The Pros and Cons of Living in Portugal: How to Move and What to Expect

Portugal has firmly secured its place among the countries increasingly chosen by foreigners for permanent residence. According to the Portuguese Immigration and Borders Service (SEF), more than 781,000 foreign citizens were living in the country in 2024, accounting for about 7.5% of the total population. This figure has grown by nearly 40% over the past five years (since 2019).

There are several reasons for such strong international interest in Portugal. On the one hand, it ranks 7th in the world in terms of safety and is considered one of the most peaceful countries in Europe; on the other hand, the cost of living here is about 25% lower than in most Western European nations.

However, every advantage has its counterpart. In this article, we will examine the pros and cons of living in Portugal, explore its economic landscape, and review immigration options for those considering a move.

Advantages of Living in Portugal

Portugal frequently appears in international rankings as one of the most comfortable and peaceful countries to live in. However, behind this reputation stand concrete factors, which we will examine below.

Low Crime Rate

According to the Global Peace Index 2024, Portugal ranks 7th in the world and 1st in Southern Europe among the safest countries, behind only Iceland, Denmark, and Ireland. The rate of violent crime in Portugal is 34% lower than the EU average, and 72% of residents consider their country safe even at night.

Street crime occurs mostly in tourist areas of large cities and usually involves petty theft, pickpocketing, or rental fraud. Serious incidents are extremely rare.

Corruption exists but remains moderate: according to Transparency International (2024), Portugal ranks 36th out of 180 countries, showing improvement compared to the pre-COVID period.

High Quality of Life

Portugal consistently ranks among the European countries with the highest quality of life. In the OECD Better Life Index 2024, the country ranks 10th for environmental quality and 12th for work—life balance, outperforming Italy and Greece.
According to the Numbeo Quality of Life Index 2025, Portugal scores 183 points, ahead of Spain (179) and Poland (176).

Easy Integration for Foreigners

Portugal is one of the most open and welcoming countries in Europe toward migrants. According to the Agency for Migration and Asylum (AIMA, formerly SEF), there were 781,000 foreign residents in 2024, about 7.5% of the population. Over the past five years, this number has increased by nearly 40%, yet no migration protests or political polarization have emerged.

Largest immigrant communities:

• Brazilians — 32% of all foreigners;
• CPLP countries (Cape Verde, Angola, Guinea-Bissau, etc.) — around 20%;
• Indians and Nepalis — 15% (mainly in services, construction, and agriculture);
• Britons and French — 12% (primarily in Algarve and Lisbon);
• Others — Ukrainians, Italians, Northern Europeans, and Americans.

Moreover, 73% of Portuguese citizens view immigration as a positive phenomenon, and only 14% express concern about the number of migrants. The rate of workplace discrimination is 8%, compared to the EU average of 22%.

Developed Social System

Portugal guarantees basic public services to all residents, including foreign citizens with residence permits. Its healthcare system operates on a mixed model:

• SNS (Serviço Nacional de Saúde) — the public network of hospitals, clinics, and primary care centers;
• Private sector — covering insurance-based care, diagnostic centers, and specialized clinics.

According to the OECD (2024), 95% of the population have access to a family doctor, and the average life expectancy is 82.1 years, one of the highest in Europe. The Healthcare Efficiency Index ranks Portugal 14th globally, ahead of France and the United Kingdom.

Opportunities for Remote Work

In recent years, Portugal has become one of Europe’s main hubs for remote professionals. Since 2022, the Digital Nomad Visa program has been available for individuals earning income from abroad. Over 15,000 residence permits have already been issued under this scheme, with applications continuing to rise.

Key benefits of the visa:

• Permission to work for foreign companies or as self-employed;
• Minimum verified income: €3640 per month (4× the 2025 minimum wage);
• Eligibility for a 2-year residence permit, extendable up to 5 years;
• Pathway to permanent residence and citizenship after 5 years.

