Between 2022 and 2023, Portugal experienced a 33% growth in foreign population. The number of foreigners living in Portugal surpassed one million. Whether you’re a retiree dreaming of a peaceful sunset, a digital nomad seeking a new base for your adventures, or a young professional looking for a better work-life balance, this Iberian gem has something to offer everyone.
Let’s look at why this beautiful country is becoming a top choice for those seeking a new chapter.
Affordability
Portugal offers an exceptional value proposition for the ones seeking a high quality of life without breaking the bank. Compared to other Western European countries, the cost of living is significantly lower. Housing, transportation, food, and entertainment are more affordable, enabling residents to live comfortably while spending less.
For instance, the cost of living in Portugal is approximately 36.6% more cost-effective than living in the US. This disparity is even more pronounced in smaller cities and towns. This affordability extends to various sectors, making it attractive for retirees, digital nomads, and families.
Pleasant Climate
Portugal’s Mediterranean climate is a major draw for many. Characterized by warm, sunny summers and mild, rainy winters, the country offers an outdoor lifestyle that is hard to match. This consistent weather promotes a positive mood, improves overall well-being, and encourages outdoor activities such as hiking, surfing, and beachgoing.
The Algarve region, in particular, is renowned for its mesmerizing beaches and consistent sunshine, making it a popular destination for tourists and residents.
Beautiful Landscapes
Portugal boasts a breathtaking coastline, stretching from the sun-kissed beaches of the Algarve to the dramatic cliffs of the Costa da Prata. Portugal’s interior landscape, featuring rolling hills, verdant valleys, and imposing mountains, offers a stunning backdrop for outdoor adventures and tranquillity. The Douro Valley, a UNESCO World Heritage Site celebrated for its terraced vineyards, is a quintessential destination for wine connoisseurs and nature admirers.
Rich Culture and History
Steeped in history, Portugal offers a captivating blend of old and new. Its cities, such as Lisbon and Porto, are living museums with cobblestone streets, historic buildings, and charming squares. Portugal’s vibrant culture is beautifully reflected in its music, art, and cuisine. From the vibrant Fado music to the delicious pastries, Portugal offers a wealth of experiences for those seeking to immerse themselves in a different culture.
Friendly People
The Portuguese are renowned for their warm hospitality and welcoming nature. Famous for their relaxed demeanor, the Portuguese people are eager to introduce visitors to their rich cultural heritage and traditions. The strong sense of community in Portugal creates a friendly and supportive environment for residents. Portuguese cities are listed among the top 3 of the world’s most welcoming places.
High Quality of Life
Portugal consistently ranks high in global quality of life indices. Factors such as excellent healthcare, a strong education system, and a low crime rate contribute to its appeal. A study by InterNations ranked Portugal as the 7th best country in terms of quality of life. This, coupled with a balanced work-life culture and a focus on personal happiness, makes Portugal an attractive option for those seeking a fulfilling lifestyle.
Tax Benefits
Portugal’s Non-Habitual Resident (NHR) tax regime is a significant incentive for foreign individuals to relocate to the country. This tax break exempts certain income from taxation for up to 10 years. This includes employment income, pension income, and capital gains from the sale of assets. The NHR has attracted a large number of digital nomads, entrepreneurs, and retirees to Portugal, contributing to the country’s economic growth.
Visa Options
Portugal offers a variety of visa options to accommodate different lifestyle choices. The D7 visa, designed for passive income earners, has become particularly popular among digital nomads and retirees. Additionally, the country’s startup visa and golden visa programs attract entrepreneurs and investors. Portugal’s diverse visa options cater to a wide range of individuals, ensuring accessibility for those seeking to relocate or visit based on their specific needs and circumstances.
Safety
In 2023, Portugal’s Global Peace Index safety score was 1.333, making it the seventh safest country in the world. Its low crime rates and a strong sense of community create a secure environment for residents and visitors alike. This sense of security contributes significantly to Portugal’s allure as a place to live and raise a family.
Delicious Food
Portuguese cuisine is a tantalizing fusion of flavors and influences, offering a culinary experience that tantalizes the taste buds. Fresh seafood, such as grilled sardines, bacalhau (cod), and octopus, is a staple in coastal regions. The interior boasts hearty dishes like Cozido à Portuguesa, a flavorful stew packed with various meats and vegetables. Portugal is also renowned for its delectable pastries, with the iconic Pastel de Nata, a custard tart, being a must-try. The country’s rich culinary heritage, combined with its emphasis on fresh, high-quality ingredients, makes it a food lover’s paradise.
Strong Economy
Portugal’s thriving economy has attracted businesses and investors from around the world. The Portuguese economy expanded 0.8% in the first quarter of 2024, while on a year-on-year basis, the expansion was 1.5%. The country has successfully diversified its economy, reducing its reliance on traditional sectors and focusing on areas such as technology, renewable energy, and tourism. This economic stability and growth have created job opportunities and improved living standards for residents, contributing to Portugal’s overall appeal.
Excellent Healthcare
Portugal boasts a well-developed healthcare system that provides high-quality care to its citizens and residents. Portugal ranked 22nd in 2022’s World Index of Healthcare. The country has significantly upgraded its healthcare infrastructure and technology, providing access to state-of-the-art medical care. While public healthcare is available to all legal residents, there is also a thriving private healthcare sector for those seeking additional options. The average cost of private health insurance in Portugal is €400 a year, compared to $5,040 a year for a 40-year-old American.
Work-Life Balance
The Portuguese culture places a strong emphasis on work-life balance, a concept that resonates with many people seeking a more fulfilling lifestyle. Long holidays, leisurely lunches, and a relaxed pace of life are characteristic of Portuguese culture. This emphasis on well-being and personal time contributes to a higher quality of life and attracts individuals who prioritize personal fulfillment alongside their professional goals. Portugal offers a compelling environment for those seeking a harmonious blend of work and leisure.