Complete Guide to Moving to Portugal in 2025

Portugal has quietly become the most talked-about relocation destination in Europe — and for once, the hype is backed by data. A country where the sun shines 300 days a year, a single espresso costs under a euro, and the national health service covers residents for free. It sounds too good to be true. It is not.

Over the past five years, Portugal has seen a surge of expats from the US, UK, Brazil, and across Europe. The reasons stack up fast: an affordable cost of living by Western European standards, one of the lowest crime rates on the continent, a healthcare system ranked 12th globally by the WHO, and visa pathways that actually welcome newcomers rather than treating them as bureaucratic afterthoughts.

But moving to Portugal is not as simple as booking a one-way flight to Lisbon and hoping for the best. Visa types, tax regimes, neighborhood selection, healthcare enrollment, and cost projections all require planning. This guide covers everything — the practical details that most “move to Portugal” articles gloss over.

At WhereNext, we score every country across seven data-driven dimensions using institutional sources. Portugal consistently ranks among the top destinations globally. You can explore the full Portugal country profile for real-time data, or keep reading for the comprehensive breakdown.

Why Portugal? The Data Behind the Hype

Before we dive into logistics, here is why Portugal ranks so high across nearly every dimension that matters to someone considering moving to Portugal.

Those numbers are not marketing. They are aggregated from the Global Peace Index, WHO healthcare rankings, Numbeo cost data, and immigration policy databases. Portugal is the rare country that scores well across every dimension — not just one or two.

Visa Types: How to Legally Move to Portugal

Portugal offers several visa pathways, and choosing the right one is the single most important decision you will make. Here is a breakdown of the main options for people moving to Portugal in 2025.

D7 Visa (Passive Income / Retirement Visa)

The D7 is the most popular visa for American and British expats. It is designed for people who have regular passive income — pensions, rental income, dividends, social security, or investment returns. The minimum income requirement is approximately €760 per month (pegged to the Portuguese minimum wage), though most immigration lawyers recommend showing at least €1,000–€1,200 per month for a smoother approval.

The D7 grants a one-year residency permit, renewable for two-year periods. After five years of legal residency, you can apply for permanent residency or Portuguese citizenship — which also grants EU citizenship and the right to live and work anywhere in the European Union.

Key requirements: proof of accommodation in Portugal (rental contract or property deed), Portuguese NIF (tax number), a clean criminal record, and health insurance. Processing time runs roughly 2–4 months from the Portuguese consulate in your home country.

D8 Visa (Digital Nomad Visa)

Launched in late 2022 and refined in 2023, the D8 is Portugal’s answer to the global remote work movement. It is designed for people who work remotely for companies or clients outside Portugal. The income threshold is higher than the D7 — you need to demonstrate at least four times the Portuguese minimum wage, which works out to roughly €3,040 per month in 2025.

The D8 offers the same residency pathway as the D7: one year initially, renewable in two-year increments, with a path to permanent residency and citizenship at the five-year mark. It is ideal for freelancers, remote employees, and entrepreneurs whose income originates outside Portugal.

Golden Visa (Investment Visa)

Portugal’s Golden Visa program underwent major changes in 2023. The real estate investment route has been eliminated — you can no longer qualify by purchasing property. However, the program still exists through alternative investment channels: a minimum €500,000 investment in qualifying funds, a €250,000+ contribution to arts and cultural heritage, or a €500,000+ investment in research activities.

The Golden Visa remains attractive for high-net-worth individuals because it requires only 7 days of physical presence in Portugal per year (compared to the D7/D8 which require you to spend the majority of your time in Portugal). It still provides a path to permanent residency and citizenship after five years.

Other Visa Options

Portugal also offers D1 (employment) visas for those with a job offer from a Portuguese company, D2 (entrepreneur) visas for people starting a business in Portugal, and student visas for those enrolling in Portuguese educational institutions. The Tech Visa program fast-tracks immigration for workers hired by certified Portuguese tech companies.

Cost of Living: Lisbon, Porto, and the Algarve

One of the biggest mistakes people make when researching moving to Portugal is treating the country as a monolith. Costs vary dramatically depending on where you settle. Here is a realistic breakdown of monthly expenses in Portugal’s three most popular expat destinations.

Lisbon

Lisbon is the capital, the cultural hub, and by far the most expensive city in Portugal. A one-bedroom apartment in the city center runs approximately €800 per month, though prices in trendy neighborhoods like Chiado, Príncipe Real, and Alfama can push to €1,000–€1,200. Outside the center, expect €600–€750.

