Portugal’s foreign resident numbers keep increasing year on year. By the end of 2024, over 1.1 million residents were foreign-born, making up about 15 percent of the population. This is in stark contrast to just eight years ago, when only 400,000 foreign residents were recorded in the country.
There are many reasons for moving to Portugal, but why do so many decide that this part of the Iberian Peninsula is the best choice?
While investment programs and remote work opportunities have contributed to the influx of foreigners to Portugal, the country’s attractive quality of life, affordable cost of living, favorable tax incentives, and warm climate also drive the influx.
In this article, we’ll take a look at everything you need to know to make your move to Portugal as smooth and successful as possible.
Here’s what you’ll find in our guide:
Why is everyone moving to Portugal?
Compared to many Western European countries, Portugal has an attractive cost of living, and this plays a significant role in deciding where to move to. Even major cities like Lisbon and Porto maintain lower living costs than similar European urban centers.
Together with essentials like groceries, transportation, and healthcare that are reasonably priced, here are a few reasons why everyone is moving to Portugal:
Mild climate: Portugal’s climate is another significant draw, with over 300 days of sunshine annually, particularly in the southern Algarve region. Expats enjoy year-round outdoor activities, from beach days to vineyard tours, in a mild Mediterranean climate that balances sunny summers with gentle winters
High quality of life: According to our Global Intelligence Unit’s Retirement Guide for US Citizens, Portugal came in 2nd place and consistently ranks high for quality of life, offering real estate with modern amenities and robust public services. Health care and health insurance are accessible and affordable, with both public and private options available, while safety levels are commendably high, making Portugal one of Europe’s safest countries for residents and tourists alike
Growing expat community: In recent years, Portugal has seen a rising expat population, which brings an enriching multicultural experience. Places like Lisbon, Porto, and the Algarve provide foreigners with a network of support, cultural exchange, and business opportunities.
Tax benefits and financial incentives: Portugal’s government has designed a range of tax benefits and incentives to attract foreign residents and investors, such as the Tax Incentive for Scientific Research and Innovation (IFICI), often called the new NHR.
In our Global Passport Index 2025, Portugal ranks 28th and comes in 12th place for quality of life and enhanced mobility.
Visa Options to Portugal
Moving to Portugal involves obtaining the appropriate visa and residency permit for individuals from outside the EU. You’ll need to secure housing and gather essential documents, such as a passport, proof of income, and health insurance.
It is advisable to begin with a temporary stay to search for suitable long-term housing, and then move on to having a permanent residence after five years. Additionally, be prepared for potential challenges, such as bureaucratic processes, while also considering the benefits, like a lower cost of living and a pleasant climate.
There are various visa options that offer an indirect route to an EU passport, as holders can apply for Portuguese citizenship after five years, provided they meet the requirements.
Here are some of the most popular visas for moving to Portugal:
- D7 Visa: The Portugal D7 Visa is specifically designed for individuals with stable, passive income from sources such as pensions, rental income, and investment dividends, who wish to obtain a Portuguese residence permit.
- Portugal Digital Nomad Visa: Officially called the Portugal D8 Visa, this visa is specifically for non-EU/EEA citizens working remotely or freelancing for companies outside of Portugal.
- Portugal HQA Visa: The Portugal Highly Qualified Activities Visa is part of the country’s effort to attract global talent and build a highly skilled workforce of engineers, doctors, specialists and high-level executives.
- Portugal’s Golden Visa: The Portugal Golden Visa program provides non-EU nationals with a residency permit in exchange for qualified investments in Portugal (real estate is no longer an option). This program has been particularly attractive due to its flexibility: investors need only stay in the country for an average of seven days in the first year to maintain their residency.
Steps for Relocating to Portugal
Preparing your documentation
Once you have decided which visa is best suited to your situation or long-term goal, it’s crucial that you gather and correctly prepare your documentation. Ensure that all certificates and official documents are up-to-date, make copies of everything and keep them safe until you are ready to submit.
