Living in Portugal: the short version
Portugal combines mild weather, safety and a friendly, English-speaking expat scene with some of the most accessible visas in Europe for remote workers and people with passive income. Lisbon and Porto rents have risen quickly, and the old NHR tax regime has been replaced by a narrower scheme.
Best for: Remote workers, retirees and people with passive income looking for an EU base.
Why people move here
- Accessible D7 passive-income and D8 digital nomad visas
- Among the safest countries in Europe
- Lower costs outside Lisbon and the Algarve
What to watch out for
- Rapidly rising rents in Lisbon and Porto
- Low local salaries
- Residency appointments can face long backlogs
How to move to Portugal: main visa and residency routes
Summaries only — requirements and income thresholds change. Always check the official sources below.
- D7 passive income visa
- For retirees and people with regular passive income such as pensions, rent or dividends.
- D8 digital nomad visa
- For remote workers earning at least four times the Portuguese minimum wage.
- Highly qualified activity / Tech visa
- For skilled professionals with a Portuguese job offer.
Healthcare for newcomers
Legal residents can register with the national health service (SNS); many expats also buy affordable private insurance for faster access.
How Portugal compares
Calculated from our data for all 55 countries. How we calculate this
- Cost of living rank
- 25th cheapest of 55
- Single person, core costs
- $1,140/mo
- Family of four, core costs
- $2,090/mo
- Take-home on $60,000
- $37,987/yr
- Renting a one-bedroom home takes about 35% of the average local salary in Portugal, less than the median of 36% across the countries we cover.
- Core monthly costs for one person (rent, groceries, transport, utilities, internet and eating out) come to about $1,140, or 62% of the average local monthly salary.
- On a gross salary of $60,000 taxed locally, our estimate leaves $37,987 a year after income tax and employee social security (an effective rate of 37%), the 52nd highest take-home pay of 55 countries. After single-person core costs, that leaves roughly $24,307 a year to save or spend.
- Countries with a similar overall cost of living: Croatia, Costa Rica, Chile.
- Cheaper options in Europe: Poland, Hungary, Bulgaria.
Estimates for planning, using simplified national tax brackets in US dollars; local taxes, deductions and your own spending will differ. Try your own numbers in the tax calculator or budget planner.
Our guides to Portugal
- Cost of Living in Portugal: Complete Guide · Cost of Living
Cost of Living
Cost of living index: 42 (NYC = 100)
Rent (1BR)
$650
Rent (3BR)
$1100
Groceries
$220
Transport
$40
Utilities
$100
Internet
$30
Dining Out
$100
Tax System
Corporate Tax
21%
VAT / Sales Tax
23%
Social Security
11%
Capital Gains
28%
Income Tax Brackets
| Income Range (USD) | Tax Rate |
|---|---|
| $0 - $8,059 | 13% |
| $8,060 - $12,160 | 16.5% |
| $12,161 - $17,233 | 22% |
| $17,234 - $22,306 | 25% |
| $22,307 - $28,400 | 32% |
| $28,401 - $41,629 | 35.5% |
| $41,630 - $44,987 | 38.5% |
| $44,988 - $83,696 | 40% |
| $83,697 - Above | 48% |
Culture
Portugal is a country of explorers with a rich maritime heritage, saudade (nostalgic longing), fado music, and a relaxed Mediterranean lifestyle. It has become a top destination for digital nomads.
Traditions
- Festa de SĂŁo JoĂŁo
- Fado music
- Santos Populares
- Carnival
Cultural Values
- Saudade
- Hospitality
- Family
- Modesty
Common Greeting: Olá! Tudo bem?
Cultural Tips
- • Portuguese are warm but initially reserved—relationships build over time
- • Meals are social and leisurely; don't rush through dinner
- • Portugal has excellent and affordable public healthcare
- • The country is very safe and welcoming to foreigners
🍽 Food & Cuisine
Portuguese cuisine centers on fresh seafood, olive oil, and simple but flavorful preparations. The country has a rich pastry tradition and excellent wines.
Pastel de Nata
Iconic custard tart with flaky pastry, best from Belém
Bacalhau à Brás
Shredded salted cod with scrambled eggs, potatoes, and olives
Francesinha
Porto's famous meat sandwich smothered in melted cheese and beer sauce
Caldo Verde
Traditional potato and kale soup with chorizo
Sources and methodology
Figures on this page are estimates in US dollars, compiled from the international datasets below and converted at recent exchange rates. The cost of living index uses New York City as 100. Guidance was last reviewed on . Found something out of date? Tell us.
Official Portugal sources
Data sources
- PwC Worldwide Tax Summaries — individual income tax
- Numbeo — cost of living (crowdsourced prices)
- World Bank Open Data — economic and population indicators
- OECD Tax Database — tax rates and social contributions
- ILOSTAT — employment and unemployment
- UNDP Human Development Reports — health and education
- UN World Population Prospects — population
Quality of Life
Job Market
Average Annual Salary
$22,000
Job Difficulty
Moderate
Unemployment Rate
6.5%
Work Permit Required
Yes
Top Industries
Languages
Official Languages