Total monthly budget for a single person living comfortably in Lisbon: roughly €1,500–€2,200, including rent, groceries (€200–€300), dining out, transport (a monthly metro pass is €40), utilities (€100–€150), and health insurance (€80–€150 for private coverage).

Porto

Porto is Portugal’s second city and increasingly the top choice for expats who want urban energy without Lisbon’s price tag. A one-bedroom in the center averages €600 per month — roughly 25% less than Lisbon. Neighborhoods like Foz do Douro, Cedofeita, and Bonfim offer excellent quality of life.

Total monthly budget for a single person in Porto: roughly €1,200–€1,800. Groceries, restaurants, and transport all run slightly cheaper than Lisbon. Porto also has a thriving tech scene, excellent coworking spaces, and a growing international community.

Algarve

The Algarve is Portugal’s southern coast — famous for stunning beaches, golf courses, and a large retirement community. A one-bedroom apartment in towns like Lagos, Faro, or Tavira averages €550 per month, making it the most affordable of the three regions.

Total monthly budget in the Algarve: roughly €1,100–€1,600. The trade-off is that the Algarve is more seasonal and less urban than Lisbon or Porto. Public transport is limited outside major towns, so a car is almost essential. That said, the climate is unbeatable — mild winters, hot summers, and over 3,000 hours of sunshine per year.

Best Portuguese Cities for Expats

Beyond the big three, Portugal offers several smaller cities and towns that are increasingly popular with expats. Here is how the top destinations rank based on a composite of affordability, infrastructure, community, and lifestyle.

Healthcare: The SNS and Private Options

Portugal’s healthcare system is one of the strongest arguments for moving to the country. The Serviço Nacional de Saúde (SNS) is Portugal’s public health service, and it provides universal coverage to all legal residents — including expats with a valid residency permit.

Once you register with your local health center (centro de saúde), you receive a health user number and gain access to general practitioners, specialists, hospital care, emergency services, and prescription medications at heavily subsidized rates. A GP visit through the SNS costs roughly €5. Emergency room visits are €15–€20. Prescription drugs are often 80–90% subsidized.

The SNS is not perfect — wait times for specialist appointments can be long (weeks to months for non-urgent cases), and the system is under funding pressure. This is why many expats opt for private health insurance as a complement. Private plans from providers like Multicare, Médis, and AdvanceCare run €80–€150 per month and give you access to a parallel private healthcare network with shorter wait times and English-speaking doctors.

For Americans accustomed to spending $500+ per month on health insurance with high deductibles, Portugal’s system is a revelation. The WHO ranks Portuguese healthcare 12th globally, and the HAQ Index (Healthcare Access and Quality) places it ahead of the US.

The NHR Tax Regime: What You Need to Know

Portugal’s Non-Habitual Resident (NHR) tax regime was one of the biggest draws for expats — and it has undergone significant changes. Here is the current state of affairs.

The original NHR program, which offered a flat 20% income tax rate on Portuguese-sourced income and potential tax exemptions on foreign-sourced income for 10 years, was closed to new applicants at the end of 2023. If you registered before that deadline, you still benefit from its terms for the full 10-year period.

In its place, the Portuguese government introduced the Incentivized Tax Regime for Scientific Research and Innovation in 2024. This new program offers a flat 20% tax rate on qualifying employment and self-employment income for people working in eligible professions — primarily in science, technology, and innovation sectors. The scope is narrower than the original NHR, but it remains attractive for tech workers, researchers, and certain professionals.

For retirees and people with passive income who do not qualify for the new regime, Portugal’s standard progressive tax rates apply: ranging from 14.5% on income up to €7,703 to 48% on income above €81,199. However, the effective tax burden is often lower than the US when you factor in the FEIE (Foreign Earned Income Exclusion) and the US-Portugal tax treaty that prevents double taxation.

Important for Americans: you will still file US taxes regardless of where you live. The FEIE allows you to exclude over $120,000 of foreign-earned income, and tax credits for taxes paid to Portugal further reduce your US liability. Consult an international tax advisor before making the move — the specifics matter enormously.

Neighborhoods: Where to Live in Lisbon and Porto

Choosing the right neighborhood is almost as important as choosing the right city. Here are the most popular areas for expats in Portugal’s two largest cities.

Lisbon Neighborhoods

• Príncipe Real / Chiado: Upscale, central, walkable. Excellent restaurants and nightlife. Rent is premium (€900–€1,200 for a 1BR) but the location is unbeatable. Popular with professionals and creatives.
• Alfama / Graça: The oldest neighborhoods in Lisbon, with winding cobblestone streets and fado music spilling from doorways. More affordable than Chiado (€700–€900) but hilly and less modern.
• Campo de Ourique: A family-friendly residential neighborhood with a village-like feel inside the city. Good schools, local markets, and a strong community. Rent is reasonable at €650–€850.
• Parque das Nações: Modern, planned district along the riverfront. Newer buildings, excellent infrastructure, and proximity to the airport. Popular with families and tech workers. Rent €700–€950.
• Estrela / Lapa: Quiet, elegant, embassy-heavy neighborhood with beautiful gardens. A favorite among diplomats and older expats. Rent €750–€1,000.

