Living in Portugal: Expat’s Handbook with Pros and Cons for 2026

Pros of Living in Portugal

Wondering “Is Portugal a good place to live”? Portugal offers a high quality of life due to its superior safety standards, universal healthcare system, and lower costs than other European nations and the United States.

Here is a list of all the good things about 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. The lifestyle in Portugal revolves around the beautiful beaches along the Atlantic Ocean and the nearby mountains.

Portugal’s quality of life is renowned across the globe. Daily life revolves around the family and respecting local traditions. Most locals dedicate their Sundays to connecting and socializing, which is when they organize extended family gatherings.

Many expats prefer the coastal living and laidback lifestyle of places like the Algarve and the Silver Coast, while others gravitate toward city life in Lisbon and Porto.

2. High level of safety with low crime rates

So, is Portugal a safe place to live? Yes. The country ranks 7th on the Global Peace Index in 2025, right after Singapore and Switzerland, making it one of the safest countries for everyday life. Portuguese people enjoy a relatively relaxed lifestyle.

Portugal’s crime rates are relatively lower, providing more safety than in New York City, Paris, and London. The Portuguese government implemented strict gun laws to create better stability for everyone in the country.

Portugal is also incredibly welcoming to LGBT expats, making it one of the most attractive destinations globally for both living and tourism.

3. Affordable cost of living

Living expenses in Portugal are relatively low, with an average couple spending €2,500 to €3,000 a month. However, Lisbon, the capital city, tends to have higher living costs but attracts the highest number of tourists, investors, and entrepreneurs.

For example, rent for a one-bedroom apartment in central Lisbon can cost over €1,370, and in Porto, over €1,099 in the city center.

The cost of living in Portugal is more affordable than in the United States, Spain, and the United Kingdom. A single person can spend about €671 per month, without rent, and €2,429 for a family of four. But the total expenses depend on the location. Overall, people spend less on daily expenses, mainly because of lower grocery prices, dining-out costs, utility costs, and property purchases, while still enjoying a high quality of life.

The table below offers the average costs in Portugal for grocery shopping and utilities.

Source: Numbeo

For example, the cost of living in Portugal vs USA is significantly lower in Portugal for housing and healthcare. In Lisbon, you can rent a one-bedroom apartment at a fraction of the cost compared to major US cities like New York or San Francisco.

4. Warm summers with mild winters

The main perk of expat life in Portugal is the sunny climate. Every year, Portugal gets about 300 days of sunshine. While winters are mild, summers are warm, particularly in the south.

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 °C (78 °F). These months are also the sunniest and bring many outdoor activities, such as water sports and golf.

5. Excellent public and private healthcare

Portugal’s health care system is extensive, and in 2025, about 10.6 percent of its GDP (Growth Domestic Product) was dedicated to health expenditures. Portuguese residents and citizens get many free services with small co-payments in the public healthcare system (Serviço Nacional de Saúde or SNS).

Although public healthcare in Portugal is accessible, most expats choose to pay for private insurance, about €400–€1,000 per year, to bypass wait times and consult more English-speaking doctors.

Basic coverage for private health insurance in Portugal starts at about €30 per month for one person. Still, these costs are more affordable than in the United States and many other European countries. 

6. High education standards

Schools in Portugal provide quality education. According to the Global Education Report by Global Citizen Solutions, Portugal ranks 25th due to its effective policies, curriculum, and qualified teachers. The University of Lisbon, the University of Porto, and the University of Coimbra are some of the leading Portuguese universities, based on the QS ranking in 2025.

You can find international schools in Portugal, mostly in Lisbon, Porto, and the Algarve. Meanwhile, the private sector generally has a smaller class size, more extracurricular activities, and more modern facilities.

The Portuguese government also continuously invests in its school facilities and educational materials for public schools, ensuring a high standard of education.

Degrees from Portuguese universities are recognized across the European Union, 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’s startup landscape is booming due to a supportive immigration process, qualified talent, tech innovation, and government incentives.

Cities like Lisbon, Porto, Braga, and Coimbra are top destinations for entrepreneurs, investors, and remote workers looking for a Portuguese residence permit and access to the local market. For more details, check our article on how to get Portuguese residency.

Annual events, like the EU-Startups Summit and Web Summit in Lisbon, bring together thousands of startup enthusiasts, investors, corporates, and media reporters from around Europe.