Finding accommodation
Renting in Portugal often provides a simpler and more flexible alternative to buying. The rental process involves minimal paperwork and eliminates the hassle of dealing with a mortgage.
Many properties come fully furnished, allowing for immediate move-in. This is perfect for those who want to experience Portugal without a long-term commitment or for digital nomads and short-term visitors seeking a hassle-free setup.
Conversely, buying property in Portugal can be a great option if you’re considering making it your permanent home or if you’re looking for a solid investment opportunity. Owning real estate can offer stability and the potential for rental income, making it a valuable asset if you plan to stay long-term or want to include it in your investment portfolio.
Getting a tax identification number
A Número de Identificação Fiscal (NIF) is your Portugal tax identification number and having a NIF is crucial. It is used in several financial transactions and activities such as signing a legal lease, signing up for a Wifi contract, opening a bank account, paying taxes, and even legally working in Portugal.
You can apply for a NIF by:
- Attending an appointment at the local tax office (Finanças) or citizen shop (Loja do Cidadão)
- Appointing a lawyer or an accountant to apply for it on your behalf
- Applying through a third-party provider that handles the entire NIF application on your behalf
AIMA also launched an option where foreigners can apply for an NIF, social security number, and healthcare number in one application. Getting a social security number is important if you plan on staying in Portugal for more than a year.
Opening a Portuguese bank account
After you get your NIF, you can open a bank account in Portugal. While the requirements might vary depending on which bank you choose, you’ll generally need the following documents:
- Proof of ID (e.g., passport)
- Proof of address (e.g., recent utility bill or letter received in the previous three months, with your name and address both visible)
- Confirmation of NIF
- Proof of income or employment (e.g., recent payslip or employment letter). You can still open a local bank account if you are not employed. You must show proof of registration with the Portuguese employment center (Centro de Emprego) or that you have an assured work contract.
- A Portuguese phone number for SMS activation: This may not be required and depends on the bank. Some banks also accept international phone numbers.
- A minimum cash deposit of €250-300 is common, although this will depend on the bank.
Once you’ve gathered the documents, go to any branch of your chosen bank and speak to a representative to assist you.
In some instances, like with ActivoBank, Caixa Geral de Depósitos and Millenium BCP, you can open a bank account online. You then have to have an online video meeting with the bank representative to confirm your identity and answer their questions.
Understanding the Portuguese healthcare system
Portugal offers universal healthcare through the publicly funded Serviço Nacional de Saúde (SNS). It provides free healthcare for children under 18 and for individuals over 65.
For everyone else, the state healthcare system offers subsidized medical costs at a low rate.
Basic national health coverage is managed through local and regional health centers and hospitals, which operate under the jurisdiction of five regional health administrations.
Private doctors and healthcare facilities are widely available through private health insurance. In Portugal, private healthcare costs are relatively low compared to numerous other nations, and private insurance allows you to get an appointment more quickly than the public healthcare system.
You can also be assured that virtually all doctors in the private healthcare system speak English.
Budgeting
Spending your money wisely is the key to a happier life, and a thoughtful budget will go a long way in Portugal. While costs are generally cheaper in smaller towns and rural areas, below is an estimated cost of living in Lisbon:
| Expenses (per month) | Cost (per month) |
|---|---|
| Rent for one bed flat (city center/ outside city center) | €1,334/ €922 |
| Utility bills | €134 |
| Mobile phone & WiFi | €61.76 |
| Groceries | €200 to €340 |
| Public transport (monthly pass) | €40 |
| Entertainment (eating out/ cinema, etc.) | €100 |
| Sports and leisure | €40 |
The same price fluctuations exist for basic goods, which tend to be slightly more affordable the further you are from large cities. When working out a monthly budget, the table below will give you a good indication of the cost of food in Portugal.
| Product | Cost in Euros |
|---|---|
| Loaf of bread | €1.11 |
| A pack of 12 eggs | €1.89 |
| 1 kg of bananas | €1.11 |
| 1 kg of apples | €1.63 |
| 1 kg of chicken | €5.27 |
| A slice of fresh salmon | €3.00 |
| 1 kg of tomatoes | €1.58 |
| 1kg of potatoes | €0.95 |
| Bottle of wine (mid-mark) | €4.00 |
Shipping Your Belongings to Portugal
If everything proceeds smoothly, Portugal’s immigration authority should grant your visa and residence permit within a few months. Once that’s done, the final step is arranging the move of your personal belongings to Portugal.
