Moving to Portugal or Spain? Tips from expats who chose Portugal

So you are undecided between Portugal and Spain as the best place to move to for a while (or permanently), but you’re already leaning towards Portugal? Who better to consult about your likely choice than those who moved to Portugal and stayed? Lucky you, we upped and questioned some Portugal-loving expats to make your decision easier.

Expats who choose Portugal over Spain often mention Portugal’s relative affordability, safety and friendliness. Data supports the affordability and safety claim. As for friendliness, Iberian modern history might suggest that Portugal nationals are generally more peace-loving than their neighbours.

This post will feature the personal opinions of expats who decided to move to Portugal, as well as a healthy sprinkle of updated facts and figures. If you love to make decisions based on data, especially when supported by real life examples, read on.

Main reasons why our expats chose Portugal over Spain

We asked a group of American, Australian, UK and Finnish expats about why they chose Portugal over Spain and these were the main reasons:

1. Affordability
2. Safety
3. Friendly locals
4. Tax advantages
5. Better beaches

1. Portugal’s Affordability

Most expats who move to Portugal from other countries such as the US and Australia or even other European countries, state that Portugal’s affordability was a decisive factor when deciding where to live for an extended period. 

The cost of living in Portugal’s capital compares favourably to its Spanish counterpart, with Lisbon consumer prices 15.66% cheaper than Madrid. In real numbers this means that you if you spend 3,000.00 Euros monthly in Lisbon (including rent), you would need 3,469.78 Euros in Madrid for the same standard of life.

“You would need around 3,469.78€ in Madrid to maintain the same standard of life that you can have with 3,000.00€ in Lisbon (assuming you rent in both cities).”

Numbeo, a crowd-sourced cost of living database.

Cinnamon, a YouTuber (watch her at Driven Spice channel) and digital marketer from Washington DC, who moved to Portugal in November 2019, says that Portugal is not quite as cheap as she was led to believe, especially if you choose to live in Lisbon where rents are higher. Portugal’s affordability was still a drawcard when she considered that the spacious apartment she rents in Lisbon would cost at least double in DC, she says.

Richard from Australia, who now lives mostly in Porto but has lived in both Spain and Portugal for the last 12 years, agrees that Portugal is generally cheaper, but points out that cars are cheaper in Spain, as is petrol (gasoline). He also points out that some grocery items like toothpaste and shampoo tend to be cheaper in Spain. 

For Richard Portugal’s affordability was less of a factor than being able to go to the movies or watch TV programs in English, he says. Spain dubs English-spoken movies in theatres as well as on TV into Spanish, which takes away from the experience, he feels. He also says that Portuguese people are far more likely to speak English well than the Spanish, maybe because they’ve heard it in their homes since early childhood.

Liz, a psychologist who moved with her husband and two daughters from California, says one of the main reasons why she chose Portugal – apart from the fact that her grandparents were Portuguese – was because of its affordable private healthcare. She says they pay 150 Euros per month for private healthcare including dental that covers all four of them, an unimaginable low amount in comparison with what they were paying in California.

2. Portugal’s safety

Portugal’s safety and low crime rate is also a decisive factor for many who decide to move to Portugal instead of Spain. Portugal is currently rated as the third safest country in the world, just after Iceland and New Zealand. Spain’s position, on the other hand, is 38th. 

For Liz and her family, Portugal’s safety ranking and lack of gun violence was also a decisive factor. She said she and her husband did not want to raise their daughters in a country where school shootings happen with frightening regularity. 

Cinnamon, who also comes from the US, says that when she first moved to Portugal she was alone and didn’t know anyone. She says that as a woman alone Portugal’s reputation for safety also helped her decide to move there. She feels safe in Lisbon like she never felt in Washington DC, and she thinks the safety reputation lives up to its name.

Richard, who has lived in cities large and small in both Spain and Portugal, says that he feels equally safe in both countries. But he thinks that fights in bars are probably even less likely to happen in Portugal than in Spain. There’s very little violent crime, he points out, though there’s still a good amount of petty crime.

