Portugal has emerged as a top destination for those looking for a new home abroad, offering an enticing mix of pleasant weather, affordable living and stunning beaches.
Portugal’s growing popularity isn’t just due to its natural charm, which includes stunning beaches, islands that could rival Hawaii or Iceland, and quaint mountain villages.
On the contrary, a major advantage was the affordable residence visa process. In recent years, there has been a noticeable trend of people, especially from the US, looking to Europe for relocation, and Portugal stands out as a particularly affordable option.
Apart from that, there is the insurance and the cost of living. Portugal is considered one of the safest countries in the world and has a significantly lower cost of living than North America, Australia and most Western European countries.
Eligibility to move to Portugal
So, can you move to Portugal? For EU, EEA or Swiss passport holders, the process is quite simple. Demonstrating financial independence is key, whether through a pension, employment or savings. These citizens can bypass the residence visa application by moving directly to Portugal and register for European residency after 90 days at the local town hall (known as câmara municipalarge).
For those from other countries, such as the USA, India or Australia, a residence visa is required. Fortunately, the range of residency visas in Portugal is known for their affordability.
What about the language? Although not immediately necessary, learning Portuguese is required for citizenship, which you can apply for after five years of residence. The language can be challenging, particularly because of the way European Portuguese is pronounced, but there are many resources available to help learn.
James Cave from Portugalist.com, author of the book Moving to Portugal made simplelists some lessons and resources which focus on European Portuguese. It also has a page devoted to lessons. He emphasizes that most of the courses that teach Portuguese focus on Brazilian Portuguese, but if you want to understand how people in Portugal speak, it is important to focus on resources that teach Portuguese as it is spoken in Portugal.
However, as mentioned, you do not need to speak Portuguese when you apply for residency – only when you apply for citizenship. However, James recommends starting the learning process early. He also notes that you can take the A2 exam, the exam required for citizenship, before the age of five.
Doing so will allow you to submit your citizenship application as soon as you qualify, speeding up the process of obtaining that all-important Portuguese passport.
Popular Visa Options
Three visas stand out: the D7 (passive income visa), the golden visa and the D8 (digital nomad visa).
- The D7 visa: Designed for those with passive income such as pensions or rental income. Applicants must prove an income equivalent to the Portuguese minimum wage, currently €760 per month, expected to rise to €820 in 2024. Family members can be included with additional financial requirements. For a spouse or partner, this means an additional 50% while you will need to show an additional 30% for each child.
- The Golden Visa: Tailored for people with investment potential. The basic method now is to invest at least €500,000 in a venture capital fund, a change from the previous option of buying real estate. The advantage of this visa is the minimum stay requirement in Portugal, which averages just 7 days a year, making it ideal for those looking for a back-up accommodation option. It is also suitable for those who do not qualify for D7 or D8 but have significant savings.
- The D8 visa: Aimed at remote workers and freelancers (after all, Portugal is also a digital nomad paradise!), requiring an income four times the Portuguese minimum wage. The amount will be adjusted following changes to the minimum wage. From 2023, the amount is €3,040.
Considering a move to Portugal
Batalha Monastery, Portugal
The decision to move involves more than just eligibility. Life in Portugal has its ups and downs. Red tape and customer service can be challenging and housing issues such as poor insulation and noise are common. This is more of an issue in apartments, and if you live in the countryside you are less likely to have noise issues with neighbours.
If you own your property, as opposed to renting it, you will also have more freedom to install a better heating system and improve insulation.
Fortunately, most of the paperwork you will encounter will be at the beginning of your move. Once you are settled and have your NIF number, SNS number and everything else, there will be less hurdles to cross.
The labor market can also present barriers, especially for non-Portuguese speakers. The Portuguese minimum wage is the lowest in Western Europe, so, understandably, other countries such as Germany, France or Ireland are more attractive to workers.
Jobs for non-Portuguese speakers are difficult to find, although some industries, such as technology, tend to communicate primarily in English. Salaries can be higher in these industries as well.
