Everyone has their own reasons for moving to Portugal. Usually, the decision is not based on a single factor, but on a combination of factors: a safe environment, a pleasant climate, straightforward rules of life, and opportunities for work, study and leisure. Portugal is a welcoming place for foreigners and does not require a drastic change from one’s usual way of life. Here, you can work, raise a family, travel and live at a relaxed European pace.

Why people choose to live in Portugal:

• a mild, comfortable climate — warm winters, summers without extreme heat;
• a relaxed pace of life, minimal stress, and personal safety;
• A Portuguese residence permit, subject to standard immigration requirements, can be the first step towards obtaining permanent residency and citizenship;
• prices are on average lower than in neighbouring EU countries — France, Germany, the Netherlands and Italy;
• no language barrier — English is widely spoken, and communication problems are rare.

The country’s advantages make it attractive to many categories of foreigners. These include pensioners, remote workers and digital nomads, families with children, businesspeople and investors. Immigration legislation provides for various ways of moving to Portugal. Therefore, in most cases, you will be able to choose the option that best suits your specific situation.

Visas for Portugal

To reside in the country long-term, you need the appropriate legal grounds. The standard visa options entitling you to a Portuguese residence permit are the D7, Digital Nomad / Remote Work visa, Work visa and Student visa. A special immigration route is available for citizens of EU / EFTA (European Free Trade Association) countries; legally, this is not a visa, but it applies if the relevant grounds are met.

How to move to Portugal: visa and immigration routes:

The processing time for a visa granting the actual right to a Portuguese residence permit usually does not exceed 2–6 months. A student visa can be obtained slightly faster — within 1–3 months — whilst participation in the ARI programme requires a longer waiting period — up to 1 year. The exception is the EU/EFTA route, which is legally not a visa but a permanent residence permit.

Housing

The best cities in Portugal to live in are Lisbon and its suburb of Cascais, Porto, Braga, Coimbra, and Faro (Algarve). They offer a modern, fast-paced lifestyle, with excellent opportunities for work, business and leisure. However, compared to other EU countries, life in Portugal is more laid-back. If you prefer a calm, unhurried lifestyle, choose smaller towns such as Leiria, Aveiro, Viseu and Évora.

A characteristic of large cities is the high level of competition in the rental market, where demand usually outstrips supply. This leads to rising prices and puts a significant strain on personal or family budgets. An alternative is smaller towns or areas further from the centre. The difference in prices often reaches 30–50%, so living in Portugal does not always involve significant expenditure on housing.

Approximate monthly rental costs for a one-bedroom flat:

• Lisbon, city centre and outskirts — €1,100–€1,500 / €800–€1,100;
• Porto, city centre and outskirts — €800–€1,100 / €600–€850;
• Braga, Coimbra — €500–€750;
• small towns — €400–€600.

Buying your own home in Portugal will require a larger budget. Prices depend heavily not only on the city and neighbourhood, but also on the condition of the property, the floor it is on, the availability of furniture and appliances, and access to transport links and infrastructure. The average price per square metre in central Lisbon is €5,000–7,000, in Porto €3,400–5,000, and in smaller towns €1,500–2,500.

It is possible to talk about the relative affordability of housing in Portugal, but with some caveats. In Lisbon, property is almost always slightly more expensive than the European Union average. In Porto, prices are roughly the same, whilst in the regions they are significantly lower. Informal income requirements depend directly on this.

Cost of living

It is important to understand that the minimum income for a Portuguese visa and the actual requirements are not synonymous. Generally speaking, basic monthly expenses consist of several items. The main ones are housing (rent or mortgage payments), food, utilities and health insurance. Some of these expenses are largely independent of the region of residence. However, this does not apply to housing.

Approximate monthly costs per person:

• basic food basket — €200 to €300; if you visit cafés and restaurants, food costs will rise to €450–€700;
• monthly travel pass — €30–€60, a litre of petrol — €1.9–€2.2, an intercity train journey — €10–€30;
• utility bills (electricity, gas, water) — €80–€150, internet — €25–€40, mobile phone — €10–€25;
• health insurance — €50–€90, a visit to a GP — €40–€80, a specialist — €60–€120.

