Portugal is not only famous for its pleasant weather and top-notch golf facilities, but also for its stunning coastline, healthy living standards, and cost-effectiveness, making it a standout choice among southern European hotspots. Here’s all you need to know about living in Portugal as an expat…

Residency Options for Non-EU Citizens in Portugal

Travellers from countries having visa agreements with the EU, such as the UK, USA, Canada, Australia, and others, can visit Portugal for up to 90 days as tourists without requiring a visa.

However, those who wish to reside and work in Portugal must apply for the necessary visas and comply with immigration protocols designated for all non-EU citizens, Americans and British included. The D7 and Portugal Golden Visa are among the most commonly applied for visas.

The Golden Visa Pathway in Portugal

A faster alternative is to take the Golden Visa route in Portugal. By investing a minimum of €500,000 in arts, research & development, or Portuguese businesses, a family residency permit can be obtained, encompassing dependent children as well.

Other investment opportunities for Golden Visa eligibility include backing qualifying Portuguese funds, starting a business that leads to job creation, engaging in R&D initiatives, or contributing to national heritage projects. A capital transfer of at least €1,500,000 to a Portuguese bank is also a viable option for qualifying for a Golden Visa.

This particular program can offer the potential right to seek permanent residency and even Portuguese citizenship. It’s worth noting, however, that the Golden Visa program is subject to controversy and could undergo significant alterations or be discontinued in the near future. Therefore, if you’re considering this path, it’s wise to act promptly!

Portugal D7 Residency Visa: For Retirees and Investors

The Portugal D7 residency visa is often considered the best path to Portuguese residency for retirees and individuals with stable passive income. Here’s what you need to know:

Eligibility:

  • Non-EU citizen status
  • Sufficient passive income from pensions, property rentals, or investments (Minimum €12,000 annually recommended)
  • Clean criminal record
  • Residence address in Portugal
  • Valid health insurance

Application Process:

  • Apply through the Portuguese consulate in your home country
  • The visa allows two entries into Portugal, with a total stay of 4 months
  • Apply for a residence permit during these 4 months (first permit is valid for one year, then renewable for two years)
  • After 5 years, it can be converted into a permanent residence permit

Portugal Digital Nomad Visa: For Remote Workers

This visa is designed for working professionals who are self-employed or employed by a company based outside Portugal.

Requirements:

  • Non-EU and non-EEA citizenship
  • Monthly earnings of at least four times the Portuguese minimum wage (approximately €2,800)

Is Portugal a Good Place to Live?

Portugal’s growing popularity is driven by its amazing scenery, healthy lifestyle, connectivity, tax incentives, and much more. However, it’s not without drawbacks, such as wet winters and a slower pace of life.

The Positives Of Living in Portugal

There are a lot of great benefits to living in Portugal – we could write a whole article just on that (and probably will at some point!), but for now here are the highlights:

Golf Opportunities Abound

Portugal’s top-notch golf courses have made it a prime destination for enthusiasts of the sport.

Enjoying the Superb Climate

With hot summers, mild winters, and a variety of weather conditions, Portugal’s climate is sure to please.

A Surfing Paradise

With 800 km of beautiful coastline, surfers will find endless opportunities to catch a wave.

Entering an Affordable Property Market

Portugal’s real estate is among the most undervalued in Europe, making it an attractive option for property investment.

Experiencing Natural Beauty

From dramatic coastlines to stunning mountains and national parks, the country’s landscapes are breath-taking.

Embracing a Relaxed Lifestyle

Portugal’s laid-back approach to life, akin to its no-stress mantra, is a key aspect of its charm.

Savouring Healthy Cuisine

A rich selection of fresh seafood, fruits, and vegetables contributes to the country’s delightful and nutritious culinary offerings.

Feeling Secure with a Low Crime Rate

Ranked as the 17th safest country in the world, Portugal offers a reassuring sense of security.

Benefiting from a Low Cost of Living

Living expenses are around 30 percent lower than in other Western European nations, making Portugal an economical choice.

Immersing in Rich Cultural Heritage

An endless variety of music, arts, architecture, festivals, and cultural events awaits those interested in delving into Portugal’s vibrant cultural scene.

The Drawbacks of Residing in Portugal

As with any country, there are downsides that balance out Portugal’s charm. Fortunately, as long as you’re aware of them you can learn to navigate them so they don’t detract from the joy of living in the country.