“Your house can get broken into and your wallet can get pinched if you’re not careful,” he says. But he’s never heard of anyone being mugged by an armed person.

3. Portugal’s friendliness

Whereas Portugal’s friendliness is a more subjective quality that cannot easily be supported by data, the topic always come up with expats who chose Portugal. None of the expats we spoke to said that the Spanish people were unfriendly, but they all singled out friendliness as one of Portugal’s best qualities.

Liz says she is slightly biased because her grandparents were Portuguese, but her husband Chris identifies as American through and through and he agrees that Portuguese people are extremely welcoming and accepting.

Stevan from Finland says he noticed how hospitable Portuguese people were as soon as he arrived. “They’re just so curious about you,” he says, “but in a nice way, where they offer help before you have to ask.” He says he once had a local stop their car to give him directions when he was at an intersection on his bicycle. “I must have looked lost and that’s all it took. I was actually just appreciating the local architecture,” he laughs.

Richard, who has earned a living teaching English both in Spain and Portugal, says he thinks he has the answer for Portugal’s relative friendliness in comparison to Spain. He points out that Spain hosts far more tourists per year than Portugal and Spanish people have therefore more reasons to be tired of foreigns.

“But,” he adds, “the Portuguese are just a peace-loving and non-confrontational people.” Richard thinks there’s a geo political reason for that. “Just think how many autonomous regions in Spain there are – like the Basque and Catalan regions – and a lot of them have their own laws and regulations, and some are literally prepared to fight to secede,” he says.

Richard points out that Portugal in comparison is a very homogenous country. Portugal’s borders have barely changed since the 12th century. The closest Portugal came to a civil war in modern history was in 1974, when the repressive right-wing regime was peaceably overthrown. In comparison, Spain lost nearly half a million of its own people in the Spanish Civil War (1936-39).

4. Portugal’s tax advantages

Adam and Sue from the UK chose to retire in Portugal even though Portugal’s goods and services tax (known as IVA in Portugal) is actually higher than in Spain. IVA is 23% in Portugal and 21% in Spain. 

But Portugal has an incentive for expat retirees called the Non-Habitual Resident Tax. Adam says that when he heard that he would not have to pay taxes on the pension he receives from the UK for 10 years, the decision to move to Portugal was easy. He hopes that Brexit won’t change things.

The benefit of Non-Habitual Resident Tax means UK expats can potentially receive UK pensions, rental income and non-Portuguese employment income tax-free. 

Under NHR, most income from a foreign source is exempt from Portuguese taxation for ten consecutive years, as is income that is taxable in another country.  

5. Portugal’s better beaches (for surfing)

Lastly and most importantly – for some – the waves are simply better.

Spain has nearly 5,000 kms (3,100 miles) of coastline, which translates to a vast number of beaches in different climatic regions. Spain is one of the most visited countries in the world and beautiful beaches are part of its appeal. Portugal can only boast of 1,794 km (1,114 miles) of coastline, 832 kms (517 miles) of it in the Atlantic coast.

But if you are a surfing enthusiast you might well choose Portugal, according to Stevan.

Stevan settled in Portugal’s coastal town of Ericeira after living in Spain’s Andalucia. “My only reservation about Andalucia was that the surfing there wasn’t as good as it is here on the Portugal’s Atlantic coast.” He adds there’s good surfing beaches in the Spanish Atlantic Coast or the Bay of Biscay but the weather is not as nice all year round as in Portugal.

Antony from the UK had never surfed until he took lessons in Carcavelos beach in Lisbon and now he’s hooked. He says he loves being able to live in Lisbon and get to a surfing beach in 20 minutes. He confesses he never considered Spain seriously before finding himself living in Portugal on a long stay visa, but that he wouldn’t move to Spain unless the surf was as good and the beach was close to a nice city.

List of Portugal’s best-known surfing beaches:

• Praia do Norte in Nazaré
• Ericeira
• Peniche
• Arrifana
• Praia do Amado
• Peniche
• Praia de Carcavelos
• Paul do Mar in Madeira

Want to read about how move to Portugal for 6 months? Read our article on tips on finding accommodation.

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