Living in Portugal as an expat: 19 good and bad things

Relocating to Portugal is possible under a government investment program with a minimal financial option of €250,000. D7 and D8 visas are also suitable for financially independent persons and digital nomads, respectively.

Cosmopolitans move to Portugal for its warm climate, security and business opportunities. Let us analyse the main benefits of living in Portugal.

1. Warm climate. Portugal has 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 is characterised by 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, and its temperature is +13℃…+19℃ throughout the year.

There are mild winters. The average daily temperature in January in Lisbon is +14.7℃. It rarely snows there; when it does, it melts quickly. It is more common in mountainous areas.

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

2. Entertainment and recreation are abundant. In Portugal, everyone finds a place and activity to their liking. 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, and 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. It is safe to live in Portugal. The 2024 Global Peace Index ranked Portugal 7th amongst the safest countries in the world. Portugal has a low crime rate. The Portuguese are friendly and welcoming and treat immigrants 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. The cost of living in Portugal, with a monthly budget for a single person of $1,300–1,800 can be enough for a comfortable lifestyle in smaller towns and $2,000–2,500 in larger cities.

Prices are also higher in other European states, such as Austria, Switzerland, the UK, and neighbouring Spain. Compared with prices in the European Union, life in Portugal is relatively inexpensive.

The average prices in Portugal are the following:

• €40 — a 3-course dinner for two in an ordinary restaurant;

• €1.80 — a cappuccino;

• €1.40 — a loaf of bread;

• €2.80 — a dozen eggs;

• €10 — local cheese, 1 kg;

• €0.90 — milk, 1 litre;

• €1.90 — apples, 1 kg;

• €1.70 — gasoline, 1 litre;

• €117 — 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. Quality of education is high. Portugal has a fairly 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 courses are not available at every institution and are more expensive. 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 a minimum of €6,340 per annum.

6. Quality of medicine is high, too. In 2023, Portugal spent 10,6% of its annual GDP on healthcare. The country has 5.6 practising doctors per 1,000 population and 3.5 hospital beds per 1,000.

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

You can get an appointment in private clinics faster than in public ones. There is also a higher level of service, including telephone consultations with your doctor. Private health insurance policies cover part of the cost or the full cost of treatment.

7. Laid-back pace of life and English is common. Portugal is suitable for those who like a relaxed pace of life. The Portuguese are not often in a rush to go somewhere. Cities are less lively than the US or UK metropolitan areas, so it is a bit more different to live in Portugal as an American or British.

As most Portuguese people speak English, one does not need to be fluent in Portuguese to live there. It is a significant point for many expats when considering whether to relocate to Portugal or another European country.

The recent EF Global Ranking ranked Portugal 8th out of 113 countries due to 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. The Algarve stands as one of Europe’s top beach destinations, renowned for its stunning landscapes characterised by golden sands and impressive sandstone cliffs.

According to the European Blue Flag Association, Portugal has 440 Blue Flag beaches, marinas, and boats in 2024, eight more than in 2023.

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. The rail network connects major cities like Lisbon, Porto, Faro, and Coimbra, as well as smaller towns and regional areas.

Lisbon metro consists of four lines that cover most of the city and its outskirts. Also, the historic tram network, which is both a tourist attraction and a practical means of transport. The most popular route, offering a scenic ride through Lisbon’s historic neighbourhoods.

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.

There are numerous expat 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.

11. Advanced technology infrastructure. Portugal has made significant strides 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 there.

1. The need to learn Portuguese. On the street, in shops and museums, you can communicate in English. However, in government agencies, Portuguese is generally spoken. Therefore, you must learn Portuguese at least up to a basic conversational level.

Portuguese can be challenging to learn and understand, but still many people speak English, taught in schools for nine years.

2. Difficulties with paying by card. In Portugal, bank cards are issued in the Multibanco system. Visa or MasterCard are not accepted everywhere. You must check whether an international bank card is accepted and carry cash.

3. Heat in summer, rain in winter. The Portuguese climate remains mostly the same from season to season. It is rainy in winter, and there is hardly any snow. In summer, the temperature can sometimes rise to +40°C.

4. There is no central heating. It is cold inside apartments in winter. You have to buy heaters to stay warm.

5. The pace of life. For some expats, the quiet life can be a downside of retiring to Portugal. Locals are 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 on the job market. Job opportunities may be limited, with relatively low salaries. While Portugal’s unemployment rate has improved since the financial crisis of the late 2000s, it remains relatively high compared to other European countries. As of 2023, the overall unemployment rate is around 6,5%.

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.

When thinking of how to live in Portugal enjoying all its benefits, you should first realise what your goals and preferences are. Portugal has countless charming cities to settle in. Here are some ideas for places in Portugal, sorted by purpose.

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

Braga has a delightful mix of history, culture, and modernity. It provides all the amenities of a big city but at a more affordable price than in Lisbon or Porto.

Although Cascais is one of the most expensive places to live, this picturesque town offers plenty of opportunities for outdoor activities, including golf and boating. Also, it is only 30 minutes away from Lisbon by car.

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

Individual cost calculation for the Portugal Passive Income D7 Visa

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To work internationally: Lisbon, Porto, Faro, and Portimao. They are the cities with the biggest number of expats in Portugal. You’ll find the most job, business, and networking opportunities in these areas.

Lisbon is home to numerous sectors, including finance, technology, tourism, and startups. The main industries in Porto are textiles, wine production, and creative arts. Faro and Portimao are both active in the tourism sector.

To raise children: the Algarve, Aveiro, Lisbon, and Porto. These places provide a range of international schools and a family-friendly environment.

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

Porto was also highlighted as the best city for family living in Europe. It has 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.

To save money: Vila Real, Castelo Branco, and Portalegre. If you’re looking for the most affordable places to live in Portugal, these three are the best. Here you can find affordable properties to rent, the necessary infrastructure, and a good transport connection to bigger cities.

The average cost of renting a one-bedroom apartment in the city centre varies €300—415 per month.

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

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

2. Evaluate 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. Get acquainted with the healthcare system and levels of medical care.

7. Study 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. Usually, it is issued to those who are going to work or study there, marry a Portuguese citizen or have carried out significant services for the state.

Portugal issues residence permits by investment. The process takes 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 have four investment options. They can invest at least €250,000 in supporting Portugal’s cultural heritage or €500,000 and more in local businesses, research activities, or investment fund shares.

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

• the Portugal D7 Visa, one should have a monthly passive income of €820;

• the Digital Nomad Visa requires earning at least €3,280 a month;

• the Portugal Startup Visa is available to entrepreneurs with prospective business ideas.

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 out of 180 days.

Five years after receiving a residence permit, the holder can apply for permanent residence or citizenship.

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

2. Portugal is a safe country with around 800,000 expats in the total population.

3. While living in Portugal as an expat, you can face some disadvantages. The summer might seem extremely hot in July and August. If you are non-Portuguese speaking, it cannot be easy to communicate by applying for a job in some fields or visiting government departments.

4. Portugal has seven main regions: Porto, Center, Lisbon and Tagus Valley, Alentejo, the Algarve, the Azores, and Madeira. Which one to choose for living depends 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 to be an excellent choice. You can send children to international schools in Portugal, which always welcome expats. Degrees from Portuguese universities are recognised in the EU, which helps graduates find work in other countries.