Moving to Portugal: Complete Guide for 2024

In 2023, Portugal recorded over one million foreign residents, marking a 33% increase from the previous year.

But why do so many decide that moving to Portugal is the best idea? Some of the factors include the country’s attractive quality of life, affordable cost of living, favorable tax incentives, and warm climate.

The Golden Visa program and remote work opportunities have also contributed to the influx of foreigners to Portugal. In recent years, safety and vibrant culture have made it especially appealing.

When moving to Portugal, being well-prepared is very important. Our guide will walk you through everything you need to know to make your move to Portugal as smooth and successful as possible.

Here’s what you’ll find in our guide: 

• Why Portugal is a top relocation destination 
• The best visas to move Portugal  
• Practical steps before relocating to Portugal 
• Moving to Portugal pros and cons 

Why is everyone moving to Portugal?

Affordable cost of living

Compared to many Western European countries, Portugal has an attractive cost of living. Essentials like groceries, transportation, and healthcare are reasonably priced. Even major cities like Lisbon and Porto maintain lower living costs relative similar European urban centers​. 

Mild climate

Portugal’s climate is another significant draw, with over 300 days of sunshine annually, particularly in the southern Algarve region. Expats enjoy year-round outdoor activities, from beach days to vineyard tours, in a mild Mediterranean climate that balances sunny summers with gentle winters​​. 

High quality of life

According to our Global Intelligence Unit’s Retirement Guide for US Citizens, Portugal came in 2nd place and consistently ranks high for quality of life, offering modern amenities and robust public services. Healthcare is accessible and affordable, with both public and private options available, while safety levels are commendably high, making Portugal one of Europe’s safest countries for residents and tourists alike​​. 

Growing expat community

In recent years, Portugal has seen a rising expat population, which brings an enriching multicultural experience. Places like Lisbon, Porto, and the Algarve provide foreigners with a network of support, cultural exchange, and business opportunities​​. 

Tax benefits and financial incentives

Portugal’s government has designed a range of tax benefits and incentives to attract foreign residents and investors. The NHR Portugal Tax Regime, for instance, allows qualifying individuals to benefit from reduced tax rates on certain types of income, including pensions and provides exemptions on foreign-sourced income for up to ten years.  Although the regime ended in 2023, it is still possible to qualify if you meet certain criteria. Portugal’s booming real estate market offers competitive returns, particularly in desirable areas like Lisbon, Porto, and the Algarve, which have seen significant property value appreciation over recent years.   

Visa Options to Portugal

The Portuguese government offers several of visa types for non-EU citizens to move to Portugal. These visas are an indirect route to pathway to an EU passport, as holders can apply for Portuguese citizenship after five years, provided they meet the requirements. 

Below are the most popular visas for moving to Portugal in 2024:

• D7 Visa: The Portugal D7 Visa is specifically designed for individuals with stable, passive income from sources such as pensions, rental income, and investment dividends, who wish to obtain a Portuguese residence permit. 
• Portugal Digital Nomad Visa: Officially called the Portugal D8 Visa, this visa is specifically for non-EU/EEA citizens working remotely or freelancing for companies outside of Portugal. 
• Portugal HQA Visa: The Portugal Highly Qualified Activities Visa is part of the country’s effort to attract global talent and build a highly skilled workforce of engineers, doctors, specialists and high-level executives. 
• Portugal’s Golden Visa program: The Portugal Golden Visa program provides non-EU nationals with a residency permit in exchange for qualified investments in Portugal. This program has been particularly attractive due to its flexibility: investors need only stay in the country for an average of seven days per year to maintain their residency. 

Steps for Relocating to Portugal

Preparing your documentation 

Once you have decided which visa is best suited to your situation or long-term goal, it’s crucial that you gather and correctly prepare your documentation. Ensure that all certificates and official documents are up-to-date, make copies of everything and keep them safe until you are ready to submit. 

Finding accommodation 

Renting in Portugal often provides a simpler and more flexible alternative to buying. The rental process involves minimal paperwork and eliminates the hassle of dealing with a mortgage.  

Many properties come fully furnished, allowing for immediate move-in. This is perfect for those who want to experience Portugal without a long-term commitment or for digital nomads and short-term visitors seeking a hassle-free setup. 

