Is Portugal the Best Country in the World to Live In?

Why Portugal is the best country?

Portugal was voted “Best Destination in Europe” in the World Travel Awards for 2025, its sixth win since 2017. Top spots like Porto, Lisbon, and Madeira earned an honorable mention, standing out among nominees from Italy, France, and Spain.

Every Portuguese city has something different to offer. Porto is great for families, Braga offers a glimpse into the country’s rich history, charming Aveiro is popular with students, and Portugal’s capital city, Lisbon, is vibrant, diverse, and home to a large Portugal LGBT expat community.

So, is Portugal a good place to live? Let’s take a look. Portugal is one of the most LGBT-friendly countries in the world, with progressive and tolerant laws, and a welcoming LGBTQI+ community in major cities.

Portugal is a great surfing destination for beach lovers. For mouthwatering seafood, you can visit the Algarve coast in southern Portugal. You can also check out the Silver Coast, north of Lisbon, which offers a stunning stretch of coastal towns, water sports, and a fantastic climate.

Quality of Life & Safety in Portugal

Is Portugal Safe? This is an important factor to consider before relocating. Not only is Portugal a beautiful country, but it is also one of the safest countries in the world. According to the Global Peace Index 2025, Portugal ranks as the 7th safest country in the world.

Whether on mainland Portugal or one of the island destinations, you can live comfortably and focus on enjoying the warm weather, slow pace, delicious food, and rich culture.

Portugal’s safety is one of the big pull factors for many expats seeking to relocate. Portugal has a low crime rate, friendly people, and a low cost of living, making it more attractive than some northern European countries.

Portugal Promotes Social Cohesion

Portugal offers progressive and tolerant laws that facilitate social cohesion. For example, same-sex marriage became legal in Portugal in 2010, and drugs were decriminalized in 2001, the latter of which resulted in a dramatic drop in overdoses, HIV infection, and drug-related crime. Such initiatives have allowed the country to see greater social peace, contributing to its inhabitants’ excellent Portugal quality of life.

If you don’t speak Portuguese, you may worry about a potential language barrier. Many Portuguese people speak English rather fluently, making it easy for foreigners to communicate effectively. But if you’re eager to learn Portuguese, talk to locals to build up your skills. They are known for their warm hospitality.

If you’re looking for an indirect route to Portuguese citizenship, check out our article How to Get Portuguese Citizenship with the Golden Visa Program.

Portugal Has Quality Healthcare

As of 2023, there were approximately 242 hospitals in Portugal, with about 107 being public or in a public-private partnership (PPP) and part of the SNS network (National Health Service), based on reports from Statistics Portugal.

These health centers are located throughout the country and can be accessed freely by all Portuguese residents. Any foreigner who is a Portuguese resident can benefit from the country’s excellent health care. Private health insurance, as well as international health insurance, is also available in Portugal and is offered at more affordable prices than in some other countries in Western Europe and the United States.

In mid-2025, Portugal’s healthcare ranked 23rd in the world with a score of 72.0 in the Numbeo Global Healthcare Index, higher than Turkey, Germany, and Switzerland.

Portugal Has a Strong Economy

While Portugal’s economy has steadily been getting stronger following the financial crisis and the impact of COVID-19, the country has maintained a relatively low cost of living that remains more affordable than other countries in Western Europe.

The country’s strong economy has attracted investors from around the globe, particularly those interested in Portugal real estate investment. Commercial property investment jumped 78 percent in early 2025 compared to the first half of last year. Despite this growth, property prices are still relatively affordable.

As investments are pouring in, it’s more important for foreign investors to understand the administrative and financial requirements for property ownership. When completing financial transactions in Portugal, you will need a Portuguese bank account and an NIF number, among other things.

You become a tax resident after spending more than 183 days (consecutive or not) in Portugal during any 12 months, or having a permanent residence on 31 December of the tax year, and can pay taxes on Portuguese property. Property taxes in Portugal are progressive and depend on your residency status.

A great way to invest in residency is through the Portugal Golden Visa program. This five-year program allows nationals outside the EU to immigrate to Portugal.

