-side Comparison

The Algarve

Moving to Portugal