Portugal Vs Spain: Why Expats Are Making The Switch

Spain has agelong been nan dream destination for expats seeking Mediterranean sunshine, but a increasing number are now looking westward. Over nan past 5 years, Portugal has steadily overtaken Spain arsenic 1 of Europe’s astir charismatic havens for retirees, distant workers, and investors, and costs is simply a awesome factor.

While Spain still boasts a larger overseas population, Portugal’s expat numbers person surged by much than 150 percent since 2018. The country’s equilibrium of affordability, safety, and manner has made it peculiarly appealing to those emotion nan compression of rising surviving costs crossed Europe.

Cost of Living: Portugal Offers More for Less

Everyday Spending Goes Further

Portugal consistently ranks beneath Spain successful nan European cost-of-living index. Groceries, eating out, and inferior bills are each noticeably cheaper. According to expat surveys, a mates tin unrecorded comfortably successful Portugal connected astir €2,000 a month, a fig that often falls short successful galore parts of Spain, wherever rent and nutrient prices person climbed steadily since 2021.

Even successful awesome cities for illustration Lisbon aliases Porto, galore expats study that their regular expenses are little than successful Madrid aliases Barcelona. Energy costs and healthcare fees are besides mostly much affordable, giving Portugal an separator for retirees aliases distant workers surviving connected fixed incomes.

Housing Prices Tip nan Balance

Housing is wherever nan opposition becomes astir striking. While Spain’s spot marketplace has rebounded sharply, pinch municipality prices approaching pre-2008 levels, Portugal remains much affordable.
In Lisbon, nan mean costs per quadrate metre is still little than successful Madrid, and successful nan Algarve, Portugal’s balanced of Spain’s Costa del Sol, seaside homes tin beryllium recovered for a fraction of nan price.

Renting besides remains much attainable. In 2025, mean monthly rents successful Spain roseate by astir 10 percent year-on-year, while Portugal’s increases were much moderate. Smaller towns specified arsenic Évora, Tavira, aliases Viseu connection not only scenic beauty but besides lodging prices that are 30 to 40 percent cheaper than galore Spanish equivalents.

Voices from nan Ground: Expats Making nan Move

“Everything Is Cheaper by Half aliases More”

For some, nan financial quality betwixt Spain and Portugal is intolerable to ignore.
Tonia, a British expat who moved to Portugal successful 2023 aft surviving successful confederate Spain for much than 20 years, says nan displacement was driven wholly by affordability.

“The prices successful Spain were perpetually connected nan rise,” she explains. “It wasn’t conscionable rent aliases nutrient — moreover looking aft my horses became impossible. The costs of hay and provender had doubled successful conscionable a fewer years. In Portugal, everything is cheaper by half aliases more. It’s made life manageable again.”

Tonia now lives connected a mini workplace successful cardinal Portugal, wherever she says nan costs of surviving is “like stepping backmost 10 years.” Her communicative mirrors that of galore semipermanent residents leaving Spain’s high-priced coasts successful hunt of a simpler, much sustainable lifestyle.

“Learning Portuguese Was Easier Than I Thought”

For others, nan hesitation astir moving was little astir costs and much astir language.
James, different erstwhile resident of Spain who relocated to Portugal successful 2024, admits he was initially unsure astir starting complete successful a caller country.

“At first I was a spot dubious,” he says. “I’d lived successful Spain for years and was comfortable speaking Spanish. I worried astir having to study Portuguese, but it turned retired to beryllium overmuch easier than I thought. The 2 languages are similar, and locals are patient. Plus, everything is truthful overmuch cheaper that it’s worthy nan adjustment.”

James now lives successful nan Alentejo region and useful remotely. He describes nan move arsenic “one of nan champion decisions” he has made, citing some nan little costs and nan relaxed gait of life.

“I Love It Here, But Forest Fires Are a Concern”

Not each expat sees Portugal arsenic perfect. Sharon, a semipermanent resident who has lived successful Portugal for six years, praises nan country’s manner and affordability but highlights a increasing worry: wood fires.

“I’ve been surviving successful Portugal for six years now, and I emotion it,” she says. “The only point making maine see moving backmost to Spain is nan wood fires, they look to beryllium getting worse each year. If it wasn’t for that, I would beryllium 100 percent comfortable present without a doubt.”

Her position reflects a reality for galore expats: while costs and value of life are highly attractive, ambiance risks and section hazards are becoming progressively important factors successful relocation decisions.

Tax and Bureaucracy: Portugal Streamlines, Spain Stagnates

Simplified Residency and Remote Work Visas

Portugal’s authorities has actively tailored its policies to pull newcomers. Its “Digital Nomad Visa” and comparatively straightforward residency pathways for non-EU nationals person made relocation smoother than successful Spain, wherever bureaucratic delays and inconsistent location systems are often cited arsenic frustrations.

Portugal’s Non-Habitual Resident (NHR) regime, though being phased out, has historically offered important taxation advantages to overseas professionals and retirees. Even without it, nan state continues to supply fiscal incentives that stay competitory erstwhile compared to Spain’s much analyzable taxation structures.

Lower Overall Tax Burden for Many

While taxation rates dangle connected income and region, Portugal often comes retired up for middle-income earners and pensioners. Property taxes are modest, inheritance taxation is minimal, and nan costs of registering aliases moving a mini business tends to beryllium lower. For self-employed expats aliases freelancers, Portugal’s simplified taxation regimes person proven peculiarly charismatic compared to Spain’s multi-tiered system.

Lifestyle and Culture: Subtle but Significant Differences

A Slower, More Affordable Quality of Life

Portugal’s manner advantage isn’t constricted to cost. Many expats picture nan state arsenic little commercialised and much community-oriented than Spain. The Portuguese gait of life is famously unhurried, pinch a beardown attraction connected section civilization and family.

Both nations connection sunshine and Mediterranean charm, but Portugal’s smaller size creates a consciousness of accessibility. Within a fewer hours, 1 tin recreation from nan mountains of nan northbound to nan confederate coast. The compact geography, mixed pinch fantabulous information rankings and a beardown healthcare system, reinforces its appeal.

Spain Still Wins connected Vibrancy and Variety

Spain retains undeniable strengths, from world-class infrastructure to vibrant municipality life and taste diversity. It remains nan destination of prime for galore who worth nightlife, world schools, and extended carrier networks. However, for expats prioritising financial comfortableness and a calmer environment, Portugal progressively ticks much boxes.

The Bottom Line

Portugal’s increasing fame among expats is nary longer conscionable astir charm aliases scenery, it’s economical pragmatism. In a clip erstwhile affordability is reshaping migration patterns crossed Europe, Portugal’s operation of little costs, governmental stability, and precocious value of life has made it a superior contender against its larger neighbour.

For many, including Tonia and James, nan determination to time off Spain for Portugal is simple: nan aforesaid sun, a akin culture, but astatine half nan cost.