Conversely, buying property in Portugal can be a great option if you’re considering making it your permanent home or if you’re looking for a solid investment opportunity. Owning real estate can offer stability and the potential for rental income, making it a valuable asset if you plan to stay long-term or want to include it in your investment portfolio. 

Getting a tax identification number 

A Portuguese NIF (Número de Identificação Fiscal) is an individual tax identification number.  

Having an NIF number in Portugal is crucial. The NIF is used in several financial transactions and activities such as signing a legal lease, signing up for a Wifi contract, opening a bank account, paying taxes, and even legally working in Portugal. 

You can apply for a NIF Portugal number by: 

• Attending an appointment at the local tax office (Finanças) or citizen shop (Loja do Cidadão) 
• Appointing a lawyer or an accountant to apply for it on your behalf 
• Applying through a third-party provider that handles the entire NIF application on your behalf 

Opening a Portuguese bank account  

After you get your NIF, you can open a bank account in Portugal. While the requirements might vary depending on which bank you choose, you’ll generally need the following documents: 

•  Proof of ID (e.g., passport) 
• Proof of address (e.g., recent utility bill or letter received in the previous three months, with your name and address both visible) 
• Confirmation of NIF 
• Proof of income or employment (e.g., recent payslip or employment letter). You can still open a local bank account if you are not employed. You must show proof of registration with the Portuguese employment center (Centro de Emprego) or that you have an assured work contract. 
• A Portuguese phone number for SMS activation: This may not be required and depends on the bank. Some banks also accept international phone numbers. 
• A minimum cash deposit of €250-300 is common, although this will depend on the bank. 

Once you’ve gathered the documents, go to any branch of your chosen bank and speak to a representative to assist you.  

In some instances, like with ActivoBank, Caixa Geral de Depósitos and Millenium BCP, you can open a bank account online. You then have to have an online video meeting with the bank representative to confirm your identity and answer their questions. 

Understanding the Portuguese healthcare system  

Portugal offers universal healthcare through the publicly funded Serviço Nacional de Saúde (SNS). It provides free healthcare for children under 18 and for individuals over 65.  

For everyone else, the state healthcare system offers subsidized medical costs at a low rate.  

Basic national health coverage is managed through local and regional health centers and hospitals, which operate under the jurisdiction of five regional health administrations. 

Private doctors and healthcare facilities are widely available through private health insurance. In Portugal, private healthcare costs are relatively low compared to numerous other nations, and private insurance allows you to get an appointment more quickly than the public healthcare system.  

You can also be assured that virtually all doctors in the private healthcare system speak English. 

Budgeting  

Spending your money wisely is the key to a happier life, and a thoughtful budget will go a long way in Portugal. While costs are generally cheaper in smaller towns and rural areas, below is an estimated cost of living in Lisbon: 

 

The same price fluctuations exist for basic goods, which tend to be slightly more affordable the further you are from large cities. When working out a monthly budget, the table below will give you a good indication of the cost of food in Portugal. 

 

Taxes in Portugal

Portugal’s tax system is comprehensive, with various taxes targeting different income sources and activities. It also provides specific incentives and benefits for new residents and businesses investing in certain sectors. If you’re moving to (or are already in) Portugal and earning an income, you may have to pay taxes.

Personal income tax rates (IRS) apply to the incomes of Portuguese residents and non-residents currently working or employed. Tax is automatically deducted from pay slips, but you must complete an annual tax return.

Your income tax rates are determined by calculating your taxable income earned and the corresponding tax rate and removing any legal deductions (e.g., education or health-related expenses).

IRS is considered individual income tax and is filed individually, but couples and civil partnerships can opt to file jointly. In this case, tax rates are charged on the total taxable income of the household members. The Portugal tax rates for individuals range from 13.5 percent to 48 percent.

If you own a property in Portugal, you’ll also be liable for property tax, called Imposto Municipal Sobre Imóveis (IMI). In urban areas, IMI varies from around 0.3 percent to 0.45 percent of the home’s value. In rural areas, a rate of 0.8 percent applies.