Living in Braga can also offer many new job opportunities for foreigners, especially skilled tech workers. Braga is a top EU tech hub, often called the “Portuguese Silicon Valley”.

8. No restrictions on foreign property ownership

Buying property in Portugal is simple for foreigners. There are no restrictions on purchasing a house, apartment, or villa. You can buy property without being a resident or having a visa.

However, there is a procedure to follow when buying property as a foreigner, which includes getting your own Portugal NIF number (Número de Identificação Fiscal), a tax identification number used for financial transactions in Portugal.

Opening a Portuguese bank account can also help reduce transaction costs. If you’re working with a buyer’s agent, they can offer professional advice on the purchasing process.

9. Welcoming immigration policies

If you’re a non-EU citizen planning to live in Portugal, you’ll need a visa. So if you’re buying property and thinking about relocating, there are a few options to consider. You can apply for the Portuguese Golden Visa if you’re investing, the D8 (Digital Nomad Visa) if you are a remote worker, or the D7 (Passive Income Visa) if you’re a retiree or have a stable passive income.

The Portuguese government has made a range of visa options available over the years, making it easy for expats to move to the country.

10. Attractive tax system

The Portuguese government created a favorable tax system for expats to attract skilled foreign workers, investors, and entrepreneurs. One such example is the Non-Habitual Resident (NHR) regime, which offered significant tax benefits to new residents for a period of ten years.

The NHR officially ended for new applicants on 1 January 2024, and was replaced with the Tax Incentive for Scientific Research and Innovation, often called the NHR 2.0. This new program replaced the standard inheritance tax with a Stamp Duty (Imposto do Selo).

Portugal’s NHR 2.0 offers many tax advantages for skilled professionals in fields like scientific research, technology, and innovation. It provides a flat tax rate of 20 percent for qualified professionals in these fields for ten years.

If you inherit money or property from a close family member, that inheritance is tax-free. But, if the inheritance comes from someone who isn’t a close relative, or it is high-value real estate, then certain taxes may apply, like Stamp Duty of 10 percent.

11. Extensive public transit system

The living conditions in Portugal are very comfortable due to its reliable public transportation systems. Getting around big cities like Lisbon and Porto is very easy thanks to trams, buses, and metro services. They cover different areas, which is convenient for tourists, investors, and family members.

A one-way ticket in Lisbon costs about €2.00, and a monthly pass is about €40.00 for the Navegante Metropolitano pass. But the specific prices will vary based on the transport you use and your desired locations

Many people use a car or ridesharing apps like Uber and Bolt to get around. Getting a Portuguese driver’s license or exchanging your current one for a Portuguese one is also relatively straightforward.

12. Lots of fun things to do

Wondering: “What’s it like to live in Portugal”? The beautiful coastal areas, various hiking trails, mountains, and regular local events make Portugal a lively place.

In 2024, the country 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 also go fishing, surfing, diving, and even luxury shopping in Portugal.

Portugal’s nightlife is a world of its own, and there is always something to do once the sun goes down.

13. World-class food and wine

If you want to taste good food and excellent wine, then Portugal is the place to be. Portuguese cuisine is all about bold flavors and simple, high-quality ingredients, whether it’s the crispy, custard-filled pastel de nata or the freshest seafood straight from the Atlantic Ocean.

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.

14. 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 don’t speak Portuguese. For example, British expats and Americans living in Portugal can adapt quickly without learning basic Portuguese before moving.

15. Large expat communities

Living in Portugal as an expat means you get access to large English-speaking communities, especially in Lisbon, Porto, and the Algarve region.

Many expats moving to Portugal choose to settle in major cities and popular tourist locations. You’ll find a diverse mix of expats from around the world, such as the United States, Brazil, Spain, the UK, and beyond.

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

16. Beautiful beaches and natural beauty

Life in Portugal for foreigners is all about the beautiful beaches, warm weather, and spectacular natural landscape. You can enjoy 1187 km of coastline, which is ideal for surfers and water sports enthusiasts.

Portugal has 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, most expats like to spend their time exploring the natural landscape.

The Serra da Estrela mountains, Douro Valley vineyards, Azores archipelago, and island life on Madeira offer a variety of outdoor adventures, making Portugal a top choice for nature lovers. Living in Madeira offers affordable living, excellent healthcare, and great weather.

