Portugal is becoming increasingly popular as a destination for expats, digital nomads and pensionados. It offers sunny beaches, a vibrant culture, and an attractive lifestyle at a relatively affordable price. In this blog, we cover everything you need to know about living and working in Portugal.
Portugal combines a pleasant climate with a relaxed lifestyle, offering many advantages for those looking to move abroad. Portuguese culture is friendly and welcoming, and the cost of living is lower than in many other European countries. The country has also developed into a major center for international business and technology, especially in cities such as Lisbon and Porto.
Portugal offers opportunities in sectors such as technology, tourism, education and start-ups. It is also an ideal destination for digital nomads thanks to its good Internet infrastructure, affordable accommodations and co-working spaces. Lisbon has a growing community of remote workers and freelancers.
Portuguese culture is rich in traditions, reflected in music, dance and festivals, among other things. For example, the traditional musical style of fado is on UNESCO’s World Heritage List and is an important part of Portuguese culture. Family is also seen as very important, and in many households people eat together daily.
Portuguese people are known for their hospitality and laid-back attitude to life. In addition, the Catholic religion plays a role in society, although it is less prominent than in the past. In Portugal, life often revolves around being outdoors, whether at the beach, on a terrace or at a festival.
Portugal offers a relatively affordable lifestyle compared to other Western European countries. However, the cost of living varies by city. Lisbon and Porto are more expensive than smaller cities, but even here prices for accommodation, food and transportation are lower than in cities such as Amsterdam or Paris.
Portuguese cuisine is diverse, with influences from the Mediterranean and traditional dishes from the interior of the country. Fresh fish and seafood are important parts of Portuguese cuisine, and dishes such as bacalhau (salted cod) and sardinhas assadas (grilled sardines) are popular. Portuguese wines, especially vinho verde and port, are world-famous.
Dinner time in Portugal is often a social affair. People take time for meals, and eating out is an affordable option, even in the larger cities. Cafes and restaurants abound, and a cup of coffee is cheap and often paired with a pastéis de nata, a sweet puff pastry snack with cream.
As an EU citizen, you can move to Portugal without a visa and stay there for up to three months without registration. If you want to stay longer, you need to register at the town hall of your hometown. Portugal also offers favorable residency options for non-EU citizens, including the famous Golden Visa program and a special visa for digital nomads, which makes it easier to stay in Portugal long-term.
To find accommodation in Portugal, you can visit several websites:
Accommodation costs in Portugal vary widely depending on the city and district. In Lisbon, renting a one-bedroom apartment in the city center costs around €800 to €1,200 per month, while outside the center, rents drop to €600 to €800. In Porto, prices are slightly lower, and outside the major cities you often pay €400 to €600 for a similar apartment.
Buying is also an option, and prices in Lisbon are around €3,000 to €5,000 per square meter. In smaller cities, prices are significantly lower, so buying can be attractive for those looking to settle down for a long time.
Portugal offers some attractive tax programs for foreigners. The Non-Habitual Resident (NHR) program, for example, allows new residents to pay a flat tax rate of 20% on income for 10 years, and in some cases there is even tax exemption on income from abroad. The standard income tax rate in Portugal ranges from 14.5% to 48%, depending on your income.
EU citizens can travel and stay freely in Portugal, but if you want to stay longer than three months, you must register with the municipality. Non-EU citizens can choose from several visas, including the D7 visa for pensioners and the self-employed, and the Golden Visa, which offers a fast track to permanent residence status in exchange for investment in the Portuguese economy. The visa application process varies depending on personal situation and visa type.
Opening a bank account in Portugal is easy for EU citizens. Popular banks include Banco Santander, Caixa Geral de Depósitos and Millennium BCP. To open a bank account, you usually need a valid passport or ID card, your NIF number (tax identification number) and proof of address. Banks in Portugal offer basic accounts as well as specific accounts for expats and foreigners, with options for online banking.
The average salary in Portugal is lower than in many other Western European countries, but with the lower cost of living, it can still offer good purchasing power. The average monthly salary is around €1,300 to €1,500 gross in Lisbon and Porto, while in smaller cities the average is around €1,000 to €1,200 gross.
Salary differences by sector: In sectors such as IT, finance and technology, salaries are significantly higher, with amounts between €2,000 and €3,000 gross per month for experienced professionals. In sectors such as tourism and hospitality, salaries tend to be lower, between €800 and €1,200 gross per month.
Minimum wage: The minimum wage in Portugal is set at around €760 gross per month (as of 2023), and this increases annually. There are also fringe benefits such as vacation pay, meal vouchers and sometimes even housing benefits, especially in tech and business services.
Portugal is a fantastic destination for those seeking a life of sunshine, culture and hospitality. The country offers excellent opportunities for expats, both in terms of work and living, with attractive tax benefits and affordable living. With the right preparation and the right information, you can quickly begin to consider Portugal a second home.
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