A Relaxed Pace That Can Feel Too Slow

While the leisurely way of life in Portugal may be a charm for some, it can be a challenge for newcomers, especially those from fast-paced cultures like the UK or USA. The laid-back attitude can translate into long lines at banks or casual chats in the middle of the road, causing delays. This lack of urgency can initially be stressful, but it’s essential to embrace this aspect of the Portuguese lifestyle.

Embracing Fado Culture or Portuguese Fatalism

Fado, the melancholy and mournful tunes of Portuguese music, epitomises the local approach to life. It’s characterised by a sense of resignation and submission to fate, often expressed through the word “oxalá,” meaning “hopefully” or “if only.” Accepting this mindset is a part of living in Portugal and can lead to a more contented existence, though it may take some getting used to.

Navigating the Language Barrier

Portuguese is a complex language that many find hard to master. Although English is spoken in expat-friendly areas and urban regions, advancing beyond basic conversational Portuguese can be a struggle. Making the effort to learn the language, however, can lead to deeper connections and integration into the local community.

Wrestling with Bureaucracy

Portugal’s administrative system can be overwhelming, with extensive paperwork and long waiting times for even simple tasks. Though frustrating, approaching these processes with patience and preparation can ease the journey.

Adapting to Local Driving Habits

The driving behaviour in Portugal can initially be shocking to expats. Local driving habits may seem haphazard, but as many residents will attest, it’s something that you’ll eventually adapt to. Observing and maintaining patience during the early days is key.

Popular Expat Locations in Portugal

Portugal offers a diverse range of living options for expats, each with unique appeals:

Lisbon and Surrounding Areas

Many expats gravitate towards the capital city of Lisbon, enjoying the urban lifestyle it offers. Nearby Sintra and Cascais are also popular choices, providing a more relaxed atmosphere while still maintaining proximity to the city.

Setúbal: A Dream Coastal Town

For those seeking a smaller town experience with lower living costs, Setúbal is an ideal option. This charming coastal town boasts all the amenities one could wish for, and it’s conveniently close to Lisbon.

Porto: A Lifestyle Magnet

Porto attracts a considerable number of expats as well, known for its vibrant culture and unique lifestyle opportunities.

The Algarve: A Diverse Expat Community

A favourite destination, particularly for British, Scandinavian, French, Brazilian, and other international expats, the Algarve offers a welcoming community and beautiful scenery.

The Azores and Madeira: Unconventional Choices

For those looking to explore less conventional paths, the Azores and Madeira offer a distinctive living experience. These locations are perfect for those seeking adventure and a closer connection to nature.

Coimbra: A City with Character

If you’re searching for a place with a strong sense of identity and rich history, Coimbra should be on your list. This city’s character and cultural richness make it a standout choice for many.

Understanding the Cost of Living in Portugal

Portugal’s cost of living is an attractive feature, particularly for those considering retirement. Here’s a closer look at what to expect:

Comparatively Affordable Lifestyle

Compared to North America and Northern European countries, Portugal offers a more affordable lifestyle without sacrificing the perks that come with living in these regions. This makes Portugal an appealing destination for retirees seeking quality living at a reduced cost.

Property Prices: An Overview

Buying property in Portugal generally costs less than in the UK, North America, and Northern Europe. However, popular expat destinations like Lisbon, Porto, and the Algarve tend to have the highest property prices.

For instance, a two-bedroom apartment on the Algarve coast might be twice as costly as a similar property in central Porto. Yet, for £350,000, one could secure a three-bedroom villa in a gated community near the beach, complete with swimming pool access.

Rental and Living Costs

If you opt to rent initially (a sensible first step), a couple can live comfortably in Portugal for approximately £1,600 per month, location depending. Living closer to Lisbon will require a larger budget.

In the Algarve, a comfortable lifestyle, including rent, meals out, gym membership, and moderate luxuries, can be achieved for roughly £1,700 per month. The same standard of living in Cascais may approach £3,000, with housing constituting the most substantial part of the budget.

The Advantages of Homeownership

Once settled in a preferred location, purchasing property can drastically reduce monthly living expenses. This investment not only provides stability but also contributes to a more cost-effective way of enjoying life in Portugal.

Education in Portugal: A Guide for Families

Moving to Portugal with children necessitates careful consideration of schooling options. The age of your children and the duration of your stay will play a significant role in determining the best fit. Here’s an overview of the education system in Portugal:

Public Schools

Public schools in Portugal are state-funded and follow the Portuguese curriculum, with instruction in the Portuguese language. While the state education system is generally considered sound, there are challenges such as inadequate funding, insufficient numbers of teachers, and larger class sizes.