With its mix of coastal beauty and mountain landscapes, Portugal attracts both lifestyle seekers and long-term investors. Buying property in Madeira is a lucrative investment, especially in prime locations like Funchal and Calheta.

17. Rich culture and history

Portugal offers incredible regional diversity with its rich history, local traditions, and festivals. From the Algarve to the south to Minho in the north, every region has something unique to offer.

The Minho region is famous for its traditional Vinho Verde wine and rich folklore, especially during festivals (romarias), where locals celebrate with colorful costumes, dance, and music. The Douro Valley stands out with its Port wine and terraced vineyards, where traditional customs still thrive, like the Careto de Podence carnival

Further south, the Alentejo region offers beautiful golden plains, cork forests, and Moorish-influenced architecture, and a traditional music genre known as Cante Alentejano (recognized by UNESCO).

Cons of Living in Portugal

Life in Portugal has its advantages and disadvantages. However, for most expats, the pros significantly outweigh the cons.

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

1. Slow and complicated bureaucracy

One of the most frustrating aspects of life in Portugal is the slow bureaucracy, consistent delays for public services, and outdated systems. The government takes a long time to process paperwork for getting a visa, residency status, and applying for Portuguese citizenship.

2. Rising costs of housing

There is a discrepancy between supply and demand, with demand outpacing supply leading to price increases, where the average cost to buy real estate in Portugal went up by 135.2 percent since 2014. The costs were more pronounced in major cities like Porto and Lisbon. The imbalance in wages and real estate prices has created a housing shortage.

3. Low salaries and career opportunities

It is not easy to get a job in Portugal. The unemployment rate reached 5.8 percent in February 2026, which is higher than in countries such as the Netherlands and Slovenia, according to recent data from Trading Economics.

4. Poor housing insulation

In Portugal, there is no central heating, as you would get in the United States or Northern Europe. Many old properties do not rely on central heating because the country has a relatively mild climate. However, by investing in high-quality insulation, property owners can overcome this problem.

5. Slow pace of life

For young foreigners, one of the main cons of living in Portugal is the slow pace. For example, many businesses take a 2-hour lunch break and are closed on Sundays, which can feel like a culture shock for some expats.

6. Language barrier

While many young professionals speak English, and it is a common language in big cities and tourist areas, most government offices work in Portuguese.

For many Americans, it can be difficult to learn Portuguese, even at the basic A2 level. The good news is that Portuguese is relatively quick to master for English speakers familiar with Romance languages like Spanish, French, or Italian.

7. Cold ocean

The Atlantic Ocean is very cold for the entire year, which can make it uncomfortable to swim. Water temperatures can reach +15°C in winter to around +20°C to +22°C in summer. But they rarely get warmer than that during peak heat.

8. The need to carry cash

In Portugal, many payments run through the Multibanco system, and not all businesses accept international cards like Visa or MasterCard. Because of this, it’s a good idea to check in advance whether a business accepts foreign credit cards. In practice, cash is still widely used, so it’s best to carry some with you when you enter Portugal.

9. High taxes on vehicles

Importing cars into Portugal can be very expensive for American expats because of the high taxes. The Imposto Sobre Veículos (ISV), also known as the vehicle tax, comes with a 23 percent VAT (Value Added Tax).

For example, shipping rates in Portugal cost $3,550 for a shared 40ft container from New Jersey, $3,575 from Florida, and $5,400 from California. That’s why many American expats prefer rental cars or buying a car once in the country.

Americans Living in Portugal

Living in Portugal as an American offers a drastically lower cost of living, affordable healthcare access, and a better quality of life.

If you are moving from the USA, you will find that the number of Americans living in Portugal in 2025 has jumped massively in recent years. In 2023, there were 14,129 Americans living in Portugal, which increased to 19,258 in 2024, indicating a 36 percent growth of US nationals living in Portugal, according to data from Portugal’s Agency for Integration, Migration, and Asylum (AIMA). This has only increased further in 2025.

Alongside this, North American investment surged to 82 percent in the second quarter of 2025, with the luxury real estate market establishing itself as one of the most robust. There has been increased focus on two-bedroom apartments and four-bedroom villas in premium areas of Lisbon and the Algarve. American citizens seeking to relocate to Portugal will likely be able to stretch their money further.

