Portugal vs Italy for Expats: Which Is Better? (2026)

Portugal and Italy are two of the most romanticized countries in Europe — and for good reason. Both offer world-class food, stunning coastlines, rich history, and a quality of life that makes the American rat race feel absurd in hindsight. They consistently land in the top 15 of every “best countries to move to” list, and both have attracted enormous waves of expats over the past decade.

But they are very different places to actually live. Portugal is compact, Atlantic-facing, and has spent the last decade aggressively courting foreign residents with favorable visa and tax policies. Italy is larger, more bureaucratic, culturally diverse across its regions, and offers a depth of history and cuisine that few countries on earth can match. The right choice depends entirely on what you prioritize — and the tradeoffs are real.

This comparison is built on the same data framework behind all of WhereNext’s country scores: institutional sources including Numbeo, the World Bank, WHO, and the Global Peace Index. No sponsored content, no romanticized takes. Just the data, the context, and the honest tradeoffs between two genuinely excellent options. For the full methodology, see our scoring guide.

Portugal vs Italy at a Glance

Before we unpack each category, here is the high-level comparison across the dimensions that matter most to expats considering either country.

On paper, Portugal wins in more categories. But the numbers only tell part of the story. Italy’s cultural richness, regional diversity, and sheer depth of experience can be worth the extra friction for the right person. Let’s break it down.

Cost of Living: Portugal Is Meaningfully Cheaper

For budget-conscious expats — retirees on fixed income, digital nomads, early FIRE practitioners — cost of living is often the first filter. Portugal has a clear and consistent edge here. It remains one of the most affordable countries in Western Europe, while Italy’s costs, particularly in the north, can rival France or Germany.

The bottom line: Portugal is roughly 15–25% cheaper than Italy on a like-for-like basis. The gap is most noticeable in rent, dining, and groceries. A comfortable single-person budget in Portugal starts around $1,400 per month outside Lisbon, while Italy requires closer to $1,800 — and significantly more in Milan, Rome, or Florence.

That said, southern Italy can be surprisingly affordable. Puglia, Calabria, Sicily, and Sardinia offer rents that rival or undercut Portuguese cities outside Lisbon. If you are willing to explore Italy’s mezzogiorno rather than defaulting to Rome or Milan, the cost gap narrows substantially. Italy also runs periodic “one-euro house” programs in depopulating villages — genuine fixer-upper opportunities in stunning locations.

Visa Options: Portugal’s D7 vs Italy’s Elective Residence

This is where the two countries diverge most sharply. Portugal has spent a decade deliberately building one of the most expat-friendly immigration systems in the EU. Italy’s system works, but it is slower, more bureaucratic, and less explicitly designed to attract foreign residents.

Portugal’s D7 visa remains one of the most accessible residency pathways in Europe, requiring only around $800 per month in demonstrable passive income. It allows remote work, and the process is well-documented with English-speaking support available at most stages. Read our complete guide to moving to Portugal for the full D7 walkthrough.

Italy’s Elective Residence Visa (Visto per Residenza Elettiva) is designed for people who can support themselves without working in Italy — retirees, independently wealthy individuals, or those living off investments. The income threshold is roughly $35,000 per year, and critically, the visa does not permit you to work in Italy, including remotely for a foreign employer. Italy introduced a digital nomad visa in 2024, but the program is newer and less proven than Portugal’s.

The citizenship timeline is a major differentiator. Portugal offers citizenship after five years of legal residency — one of the fastest in the EU. Italy requires ten years, unless you qualify through citizenship by descent (jure sanguinis), which has no residency requirement at all. If you have Italian ancestry, this changes the calculus entirely — Italy may be the faster path to an EU passport.

Healthcare: Both Excellent, Portugal Slightly More Accessible

Healthcare is a top priority for most expats, and both countries deliver at a level that will feel almost surreal if you are coming from the American system. Italy’s Servizio Sanitario Nazionale (SSN) is ranked 2nd in the world by the WHO. Portugal’s Serviço Nacional de Saúde (SNS) scores 92/100 on our index and consistently ranks in the global top 15.

The practical difference is accessibility. Portugal’s system is simpler to navigate as a new resident — registration is straightforward, English is more widely spoken in medical settings, and private insurance costs are lower. Italy’s public system is arguably more comprehensive, but enrolling and using it involves more bureaucracy, and the quality varies significantly between northern and southern regions. Northern Italian hospitals rival the best in Europe. Some southern facilities face chronic underfunding.

