Navigating Life for Expats in Portugal: The Ultimate Guide

Feeling the pull to join the one million plus expats in Portugal? You are not alone. The country’s rich history and unique traditional charms are the tip of the iceberg when it comes to all the reasons Portugal continues to grow in popularity among expats.

Relocating abroad and living in a foreign country as an expat can be challenging, but you can rest assured knowing Portugal offers a warm welcome and an expat experience filled with simple pleasures and endless possibilities. If you know what to expect, living in Portugal could turn out to be an extremely rewarding life decision.

Portugal for expats means enjoying a captivating country with a warm climate, friendly and welcoming Portuguese citizens, excellent Portuguese cuisine accompanied by a laid-back lifestyle, visa-free travel to other European countries for legal residents, and a growing real estate market in an extremely safe country.

In this ultimate guide, we will explore the reasons why American and British expats, and other non-EU citizens, are relocating to Portugal in hopes of obtaining Portuguese residency, with the possibility to secure Portuguese citizenship also on the cards.

The Advantages of Living in Portugal

Portugal attracts expats from all walks of life, including retirees, remote workers, young professionals, and even foreign investors with their family members. There are plenty of advantages to living in Portugal as an expat. From a practical point of view, the cost of living in Portugal is low, and you’ll find property prices to be very affordable when compared with other Western European destinations.

The cost of living is relatively inexpensive

Portugal is considered one of the cheapest Western European countries, and the cost of living in Portugal is, on average, 36-39 percent more affordable than the United States. From an economic perspective, living in Portugal as an American is as good as it gets.

Portugal also has affordable living costs compared to other European Union countries (EU) countries and you live comfortably on an average salary of €1,400. Prices in Portugal are significantly lower than prices in neighboring Spain and other European nations like Switzerland, Austria, the United Kingdom, and others. This is a crucial reason why Portugal has become a favorite with foreign buyers.

Below there are some average costs of the basic expenditures in Portugal:

Tax benefits for foreign residents 

Until the Non-Habitual Residents (NHR) program ended in January 2024, foreign residents living in Portugal benefitted from the non-habitual resident (NHR) tax status as a foreigner with a Portuguese residence visa.

It’s still possible for some individuals to apply for the NHR regime until March 31, 2025. Discover more about the latest changes to the NHR program in this article, Full Guide to Non-Habitual Resident Portugal.

Quality of education 

The quality of primary, secondary, and tertiary education is high in Portugal, leading many young families to relocate here for education prospects for their children. There are 51 international schools in Portugal, offering a range of curricula and language options to parents. The European Union recognizes Portuguese university degrees, enabling graduates to obtain a job in any of the 27 member countries. 

Portugal’s education system uses English and Portuguese to teach university courses. However, not all universities in Portugal provide English language courses. To provide you with some examples of costs, at the University of Coimbra, a degree in Portuguese costs at least €7,000 annually, while at the University of Porto, a bachelor’s degree in English costs at least €3,500 per year. 

Quality of healthcare 

Portugal dedicates nine percent of its GDP to healthcare annually. The 2024 Health Care Index  by Numbeo ranks Portugal in 19th position, indicating that it has one of the best healthcare systems in the world. 

Portuguese residents will find that healthcare is very affordable, although they may need to pay a little extra for certain operations, X-rays, etc. Compared to many other European countries and in America, healthcare costs are very reasonable. For more information, you can consult our Portugal Healthcare article. 

Additionally, if you are covered by the national healthcare system of an EU/EEA country or Switzerland, you can apply for a European Health Insurance Card (EHIC). This is issued free of charge and gives individuals free access to healthcare in all EU and EEA countries, in addition to Switzerland and the UK. Note that for British Citizens, when your EHIC card expires, you must apply for a Global Health Insurance Card, which has replaced the EHIC card.   

Government hospitals offer free medical care for Portugal’s inhabitants and residents. Private clinics provide a higher level of service, including the ability to speak with doctors on the phone, and booking an appointment is quicker than at public clinics. Your medical expenses may be partially or entirely covered by private health insurance policies or international health insurance.

The hospital network in Portugal consists of modern units well-equipped throughout the country. An integrated medical emergency system provides care for anyone injured in an accident or who suddenly takes ill.  There are also excellent private clinics up and down the country.

Mediterranean climate 

Portugal has a generally mild climate that varies by region. The north is prone to rainfall, while the south gets more arid conditions. In August and September, the sea is at its warmest, and August is the hottest month in the country. Temperatures in the country’s Mediterranean climate range from 13 Degrees C to 19 Degrees C all year round, although temperatures can frequently be higher than this. Winters in Portugal are also warm. Lisbon’s January daily average temperature is 14.7 Degrees C.

