Portugal vs Spain: Which Is Better for Expats?

Portugal and Spain sit side by side on the Iberian Peninsula, share a border, and from the outside look almost interchangeable. Mediterranean climate, gorgeous coastlines, affordable European living, strong healthcare systems, and cultures that treat a two-hour lunch as a basic human right. So when you are planning a move abroad and both countries keep landing at the top of your list, the obvious question emerges: Portugal vs Spain — which is actually better for expats?

It is a closer call than most articles make it seem. Both countries score in our top 10 globally for expat livability. But the differences are real, and depending on your priorities — budget, career, family, retirement, social life — one of them is probably a meaningfully better fit for you than the other.

We built this comparison using the same data-driven 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 vibes-only takes. Just the numbers, the context, and the honest tradeoffs.

Let’s break it down across the nine dimensions that matter most.

The Overall Picture: Portugal vs Spain at a Glance

Before we dive into each category, here is the big-picture comparison across the metrics that most expats care about. Every score comes from WhereNext’s composite index (see our methodology).

Portugal edges ahead on affordability, safety, visa access, and the citizenship timeline. Spain wins on lifestyle, infrastructure, and sheer scale. Neither country is a bad choice — this is a battle between excellent and excellent. But the details matter, so let’s unpack each dimension.

Cost of Living: Portugal Is Cheaper, but the Gap Is Narrowing

For most expats — especially retirees, freelancers, and early FIRE enthusiasts — cost of living is the first filter. Portugal has historically been Western Europe’s affordability champion, and it still holds that title. But Lisbon’s recent boom has pushed prices up significantly, while Spanish cities outside Madrid and Barcelona remain remarkably affordable.

The bottom line: Portugal is roughly 10-15% cheaper than Spain on a like-for-like basis. Average rent for a one-bedroom apartment in a Portuguese city center runs around $800 per month versus $900 in Spain. Groceries, dining, and transport follow the same pattern. If you are on a fixed income or a tight budget, Portugal stretches your money further.

That said, Spain offers tremendous value outside its two biggest cities. Valencia, Malaga, Alicante, and Seville all come in below the national average and rival Portuguese prices. If you are willing to skip Madrid and Barcelona, the cost gap shrinks dramatically.

Healthcare: Both World-Class, Slight Edge to Portugal

Healthcare is often the deciding factor for American expats, and both countries deliver at a level that most Americans find almost unbelievable. Portugal’s national health service (SNS) and Spain’s Sistema Nacional de Salud both provide universal coverage to legal residents.

Portugal scores 92/100 on our healthcare index, placing it 12th globally by WHO standards. Spain is close behind at 90/100, ranked 7th by the WHO. Both systems offer excellent public hospital networks supplemented by affordable private options. A private consultation in either country runs $30-60 — a fraction of what you would pay in the US.

The practical difference? Wait times. Spain’s public system can involve longer waits for specialist appointments, particularly in larger cities where demand is high. Portugal’s system is also not immune to this, but the smaller population (10.3 million vs. Spain’s 47 million) generally means shorter queues. Both countries have excellent private healthcare options that sidestep wait times entirely, with premiums running $80-180 per month.

Safety: Portugal Pulls Ahead

This is one of the clearest differentiators. Portugal consistently ranks among the safest countries in the world — 7th on the 2024 Global Peace Index, with our safety score at 90/100. Violent crime is exceptionally rare. Petty crime exists (pickpocketing in Lisbon tourist areas, mainly) but is manageable with normal urban awareness.

Spain is also safe by global standards, scoring 82/100 and ranking 32nd on the GPI. It is a perfectly safe country for expats, but larger cities like Madrid and Barcelona have higher rates of pickpocketing and petty theft compared to their Portuguese counterparts. The political landscape is also more complex, with occasional regional tensions (Catalonia) that do not exist in Portugal.

Verdict: If safety is a non-negotiable top priority, Portugal has a measurable edge. But neither country should cause any real safety concern for expats coming from the US.

