Portugal surges ahead of Spain as Europe’s favourite expat destination

Portugal has cemented its place as one of Western Europe’s most desirable destinations for people looking to start a new life abroad.

It has now overtaken Spain as the preferred base for retirees, remote workers and globe-trotting professionals.

Over the past few years, Portugal’s expat population has expanded dramatically — rising by around 150% since 2018.

Why are people leaving Spain for Portugal?

Spain has long enjoyed a reputation as a popular destination courtesy of its beaches and famously relaxed pace. Yet the escalating cost of living has begun to take its toll.

Rents and everyday essentials have been climbing steadily, and the government has floated the idea of a steep 100% tax on property purchases made by non-EU buyers without residency — a move that could dramatically increase the cost of settling there.

For retirees relying on modest pensions or remote workers keen to stretch their earnings, such developments have become significant deterrents. Rising inflation, particularly in housing and groceries, has pushed many would-be expats to consider more affordable shores.

Portugal, by contrast, remains one of Western Europe's most budget-friendly countries. Average living costs are considerably lower than in, for example, the UK, and monthly expenses for a single person remain competitive even in major cities such as Lisbon and Porto.

Rent, groceries and discretionary spending still offer value, particularly when compared with price trends across the border.

Portugal’s friendly visa options

Portugal’s forward-thinking visa system has been a major driver of its recent expat boom.

Its Digital Nomad Visa, launched in 2022, has made relocating both straightforward and attractive. Remote workers earning income from abroad can reside in the country for a year or longer, with opportunities to pursue permanent residency over time.

The income requirement — set at just over €3,400 per month — is manageable for many freelance professionals and employees of overseas firms.

High-net-worth individuals (HNWIs) are also ditching Spain after it closed its Golden Visa route to residency in April 2025. Portugal’s Golden Visa, on the other hand, continues going strong and has seen a record number of applications this year.

By investing €500,000 in a Golden Visa-eligible alternative investment fund in Portugal, Golden Visa holders obtain freedom of movement across the EU Schengen area, dual residency, a pathway to citizenship and an EU passport, all while needing to spend just seven days per year in  Portugal.

To find out more about Portugal’s Golden Visa, arrange a free discovery call with Portugal Pathways today.

Portugal’s D7 Visa, also known as the Retirement Visa or Passive Income Visa, is a route to permanent residency and future citizenship.

Applicants need to have a passive income of at least €8,460 per year.

Portugal’s consistent climate

Both nations enjoy a reputation for sunshine and mild winters, but Portugal's smaller size means its climate is a touch more consistent.

The Algarve delivers the golden beaches and scorching summers many dream of, while northern regions around Porto, still very hot in the summer, offer fresher, milder conditions and a lush green backdrop.

Portugal’s Atlantic character lends the coastline a unique charm, with dramatic cliffs, world-renowned surfing spots and a cuisine shaped by the sea.

Portugal’s growing reputation

Portugal’s rise as Europe’s expat capital tells a broader story about shifting priorities. Increasingly, people are seeking more than sunshine: they want affordability, stability, community and a chance to build fulfilling lives in welcoming surroundings.

With balanced growth, cultural richness and an enviable lifestyle, Portugal stands poised to continue its ascent as one of Europe’s most desirable relocation destinations.

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About Portugal Pathways

‍‍Portugal Pathways has supported hundreds of Golden Visa residency-by-investment applications and provides expert guidance through its professional supply chain network on estate planning, wealth management, Golden Visa and tax optimisation, including post-NHR / IFICI tax regime planning, as well as private healthcare, money transfers and bespoke relocation and luxury real estate solutions to enhance life and investment in Portugal

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Disclaimer: The information on the Portugal Pathways and Portugal Investment Owners Club (P Club for short) websites and in email communications is for general informational purposes only and should not be construed as legal, tax, or financial advice. You should consult and check with a qualified professional advisor before relying on any information provided on this website or in email communications. As it relates to investments in Golden Visas or other wealth management solutions offered by regulated and professional advisors, it is important to note that past performance is no guarantee of future returns. Private equities can be highly illiquid and come with risk and should always be under professional independent advice. Golden Visa investments need to be held for 6 to 7 years to allow for permanent citizenship/passport in the EU.

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