Despite these challenges, it’s important to note that public schools can offer quality education, comparable to private institutions. The primary consideration for families may be the language barrier and ensuring that the child can adapt to learning in a new language environment.

Private Schools

Private schools are another option, often affiliated with religious organisations. These schools typically feature smaller class sizes and a wider array of clubs and activities. Costs vary based on location and can range from €400 to €550 per month.

International Schools

International schools represent the premium tier of education in Portugal, particularly for families wishing to align with UK or USA curricula. Although this option comes with a higher price tag, it provides continuity in education for those not planning a long-term stay in the country.

Geographic Distribution

Most private and international schools are concentrated in mainland Portugal, specifically in regions such as Porto, Lisbon, and the Algarve.

Retiring In Portugal

Retiring to Portugal presents an appealing prospect for many, owing to its low cost of living, agreeable climate, and an engaging lifestyle. Here’s an in-depth look at the factors that make Portugal an attractive destination for retirement.

Financial Benefits

One of the standout features of retiring to Portugal is the opportunity to live a low-tax life for the first ten years of retirement. This significant tax advantage can result in considerable savings, enhancing the overall appeal of relocating to the country.

In planning for retirement abroad, it’s crucial to understand the various financial considerations, including healthcare costs, pension options, property prices, taxes, estate planning, and more. It’s easy to be overwhelmed by the many options available, and local knowledge can be invaluable. Feel free to contact us via our Advice page for assistance with your pension options and other financial inquiries.

Lifestyle and Activities

Portugal consistently ranks among the top 20 countries for retiring abroad, and it’s easy to see why. Beyond the financial considerations, the lifestyle opportunities are boundless. Whether you seek an active retirement filled with water sports and exploration or a more contemplative life filled with leisurely activities, Portugal has something for everyone.

The coastal locations offer endless opportunities for water enthusiasts, while the diverse landscapes from north to south provide ample opportunity for scenic walks and exploration. The vibrant culture may even inspire you to pursue new hobbies like photography, wine appreciation, fishing, or learning a musical instrument.

Ease of Relocation

For EU citizens, retiring to Portugal is a relatively straightforward process, involving a residency application that is often a mere formality.

For non-EU citizens, including those from the US and UK, the process may involve more bureaucracy. However, permanent residency remains attainable through options such as the D7 visa or Golden Visa. These programs make the transition more accessible, even if it requires navigating additional legal channels.

Navigating Healthcare In Portugal

Portugal is renowned for its state-funded healthcare system, known as the Serviço Nacional de Saúde (SNS). This comprehensive guide will cover various aspects of healthcare in Portugal, including eligibility, cost, private insurance, and more.

State-Funded Healthcare (SNS)

The SNS is available to all permanent legal residents in Portugal, temporary residents who are working and making social security contributions, and those from countries with reciprocal healthcare agreements.

New arrivals must live as temporary residents for five years to qualify for permanent residency. During this period, some may need private health insurance.

EU citizens with a valid European Health Insurance Card (EHIC) can use the Portuguese healthcare system for free for the first 90 days.

Once eligible for the SNS, expats must register at their local Centro de Saude (health centre) to receive a Numero de Utente and be assigned a family doctor.

With an SNS patient number, healthcare is almost entirely free, including emergency care. Non-essential healthcare incurs small administrative charges called ‘taxas moderadoras’ – around €4.50 for a family doctor visit.

Private Health Insurance

Private health insurance is popular and affordable in Portugal, starting at €30 per month. Many Portuguese citizens supplement their SNS healthcare with private services for potentially shorter wait times.

Insurance costs can be higher for those with pre-existing conditions, and some insurers may not cover those over 65. In such cases, international health insurance may be an option. Comparing various providers ensures the best value.

Private clinics are widespread, and visiting a private doctor without insurance may cost as little as €40.

Hospital Care and Specialist Services

For non-emergency hospital treatment, a referral from a family doctor is required. Referrals may also provide cheaper access to specialist services like physiotherapy or mental healthcare.

The SNS does not usually cover dental care, except for high-risk individuals. Private dental insurance or affordable out-of-pocket payments (e.g., €40 for a filling) are common alternatives.

Language Considerations

Not all healthcare providers speak English, especially in rural areas. Consider practising basic Portuguese or using a translation app for smoother communication.

