Living in Portugal: 19 pros and cons of settling in the country of wine and surf

Relocating to Portugal is possible with a residence by investment program with a minimal financial requirement of €250,000. The D7 and D8 visas are also available for financially independent persons and digital nomads, respectively.

Below are the main benefits that expats from all over the world find worth moving to Portugal for.

1. Warm climate. Portugal enjoys a Mediterranean climate with long summers, mild winters, and over 300 days of sunshine yearly. Portugal has a fairly pleasant climate, which varies by region:

• the south is more arid;

• the northwest is rainy;

• the northeast has long and warm summers.

The warmest month is August. In Lisbon, the average daytime temperature is +27.8°C. The sea is warmest in August and September, with temperatures ranging between +13℃…19℃ throughout the year.

Winters are mild, with January temperatures averaging +14.7°C in Lisbon. Snow is rare and melts quickly when it does occur, more commonly in mountainous areas.

Portugal is often sunny, especially in July, August, and September.

2. Abundant entertainment and recreation. One of the reasons to move to Portugal is its variety of activities to suit everyone. Surfing, fishing, and diving are definitely main parts of a Portugal lifestyle. You can swim in the Atlantic Ocean, explore the Serra da Estrela mountain range, or visit castles and fortresses.

According to the European edition of the World Travel Awards 2024, Braga was named Europe’s Leading Emerging Tourism Destination, the Azores became Europe’s Leading Adventure Tourism Destination, and Madeira won Europe’s Leading Island Destination.

3. Safety. Portugal ranks 7th on the 2024 Global Peace Index as one of the safest countries in the world, with a low crime rate. The Portuguese people are friendly and welcoming, treating guests with warmth, kindness, and openness.

4. Relatively low cost of living. The basic cost of living in Portugal is about 37% lower than in the US. A monthly budget of $1,300—1,800 is sufficient for a comfortable lifestyle in smaller towns, while $2,000—2,500 is ideal for larger cities.

Prices in Portugal are generally lower than in other European states, such as Austria, Switzerland, the UK, and neighbouring Spain. Compared with average prices in the European Union, living in Portugal is relatively inexpensive.

The average prices in Portugal are the following:

• €45 — a 3-course dinner for two in an ordinary restaurant;

• €1.80 — a cappuccino;

• €1.40 — a loaf of bread;

• €2.70 — a dozen eggs;

• €10.40 — local cheese, 1 kg;

• €0.90 — milk, 1 litre;

• €2 — apples, 1 kg;

• €1.70 — gasoline, 1 litre;

• €115 — utility bills for an 85 m² apartment;

• €38 — unlimited Internet, per month;

• €37 — fitness club membership for 1 month.

Individual cost calculation for residence by investment in Portugal

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5. High quality of education. Portugal offers a strong education system with various public, private, and international schools.

Degrees from Portuguese universities are recognised in the European Union and the US, which helps graduates find work and build a career almost anywhere.

University courses are taught in Portuguese and English. However, English-taught programs are not available at every institution and are generally more expensive. For example, a bachelor’s degree in English at the University of Oporto costs a minimum of €8,900 per annum, while a degree taught in Portuguese at the University of Coimbra costs at least €6,340 per annum.

6. High quality of medicine. In 2023, Portugal allocated 10.6% of its annual GDP to healthcare. The country has 5.6 practising doctors and 3.5 hospital beds per 1,000 people.

Medical care is available free of charge at public hospitals to both citizens and residents of the country.

Private clinics offer faster appointments and a higher level of service, including options for telephone consultations with doctors. Private health insurance policies cover either part or all of the cost of treatment.

7. Laid-back pace of life and widespread English. Portugal is ideal for those who prefer a relaxed lifestyle. The Portuguese tend not to rush, and cities are quieter compared to metropolitan areas in the US or UK, making it a bit different for Americans or Brits living there.

English is widely spoken, so fluency in Portuguese isn’t necessary for expats. This is a significant point for many when considering whether to relocate to Portugal or another European country.

The recent EF Global Ranking ranked Portugal 6th out of 116 countries for its high proficiency in English. The regions with the highest scores are Coimbra, Braga, Guimarães, Porto, Aveiro, and Lisbon.

8. Gorgeous beaches. The country is famous for its diverse coastline, with Algarve standing out as one of Europe’s top beach destinations. It is renowned for its stunning landscapes with golden sands and impressive sandstone cliffs.

In 2024, Portugal earned 440 Blue Flag designations for beaches, marinas, and boats — eight more than in 2023, according to the European Blue Flag Association.

9. Affordable public transportation. Portugal’s public transport system includes trains, buses, trams, and metro services, making it easy to navigate both urban and rural areas. Bus ticket prices range from €1.20 to 2.50, depending on the city and route.