Moving to Portugal Pros and Cons

When moving to Portugal, you’ll be faced with benefits and challenges that you should weigh carefully. Known for its mild climate, rich culture, and quality healthcare, Portugal attracts many with its relaxed lifestyle. However, factors like bureaucratic processes and language barriers might pose challenges for newcomers adjusting to their new life.

Why choose Global Citizen Solutions for your Immigration Visa?

GLOBAL APPROACH BY LOCAL EXPERTS

• GCS has offices located across Portugal.
• Members of the US-Portugal and UK-Portugal Chambers of Commerce in Portugal, and the Investment Migration Council (IMC).
• Our expert team can help you throughout your journey to secure your Visa. 

100% APPROVAL RATE

• Our successful track record in applications provides reassurance to applicants. 
• We have helped clients from more than 35 countries secure residency in Portugal.

ALL-ENCOMPASSING SOLUTION

• With a single channel of communication, our approach ensures that you have complete clarity on your application. 
• Our BeGlobal® Onboarding System allows for a total flow of information.

TRANSPARENCY AND PRIVACY

• Our pricing is clear and detailed, you will not face any hidden costs.
• All data is stored within a GDPR-compliant database on a secure SSL-encrypted server.

Frequently Asked Questions About Moving to Portugal

How difficult is it to move to Portugal?

Moving to Portugal as a non-EU citizen can be a streamlined process, but it depends on the visa route you choose, your preparedness with documentation, and your familiarity with the Portuguese system.

How can I move to Portugal?

To move to Portugal, you must acquire a residence permit. This is typically granted to individuals planning to work, study, or marry a Portuguese citizen. Portugal also offers residence permits through investment programs, with the application process generally taking over 12 months.

 

 

Can non-EU citizens move to Portugal easily?

Yes, non-EU citizens can move to Portugal relatively easily, but the process involves securing the appropriate visa based on their reasons for relocating, such as work, investment, or retirement. Portugal offers several visa options designed to cater to different needs.

What are the costs involved in relocating?

Relocating to Portugal involves costs such as visa fees, health insurance, and rent deposits. Rent averages €1,000–€1,500 per month for a one-bedroom apartment in major cities.

Grocery costs are relatively affordable, averaging €200–€400 monthly for a couple. Dining out at mid-range restaurants may cost around €30–€50 for two.

These expenses are additional to visa application and investment fees, flights to Portugal, and moving possessions overseas.

Is it necessary to speak Portuguese?

While it’s not mandatory, learning basic Portuguese is beneficial, particularly when dealing with government offices or living outside major cities.

Many people in urban areas and tourist locations speak English, but knowing Portuguese can significantly ease the integration process​​.

Do I need a visa to live in Portugal?

Yes, non-EU citizens typically need a visa to live in Portugal for more than 90 days. Options include the D7 visa for retirees or those with passive income, the D2 visa for entrepreneurs, and the Golden Visa, which grants residency through investment​​.

Is it expensive to live in Portugal?

Portugal is known for its relatively low cost of living, especially compared to other Western European countries. While costs vary by location, cities like Lisbon and Porto are more affordable than many European capitals, and rural areas are even more budget-friendly​​.

What is the healthcare system like?

Portugal has a high-quality healthcare system with both public and private options. Expats can access public healthcare through the national system, though many opt for private insurance for faster service and wider choices​.

How easy is it to find accommodation?

Finding rental property in Portugal is generally manageable, though prices in popular areas like Lisbon, Porto, and the Algarve have risen due to demand. It’s advised to start with a short-term rental while exploring neighborhoods and finding a long-term place​​.

Is Portugal safe for expats?

Yes, Portugal is one of the safest countries in Europe, with low crime rates and a welcoming environment for foreigners. The country has a high level of public safety, and violent crime is rare​.

What is the job market like for expats?

The job market is competitive, especially for roles requiring only English. Wages are generally lower than in other EU countries, so many expats work remotely or bring foreign income. Skills in tourism, tech, and English teaching can be advantageous​.

Can I bring my pets to Portugal?

Yes, Portugal is pet-friendly, but there are requirements for entry, such as microchipping, vaccinations (especially for rabies), and a health certificate. The process is relatively straightforward, especially for EU residents or those coming from low-risk countries​.