Alongside it, the D7 visa remains a popular option for freelancers with passive or mixed income. Together, these two programs make Portugal one of the most flexible jurisdictions in Europe for remote work.

Additionally, 95% of households have broadband internet access, and fiber-optic coverage exceeds 92%, with an average connection speed of 125 Mbps.

According to Nomad List 2025, the average monthly expenses for digital nomads are:

• Lisbon: €1900—2200.
• Porto: €1600—1800.
• Madeira: €1400—1600.

This includes rent, food, transportation, and basic leisure. By comparison, a similar standard of living costs €3000+ in Berlin and around €4000 in London.

Disadvantages of Living in Portugal

Despite its many advantages, Portugal also has several objective weaknesses that affect not only foreigners but also local residents. Let’s examine them one by one.

Low Wage Levels

Portugal remains one of the lowest-paying countries in Western Europe. Despite steady economic growth of around 2.1% GDP in 2024 (Banco de Portugal), real household income rises slowly and often fails to keep pace with inflation and housing costs.

According to INE (Instituto Nacional de Estatística, 2025), the median net monthly salary is around €1,050. In comparison, the median is €1,450 in Spain and approximately €1,700 in Italy.

Regional disparities are also significant: wages in Lisbon can be 30–40% higher than in inland regions, but rents in the capital are roughly double. Rural Portugal remains at income levels comparable to Eastern Europe.

The Numbeo Purchasing Power Index 2025 ranks Portugal 45th globally, below the Czech Republic, Poland, and Slovenia — meaning that, despite being in the eurozone, the average Portuguese worker can afford less than many Eastern Europeans.

For foreigners used to Northern European salaries, this gap is especially noticeable: a comfortable standard of living generally requires €1,800—2,000 per person per month.

Rising Housing Costs

Over the past five years, property prices have nearly doubled, and rents have increased by 60–70%, while real incomes have grown less than 20%. As a result, the housing market has become inaccessible for most locals and young families and one of the largest expenses for foreigners.

According to Idealista, the average price per square meter of real estate in Portugal is €3,320. In Lisbon, it reaches €5,780/m², while in interior regions it remains between €1,200—1,500/m².

In major cities like Lisbon, Porto, and the Algarve, housing prices rose about 55% between 2020 and 2025, while rents grew even faster — a one-bedroom apartment in Lisbon that cost €900 in 2021 now rents for €1,500—1,800 (+100%).

The OECD House Price-to-Income Ratio indicates that Portuguese housing is overvalued by about 40% relative to local incomes — comparable to London and Paris, but with much lower wages.

Key reasons behind the housing crisis:

• Foreign demand: the now-ended Golden Visa program (until 2023) and growing interest from European and American expats drove speculative price increases, especially in Lisbon, Cascais, and Porto.
• Short-term rentals: the boom in tourist rentals reduced the supply of long-term housing.
• Lack of new construction: in 2024, only 22,000 housing units were completed — half the 2008 level.
• No rent control: unlike Germany or France, Portugal has no regulation on rental increases, allowing landlords to raise prices freely upon contract renewal.

Bureaucracy

Portugal combines simple laws with complex execution. Despite its relatively friendly immigration legislation, bureaucracy remains a major challenge.

Digitalization has not fully solved the issue — online systems are often inefficient and slow to process requests. The problem worsened after the dissolution of SEF (Serviço de Estrangeiros e Fronteiras) in 2023 and the creation of AIMA (Agência para a Integração, Migrações e Asilo), which took over immigration responsibilities while border control was split between Polícia Judiciária and PSP.

In practice, the transition caused a processing collapse: by the end of 2024, there were over 360,000 pending residence applications. Even simple cases, such as D7 or Digital Nomad visa renewals, took 8–12 months.

In 2024, Portugal launched the ePortugal 2.0 system to unify key public services, but according to the OECD Governance Review, the reform «changed the interface, not the administrative culture itself.»

