"The Algarve has been a retirement haven for British, Dutch, and German expats for generations. Today it's also attracting digital nomads and young families from all over the world - making it one of the most cosmopolitan corners of Europe."

2. Cost of living well below the EU averageWhen comparing the cost of living in Portugal and Spain to countries like France, the Netherlands, or Switzerland, the difference is striking. Rent, groceries, transport, and dining out cost significantly less - especially outside the major cities. This makes both countries ideal for those who want to maintain a high quality of life without stretching their budget.
Portugal is generally more affordable than Spain. In cities like Porto, Braga, or Coimbra, a comfortable lifestyle including rent is achievable on €1,000–1,400 per month. In Spain, budgets typically start from €1,400 in smaller cities and rise considerably in Madrid or Barcelona.
3. Attractive visa programmes for foreignersBoth Portugal and Spain offer attractive residency options for foreign nationals. Portugal's Golden Visa remains available, although the programme was restructured and no longer includes real-estate investment routes. The country also offers the D7 Visa for individuals with passive income and the D8 Digital Nomad Visa for remote workers.

Spain's Digital Nomad Visa, introduced under the Startup Act, is open to freelancers and remote employees working primarily for non-Spanish companies or clients. In 2026, applicants must meet minimum income requirements and demonstrate sufficient financial means to support their stay in Spain.
4. Safety and quality of lifeFor families with children and retirees, personal safety is one of the most important factors when choosing a country to relocate to. Portugal consistently ranks in the global top 10 safest countries according to the Global Peace Index. Spain also records significantly lower crime rates than the EU average, though petty theft remains a concern in busy tourist districts.
Both countries operate well-funded public healthcare systems, accessible to legal residents. The quality of medical care in major cities meets the highest European standards, and private health insurance is widely available at affordable rates.
5. Culture, language, and communityBoth the Portuguese and Spanish are known for their warmth and openness towards foreigners. The language barrier is easier to navigate in Portugal, where English proficiency - especially among younger generations and in urban areas - is relatively high. In Spain, English is less widespread, but Spanish itself is considered one of the easiest languages to learn, particularly for Romance language speakers.
In Lisbon, Porto, Barcelona, and Málaga, well-established expat communities have grown their own clubs, coworking spaces, social events, and support networks for newcomers. This dramatically eases the transition and helps new arrivals build connections quickly.
6. Property market and rental optionsDespite rising prices between 2022 and 2026, the real estate markets in Portugal and Spain remain far more accessible than London, Amsterdam, or Zurich. In smaller cities and rural areas, quality properties can be found at competitive prices. Renting in Porto or Braga starts from around €600–1200 per month for a one-bedroom apartment, while Spain's secondary cities offer comparable value.
Frequently asked questions
Can non-EU citizens move to Portugal or Spain easily?Yes. Both countries offer multiple legal residency pathways including the D7 Visa, Digital Nomad Visa, and Non-Lucrative Visa. The exact requirements depend on your nationality, income, and circumstances. Always verify current conditions on official consulate websites.
What is the minimum income required for Portugal's D7 Visa?Approximately €820 per month for a single applicant - equal to Portugal's minimum wage. The amount increases for couples and families. Eligible income sources include pensions, rental income, dividends, and foreign employment contracts.
Where is the best place to live in Portugal as a first-time expat?Porto suits those looking for a balance of city life and Atlantic coastline. Lisbon offers career opportunities and a cosmopolitan environment. The Algarve is popular with retirees and families seeking sun and tranquillity. Braga and Aveiro are gaining traction as affordable, liveable alternatives.
Is it hard to learn Portuguese?For English speakers, Portuguese is considered moderately challenging. A B1 level is generally sufficient for permanent residency applications and day-to-day life. Language courses are widely available online and in person at accessible prices throughout Portugal.
Which country is better for expats - Portugal or Spain?It depends on your priorities. Portugal offers lower costs, a gentler pace of life, and more favourable tax conditions for new residents. Spain provides greater regional diversity, a larger economy, and more established international infrastructure. Many expats visit both before deciding — and some end up splitting their time between the two.