The 9 pros and cons of living in Portugal

Want to weigh the pros and cons of living in Portugal? This article helps you see why Portugal is the place for you, even with its challenges.

Ellie

6 minute read

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14 Aug 2024

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Living

With its beautiful landscape, vibrant culture, and friendly locals, Portugal is becoming a top choice for expats. If you're considering life in this beautiful country, it’s essential to consider the pros and cons of expat life in Portugal. In this article, we’ll walk you through the most important pros and cons of living in Portugal as an expat.

In such a warm, scenic, and cultural country, finding the advantages of living there is easy. Still, some factors are more important to expats than to locals. Let’s look at why so many expats choose to live in Portugal each year.

1. The cost of living

Portugal is known for its affordable cost of living compared to other Western European countries. Housing in most of Portugal is quite affordable, and you can find beautiful rentals at reasonable prices. In recent years, cities like Lisbon have become more expensive in terms of housing. This is due to an influx of expats choosing to live and work in the city in the past few years. Despite such an increase, Lisbon is still one of the cheapest cities to live in Western Europe.

The cost of food and dining out in Portugal is also pretty cheap. You can find plenty of fresh food options in local markets and restaurants without spending much money. Even in major cities like Lisbon, plenty of markets offer cheap, fresh and delicious food.

Other essential expenses, like healthcare, public transportation and utility bills, are reasonably priced in Portugal. The National Health Service (SNS) provides Portuguese residents with affordable healthcare. Public transportation is very cheap compared to other European countries, costing just about €40 per month. Regarding utilities, you’ll only spend about €110 a month.

2. Safety

Portugal is one of the safest places to live, not just in Europe but in the world. According to the Global Peace Index, Portugal is the 7th safest place to live in the world. Portugal has a low crime rate, and violent crime is incredibly rare. Even petty crime, such as pickpocketing, is rare and typically only happens in tourist hotspots.

Politically speaking, the Portuguese government is stable, so political instability is not a concern. Portuguese people are incredibly friendly, especially to expats. The Portuguese are known for extending their hospitality and embracing new people into their culture. Having such a welcoming population makes Portugal so appealing to expats and can make settling into Portuguese culture a breeze.

3. Tax schemes for expats

The Portuguese government has created several initiatives to encourage highly skilled expats to come and live there. The Non-Habitual Resident (NHR) tax regime was a tax initiative that offered a fixed personal tax rate of 20% and tax exemptions for up to 10 years. While this regime is being phased out, it’s been replaced by the Fiscal Incentive for Scientific Research and Innovation (IFICI). Like the NHR, the IFICI will offer a personal tax rate of 20% for up to 10 years, but only for those in eligible careers.

Generally speaking, taxes in Portugal are pretty low. Income tax is a progressive rate, and Portugal has double taxation treaties and schemes in place to ensure you won't be taxed twice on income earned elsewhere. There’re plenty of tax credits and deductions you may be able to avail of, too.

4. The climate

Portugal’s Mediterranean climate is a major pro for expats. You’ll have over 300 sunny days in parts of the Algarve each year. Summers in Portugal are warm and dry, with temperatures often reaching 30°C (86°F). Coastal areas like Lisbon and Porto have cooling sea breezes, making the heat more comfortable. Winters are mild, particularly in coastal cities, and temperatures rarely drop below 10°C (50°F). Of course, the weather varies regionally; some parts of the country experience cooler and wetter weather (particularly in the North), while others experience hotter and drier weather (particularly in the South). But you’ll rarely experience extreme weather conditions in Portugal, regardless of where you live.

Such a pleasant climate makes the Portuguese lifestyle an outdoorsy one. You’ll have plenty of opportunities to take scenic hikes and beach trips while living in Portugal.

5. The expat community

One of Portugal's biggest advantages is the vibrant expat community. Expats flock here yearly to enjoy the stunning landscapes, the lucrative tax schemes and the laidback lifestyle. Major cities like Lisbon, Porto, and parts of the Algarve have large expat communities, which makes settling in and finding new opportunities a breeze. Expat communities are a great way to meet like-minded people, network for your career, and learn the top tips for life in your new city.

Portugal has quite a lot of international schools, expat-focused businesses and English speakers, which makes living there as an expat that bit easier. The Portuguese embrace and welcome the expat communities that make Portugal their new home.

Life in Portugal seems like a dream come true, but as with any country, living there has some challenges. Let’s look at some of the cons to life in Portugal that you should know.

1. The job market

The unemployment rate in Portugal is among the highest in Europe. In 2024, the Portuguese unemployment rate is around 6.5%, according to Statista. Finding a job in Portuguese can be tricky, especially when you don’t speak the language. However, tax regimes like the NHR and IFICI have motivated start-ups and other companies to open offices in Portugal. This has led to an improvement in the job market in recent years, particularly in popular expat cities like Lisbon and Porto. If you choose to live more regionally, finding a well-paying job without speaking Portuguese will be trickier.

It’s good to keep in mind that the average salary in Portugal is considered low compared to other European countries. But the cost of living in Portugal is also very affordable, so having a lower salary isn’t typically an issue for expats.

2. The bureaucracy

As an expat, dealing with the bureaucracy of a new country can be one of the biggest nuisances. Unfortunately, Portugal has one of the slowest administrative systems in Europe. Basic tasks like applying for a residence permit, visa or converting your driving license can take an incredibly long time and require a lot of paperwork.

To best prepare yourself for the time-consuming bureaucratic processes of Portugal, here’re some tips:

• Prepare your documents well in advance and have several copies on standby
• Have a Portuguese translator help you where necessary, as some forms are only available in Portuguese
• Research how your local municipality works; each municipality may differ slightly in their processes
• Search for the shortest wait times, sometimes regional offices have less of a backlog and can process your request quicker

3. Cash-focused society

While digital payment methods are slowly becoming more popular, some businesses in Portugal will still only accept cash payments. You’ll also find that while some places allow card payments, they don’t accept Visa and Mastercards. Portuguese bank cards are issued under the Multibanco system, so businesses often don’t accept international bank cards.

The best way to work around this is to open a Portuguese bank account. With a Portuguese bank account, you can make payments using MBWay. MBWay is a Portuguese banking option that allows you to make payments using your phone number. You’ll probably have to visit the ATM a lot, too, so get to know your neighbourhood well so you know where they are.

4. Lack of infrastructure

The amenities you’ll have at your disposal will vary a lot depending on where you decide to live in Portugal. While public transportation and public services are excellent and readily available in larger cities such as Lisbon, this is not always the case outside these cities. The lack of public transportation, in particular, makes it almost necessary to own a car to live in certain parts of Portugal. Owning a car is not exactly a straightforward process either. Car insurance and tax are expensive, the road quality varies a lot across the country, and adjusting to windy and narrow rural roads can be difficult.

Of course, public transport options will still help you get from A to B. But outside of the big cities, you'll often face delays and unreliable services.

Aside from public transportation, the quality and availability of public services, such as healthcare, will vary greatly across Portugal. It’s wise to research the area where you want to live to determine what you’ll have available.

So there you have it! Life in Portugal is appealing for thousands of internationals who choose to live there each year. Of course, it comes with challenges, but none are so big that you shouldn’t live there. Within no time, you’ll come to embrace the relaxed lifestyle of the Portuguese and be proud to call it your new home.