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. Whether it’s because of the relaxed pace of life, pristine beaches, or the relatively low cost of living in this beautiful Western European Union country, there are many expats moving to Portugal to work, retire, or for a fresh start.

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

There are numerous advantages to living in Portugal as an expat. The blend of affordability, a pleasant climate, and a relaxed lifestyle makes it attractive for expats seeking a change of pace.

Here is a more detailed look at the pros of living in Portugal:

Mild climate

While the weather does vary from region to region, Portugal enjoys a mild Mediterranean climate that is generally warm. The Algarve region is known for almost year-long 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.

Stunning beaches and natural landscapes

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 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.

High quality of life

The overall quality of life in Portugal is difficult to match. According to the Global Citizen Solutions Quality of Life Index, Portugal ranks sixth in the world for the quality of life it offers. The index considers factors like 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 in the Algarve region. In this way, every lifestyle preference is catered for.

Safety and 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. With a low crime rate, Portugal provides a safe haven for residents and visitors alike.

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. This makes Portugal one of the most attractive destinations globally for both living and tourism.

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 European countries.

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

Quality education 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 invests in state-of-the-art facilities and education materials for public schools. 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.

Excellent healthcare

Portugal spends between nine and ten percent of its GDP per annum on healthcare. 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.

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. Most of them cover a good portion of the full cost of treatment.

Americans moving to Portugal will be pleasantly surprised by the affordability of private health insurance options in Portugal compared to the USA. You can uncover the secrets of the Portuguese healthcare system in our easy-to-digest guide, put together by our partners, Global Citizen Solutions.

Entertainment and recreation

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 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.

World-class food and wine

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 Ocean, Portuguese cuisine is all about bold flavors and simple, high-quality ingredients.

In fact, Lisbon was crowned “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 redefining tradition.

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

English is widely spoken

Portuguese people speak English widely, and Portugal ranks sixth on the EF English Proficiency Index. This makes it easy to communicate even if you are not fluent in the Portuguese language, helping English-speaking expats, like Americans living in Portugal, to adapt quickly without having to learn Portuguese before moving.

Welcoming local culture and diverse expat community

The friendly locals and warm hospitality of the Portuguese people adds 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.

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.

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

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 which 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.

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 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.

Accessible transportation

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.

Advancing start-up 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 start-up 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.

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, 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:

Navigating the language barrier and learning Portuguese

While the English language is widely spoken in Portugal, we recommend you take time to familiarize yourself with the local language to fully immerse yourself in the country and culture.

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

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.

The need to carry cash

The Multibanco system issues bank cards in Portugal, and Visa and MasterCards are not accepted everywhere. It is advisable to carry cash with you and check whether an international bank card is accepted. It is also recommended to open a Portuguese bank account in the first few months of arriving in Portugal.

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.

Congested tourist areas

Living in Portugal means sharing its beauty with the millions of tourists who flock to 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 in 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.

Bureaucracy and pace of life

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 offers a slow pace of life that may not appeal to everyone, but you will soon get accustomed to Portuguese life should you move to Portugal and come to appreciate the time taken to enjoy your morning coffee or a long lunch with friends.

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.

Limited job opportunities in certain industries

While there are opportunities for expats finding 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.

Considering all the good and bad things about living in Portugal, the benefits of living in Portugal still far outweigh the drawbacks. That said, it’s up to you to decide whether life in Portugal is worth it.

Moving to 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 Portuguese residence permit, the Portuguese authorities offer a wide range of residency options, to cater to all expat profiles seeking to relocate to the country. Below are some of the more popular pathways to residency and life in Portugal

The Portugal Golden Visa

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

The Portugal D7 Visa, also known as the passive income visa, is the best option for passive income earners. 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.

The D8 Visa

The Portugal Digital Nomad Visa (or D8 Visa), introduced in 2022, allows you to relocate to Portugal provided you work for a foreign (non-Portuguese) employer.

This visa offers a pathway for temporary residency in Portugal without participating in local employment. To qualify, you will need to demonstrate a stable and reliable source of income from your remote work or business activities, earning at least four times the Portuguese minimum wage (currently €870).

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

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.

Closing Insights on Living in Portugal

The pros and cons of living in Portugal make it clear that the benefits of living in Portugal are unrivaled. From the safety and pleasant climate to the tranquility and culture, Portugal is the ideal place to live. As such, Portugal is also considered one of the best countries for Americans to retire, given its safety, low cost of living, and superior quality of life.

With the right assistance from a migration agency or buyer’s agent, the pathway to living in Portugal or even gaining Portuguese citizenship can be easily navigated.

Whether it’s the low cost of living, the strong expat community, or if you are simply looking for a fresh start in a delightful country, Portugal has cemented itself as one of the most desirable countries in Europe to live in, with stunning locations such as the Algarve, Lisbon and Porto, having caught the attention of expats from across the world.

When moving to Portugal, a buyer’s agent is also highly recommended. At Goldcrest, we work solely for the client and provide tailored advice based on what you are looking for – whether it is to retire, relocate, or invest in the country.

We are an established player in the market, so please get in touch to discuss how we can work with you to secure your dream property in Portugal. You can book a call with us today.