Porto Neighborhoods

• Foz do Douro: Oceanfront neighborhood with a relaxed, upscale vibe. Beautiful promenade, great restaurants. Rent €550–€800 — a fraction of equivalent beachfront areas elsewhere in Europe.
• Cedofeita / Bonfim: The creative heart of Porto. Independent shops, art galleries, craft beer bars. Younger crowd. Rent €450–€650. This is where most younger expats settle.
• Ribeira / Downtown: Picturesque and touristy, right along the Douro River. Beautiful but noisy, and short-term rentals have pushed prices up. Rent €550–€750.
• Boavista: Porto’s commercial center with the best shopping and a more modern feel. Good transit connections. Rent €500–€700.

Language: Do You Need to Speak Portuguese?

The honest answer: no, but you should try. Portugal has one of the highest English proficiency rates in Southern Europe. In Lisbon and Porto, you can handle almost every daily interaction in English — from restaurants to banks to doctors to government offices (though the latter may require patience).

However, learning Portuguese transforms the experience. It opens doors to deeper relationships, better service, access to local deals (many landlords prefer tenants who speak Portuguese), and a genuine sense of belonging. Portuguese people deeply appreciate foreigners who make the effort — even a clumsy “Bom dia, tudo bem?” goes a long way.

Resources: the Portuguese government offers free language courses through the PPT (Português para Todos) program for legal residents. Private schools, apps like Practice Portuguese and Pimsleur, and language exchange meetups in Lisbon and Porto are all excellent options. Budget roughly €100–€200 per month for a structured course.

Safety in Portugal

Safety is one of Portugal’s strongest selling points. The country ranks 7th on the Global Peace Index, making it one of the safest countries in the world. Violent crime is exceptionally rare. Petty crime — pickpocketing and bag snatching — exists in tourist-heavy areas of Lisbon (particularly Rossio, Baixa, and on trams like the famous 28E), but it is the kind of crime you can largely avoid with basic awareness.

Outside of Lisbon’s tourist zones, Portugal feels remarkably safe. Walking alone at night, even in Porto or smaller cities, is overwhelmingly safe by any global standard. Women travelers and solo expats consistently rank Portugal among the safest places they have lived.

For a deeper safety comparison, see how Portugal stacks up in our safest countries to move to guide.

Climate and Weather

Portugal’s climate is one of its most underrated assets. The country enjoys a Mediterranean climate in the south and a maritime temperate climate in the north, which means:

• Lisbon: Hot, dry summers (28–35°C / 82–95°F) and mild winters (8–15°C / 46–59°F). Roughly 260 sunny days per year. Occasional rain from November to March.
• Porto: Slightly cooler and rainier than Lisbon. Summers average 25°C (77°F), winters hover around 5–12°C (41–54°F). Porto gets more rain, especially in winter, but summers are gorgeous.
• Algarve: The warmest region. Summers reach 30–38°C (86–100°F), winters stay mild at 10–17°C (50–63°F). Over 300 sunny days per year. This is why retirees flock here.
• Madeira: Subtropical oceanic climate. Stable temperatures year-round (17–25°C / 63–77°F). Green, lush, and occasionally rainy. Perfect for people who dislike extreme heat.

If you are moving from the US northeast, Midwest, or Pacific Northwest, the climate improvement alone can be life-changing. Seasonal affective disorder becomes a distant memory.

Food and Wine: A Daily Pleasure

Portuguese food does not have the global marketing budget of Italian or French cuisine, but many expats argue it should. The country’s food culture is built on simplicity, freshness, and extraordinary seafood. Grilled sardines, bacalhau (salt cod prepared in allegedly 365 different ways), caldo verde (kale soup), and pasteis de nata (custard tarts) are just the starting points.

Eating out is remarkably affordable. A prato do dia (daily special) at a local tasca (traditional restaurant) typically runs €7–€10 and includes soup, a main course, drink, and coffee. A proper dinner for two with wine at a mid-range restaurant costs €30–€50. Fine dining in Lisbon and Porto has exploded in recent years, with several Michelin-starred restaurants at prices that would be double or triple in Paris or New York.