The most memorable thing you’ll quickly notice about Portugal’s pleasant weather is its golden sunlight, shining throughout the year.  The Mediterranean climate makes it possible to enjoy the simple pleasures of hiking on the weekend, trips to the beach, and sight-seeing in popular locations like Lisbon, Porto, and the Algarve region throughout the year.

Entertainment and recreation 

As an expat in Portugal, you’ll have access to an unlimited number of cultural experiences and outdoor activities to make your vacation or life in the country a memorable one. You can discover Portugal’s rich history in castles and fortresses in located different regions of the country, swim in the Atlantic Ocean on the stunning Lisbon Coast, or explore the Serra da Estrela mountains located in the middle of Portugal close to the charming old city of Guarda.

From top to bottom of the country, you will have the opportunity to explore the local culture of Portugal, with each region having its own traditions. Portugal is also known for its resorts, beaches, local markets, and attractions. For instance, the Algarve region has long been regarded as one of the best places to live in Portugal, with its pristine beaches, unique landforms, excellent climate, and delicious seafood.

The English language 

While Portuguese is the official language, most people in Portugal speak English, particularly younger people. Therefore, living in Portugal as an American, a British citizen, or any other foreign national with a good command of English, you won’t have much of a problem if you don’t have to speak Portuguese very well or are still getting up to speed with the language.

While there probably won’t be much of a language barrier in the bigger cities, in the more rural parts of the country, you will find that older generations may not speak English, and it can be a good idea to learn basic Portuguese. Also, in some government organizations, English is not so commonly spoken, so it is a good idea to speak at least an elementary conversational level of Portuguese.

The pace of life 

Portuguese culture is easy and simple to integrate into and enjoy, with people generally placing more importance on spending time with loved ones and the importance maintaining a healthy work/life balance. People typically don’t rush off anywhere, making it the perfect country to go to relax and unwind. Portugal currently ranks 6th on the Global Citizen Solutions Quality of Life Index with an overall happy population.

Portugal has a low crime rate 

The Portuguese are hospitable, kind, friendly, and welcoming to foreigners. The country has a very low crime rate, so you should have very few problems. Safety is very important when relocating, but if you’re asking yourself is Portugal safe? you’ll find the country to be one of the safest in Europe. Portugal ranks in seventh place in the 2024 Global Peace Index. 

Disadvantages of Portugal Expat Life

Have you ever considered the bad things about living in Portugal? As with any other country, living in Portugal has several drawbacks, some of which are highlighted below.  

Difficulties with paying by card 

Make sure that international bank cards are accepted where you shop, and you should also have cash in hand for cases where your card is not accepted. As for larger financial transactions that you might need to make if you move to Portugal, for example, buying property there, opening a Portuguese bank account should be high on your list of things to do. This will not only make your transactions simpler but also save on transaction costs.

You will also need to get a NIF and your tax identification number. Your NIF is required to carry out any transaction in the country, and you will also need it to open a bank account in Portugal. You can read more about how to get a NIF tax identification number in Portugal in this article from our residency and citizenship division, Global Citizen Solutions.

Lack of central heating  

While Portugal has an incredible climate, it can get cold inside in the winter. Due to the lack of central heating or good insulation in many older apartments, you will need to make sure you have a good heating system in place to keep warm.

Beaches 

Portugal’s entire coastline stretches for 1187 km, with plenty of gorgeous picture-perfect beaches for surfers and water sports enthusiasts. Most of the beaches in Portugal have family-friendly modern facilities. 

Useful Portuguese phrases 

The basics “bom dia” (good morning), “boa tarde” (good afternoon), or “boa noite” (good evening), and the general phrase “tudo bem?” (how are you doing?) are commonly used phrases among the Portuguese. These phrases are an excellent place to start a conversation with a local.  

Yes, more in-depth conversations with Portuguese people will be easier if you learn the Portuguese language. Portuguese also has certain mannerisms and expressions, so speaking with locals will help you sharpen your communication skills.  

Other useful Portuguese language phrases may be: 

• “Eu gostaria de pedir…” (“I would like to ask for…”) 
• “Poderia ajudar-me?” (“Could you help me?”) 

Almost all Portuguese speakers speak a second language, so if you develop conversations in English, French, or Spanish, there’s a reasonable probability of being understood.

Culture 

Portugal is located physically and historically at the meeting point of three continents — Europe, Africa, and America — and constitutes a privileged entry point into the Schengen area. Manueline art, tiles, and fado are unique expressions and symbols of the Portuguese and their contribution to world heritage. In Portugal, as of 2022, UNESCO has classified 14 World Heritage Sites for architectural monuments and landscapes, with a further 19 on the UNESCO tentative list. Quite a few for such a small country.  