Private healthcare is affordable in both countries. A private specialist consultation runs $50–$80 in Portugal and $60–$100 in Italy — a fraction of US prices. Monthly private insurance premiums range from $80–$150 in Portugal and $100–$200 in Italy, depending on age and coverage level.

Taxes: NHR 2.0 vs Italy’s Flat Tax

Tax optimization is a major factor for expats, and both countries have introduced special regimes designed to attract foreign residents. Understanding the differences can save you thousands per year.

Portugal’s original Non-Habitual Resident (NHR) program was one of Europe’s most generous tax incentives, offering a flat 20% rate on qualifying income and potential exemptions on foreign-sourced income. The original program closed to new applicants in early 2024, replaced by NHR 2.0, which is more restrictive and targets specific professions and scientific research.

Italy’s flat tax regime (introduced in 2017) allows new residents to pay a flat EUR 100,000 per year on all foreign-sourced income, regardless of how much they earn abroad. For high earners with significant foreign income — think successful entrepreneurs, investors, or executives — this can represent enormous savings. The regime lasts up to 15 years, and family members can join for an additional EUR 25,000 each.

For Americans: remember that you owe US tax on worldwide income regardless of where you live. Both countries have tax treaties with the US, and the FEIE and Foreign Tax Credit can mitigate double taxation. Work with a cross-border tax advisor before making any move.

Language: Portuguese Is Harder, but English Goes Further

Neither language is easy to learn from scratch, but the daily experience for English-speaking expats differs significantly. Portugal has one of the highest English proficiency rates in Southern Europe — roughly 60% of the population speaks some English, and in Lisbon and Porto you can handle nearly everything in English during your first year.

Italy’s English proficiency is notably lower, particularly outside major tourist hubs and the business centers of Milan and Rome. The EF English Proficiency Index consistently ranks Portugal significantly above Italy. Daily errands — the post office, the bank, the landlord — will often require Italian or at minimum a translation app. Italian bureaucracy is almost exclusively conducted in Italian.

The silver lining: Italian is considered easier to learn than Portuguese for English speakers. The pronunciation is more phonetic, the grammar is slightly more regular, and the sheer volume of Italian learning resources (apps, courses, immersion programs) is enormous. Most motivated expats reach conversational Italian within 6–12 months.

Food and Culture: Italy Is in a League of Its Own

This is where Italy pulls decisively ahead. Italian food culture is not just world-class — it is arguably the most influential culinary tradition on the planet. Every region has its own distinct cuisine, local specialties, wine traditions, and food rituals. Eating in Italy is not a meal; it is a cultural experience that repeats multiple times daily and never gets old.

Portugal’s food is excellent — fresh seafood, incredible pastries (the pastéis de nata alone justify residency), outstanding wines, and a growing restaurant scene in Lisbon and Porto. But it lacks the regional diversity and global reputation of Italian cuisine. Portuguese food is more understated, focused on simple preparations of exceptional ingredients.

Beyond food, Italy’s cultural depth is unmatched. More UNESCO World Heritage Sites than any other country. The Renaissance literally happened here. Opera, fashion, architecture, art — the cultural infrastructure is staggering. Portugal has its own rich cultural identity (fado, azulejos, Age of Discovery history), but Italy operates on a different scale entirely.

Weather and Climate: Similar but Not Identical

Both countries enjoy Mediterranean climates, but with meaningful variations. Portugal’s climate is Atlantic-influenced, delivering mild, rainy winters and warm (not scorching) summers. The Algarve and Lisbon get 2,800+ hours of sunshine per year. Summers peak in the high 80s F with ocean breezes preventing extremes.

Italy is climatically diverse. The south (Sicily, Puglia, Calabria) is genuinely hot — 95–105 F summers are normal. The center (Rome, Tuscany) is classic Mediterranean. The north (Milan, Venice, Turin) has cold, foggy winters that can feel surprisingly harsh. Italy’s Alps and Dolomites offer actual winter sports, something Portugal simply cannot match.

If you want consistent, mild weather year-round: Portugal, particularly the Algarve or Lisbon coast. If you want seasonal variety and don’t mind heat: Italy gives you beaches, mountains, and everything between.

Internet and Infrastructure: Portugal Edges Ahead

For remote workers and digital nomads, internet reliability is non-negotiable. Portugal has invested heavily in fiber-optic infrastructure, and average speeds in Lisbon and Porto consistently exceed 100 Mbps. The coworking scene is mature, with dozens of established spaces across both cities.