The actual minimum monthly budget per person is €1,000–€1,300 in smaller towns, €1,300–€1,800 in Porto, and €1,800–€2,500 in Lisbon. Therefore, when weighing up the pros and cons of moving, a reasonably accurate assessment of financial requirements should be made based on the region of residence. However, by European standards, life in Portugal can be described as moderately affordable, particularly when directly compared with Switzerland, Germany, Italy or the Nordic countries.

Personal taxation

The NHR scheme, which provides significant benefits for certain categories of foreign nationals, will be phased out in 2024. However, this does not mean that immigration to Portugal has become less attractive. The country operates a progressive personal income tax scale, with current rates ranging from 14.5% to 48%. A municipal surcharge (derrama) is also levied – approximately 1.5%, depending on the locality. High-income tax residents pay an additional tax – the solidarity surcharge. The rate is 2.5% for incomes between €80,000 and €250,000, and 5% if this threshold is exceeded.

In 2024, a new preferential scheme, IFICI (Incentivo Fiscal à Investigação Científica e Inovação, a tax incentive for scientific research and innovation), was introduced. It is not a direct replacement for the NHR, as it is aimed at professionals working in IT, science, medicine, engineering, finance and certain other fields. IFICI introduces a fixed rate of 20% tax on employment income for a period of 10 years from the date of obtaining tax resident status.

The rules for determining this status are typical of most EU countries. There are two eligibility criteria. The first is residence in Portugal for more than 183 days within a 12-month period. The second is that the individual has a permanent residence or centre of vital interests in the country. Residents pay tax on their worldwide income, whilst non-residents pay tax only on the portion of their income derived from sources in Portugal.

Other personal taxes and contributions:

• social security contribution — 11%, deducted from the employee’s salary; a further 23.75% is paid by the employer, but from the payroll fund;
• property tax (IMI, Imposto Municipal sobre Imóveis) — paid annually, at a rate of 0.3%–0.45% of the property’s cadastral value;
• capital gains tax — most often included in the IRS; the rate for property is 50% of the profit, and for financial assets 28%;
• investment income tax — 28%, applies to dividends and interest; at the taxpayer’s discretion, it is included in the IRS; the rate for royalties is also 28%; such income is classified as capital or professional.

Working in Portugal

The job market is relatively limited, but it is possible to find suitable work. There is high demand for specialists in IT, tourism, the HoReCa sector (hotels, restaurants and cafés), construction and healthcare. Most vacancies are in the major cities—Lisbon and Porto—but there is less competition in smaller towns.

Foreigners without a Portuguese residence permit are entitled to work if they hold a work visa and have a contract with a local employer. Remote working is permitted, catering to digital nomads and freelancers. This requires a D8 visa; to obtain it, you must prove a stable income sourced from abroad.

Average monthly salaries in Portugal before tax:

• service sector — €900–€1,200;
• tourism, HoReCa — €1,000–€1,300;
• construction, engineering — €1,300–€2,700;
• medicine — €1,700–€3,000, specialist doctors — €5,000–€7,000;
• finance, banking — €1,800–€3,100;
• IT, hi-tech — €1,800–€3,500.

Qualifications confirming professional education are rarely recognised automatically. Applicants usually only need to demonstrate their level of knowledge and skills. In certain fields — medicine, law, some engineering professions and the public education sector — recognition of qualifications is mandatory. The procedure takes between 1 and 6 months and requires an official translation and an apostille for the diploma or other supporting document.

Moving to Portugal is an interesting and potentially promising immigration project with a good balance of features. The country offers a welcoming environment for foreigners, and the attitude towards expats is friendly and open. A Portuguese residence permit can be the first step towards obtaining permanent residency and citizenship. For further information on this topic, please contact our specialists.

FAQs about moving to Portugal