Visa Options: Portugal’s D7 vs Spain’s Non-Lucrative Visa

The visa landscape is where Portugal has built a significant advantage. Portugal’s immigration system is widely considered among the most expat-friendly in the EU, with multiple pathways designed specifically to attract foreign residents.

Portugal’s D7 visa is the standout. It requires proof of only around $800 per month in passive income (pegged to Portugal’s minimum wage) and explicitly allows holders to live and work in Portugal. That is a remarkably low bar for EU residency. Spain’s non-lucrative visa, by contrast, requires roughly $2,900 per month in passive income and does not allow you to work in Spain — it is designed for retirees and people living off savings or investments.

Both countries now offer digital nomad visas for remote workers employed by non-local companies. Spain’s version has a lower income threshold (~$2,500/mo vs. Portugal’s ~$3,500/mo), but Portugal’s has been running longer and the process is more established.

The citizenship timeline is the biggest differentiator. Portugal offers a path to citizenship after just five years of residency — one of the fastest in the EU. Spain requires ten years (unless you are from a former Spanish colony or married to a Spanish citizen, which drops it to two years). If EU citizenship is your long-term goal, Portugal’s five-year timeline is a major strategic advantage.

Climate: Different Flavors of Mediterranean

Both countries enjoy the kind of climate that makes Northern Europeans weep with envy, but there are meaningful differences. Portugal’s climate is Atlantic-influenced, particularly in the north and along the coast. Lisbon and the Algarve get 2,800+ hours of sunshine per year with mild, rainy winters. Summers are warm (high 80s F) but rarely oppressive thanks to the ocean breeze.

Spain is climatically diverse. The Mediterranean coast (Valencia, Malaga, Barcelona) mirrors southern Portugal. Inland Spain (Madrid, Seville) gets genuine heat — 100+ F summers are normal in Seville and the interior. The north (Basque Country, Galicia) is green and rainy, more similar to the UK than to the Costa del Sol.

If you want consistent mild weather: Portugal (especially the Algarve or Lisbon area). If you want genuine heat and diversity: Spain gives you more options, from snow-capped mountains to desert-like plains to tropical-feeling Canary Islands.

Language Barrier: Portuguese Is Harder, but English Goes Further

Neither Portuguese nor Spanish is easy to learn from scratch, but there is an important practical difference for English-speaking expats. 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 navigate daily life almost entirely in English.

Spain’s English proficiency is lower, particularly outside major tourist areas and big cities. The EF English Proficiency Index ranks Portugal significantly higher than Spain. That said, Spanish is the world’s fourth most spoken language, so learning it opens doors across 20+ countries. Portuguese opens doors primarily in Portugal and Brazil.

Practical takeaway: You will have an easier time getting by in English in Portugal, but learning Spanish is arguably more globally useful in the long run. Either way, making an effort with the local language will dramatically improve your social life and integration.

Food and Social Life: Spain Is Hard to Beat

This is Spain’s domain. Spanish food culture is arguably the richest in Europe, and the social life built around it — tapas bars, late dinners, pintxos crawls in San Sebastian, outdoor markets, the entire concept of the sobremesa (lingering at the table after a meal) — is genuinely world-class. Spain scores 94/100 on our lifestyle index, the highest of any country in our database.

Portugal is no slouch here. The food is excellent — fresh seafood, pasteis de nata, incredible wine regions — and the social culture is warm and welcoming. But it is a quieter, more reserved culture than Spain. The Portuguese are famously friendly but can take longer to open up socially. Spain’s culture is more extroverted — you are more likely to end up at a spontaneous dinner party or a neighborhood fiesta.

For expats worried about loneliness (and you should be — it is the most underrated challenge of moving abroad), Spain’s social infrastructure makes integration easier. Portugal compensates with a tight-knit and extremely active expat community, particularly in Lisbon, Porto, and the Algarve.