Complex Tax System

Portugal’s progressive income tax (IRS) is structured in such a way that even moderate salaries quickly fall into the «middle-income trap.»

Social contributions add 11% for employees and 21.4% for self-employed professionals. As a result, a worker earning €3000/month gross takes home roughly €2150—2250, meaning a 25–28% effective tax burden comparable to France or Germany but with much lower pay.

There are tax incentives, such as the Non-Habitual Resident (NHR) program, but they apply only for 10 years and exclude most domestic income outside «high-value» professions. Consequently, fewer than 6% of resident taxpayers benefit from NHR.

The biggest drawback, however, is instability: in just three years, Portugal has introduced over 40 major tax code changes, including revisions to IRS brackets, NHR rules, deductions, and crypto taxation. Even professional accountants acknowledge the system has become overloaded and unpredictable.

Limited Job Market

Finding employment in Portugal comparable to Northern European conditions is challenging. The economy relies heavily on low value-added services. High-paying sectors (IT, consulting, finance) are growing but still represent a small share of total vacancies.

English proficiency is sufficient for jobs in tech, consulting, or multinational firms, but Portuguese is required for most positions in healthcare, education, public service, sales, law, construction, and engineering.

Moreover, regulated professions (doctors, teachers, lawyers, engineers) require degree recognition and/or professional certification, a process that can take several months due to bureaucracy. Without this, foreign professionals are often hired for lower positions at reduced pay.

High Secondary Expenses

While basic consumer prices in Portugal are relatively moderate, indirect household expenses (energy, fuel, cars, appliances, and imported goods) are substantial.

Typical monthly utility costs (70 m² apartment):

• Electricity: €90—120.
• Gas and water: €40—60.
• Internet and mobile: €35—50.

Total utilities for a family of 2–3 people amount to €160—230 per month, or roughly 15–20% of the average salary.

The situation worsens for those who rely heavily on a personal vehicle. Fuel costs for daily commuting can reach €180—250 per month. On top of that, drivers must pay an annual vehicle tax (IUC) of €60—250, plus mandatory inspection (IPO) and insurance, which together cost another €250—400 per year.

Salaries in Portugal

According to INE (Instituto Nacional de Estatística), the average salary in 2025 stands at €1450 gross and €1050 net, making it one of the lowest in Western Europe. The labor market is characterized by a high share of temporary contracts (around 20%) and a moderate demand for highly qualified professionals.

Average salaries by profession:

Regional salary differences:

The labor market is showing steady growth in IT, logistics, and construction, with notable labor shortages in construction, healthcare, and service sectors in Lisbon and Porto. The minimum wage as of January 2025 is €910 gross per month.

Cost of Living in Portugal

For most foreigners, housing rent represents the largest single expense. According to Idealista, the average rental price in Lisbon is €19.2 per square meter, making it one of the most expensive cities in Southern Europe. The monthly cost of a basic food basket is around €300—400 per person and €700—900 for a family of three.

Average prices for essential goods and services:

Public transport in major cities is well-developed and affordable. A monthly pass costs around €35—40 and covers metro, buses, and suburban trains. Taxi fares average €0.60 per km, with a minimum fare of about €4.

Utilities and communications:

On average, the cost of living in Portugal remains 25–35% lower than in France or Germany, though it is noticeably higher than in Greece or the Czech Republic. A comfortable net income for a single person is estimated at €1800 per month.

How to Move to Portugal

Portugal’s immigration policy prioritizes the inflow of investors, qualified professionals, and individuals with passive income, while maintaining moderate financial requirements.

Foreign citizens first obtain a temporary residence permit (residência temporária) valid for two years, renewable for up to five years. After five years of legal residence, applicants become eligible for permanent residency (residência permanente) or citizenship, provided they demonstrate Portuguese language proficiency at level A2 and have no criminal record.

D7 Income Visa (Residência para Titulares de Rendimento Próprio)

The D7 visa is designed for individuals with passive or regular income earned outside Portugal — such as from rent, investments, dividends, pensions, or remote work.