To begin, you’ll need to select an international removals company capable of handling cross-border shipments. Alongside this, you must obtain a baggage certificate. This is an official customs document confirming that your household goods have been cleared for international transport. It verifies that the items are either exempt from customs duties and taxes or that any required charges have already been settled.
As a member state of the European Union, Portugal generally exempts EU nationals from customs duties on personal effects, provided the items meet the criteria for personal use and all applicable rules are followed.
You will also need to apply for a Certificate of Change of Residence (Certificado de Mudança de Residência) from the Portuguese authorities. This document is essential if you want to avoid paying VAT on your household goods. Keep in mind that your belongings must enter Portugal within 12 months of the start date of your residence permit, and the baggage certificate must still be valid at the time of import.
Moving to Portugal with Pets
When moving to Portugal with pets, you can bring your dog, cat, or ferret, but you must carefully follow the entry requirements set by Portuguese and EU authorities. Your pet must be microchipped with an ISO-compliant device and have up-to-date rabies vaccination records, with the shot given after the microchip is implanted.
If you’re bringing your pet from outside the EU (including the UK post-Brexit), you’ll need an EU Animal Health Certificate issued by an approved veterinarian shortly before travel; this certifies your pet’s health and eligibility for non-commercial entry. All animals must enter Portugal through designated border points where documents and health checks are reviewed.
Planning ahead is critical. You should prepare all required documentation, understand airline or transport rules for pets, and consider using a professional pet relocation service if the process feels overwhelming, as they can manage the logistics and compliance. Once in Portugal, familiarise yourself with any local registration or licensing requirements so your pet is fully compliant with national regulations after arrival.
Driving and Driver’s License in Portugal
If you become a resident of Portugal, you may continue driving with a full and valid foreign driving licence issued by a country that has a bilateral agreement with Portugal, provided the licence is registered with the Instituto da Mobilidade e dos Transportes (IMT).
This registration must usually be completed within 60 days of the residence certificate being issued, or immediately if the holder has already exceeded that period.
In many cases, eligible expats can later exchange their foreign licence for a Portuguese one without taking a driving test, as long as the exchange is requested within the legally permitted timeframe and the original licence is still valid.
Driving in Portugal is generally straightforward for expats, though some advance preparation is required. Portugal drives on the right-hand side of the road, speed limits are strictly enforced—particularly on motorways—and most major highways operate on a toll system. Overall, the road infrastructure is well-maintained and suitable for long-term residents.
Taxes in Portugal
Portugal’s tax system is comprehensive, with various taxes targeting different income sources and activities.
It also provides specific incentives and benefits for new residents and businesses investing in certain sectors.
If you’re moving to (or are already in) Portugal and earning an income, you may have to pay taxes.
Personal income tax rates (IRS) apply to the incomes of Portuguese residents and non-residents currently working or employed. Tax is automatically deducted from pay slips, but you must complete an annual tax return.
Your income tax rates are determined by calculating your taxable income earned and the corresponding tax rate and removing any legal deductions (e.g., education or health-related expenses).
IRS is considered individual income tax and is filed individually, but couples and civil partnerships can opt to file jointly. In this case, tax rates are charged on the total taxable income of the household members. The Portugal tax rates for individuals range from 13.5 percent to 48 percent.
If you own a property in Portugal, you’ll also be liable for property tax, called Imposto Municipal Sobre Imóveis (IMI). In urban areas, IMI varies from around 0.3 percent to 0.45 percent of the home’s value. In rural areas, a rate of 0.8 percent applies.
Cost of Moving to Portugal
From visa fees and financial requirements to housing costs and health insurance, moving abroad is a major financial commitment — but often far less expensive than you might expect.