The rail network connects major cities like Lisbon, Porto, Faro, and Coimbra, as well as smaller towns and regional areas. In October 2024, Portugal launched a €20 monthly pass that allows unlimited travel on most national train services, except for urban trains in Lisbon and Porto and premium high-speed routes.

Lisbon metro consists of four lines that cover most of the city and its outskirts, with a single fare ticket costing €1.85. Also, the historic tram network serves as both a practical transportation option and a tourist attraction, with the most popular route offering a scenic ride through Lisbon’s historic neighborhoods.

10. Welcoming communities. The Portuguese are known for their friendliness and hospitality. Whether in urban or rural areas, locals are often willing to help newcomers, engage in conversation, and share their culture and traditions.

Festivals, local markets, and communal gatherings are common, creating a sense of belonging and inclusion.

Expats can find numerous support groups and communities across Portugal, especially in popular areas like Lisbon, Porto, and the Algarve. These groups offer support, social activities, and networking opportunities, helping newcomers settle in and make friends.

For example, the Digital Nomad Village in Madeira is a pioneering initiative designed to attract remote workers from around the globe to the island’s picturesque landscapes. The village offers coworking facilities equipped with high-speed internet and organises various events, including workshops, fitness sessions, and cultural activities.

11. Advanced technology infrastructure. Portugal has made significant progress in digital governance, offering a wide range of online public services to its citizens. Platforms like ePortugal allow citizens to access various governmental services online, such as tax filing, social security, and licensing.

Top universities and technical schools offer specialised programs in engineering, computer science, and other tech-related fields. For example, the University of Lisbon is known for its strong engineering and computer science programs.

Some disadvantages of life in Portugal are intertwined with its benefits, such as the climate or the pace of life.

1. The need to learn Portuguese. While English is widely spoken in shops, museums, and on the streets, government agencies generally operate in Portuguese. Learning Portuguese to at least a basic conversational level is necessary, especially for those seeking permanent residency or citizenship, as language proficiency at the A2 level is a requirement.

Portuguese is relatively easier to learn for English speakers and those familiar with Romance languages like Spanish, French, or Italian. Additionally, since Portuguese is taught in schools for nine years, many locals, especially younger generations, have a good command of English.

2. Difficulties with paying by card. In Portugal, bank cards are issued in the Multibanco system, meaning Visa or MasterCard are not accepted everywhere. It’s important to check if international cards are accepted and always carry cash as a backup.

3. Hot summers and rainy winters. The Portuguese climate remains fairly consistent throughout the year, with rainy winters and little snowfall. In summer, temperatures can sometimes soar to +40°C, making it uncomfortably hot at times.

4. No central heating. During the winter, apartments can get cold as most do not have central heating. Portable heaters are necessary to stay warm.

5. The pace of life. For some expats, the quiet life can be a downside of retiring to Portugal. Locals tend to be in no hurry and can be unpunctual. Restaurants and shops often close for several hours in the middle of the day and are closed on Sundays.

6. Cold ocean. The Atlantic Ocean remains cold year-round, which may not be ideal for swimming. In general, water temperatures range from about +15°C in winter to +20°C…22°C in summer.

7. High unemployment rates. Job opportunities in Portugal can be limited, with relatively low salaries. While the unemployment rate has improved since the financial crisis of the late 2000s, it remains high compared to other European countries. As of 2025, the overall unemployment rate stands at 6.2%.

8. Petty crime. Tourist areas can experience petty theft and pickpocketing. This is most common in crowded areas such as public transport, tourist spots, markets, and festivals.

How to move to Portugal and how fast you can do it via the D7 visa

When thinking of how to live in Portugal enjoying all its benefits, it’s essential to first define your goals and preferences. Portugal has countless charming cities to settle in, each catering to different lifestyles. Here are some ideas for places in Portugal, sorted by purpose.

For retirement: Cascais, Algarve, Braga, Óbidos, and Tomar. Portugal often takes the top spot among the best destinations for retirement. In nearly every city, you will find high-quality medical care, stunning landscapes, and a pleasant climate.

Braga combines history, culture, and modern amenities, offering the benefits of a big city at a more affordable price than Lisbon or Porto.

Cascais is one of the most expensive places to live, but this picturesque town offers plenty of opportunities for outdoor activities, including golf and boating. Also, it’s just a 30-minute drive from Lisbon.

Obidos and Tomar are best for those who want to slow down. These towns have fewer English-speaking expats and a lower cost of living.

Individual cost calculation for the Portugal Passive Income D7 Visa

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For intentional work: Lisbon, Porto, Faro, and Portimão are the cities with the highest number of expats in Portugal, offering the most job, business, and networking opportunities.