To find out more, read our guide on where do Americans live in Portugal.

Moving to Portugal for Foreigners

Want to know how to live in Portugal permanently as a foreigner? If you are an EU/EEA/Swiss citizen, you can register for an EU Registration Certificate (Certificado de Registo de Cidadão da União Europeia) with the Portuguese authorities.

For non-EU nationals, Portugal offers various visa types that grant temporary residency permits, which you can later use to apply for permanent residency or Portuguese citizenship.

Below are some of the more popular pathways to residency and life in Portugal.

The Portugal Golden Visa Program

The Portugal Golden Visa is a residency by investment program available to non-EU foreign nationals. By making a qualifying investment in the country, you and your family can become temporary residents in the country.

This permit allows you to travel to the EU Schengen area visa-free, and after a set number of years legally living in the country, you can apply for permanent residency or Portugal citizenship.

As of late 2023, real estate investments no longer qualify. Instead, applicants can choose between different options, such as €500,000 into a qualifying investment or venture capital fund, €250,000 in contribution, or creating ten new jobs in a local company.

The D7 Visa

The Portugal D7 Visa, also known as the Retirement Visa or the Passive Income Visa, is the best option for non-EU expats with stable passive or retirement income.

Through this visa, you can obtain a residence permit, which you can use to obtain Portuguese residency or citizenship in five years of maintaining legal residence.

To qualify, you need to earn at least €920 per month (based on the 2026 Portugal minimum wage). The Portugal D7 Visa is a great choice for retirees, remote workers, entrepreneurs, and landlords interested in moving to Portugal.

Sources that qualify for the monthly income include:

• Dividends from investments
• Royalties
• Rental income
• Long-term business distributions
• Ongoing income from company ownership

The D8 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.

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 (about €3,680).

You can also secure a residency visa through marriage and by studying. Another popular visa option for entrepreneurs is the D2 Visa in Portugal.

You can contact our partners at Global Citizen Solutions for a full analysis of which visa option may be best for you. They can simplify the residency process and explain the tax residency requirements.

 

Life in Portugal

Life in Portugal for expats comes at a reasonable cost, with affordable private health insurance, manageable housing costs, and cheap everyday expenses.

Portugal ranks among the best countries for Americans to retire, with cheaper average rent and property prices than in the United States. The country offers wealthy foreigners coastal living at a fraction of the cost in San Francisco, Miami, and Los Angeles.

Wondering: “Where to live in Portugal as an American”? The best places are as follows:

• For retirement: Algarve, Cascais, Óbidos, Braga, and Tomar. You can enjoy quality Portugal healthcare, affordable private coverage, and easy access to beaches and stunning natural landscapes.
• For work: Lisbon, Porto, Faro, Braga, and Portimão have the biggest expat communities in Portugal. As a key component of Portugal’s economy, they offer the best potential for networking, job prospects, and business setup.
• For raising children: The Algarve, Aveiro, Lisbon, and Porto have easy access to international schools, urban amenities, and family-friendly areas.
• For saving money: The Silver Coast, Castelo Branco, Tavira, Vila Real, and Portalegre offer the most affordable dream life in Portugal. These towns have a lower cost of living, good infrastructure, and efficient transport to bigger cities.

Housing Tips: Renting vs Buying

Whether you decide to rent or buy property in Portugal, you should think about your budget, long-term goals, and the lifestyle you want. Renting provides a lot of flexibility and lower upfront expenses, especially if you are targeting Lisbon real estate.

But if you buy a house, you build equity over time. Some of the best neighborhoods in Portugal, such as those in North and Central Portugal, can offer high appreciation potential.

At Goldcrest, we know the Portuguese real estate market inside and out. Whether you are renting or buying property, our buyer’s agents can guide you through the purchase process and research the local market.

What can Goldcrest do for you?

Goldcrest is a buyer’s agent that applies tried and tested formulas for buying property in Portugal. We research current market conditions and help you find properties that fit your budget. Our team can visit properties on your behalf, negotiate with the seller, and guide you through the legal process of property acquisition.

We are based in Lisbon and have years of experience working with properties across the country. We can connect you to local lawyers, designers, architects, and landscape gardeners so you can build your dream home. Whether you need property research or after-sales services, contact us today.