Why PORTUGAL?
Visiting Portugal has become a right of passage for tourists over the past few decades. Year after year visitors flock to the country for its unique cities and stunning beaches.
Its location on the western edge of Europe also makes it a major gateway to the continent for visitors from the Americas. But what’s it like to actually live there?
One of the first things people notice is how easy-going life is in Portugal. This is a great place to slow down, soak up the atmosphere, and enjoy life. It’s also really affordable, meaning you’ll have more money to enjoy the local social scene.
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As for the more peripheral advantages of moving to Portugal...well, you'll also become a citizen of a much bigger community, the EU.
Because of this, you will enjoy free circulation, free shopping, etc across all member countries, which is already a huge repository of culture, leisure or business opportunities.
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WELCOME TO THE OLD-NEW WORLD!
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So much to do.
So much to see.
It's safe
In fact, Portugal is one of the most peaceful nations on Earth… ranked fourth safest country in the world in the Global Peace Index. (If you’re wondering, the first and second places are Iceland and New Zealand, and Denmark comes in third. All are beautiful and worthwhile places, but none of those countries are easy for residency… especially if you’re retired.)
Portugal boasts beaches, a can’t-beat location, and, like the proverbial cherry on top, a welcoming list of tax incentives and easy-to-get visas for foreigners.
In every regard, Portugal rolls out the welcome mat.
The great news is that Portugal is super inexpensive – especially if you’re used to Western European country prices. This low price also doesn’t come at the expense of a good quality of life. It really is just whatever you make of it. That being said, if you’re moving to Portugal you’ll need to budget for the most important costs.
Whilst prices are low across the board, they do of course fluctuate depending on your lifestyle. Cooking all of your own meals at home will save you money – but then you’ll miss out on one of the most important aspects of Portuguese social life. Realistically you’ll need to balance it out so you can save money without totally wasting your time.
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Cost of living in Portugal vs USA: Capital city comparison
To get an idea of the cost of living in Portugal vs USA, it’s useful to compare the cost of living in Lisbon, Portugal with Washington, D.C. The data is taken from Numbeo (last updated in September 2022).
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Consumer prices in Lisbon are 46.80% lower than in Washington, DC (without rent).
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Rent in Lisbon is 59.17% lower than in Washington, DC.
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Restaurant prices in Lisbon are 47.14% lower than in Washington, DC.
Cost of living in Portugal vs USA: What to expect
Relocating abroad is a rewarding yet equally nerve-wracking decision. And one of the biggest factors to take into account is cost of living in the country you choose to move to. It so happens to be that Portugal is one of the most affordable countries to live in western Europe and one of the few countries in the world where the quality of life consistently scores highly among the expat community.
In general, the cost of living in the US is around 42% more expensive than in Portugal. You’ll find that real estate prices, groceries, and dining out are cheaper in Portugal than in the US.
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Portugal ranks in 12th position in Global Citizen Solutions’ pioneering Quality of Life Index, part of our innovative way to uncover the true value of a passport. The USA sits in 23rd position. This index factors in the cost of living, alongside the Sustainable Development Goals, levels of freedom, happiness levels, migrant acceptance, and environmental performance.
Moving abroad is a fantastic way to try out a new lifestyle and experience a new culture. The cost of living is a factor you have to consider – but, Portugal is perfect!
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It enjoys excellent weather year round, an easy-going pace of life, and a fulfilling social scene. It’s a dreamy destintion PLUS you have a low cost of living in Portugal. Finally you’ll be able to actually enjoy life when the workday is done!
Cost-of-living
Property taxes
When you buy a house in Portugal, there are some costs along with notary fees and administrative costs. You also need to pay specific taxes for your property. These taxes are obligatory when you purchase a property in Portugal. They are namely the immovable property tax (IMI), property purchase tax (IMT), and the tax on stamps (IS). Each of them is different and has its own calculation methods.
If you are not a resident but you buy a property in Portugal, you still need to pay taxes. This means that you are not considered as a resident in Portugal if you spend less than 183 days per year (tax calendar year). Non-residents are subject to taxation on their Portuguese-sourced income. In addition, married couples are subject to taxation jointly.
On your right you can see what types of taxes you are subject to when you buy a property in Portugal.
Popularity of Portuguese Property
Portugal features as an all-time favourite with picturesque views of ancient and new buildings on the sunny hills of this new favourite European gem. A zoomed in view of these include glazed blue ceramic tiles, or azulejos, covering the exterior walls of buildings.