Lisbon is home to numerous sectors, including finance, technology, tourism, and startups. Porto is known for textiles, wine production, and the creative arts. Faro and Portimão are both prominent in the tourism sector.

For raising children: the Algarve, Aveiro, Lisbon, and Porto provide a range of international schools and a family-friendly environment.

The Algarve region has 13 international schools, most teaching the British curriculum. Lisbon ranks second among the healthiest cities to raise a family due to its high safety, quality of education, and variety of activities.

Porto is recognised as one of the best cities for families living in Europe, with plenty of family activities and 'good for kids' attractions.

Aveiro offers a quieter life but can boast excellent ratings for local schools. Also, the University of Aveiro is among the country’s top six higher education institutions.

For saving money: Vila Real, Castelo Branco, and Portalegre are the most affordable cities to live in Portugal. These towns offer low rent prices, good infrastructure, and convenient transport links to larger cities.

The average rent for a one-bedroom apartment in the city centre varies between €300—415 per month.

Here are some steps to help you draw preliminary conclusions about life in Portugal:

1. Learn about Portugal’s lifestyle, culture, language, and traditions.

2. Evaluate the climate and geography.

3. Research the cost of living in Portugal, including housing, food, transportation, and healthcare.

4. Compare taxes and potential sources of income.

5. Check if there are opportunities in Portugal for your professional activity.

6. Understand the healthcare system and quality of medical care.

7. Explore educational institutions and opportunities for your children, if applicable.

8. Learn about visa requirements and residency procedures.

9. Assess your willingness to learn the Portuguese language.

10. Study the safety level in the country.

11. Find out if there are expatriate communities and other resources for adaptation in Portugal.

To move to Portugal, you need to obtain a residence permit. Typically, it is issued to those who plan to work or study there, marry a Portuguese citizen, or contribute significantly to the country.

Portugal also issues residence permits by investment. The process takes at least 12 months.

In July 2023, the Portuguese Parliament approved a bill restructuring the Portugal Golden Visa Program. Investors are no longer able to obtain residence permits by purchasing real estate.

Applicants now have four investment options. They can invest at least €250,000 in supporting Portugal’s cultural heritage or €500,000 or more in local businesses, research activities, or investment fund shares.

Célia Castilho,

Head of the Portuguese office

​The fund investment option is the most popular choice among foreign investors. A commitment period required is of no less than five years. Typically, the funds are returned after 6 to 10 years. The profits generated by the fund are shared among investors, with a portion taken as a commission upon withdrawal.

There are some more ways of how to move to Portugal and obtain residence permit:

• Portugal D7 Visa requires a monthly passive income of €870;

• Digital Nomad Visa requires earning at least €3,480 a month.

Foreign citizens with a Portuguese residence permit can live, study, and work in Portugal. They can also travel without a visa to the Schengen states for up to 90 within a 180-day period.

After five years of holding a residence permit, individuals can apply for permanent residence or citizenship.

Since its inception in 2012, the Portugal Golden Visa Program has granted over 33,000 residence permits. Chinese nationals make up approximately 38.4% of investors, followed by notable contributions from Brazil (9.88%), the US (6.14%), Turkey (4.82%), and South Africa (4.51%).

As of 2024, investments through Portugal’s Golden Visa program are projected to exceed €7.3 billion, surpassing previous years' figures.

Investment in fund shares has become one of the most popular routes, accounting for nearly 30% of all Golden Visa permits issued by 2023, reflecting a significant rise in investor interest.

Additionally, the cultural investment option saw remarkable growth in 2024, attracting nearly €12 million — €7.5 million more than the €4.5 million raised in 2023.

1. The Portugal Golden Visa is an investment program designed for wealthy foreigners and their family members. Within 12 months, you can obtain a residence permit in an EU country, freely live in Portugal, and travel throughout the Schengen Area without visas. Other popular visa options for relocation are a Digital Nomad, a D7, and a Startup Visa.

2. Portugal is a safe country, with over 1 million expats in the total population.

3. However, there are some challenges. Summers can be extremely hot, especially in July and August, and non-Portuguese speakers may find it difficult to apply for jobs or visit government departments.

4. Portugal has seven main regions: Porto, Center, Lisbon and Tagus Valley, Alentejo, the Algarve, the Azores, and Madeira. The region you choose to live in will depend on your budget and lifestyle. For example, the Algarve is known for its stunning coastline and idyllic countryside. This region is the most popular choice for British expats.

5. Relocating to Portugal with kids is considered an excellent choice. The country offers many international schools that are welcoming to expats. Additionally, degrees from Portuguese universities are recognized across the EU, which helps graduates find employment in other European countries.