Tax Considerations: Both Have Advantages

Tax planning is critical for expats, and both countries have introduced programs designed to attract foreign residents through favorable tax treatment.

Portugal’s Non-Habitual Resident (NHR) regime was one of Europe’s most generous tax programs, offering a flat 20% income tax rate on Portuguese-sourced income and potential exemptions on foreign income for qualifying professionals. The original NHR closed to new applicants in early 2024, but a revised version (NHR 2.0) targets specific professions and scientific research, still offering meaningful benefits for qualifying applicants.

Spain’s Beckham Law (named after the footballer who prompted it) allows qualifying new residents to be taxed as non-residents for up to six years, paying a flat 24% rate on Spanish-sourced income up to EUR 600,000 instead of the progressive scale that tops out at 47%. For high earners relocating for work, this can represent significant savings.

For Americans specifically: remember that you are taxed on worldwide income regardless of where you live. The Foreign Earned Income Exclusion (FEIE) can shield over $120,000, and both Portugal and Spain have tax treaties with the US to prevent double taxation. See our expat tax guide for the full breakdown.

Where Each Country Shines

Rather than declaring one winner, here is where each country genuinely excels based on our data. Think of this as a cheat sheet for matching your priorities to the right destination.

Who Should Choose Portugal?

Portugal is the better choice if you prioritize:

• Affordability: Your budget is tight, or you want maximum value for every dollar. Portugal is 10-15% cheaper on average.
• Safety: It ranks among the safest countries in the world. If personal security is non-negotiable, Portugal wins clearly.
• Fast EU citizenship: Five years to citizenship versus Spain’s ten. If you want an EU passport, Portugal cuts the timeline in half.
• Ease of visa access: The D7 visa’s low income threshold ($800/month) makes Portugal accessible to retirees, freelancers, and people living on modest passive income.
• English friendliness: Higher English proficiency rates make the day-to-day transition smoother, especially in the first year.
• Quiet, laid-back lifestyle: You want a slower pace without the late-night energy of Spanish cities.

Explore the full Portugal country profile for city-by-city breakdowns, detailed visa guides, and cost calculators.

Who Should Choose Spain?

Spain is the better choice if you prioritize:

• Social life and culture: Spain’s social infrastructure is unmatched. If community, food culture, and an active lifestyle are your top priorities, Spain is the clear winner.
• Climate diversity: Want beach heat? Mountain snow? Island living? Desert landscapes? Spain has it all within a single country.
• Career opportunities: Spain’s larger economy (GDP roughly 5x Portugal’s) means more job opportunities, especially in tech hubs like Barcelona and Madrid.
• Infrastructure: Spain’s high-speed rail network (AVE) is among Europe’s best. Domestic travel is fast, cheap, and efficient.
• Learning Spanish: If you plan to learn the local language, Spanish opens doors across 20+ countries and 500 million native speakers worldwide.
• Larger expat community: Spain’s bigger population and established tourism infrastructure means larger, more diverse expat communities in more cities.

Explore the full Spain country profile for city-by-city data, visa details, and cost breakdowns.

The Verdict: There Is No Wrong Answer

Here is the honest truth: if you are choosing between Portugal and Spain for your move abroad, you are already making a great decision. Both countries offer a quality of life that is objectively superior to what most Americans experience at home — better healthcare, more affordable living, safer streets, and a culture that values time with people over time at a desk.

Portugal wins on value, safety, visa accessibility, and the citizenship fast track. Spain wins on lifestyle, infrastructure, career opportunities, and social energy. The “right” answer depends entirely on what you prioritize.

Our recommendation? Do not guess. Use data. Our 2-minute quiz weights your actual priorities and generates a personalized ranking that includes both countries (and every other country we track). Or use the country comparison tool to put Portugal and Spain head-to-head on the specific dimensions that matter most to you.

Whichever you choose, you are headed somewhere with sunshine, good food, affordable healthcare, and a pace of life that actually lets you enjoy it. That is a win by any metric.