Working Remotely in Portugal

Are you considering working remotely in Portugal? Whether you’re an employee of a non-Portuguese company or a freelancer, here’s a detailed guide to help you navigate the legalities, banking, taxes, and more.

Remote Work and Immigration Laws

Portugal’s immigration laws do not specifically regulate remote work, leaving significant questions around taxation and the stance of your employer.

D7 Visa & Residence Permit

For freelancers or remote workers, the D7 Visa & Residence Permit is likely the best path. This visa is designed for self-sufficient individuals with income from investments, pensions, or businesses.

Eligibility: Must show the equivalent of a Portuguese minimum wage per month, although more might be required depending on where you live in Portugal.

Banking in Portugal for Expats

Opening a Resident Account

  • Cost: Many accounts charge around €5 per month, plus small fees for replacements or counter withdrawals.
  • Benefits: Personal manager, direct communication lines.
  • Required Documents: Passport, Portuguese fiscal number (NIF), proof of income, proof of Portuguese address, mobile phone number with activated SMS.

Opening a Non-Resident Account

  • Process: Must be in Portugal to apply. Obtain NIF from Finanças, then apply with proof of address and income.
  • Banks Offering Services: ActivoBank, Banco CTT, and others. No monthly fees and free use in the eurozone.
  • Online Application: Available with a video chat to confirm identity.

Mobile-Only Bank Account

  • Options: Borderless Account from TransferWise, DiPocket, Revolut, LeuPay, N26, etc.
  • Process: Can set up a bank account with a Portuguese IBAN on your mobile phone in minutes.

Taxes in Portugal

Tax Residency

  • Criteria: Spending more than 183 days in Portugal.
  • Registration: Demonstrate financial means at the town hall and register at the local tax office.

Income Tax

  • Rates: Progressive, ranging from 14.5% (up to EUR 7,035) to 48% (above EUR 80,000).
  • Special Regime (NHR): 10% flat rate for expat retirees for the first ten years, or 20% for ‘high value’ activity employment.

Wealth Tax

  • Rate: 0.3% for properties worth more than EUR 600,000 (or €1.2m for couples).

Working remotely in Portugal is possible, but it requires careful consideration of various legal, financial, and tax factors. The D7 Visa is an attractive option for remote workers, and the Portuguese banking system offers both resident and non-resident accounts to suit different needs.

Taxation can be complex, and it might be beneficial to consult with a tax expert to understand the implications of your specific situation. The attractive NHR regime offers some benefits for retirees and certain professionals.

Portugal’s friendly climate, rich culture, and affordable living costs make it an appealing destination for remote work, but it’s essential to prepare and understand the local regulations to ensure a smooth transition.

Property in Portugal: Should You Rent or Buy?

Considering relocating to Portugal and unsure whether to rent or buy? Here’s a guide to help you make an informed decision based on the region, rental market, and personal preferences.

Renting First: A Wise Step

Renting before buying is usually advisable to ensure that your chosen area aligns with your expectations. Here’s why:

  • Familiarise Yourself: Renting allows you to understand the local property market and its unique characteristics.
  • Explore Different Regions: Test different areas to find the best fit for your lifestyle.

Challenges with Renting in Tourist Areas

  • Seasonal Tourism Regions: Places like the Algarve might have limited long-term rentals as landlords prefer short-term leases to holidaymakers.
  • High Costs: Short-term rentals in tourist regions can be expensive, especially during peak season.

Renting in Main Cities

  • Availability: Long-term rentals are relatively common in major cities like Lisbon and Porto.
  • Assistance: Local agents can help with negotiations and agreements, often providing English contracts.
  • Requirements: A Portuguese fiscal number is necessary, and typically two months’ rent is required as a security deposit.

Buying Property

Once you’re ready to buy, here’s what to consider:

  • Reputable Estate Agent: Ensuring proper legal representation is vital for a smooth purchase.
  • Long-term Commitment: Understand that buying is a long-term decision that comes with additional responsibilities and costs.

Living in Portugal: A Final Thought

Portugal’s appealing climate, high quality of life, lower living costs, and tax advantages make it a fantastic destination for expats. Even without tax benefits, the lifestyle and cultural richness are compelling reasons to consider moving there.

Additional Resources

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Whether renting or buying, Portugal offers an enriching experience with distinct options to suit different needs and preferences. Careful planning and consultation with our experts can ensure that your move is a rewarding and enjoyable one. If you haven’t already signup for one of our events to learn all you need to know about moving to Portugal as an expat.