Property has recorded double digit percentage growth in various sectors listed by numerous real estate service companies in recent years and the expectation is that this will continue – with an increased demand and reduced supply than previously seen.
What is an interesting misconception is that property prices are driven predominantly by the Golden Visa program – in actual fact, the Portuguese Golden Visa accounts for an insignificant portion of property purchases, when considered in comparison to total property purchases in Portugal.
This reflects that there are various factors in Portugal influencing properties prices, including: the fact that Portugal is the new acclaimed California, the new European Silicon Valley, it is ranked one of the best places to live and work in the world, it is an attraction magnet for digital nomads, as well as offering a 10-year tax holiday for the affluent, and there is more.
Property has always been a favourable investment class for many – and that is no different now. This raises the importance of understanding the related tax consequences for holding property in Portugal.
Rain or shine.
The climate of Portugal is temperate and influenced by the Atlantic Ocean. In the north, the climate is cool and rainy, while moving south it becomes gradually warmer and sunnier; in the far south, the region of Algarve has a dry and sunny microclimate.
In the interior, on the border with Spain, the climate is a bit more continental. In the north-central there are also mountain ranges. In the highest, Serra da Estrela, you can ski in winter.
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In summer, Portugal is protected by the Azores High, so it's usually sunny everywhere, however, a few weather fronts can still affect the northern part of the country. In the rest of the year, and especially from November to March, rainfall can occur, especially in the north where it is more frequent and abundant. Therefore, the landscape in the north is definitely green, while it gradually becomes more arid towards the south, down to Algarve, which has a fairly dry climate.
In fact, annual precipitation amounts to 1,450 mm (57 inches) in Braga and 1,100 millimeters (45 in) in Porto, while it drops to around 900 mm (35 in) in Coimbra, to 800 mm (31.5 in) in Lisbon, and to about 500 mm (20 in) in Algarve. The rainiest season is winter.
Geography
Big things come in small packages
Portugal is only 92,391 km2 (35,672 sq. mi). It is 561 km (349 mi) long and 218 km (136 mi) wide. You can drive from north to south in around 4 hours. And yet.... it has 832 km (517 mi) of coastline. Which means that you can get from a beautiful beach in Algarve to a theater performance and shopping in Lisbon in TWO HOURS. Or you can visit Spain from anywhere in Portugal in under two hours.
You do not have to pay "Lisbon" real estate prices to shop, and mingle and visit museums in Lisbon daily. And you can get on your way to anywhere in the world in two hours, as there are 3 international/transatlantic airports in Portugal (Lisbon, Porto and Faro) and three seaports with cruise-ships and cargo-ships.
And let's not forget - Portugal is not only continent. Portugal has two archipelagos - Azores and Madeira.
Health
Health in Portugal is guaranteed by three different systems. The National Health System, dependent on the State, special health systems for certain professions (subsystems of the national system) and the private sector. Each one has its own rules and costs. Learn all about them here...
The quality of healthcare in Portugal is strong and steadily improving. In 2018, the Euro Health Consumer Index ranked the Portuguese healthcare system as the 13th best in Europe. That is better than the UK, Spain, Italy, and Ireland. Just three years earlier, in 2015, the healthcare system in Portugal was in 20th place. And in 2012, it was ranked 25th. High-quality privacy standards, patient rights, accessibility, and short waiting times all contribute to Portugal’s high standing. And the country is seeing the benefits. Currently, Portuguese people enjoy an average life expectancy of 81 years. That is thanks in part to Portugal’s exceptional doctors and renowned university education and research programs. They include the School of Health Services at the University of Minho, the Faculty of Medicine at the University of Coimbra, and the Faculty of Medical Sciences at the New University of Lisbon.
Internationally famous, Portuguese cuisine is mouthwatering, and for many, bacalhau is probably the first delicacy that comes to mind. However, this culinary guide shows that Portuguese foodoffers many flavors that are distinctive and unique. On the table, it presents a mix between Atlantic and Mediterranean cuisine that includes seafood, bread, cheeses, and olive oils, all with excellent quality. Not to mention the wines and desserts to eat with your prayers!