Italy’s internet infrastructure is more uneven. Milan, Rome, and other major cities offer good speeds (50–100 Mbps), but smaller towns and rural areas can still struggle with connections under 20 Mbps. If you are planning to work remotely from a Tuscan farmhouse, test the connection before signing a lease.

Italy’s broader infrastructure is mixed. The high-speed rail network (Frecciarossa) between major cities is excellent — Milan to Rome in under three hours. But local transport, particularly in the south, is less reliable. Portugal’s smaller size means everything is more accessible. Lisbon to Porto is a three-hour drive or a comfortable train ride.

Who Should Choose Portugal?

Portugal is the better choice if you prioritize:

• Affordability: 15–25% cheaper than Italy on nearly every metric. Your money goes further here.
• Visa accessibility: The D7 visa’s $800/month threshold is dramatically lower than Italy’s $35,000/year requirement.
• Fast EU citizenship: Five years versus Italy’s ten. Half the wait for the same EU passport.
• English friendliness: You will navigate daily life in English much more easily, especially in the first year.
• Remote work: Better internet infrastructure, more established coworking scene, and a visa that explicitly permits it.
• Simplicity: Less bureaucracy, more streamlined processes, smaller country that is easier to navigate.

Explore the full Portugal country profile for city-by-city data. For the complete relocation walkthrough, read our guide to moving to Portugal.

Who Should Choose Italy?

Italy is the better choice if you prioritize:

• Food and culture: If culinary culture, art, history, and the Italian way of life are your primary motivation, nothing else compares. Italy scores 96/100 on our lifestyle index.
• Regional diversity: Twenty distinct regions, each with its own cuisine, dialect, architecture, and character. You could spend a lifetime exploring and never get bored.
• High-earner tax optimization: Italy’s flat tax on foreign income (EUR 100k/year) is more favorable for wealthy expats than Portugal’s revised NHR 2.0.
• Citizenship by descent: If you have Italian ancestry, jure sanguinis can give you citizenship without any residency requirement — a massive shortcut.
• Climate variety: Beach summers in Sicily, ski winters in the Dolomites, and everything in between.
• Central European access: Italy’s position makes it a natural hub for exploring Switzerland, Austria, France, Slovenia, and Croatia.

Explore the full Italy country profile for city-by-city breakdowns and detailed cost data.

Frequently Asked Questions

Is Portugal or Italy cheaper to live in?

Portugal is consistently 15–25% cheaper than Italy across rent, groceries, dining, and healthcare. A comfortable single-person budget in Portugal starts around $1,400/month, while Italy requires closer to $1,800. However, southern Italy (Puglia, Sicily, Calabria) can rival Portuguese prices — the gap is widest when comparing capital cities.

Which country has better healthcare for expats?

Both have excellent public healthcare systems that rank among the world’s best. Italy’s SSN is ranked 2nd globally by the WHO, while Portugal’s SNS scores 92/100 on our index. Portugal is easier to navigate as a new arrival (more English spoken, simpler registration), while Italy’s system offers more comprehensive coverage but with greater regional variation.

Can I work remotely in Italy on the Elective Residence Visa?

No. Italy’s Elective Residence Visa explicitly prohibits any form of work, including remote work for a foreign employer. If you need to work remotely, you would need Italy’s newer digital nomad visa (launched 2024) or Portugal’s D7 visa, which permits remote work.

How long does it take to get citizenship in each country?

Portugal offers citizenship after 5 years of legal residency — one of the fastest timelines in the EU. Italy requires 10 years of continuous residency. The exception is Italian citizenship by descent (jure sanguinis), which has no residency requirement if you can prove an unbroken line of Italian ancestry.

Which country is better for retirees?

Portugal is generally the better choice for retirees thanks to lower costs, an easier visa process (D7 vs. Elective Residence), higher English proficiency, and a faster path to citizenship. Italy is the better choice if cultural richness, food, and regional exploration are your top priorities and you have a higher budget.

The Verdict: Different Flavors of Excellent

Portugal is the pragmatic choice — more affordable, easier to navigate, faster to citizenship, and more accommodating of English speakers. Italy is the romantic choice — deeper culture, better food, more regional diversity, and an intensity of daily life that Portugal’s quieter temperament does not match.

Neither is wrong. The question is whether you optimize for ease and value (Portugal) or for depth and richness (Italy). Many expats solve this by spending time in both — Portugal’s Schengen membership means Italian residents can visit freely, and vice versa.

Not sure which fits you better? Our 2-minute quiz weights your actual priorities and generates a personalized country ranking. Or use the head-to-head comparison tool to drill into the specific dimensions that matter most to your situation.