Portuguese wine is the industry’s best-kept secret. Beyond Port wine (which originates from the Douro Valley near Porto), Portugal produces exceptional Vinho Verde, Alentejo reds, and Dao whites — all at prices that start at €3–€5 per bottle at the supermarket. A glass of wine at a restaurant costs €2–€4.

The Expat Community

Portugal’s expat community is one of the most established and diverse in Europe. Lisbon, in particular, has developed a thriving international scene spanning coworking spaces, meetup groups, Facebook communities, and professional networks.

Key communities and resources for people moving to Portugal:

• Americans & Friends PT: One of the largest American expat groups in Portugal, hosting regular meetups and providing relocation advice.
• Lisbon Digital Nomads: Active community of remote workers with weekly coworking sessions and social events.
• InterNations Portugal: Global expat network with chapters in Lisbon, Porto, and the Algarve.
• Facebook groups: “Expats in Portugal,” “Americans Living in Lisbon,” and “Porto Expat Community” are all active and helpful.
• Coworking spaces: Heden, Second Home, Outsite, and dozens of others across Lisbon and Porto provide built-in social infrastructure for remote workers.

The Brazilian community is the largest immigrant group in Portugal, and their presence has enriched the cultural landscape. British retirees dominate the Algarve, while the Lisbon tech scene attracts a younger, more globally diverse crowd.

Practical Steps: Your Moving to Portugal Checklist

Here is the step-by-step process most expats follow when moving to Portugal. The order matters.

1. Get your NIF (tax identification number): You can apply remotely through a fiscal representative or in person at a Finanças office. This is required for almost everything — opening a bank account, signing a lease, applying for a visa.
2. Open a Portuguese bank account: Activobank, Millennium BCP, and digital banks like Moey are popular with expats. You will need your NIF, passport, and proof of address.
3. Secure accommodation: Start with a short-term rental (Airbnb or furnished apartment) for the first 1–2 months while you search for a long-term lease. Idealista.pt is the main property portal.
4. Apply for your visa: Submit your D7 or D8 application at the Portuguese consulate in your country of residence. Processing takes 2–4 months.
5. Arrive and register at SEF/AIMA: Once in Portugal, schedule your appointment with AIMA (the immigration agency, formerly SEF) to receive your residency card. Bring all documents.
6. Register with your local health center: Get your SNS user number and assign a family doctor. This gives you access to public healthcare.
7. Register at the Finanças: Confirm your tax residency status and explore whether you qualify for any tax incentive programs.
8. Set up utilities and internet: MEO, NOS, and Vodafone are the main providers. Fiber internet is widely available in Lisbon and Porto, with speeds of 100–500 Mbps for €30–€40 per month.

For a complete pre-move checklist covering documents, finances, and logistics, see our moving abroad checklist.

Is Moving to Portugal Right for You?

Portugal is an extraordinary destination, but no country is perfect for everyone. Here is an honest summary of who thrives here and who might want to look elsewhere.

Portugal is ideal for:

• Retirees with passive income who want affordable European living with excellent healthcare
• Remote workers and digital nomads earning in USD, GBP, or EUR who want a high quality of life at moderate cost
• Families seeking safety, good schools, and a relaxed Mediterranean lifestyle
• People who value walkable cities, outdoor activities, and a strong food and wine culture
• Anyone who wants a path to EU citizenship within five years

Portugal may not be ideal for:

• People seeking ultra-low cost of living — Southeast Asia and Latin America are significantly cheaper
• Those who need a large English-speaking environment (Portugal is English-friendly but not English-dominant)
• High earners who want the lowest possible tax burden (without the original NHR, standard tax rates apply)
• People who dislike bureaucracy — Portuguese government processes can be slow and paperwork-heavy

The best way to decide is to compare Portugal directly against other countries that interest you, weighted by the dimensions you care about most. Our personalized quiz generates a custom country ranking based on your specific priorities — cost, safety, healthcare, visa access, lifestyle, infrastructure, and economic stability.

Your Next Steps

Moving to Portugal is one of the most rewarding decisions thousands of expats have made — but it requires research, planning, and honest self-assessment. Here is how to move from reading to action:

• Explore Portugal’s country profile — real-time data on cost, safety, healthcare, visas, and more.
• Compare Portugal head-to-head — put Portugal against Spain, Mexico, Thailand, or any other destination on the metrics that matter to you.
• Take the WhereNext quiz — 2 minutes to get a personalized country ranking based on your priorities.
• Do a trial run — spend 1–3 months in Portugal before committing. Rent short-term, explore neighborhoods, and test the lifestyle.

The data says Portugal is one of the best countries in the world to relocate to. The question is whether it is the best country for you. Start with the numbers, factor in your non-negotiables, and go experience it firsthand.