Transportation and navigation 

Portuguese public transportation has improved dramatically in recent years. While a few things could be improved here regarding network coverage and schedule continuity, you will generally find that public transport links are excellent.  

Transportation in Portugal is convenient and of high quality, especially in large cities. That said, many people use a car to get around. Unfortunately, cycling isn’t considered popular in Portugal due to the unevenness of the ground and the few bike lanes.

However, there have been initiatives to encourage cycling in recent years, with bike lanes now common in Lisbon. There are also many electric bike and scooter points across the city, whereby you can quickly jump on a scooter to get around easily.  

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.  

The Job Market

If you are planning a move to Portugal and do not have a job that can move with you, you may soon be on the hunt for local job opportunities. While some areas of Portugal’s job market can be competitive, there are several industries that offer opportunities. It is possible to land a job in the country with some research, networking, and patience. If you have the qualifications and experience, the tourism and tech industries are growing steadily, and many international companies in these industries are setting up shop in Portugal.

Coworking spaces 

Coworking spaces in Portugal are becoming quite popular, but they mainly exist in big cities. Digital nomads flocking to Portugal will find that the country is generally a perfect place to settle for working remotely in Portugal. Lisbon is home to one of Europe’s largest digital nomad
communities, with regular meetups and coworking spaces popping up all over the city to
accommodate the influx of freelancers and startup companies.

Over 50 coworking spaces are available, catering to freelancers, startups, and small businesses in Lisbon. Digital nomads will have plenty of places to try out and find the best place to work and meet new people.

Nightlife 

Portuguese nightlife offers great surprises for those looking to party in a friendly country. The cities host a young, bohemian, multicultural soul, and, above all, there are nightlife options to cater to all tastes and budgets.  

How to get residency in Portugal?

If you are looking to live in Portugal, you will need to get a residence permit. The Portuguese government offers many different Portuguese visas and residency options to cater to different expat profiles. We’ve highlighted some of the most popular below.

Portugal Golden Visa: For a qualifying investment in the country, you can secure Portuguese residency under the Portugal Golden Visa program. Investment options for the Golden Visa include investment funds, job creation, and investments into cultural production, amongst others.

Portugal D7 Visa: Also known as the retirement visa or passive income visa, the D7 Visa allows you to live in Portugal, provided you have sufficient passive income to support yourself in the country. Compared to the Golden Visa, the D7 Visa does not require a qualifying investment in the country.

Portugal Digital Nomad Visa: The Digital Nomad Visa (or D8 Visa), introduced in 2022, allows you to relocate to Portugal provided you work for a foreign (non-Portuguese) employer and earn four times the Portuguese minimum wage (€820).

Portugal D3 Visa: Designed for highly skilled professionals, you will be able to live and work in Portugal for up to a year with this residency visa, which can then be renewed for two additional periods of two years.

After five years of legal residency in Portugal, you can obtain permanent residency and Portuguese citizenship. Being a Portuguese citizen unlocks an array of benefits, such as the ability to live and work in any EU member country and increased travel freedoms.

Should you need to discuss your residency options or assistance with the Portuguese visa process, our residency and citizenship partner, Global Citizen Solutions, would be more than happy to assist you.

Goldcrest: Why Work with Us?

Goldcrest is a local buyer’s agent based in Lisbon, Porto, and the Algarve that provides insightful real estate expertise and strategic advice. From sourcing to property acquisition, we offer a tailor-made service for our clients, assisting them in identifying outstanding investment opportunities in some of Portugal’s finest locations, from relocation to investment projects.

• Local knowledge: With offices located across Portugal, our presence nationwide allows us to assist you personally across the country.
• Independent service: As an independent buying agent, we do not represent any development or project. Our service is entirely tailored toward each individual client, providing you with everything you need to secure the right property at the best possible price. As an impartial advisor on the market, we work solely on behalf of our client and provide a service tailored to your needs and requirements.
• Streamlined process: We have a team of estate agents in Portugal, and our service is completely focused on providing you with a hassle-free buying experience, saving you time.
• Experienced team: Our expert real estate team has a vast local knowledge of the Portuguese property market. We have cutting-edge technology and metasearch tools at your disposal to provide full market coverage, ensuring the best real estate in Portugal is at your fingertips.
• Network of partners: Lawyers, property management services, builders, architects, designers, and landscape gardeners, again saving you time and hassle by providing you with trusted experts in their field of work.