Minimum income requirements:

• €820/month — for the main applicant (100% of the Portuguese minimum wage).
• €410/month — for a spouse or partner.
• €250/month — for each dependent child.

In practice, Portuguese consulates typically expect a minimum annual income of €12,000—15,000 per person and savings of €10,000—15,000 deposited in a Portuguese bank account.

Main eligibility criteria:

• Proof of a stable and regular income source (pension, investments, rental income, dividends, or remote work contracts).
• Lease or ownership agreement for housing in Portugal.
• Valid health insurance covering the full duration of stay.
• Criminal record certificate and documents confirming tax compliance in the applicant’s home country.

Digital Nomad Visa

The Digital Nomad Visa is designed for individuals earning income from employers or clients outside Portugal. The main requirement is proof of a monthly income of at least four times the national minimum wage, i.e., €3640 per month (based on the 2025 minimum wage of €910).

Applicants are also advised to hold savings of at least €10,000 for the main applicant plus €4,000 for each dependent in a Portuguese bank account.

Required documents:

• Proof of income for the past three months (contracts, bank statements, or payslips).
• Employer’s certificate or client contracts.
• Proof of residence in Portugal (rental or ownership agreement).
• Health insurance valid across the EU.
• Criminal record certificate.

The initial residence permit is issued for two years and can be extended for an additional three years. If the holder resides in Portugal for more than 183 days per year, this period counts toward eligibility for permanent residency or citizenship after five years.

Startup Visa

The Startup Visa targets non-resident entrepreneurs who wish to launch technological or innovative projects in Portugal. A key requirement is a business plan pre-approved by one of the country’s accredited incubators.

Main conditions:

• Register a company in Portugal (Lda or SA structure).
• Proof of available funds of at least €5200 per person (equal to 12 months of the minimum wage) to cover personal living expenses during the first year.
• Development of a scalable, export-oriented product or service.
• Creation of at least one job within the first two years.

Tech Visa

The Tech Visa is designed for companies accredited by AICEP (Portuguese Trade & Investment Agency) that wish to hire qualified non-EU professionals.

Requirements:

• A valid employment contract with a company certified under the Tech Visa program.
• Bachelor’s degree or higher and at least three years of professional experience in a technical field.
• Minimum gross income of 2.5× the national minimum wage, i.e. €2275/month in 2025.
• English or Portuguese proficiency sufficient for professional communication.

Family Reunification (Reagrupamento Familiar)

Family members of a Portuguese citizen or a holder of a residence or permanent residence permit may apply for residency under the family reunification program. Eligible relatives include spouses or registered partners, minor children, and dependent parents.

Requirements:

• Proof that the sponsor has a stable income (at least equal to the Portuguese minimum wage, i.e., €820/month in 2025).
• Adequate housing for the entire family.
• Registration with the local municipality and tax authority.

Family members receive residence permits valid for the same duration as the main applicant’s, granting access to healthcare, education, and the labor market. After five years, they can apply for permanent residence or citizenship on equal terms.

Student Residence Permit (Estudante de Ensino Superior)

Portugal attracts a growing number of international students, not only from the EU, but also from Brazil, India, and other CPLP countries (Community of Portuguese Language Countries). For students from CPLP nations, simplified admission and visa procedures are in place.

Main requirements:

• Proof of enrollment in an accredited higher education institution.
• Financial means of at least €615 per month (equivalent to 75% of the national minimum wage).
• Housing confirmation — rental contract, dormitory placement, or hostel reservation.
• Valid health insurance.
• Certificate of no criminal record.

Upon submission of these documents at a Portuguese consulate, applicants receive a student residence permit valid for the duration of their academic program, typically from one to four years.

Graduates who secure employment within 12 months of completing their studies may convert their student residence permit into a work permit, enabling long-term legal residence and integration into the Portuguese labor market.