10 Advantages of Living in Portugal in 2024
When considering a move abroad, an exploratory trip is highly recommended. After checking each country off the list, We thoughts about the 10 most important factors such as safety and cost of living will be shared to address the big question: could one live here? Today’s discussion focuses on living in Portugal. Unfortunately, the government recently announced a change that might cause some to reconsider, but this will be addressed later.
1. Residency Visa Options
This is arguably the most crucial factor when considering a country to live in. Without a suitable visa option, the idea becomes a non-starter.
Portugal offers two types of D8 visas: a one-year temporary stay visa and a two-year residence visa. Both require a minimum income of €340 per month. Opting for the two-year residence visa necessitates obtaining a NIF number, opening a Portuguese bank account, and providing proof of accommodation. The D7 Visa, a passive income visa, has been around for a while and requires at least €760 per month to qualify. This visa also requires obtaining a NIF number and opening a Portuguese bank account, along with proof of accommodation. Regardless of the visa type, staying out of the country for more than six consecutive months is not permitted. This means becoming a tax resident and paying taxes in Portugal.
Currently, the NHR tax scheme is scheduled to end on December 31st, 2023, which could significantly increase tax rates. More details on this will be provided in the cost of living section.
2. Safety and Stability in Portugal
Portugal is ranked number seven on the Global Peace Index and is considered one of the safest countries in the world, particularly in Europe. Walking around both day and night in areas like Porto and others generally feels extremely safe. However, the Prime Minister’s recent resignation, triggering new elections in the spring of 2024, may raise concerns about governmental stability. This is the second such event in the past two years. Despite this, Portugal is still viewed as a safe and stable place to live.
3. Weather and Natural Disasters
During a short trip to Portugal, a lot of diverse weather was experienced. The Green Coast region, which includes Porto and Braga, is cooler and wetter, especially in the fall and winter. The Silver Coast, from south of Porto to north of Lisbon, has milder winters and hot, dry summers. The Lisbon coast and the Algarve region on the southern coast are much warmer and drier. Inland regions are cooler in the north and warmer and drier in the south. The islands of the Azores have mild temperatures, while Madeira is similar to San Diego or Hawaii. Overall, Portugal is known for its great weather, offering something appealing for everyone. However, natural disasters such as Atlantic storms, droughts, fires, and occasionally earthquakes need to be considered.
4. Health Insurance and Healthcare
Portugal has excellent healthcare, ranked number 20 by CEO World. Fortunately, there was no need to use the healthcare system during the visit, but positive feedback from other expats has been noted. A pharmacy visit for medications resulted in a positive experience, with helpful staff who spoke English. Residents can utilize the mostly free public healthcare plan, which has some minimal fees. Alternatively, private insurance is very affordable, ranging from $50 to $150 per month per person. A doctor’s visit, if paying cash, typically costs around $40 to $50.
5. Housing in Portugal
Finding a place to live is essential, and Portugal offers a variety of housing options. Condos and detached homes are available, with options to live on the coast or in a big city like Lisbon or Porto. Prices are lower outside the main cities, and smaller cities like Braga and Coimbra are much more affordable. However, living in the heart of Lisbon or Porto means paying more, and properties there are generally smaller compared to what might be expected. Housing prices have increased by 48% in the last four to five years, making it difficult for some locals to find affordable places to live.
6. Food and Restaurants
Several grocery store chains in Portugal, such as Pingo Doce, Continente, Maradona, and Fresco, offer a wide variety of foods in grocery stores and mercados. Specialty stores like Asian, Indian, and Korean shops are also available. The quality and quantity of restaurants in Porto and other areas are impressive, with a wide variety of cuisine, both local and international, from fast food to high-end dining. Many options for people with dietary requirements make eating out easy.
7. Cost of Living
The exchange rate is currently 1.07 to 1 Euro, meaning a 7% hit on the cost of living by moving money from the US. Portugal’s sales tax is 23%, but they have a tiered system with some items taxed at 13%, like wine, and others at 6%, like food. Some items are even at 0%. One way to save money is with no tipping; tipping is not common or expected in Portugal. The NHR tax scheme currently does not tax foreign-source income but does tax Portuguese-source income at a reduced rate. This scheme is scheduled to end in December 2023, which could result in higher taxes for new residents.
Health insurance for residents is affordable, and dining out costs between $15 to $30 for lunch and $30 to $50 for dinner for two, including wine. Grocery costs are similar to Ecuador, maybe a little higher, with some items significantly cheaper and others more expensive. Rent ranges from $700 to $1,500 per month for a condo or home, depending on location and amenities. The overall cost of living for a single person can range from $1,800 to $2,200 a month, and for a couple, it can range from $2,500 to $3,000 a month, outside major metro areas like Porto or Lisbon, where costs are higher.
8. Walkability and Public Transportation
Cities and towns in Portugal are designed for walkability with lots of local shops, nice sidewalks, and crosswalks where cars stop for pedestrians. The country has an extensive rail system, making city-to-city travel with luggage easy. Local metro and buses are also super easy to use, and taxis and Uber are readily available. Walking around is safe and convenient.
9. Quality of Life in Portugal
Portugal offers a high quality of life with many activities and amenities. Cities, mountains, beaches, surfing, cycling, hiking, gyms, yoga, museums, and concerts provide plenty of options for recreation. People are generally friendly and welcoming, with noticeable kindness in the northern part of Portugal. No anti-foreigner sentiment was experienced during the visit, despite some online rumors.
10. Language Barrier
Portuguese is a difficult language to learn. It looks similar to Spanish, making it easier to read, but the pronunciation is very different, sounding more like Russian. Even Brazilians find the Portuguese version of Portuguese challenging. However, there are many English and Spanish speakers, making the transition easier if coming from an English or Spanish-speaking country.
Is Portugal a good place to live in?
A solid maybe, primarily because of the tax advantages that are currently scheduled to end. If the NHR tax scheme remains, Portugal will stay at the top of the list. If it ends, the taxes might be too high, making it less attractive. Overall, Portugal offers many benefits, but the new immigration laws in Portugal and potential tax changes are crucial factors to consider.
Also Read: New Immigration Laws in Portugal: The Ultimate Guide in 2024