LinkedIn and Glass door are two good places to start your search for international jobs. Another route is call centers. Portugal is home to many call centers and there are always jobs for those who are fluent in other languages. While it may not be the most attractive or best-paying job, it can allow you to get your foot in the door.
Those are the downsides, of course. For the vast majority of people who have moved to Portugal, advantages such as safety, the ease of obtaining an ‘EU passport’, the weather and a more relaxed pace of life do not outweigh these challenges.
Understanding taxes
Portugal uses a progressive tax system with rates ranging from 14.5% to 48%, but taxation can be complex and varies according to individual circumstances. Tax conditions are important here and it is important to speak to someone who understands the tax regime in Portugal and the country where your money is coming from.
The NHR scheme that attracted many foreigners to Portugal has been planned end at the end of 2023, however, will start a “new NHR”. Although initially not as attractive as the old regime, this has opportunities for those involved in technology, start-ups or science-related jobs.
Again, it is recommended that you speak with an accountant. While the NHR regime is the most talked about tax regime, there are other tax regimes in Portugal such as the ‘Simplified regime’ which can mean you pay less tax.
This scheme is suitable for people earning less than €200,000 a year and allows you to pay tax on 75% of your total income and the remaining 25% is considered expenses.
Shipping Items
Commuters in the EU get through more easily due to the absence of customs barriers. For others, obtaining a “Certificado de Bagagem” allows personal belongings to be shipped within a year the granting of a visa.
However, the cost and logistics of shipping large containers can be challenging. It’s a good idea to talk to a few different shipping companies and get quotes on how much the move is likely to cost.
If you’re willing to downsize, this is the most hassle-free option. It can also make sense, particularly if you’re moving from North America, since real estate in Europe is much smaller.
This sofa from the US might not fit in your Portuguese apartment – and that’s before you even think about carrying it up the stairs.
Non-European electronics, especially appliances, may also not work properly in Portugal.
Bringing extra bags when flying to Portugal is often the simplest option. You’ll have to pack smart and probably make multiple trips, but it cuts down on paperwork and costs.
However, this all depends on where you are moving. If you’re moving from the UK, for example, the cost of moving furniture and belongings to Portugal will be significantly less than somewhere like Australia, the US or South Africa.
Finding Housing
Securing accommodation can be difficult, especially in popular areas like Lisbon. Websites like idealista.pt and olx.ptalong with Facebook groups and real estate agencies, can be valuable resources.
Finding accommodation can be difficult, particularly in Lisbon but also in Porto and the Algarve, all locations which have become extremely popular. It is generally easier to find accommodation in the winter months, especially in the Algarve.
For non-EU movers, a long-term rental agreement is usually necessary for the visa process. Unfortunately, this usually cannot come from Airbnb – it must be a specific contract registered with the local tax authorities (Finanças).
For those moving from the EU, the rules are usually not as strict. However, it may depend on the specific municipal chamber what are you doing
Make friends
One of the biggest challenges with any move is making friends. In Portugal, it is relatively easy to make friends with other expats due to the large number of meetup groups.
Just search Meetup.com for your location and you’ll see everything from sports teams to booking clubs to more general meetup groups.
A group of young people sitting on Baleal beach
Making Portuguese friends can be more of a challenge. The best thing you can do is try to find an activity that interests you, whether it’s a sport or a hobby, and find an organization that has a large number of Portuguese members – as opposed to one that caters mainly to expats. si
However, I am ready to speak Portuguese.
In conclusion, adopting the Portuguese expat lifestyle involves navigating visas, dealing with red tape and adapting to new cultural norms. However, the rewards are plentiful—from the stunning scenery and warmth of the locals to the relaxed pace of life and affordable living.
Whether you’re drawn to sunny beaches or a rich cultural tapestry, Portugal offers a haven for those seeking adventure and tranquility. With preparation and an open heart, your trip to Portugal can be the start of a vibrant new chapter. Boa sorte (good luck) on your move to Portugal!
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Surfers at sunset at Praia de Dunas, Baleal