On average, people relocating to Portugal should budget between €15,000 and €35,000 for their initial move, depending largely on their visa type, city of choice, and personal lifestyle.
For example, if you’re moving on a D7 Retirement Visa or a D2 Entrepreneur Visa, expect initial visa application fees of around €75 and €90, and about another €100 for the temporary residence card.
This is in addition to having €10,440 in a bank account and proving you meet the minimum income requirement. Various other costs will also be associated with your move, like €50 to €150 for private expat medical aid and setting up an NIF number and bank account, which can cost around €100 if you go through an agency.
Many visa options require you to show proof of accommodation, so that is something you’ll want to set up before applying, often involving a security deposit and a few months’ rent upfront.
Renting a one-bedroom apartment in Lisbon or Porto can cost €800 to €1,500 per month depending on the area, while outside the cities, rents can drop to €600 to €900.
However, shipping your belongings is the most significant upfront expense when moving to Portugal. Costs vary considerably based on your departure location and the volume of items you’re bringing. A popular option among expats is container shipping, but this can take up to three months to arrive and costs around €2,600.
Given most of the potential costs involved, for a single person moving to Portugal with minimal belongings, it should work about to about €10,000. For families or those moving with more belongings, budgeting closer to €20,000 or €30,000 for the initial relocation is a good idea.
Relocating to Portugal: Pros and Cons
When moving to Portugal, you’ll be faced with benefits and challenges that you should weigh carefully. Known for its mild climate, rich culture, and quality healthcare, Portugal attracts many with its relaxed lifestyle.
However, factors like bureaucratic processes and language barriers might pose challenges for newcomers adjusting to their new life.
| The Pros of Living in Portugal | The Cons of Living in Portugal |
|---|---|
| Safe environment with low crime rates | Slow bureaucracy |
| Warm climate | Weather extremes in summer |
| Affordable cost of living | You often need to have cash on hand |
| High quality of life | High seasonal tourism impact |
| Friendly locals | Cultural misunderstandings |
| Beautiful landscapes | Accessibility issues in remote areas |
| Rich cultural heritage | Cultural resistance to change |
| Excellent healthcare system | Overcrowding in public health centers |
| Diverse expat community | Limited job opportunities |
| Several immigration schemes | Bureaucratic complexity |
| Quality education options | Limited childcare options in some areas |
| Attractive tax system | Higher taxes on certain goods |
| Accessible public transportation | Inconsistent service in rural areas |
| Opportunities for outdoor activities | Weather variability can limit options |
| Strong sense of community | Potential for isolation in rural areas |
| Passionate football culture | No other major sports are played |
| Good work-life balance | Higher travel costs during peak season |
| Ease of property ownership for foreigners | Property market fluctuations |
| Growing tech and startup scene | High competition for funding and resources |
| Cultural festivals and events | Crowding during peak festival seasons |
| Proximity to other European destinations | It’s at the Westerly edge of Europe |
| English is widely spoken | Language barriers in rural areas |
| Delicious cuisine and wine culture | Limited availability of international cuisines outside major cities |
| Strong emphasis on sustainability | Higher costs for eco-friendly products |
| Vibrant nightlife in cities | Noise and crowds during peak hours |
Why choose Global Citizen Solutions for your Immigration Visa?
GLOBAL APPROACH BY LOCAL EXPERTS
- GCS has offices located across Portugal.
- Members of the US-Portugal and UK-Portugal Chambers of Commerce in Portugal, and the Investment Migration Council (IMC).
- Our expert team can help you throughout your journey to secure your Visa.
100% APPROVAL RATE
- Our successful track record in applications provides reassurance to applicants.
- We have helped clients from more than 35 countries secure residency in Portugal.
ALL-ENCOMPASSING SOLUTION
- With a single channel of communication, our approach ensures that you have complete clarity on your application.
- Our BeGlobal® Onboarding System allows for a total flow of information.
TRANSPARENCY AND PRIVACY
- Our pricing is clear and detailed, you will not face any hidden costs.
- All data is stored within a GDPR-compliant database on a secure SSL-encrypted server.