Portuguese cuisine may be the most influential cuisine on the planet
When the Portuguese turned up in Goa, India, where they stayed until 1961, they cooked a garlicky, wine-spiked pork dish called carne de vinha d’alhos, which was adopted by locals to become vindaloo, one of the most popular Indian dishes today. In Malaysia, several staples, including the spicy stew debal, hail from Portuguese traders of centuries past. Egg tarts in Macao and southern China are direct descendants to the egg tarts found in Lisbon bakeries. And Brazil’s national dish, feijoada, a stew with beans and pork, has its origins in the northern Portuguese region of Minho; today, you can find variations of it everywhere the Portuguese have sailed, including Goa, Mozambique, Angola, Macau and Cape Verde.
Main ingredients and flavors of Portuguese cuisine
With a little over 92 thousand square kilometers, Portugal has an area comparable to the Brazilian state of Santa Catarina. Despite its modest size, the European country offers an incredible diversity of ingredients and flavors to delight any palate. Bathed by the Atlantic Ocean, Portugal has, in the opinion of many international chefs, “the best fish in the world,” always very fresh, as well as its seafood. It is said that there are as many as 1,001 cod recipes, a big star in Portuguese cuisine. The recipes are prepared with a lot of olive oil, always of excellent quality, such as the Beira Baixa’ ones, which have Protected Designation of Origin (DOP). The most common seasonings used in Portuguese gastronomy are coriander and spices, such as cinnamon and nutmeg. And to complete the divine sweets, lots of eggs.
Cuisine
If your plan is for your children to study in Portugal, you can learn all about the best schools and higher education institutions in this guide.
You can find both public and private schools in the country, although you should expect to pay for your child’s schooling if you want the best quality education. The list of best schools in the country is topped by private institutions which are mostly Catholic schools.
For higher education, however, state universities are the better choice. The most prestigious universities in Portugal are run by the state and require only a co-payment of less than 900 EUR (990 USD) a year. Private universities are much more expensive, but a few of these are also featured in a world ranking of the best universities.
University Education in Portugal
Portugal’s education quality at the university level is very high. Portugal has more than 300 institutions of above-high school education. Several universities of Portugal consistently get named among the top 1000 universities worldwide. Moreover, because of the country’s successful politics in the international arena, Portuguese universities benefit from EU membership and other perks of Portugal’s global respectability. Most Portuguese universities have an extensive network of quality universities around the world which provide amazing opportunities for traveling and studying abroad for students. This huge network and support also provide Portuguese schools with infinite sources of information, and consequently, students of Portuguese universities can reach knowledge very easily. As lower education institutions, Portugal’s universities too might be public or private institutions.
Education Options in Portugal for Golden Visa Holders
Naturally, this process of relocation as a family rings some alarms for people with children. One of the main concerns the applicants express is the education of their children. Luckily, ever since these Golden Visa programs became very popular, foreign communities in European countries expand greatly, and as a result, countries take measures to deal with their new residents to be able to provide better services to them. Portugal, too, is one of the countries that take this problem seriously and provide solutions. The quality of Portugal’s general education system is exemplary. Yet, if the new residents prefer their children to be educated in international schools that teach in other languages, Portugal has no shortage at this point either.
Portugal has two kinds of schools: public and private. Public schools in Portugal follow the general rules of Portuguese curricula and teach in Portuguese. These schools are free for Golden Visa holders. Children of people who started to reside in the country through Portugal Golden Visa Program are exempt from any tuition fee when getting into the public schools of Portugal. However, private schools may not follow the Portuguese education system and its rules. These schools demand tuition fees as they do not depend on the government, and they are separate entities. Private schools in Portugal are mostly founded by the US and UK governments and thus teach in English. However, there are several French schools, too.
Education
Investment
Is it a good time to invest in Portugal?
If ever there was a time to invest in Portugal, it would be now.
You may be sceptical about this, but consider this for a moment.
Portugal was highly affected by the 2008 financial crisis and most rating agencies still rate Portugal as a bad place to invest. However, Portugal has bounced back, and hard!
In the last few years, Portugal has won a million awards (maybe not a million, but still) and things seem to be going great for this little country.
Advantages of investing in Portugal
There are many reasons to invest in Portugal, but here are five of the strongest reasons:
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1. Talent
Portugal has a dedicated, young and extremely educated workforce with skills related to production and business development.
2. Quality of life
Portugal is a safe, multicultural, sunny country that offers excellent healthcare, schools and leisure.
3. Location
Portugal’s strategic location makes the country an excellent base to connect to the world.
4. Market and support
Portugal is a doorway to Europe’s’ 500 million people, a massive market which can help your business obtain European funding.
5. Infrastructure
Portugal’s infrastructure is very well ranked worldwide. From highways to ports and airports.