There was some talk about whether the Portugal Golden Visa ended in 2023. However, the program just went through some changes.

The real estate investment pathway is no longer available. Investing in Portugal’s low-density areas and the capital transfer option were also discontinued in October 2023, but several attractive investment opportunities remain.

Portugal's Natural Beauty & Climate

If you’re still wondering, “Is Portugal a good place to live?“, the warm weather alone should be enough to convince you it is. The country experiences 300 days of sunshine each year.

Portugal is also a leading cruise destination for its golden beaches, diverse landscapes, and world-famous Portuguese wine. The Atlantic Ocean influences the country’s temperate climate. For example, the North is cooler and rainier, while the South is warmer and sunnier.

Californians are moving to Portugal in greater numbers than ever before, driven by the similarities between Portugal and the Golden State and the booming tech scene in Lisbon, Porto, and Braga.

Portugal’s best cities, like Lagos, Évora, and Coimbra, offer a unique living experience with thriving historic centers and quieter outskirts.

Average hours of sun (per year):

Portugal is known for its fantastic weather. The list below shows the average hours of sun that some popular locations receive in a year. These locations are also among Portugal’s best places to buy real estate.

• Lisbon: 2801
• Porto: 2485
• Vilamoura (Algarve): 3051
• Coimbra: 2499
• Estoril: 3095
• Portimão (Algarve): 3030
• Ponta Delgada (Azores): 1740

Average temperature (per year):

Comparing Portugal with Other Top Nations

So, is Portugal a good place to live? The answer is yes. More popular than some other European countries, Portugal has diverse landscapes and a rich history. People are drawn to the delicious Portuguese cuisine and port wine, an array of activities, like visiting local markets, and an excellent quality of life.

Portugal has 25.4 percent lower living costs than the United Kingdom, including rent. Although the UK has a stronger job market and higher average salaries, Portugal remains a top choice for expats who seek affordable healthcare and rent costs.

Living costs in Portugal, including rent, are 22.1 percent lower than in Germany. Grocery prices are 28 percent cheaper, making Portugal one of the best urban destinations for raising a family with high safety standards in cities like Lisbon, Porto, and Braga.

Based on Numbeo, living costs, including rent, are 32.6 percent lower, and groceries are 37.2 percent cheaper than in the United States. Portugal also has a universal healthcare system, providing free and affordable medical services.

Some of the best places to live in Portugal, like Lisbon, Porto, and Braga, are facing higher property prices due to inflation and demand for housing. However, property costs for residential and commercial real estate remain drastically cheaper than in big cities in the US, like New York City, San Francisco, and Los Angeles.

Is Portugal the best country in the world for you?

Portugal strikes an outstanding balance between modern infrastructure, a stable economy, and warm hospitality. Portuguese citizens are proud of their culture, are pleasant and engaging, and have a good sense of humor.

It is a cultural destination surrounded by historic monuments and an active nightlife. Adventure tourism, such as scuba diving, rafting, trekking, and mountain climbing, is available for those who seek adrenaline.

But, just like anywhere else in the world, Portugal has its flaws. The bureaucracy is relatively slow, and the country has a lower purchasing power than the UK, Germany, and the United States. Still, the pros outweigh the cons, since the best tourist destinations, like Lisbon, Porto, and the Algarve, offer high rental yields and a booming economy.

If you plan on investing in Portugal to gain citizenship, you must first become a resident and, in five years, apply for permanent residency or citizenship.

How can Goldcrest help you?

For those moving to Portugal or planning to invest in Portuguese real estate, the most strategic edge you can gain is local, impartial expertise. Goldcrest is a buyer’s agent who safeguards your investment. Our team works on behalf of the buyer, rather than the property seller.

We can offer local market analysis, negotiate prices, find properties, and provide rental property management in Portugal for long-term rentals. We have access to unique properties from Libson, Porto, the Algarve, and anywhere in the country, including connections with industry contacts, such as real estate lawyers, tax advisors, and local contractors.

Contact us today to help you find the perfect property in your dream destination.