Is Portugal a good place to live? It's a question that comes up constantly in expat forums and relocation conversations. The short answer is yes, for many people. But the real answer depends on what you value and what trade-offs you're willing to accept.

Portugal has become one of Europe's most popular relocation destinations. Lower costs, accessible healthcare, genuine safety, and strong quality of life drive the appeal. But Portugal also brings bureaucratic delays, slower processes, and cultural adjustments that don't work for everyone.

This guide breaks down what daily life actually looks like in Portugal. We'll cover costs, visas, lifestyle fit, and help you assess whether Portugal is a good place to live for Americans and other non-EU citizens considering the move.

Why many people consider moving to Portugal

Portugal has gone from hidden gem to serious relocation choice. What started as a retirement spot now pulls in remote workers, entrepreneurs, and families from the US, UK, and Canada.

Portugal offers safety, stability, and quality of life in Portugal that feels harder to find across Western countries. Political mess elsewhere, sky-high costs in major cities, and remote work becoming normal have made Portugal a real option for people who never thought they'd leave.

The numbers back it up. Nearly 4 in 10 UK entrepreneurs are relocating or planning to within a year. That jumps to 62% within two years. Over half say Spain or Portugal is their top pick.

When asked why, 64% say weather, 59% point to flexible work life, and 33% mention tax benefits. But the reasons to move to Portugal go beyond that. People find walkable cities, solid healthcare, less stress, and a pace that actually feels liveable.

Portugal has its problems but for most people weighing whether Portugal is a good place to live, the upsides beat the bureaucratic headaches that come with any international move.

The biggest advantages of living in Portugal

So is Portugal a good place to live? These are the main reasons people say yes, backed by what daily life actually looks like on the ground.

Lower cost of living than most Western countries

Housing, groceries, dining, and transport all cost less in Portugal than in the US, UK, or most of Western Europe. 

Groceries also follow the same pattern. A monthly shop for two people costs roughly €300 to €450. Dining out happens regularly because it's actually affordable. A solid mod-range lunch lunch runs €15 to €25. Dinner for two with wine rarely tops €45 outside the main tourist zones. 

High quality of life with a slower pace

Life in Portugal moves at a different speed. Cities are built for walking and people spend time outside. Social culture revolves around long meals instead of rushed coffee breaks.

Work-life balance is built into the daily rhythm here. Shops close for lunch so people take proper time off. The slower pace frustrates some newcomers at first, but most find it reduces their stress levels within weeks of arriving.

Safety and political stability

Portugal ranks 7th globally in the 2025 Global Peace Index. In Europe, it sits 5th, following only Iceland, Ireland, Austria, and Switzerland. Violent crime is rare and political drama stays relatively mild compared to what you see in the US or UK.

Families feel comfortable letting their kids walk to school alone. Solo expats, especially women, report feeling secure walking around at night. That sense of safety is one of the benefits of living in Portugal that's difficult to measure on paper but becomes obvious the moment you arrive.

Accessible healthcare system

Portugal's public healthcare system (SNS) covers residents, including people on long-term visas. The quality is solid, though wait times for non-urgent care can stretch longer than you'd like.

Private healthcare fills those gaps effectively. A private GP visit costs €50 to €80. Comprehensive private insurance runs €50 to €150 per month depending on your age and coverage level. Many doctors and specialists speak English, particularly in Lisbon, Porto, and the Algarve.

Mild climate and outdoor lifestyle

Portugal's climate varies depending on which region you choose. The Algarve stays warm throughout the year. Lisbon enjoys mild winters and hot summers. Porto and the northern regions get more rain but rarely experience harsh cold.

The weather naturally supports an outdoor lifestyle. Beaches, hiking trails, and outdoor dining become part of your normal routine instead of special weekend treats. If you thrive in sunshine and moderate temperatures, then Portugal is the place for you.

Legal residency options for non-EU citizens

Portugal offers several visa pathways designed for non-EU citizens. The D7 Visa works well for retirees and anyone with passive income. The D8 Digital Nomad Visa suits remote workers. You also have options like family reunification and investment routes including the Golden Visa.

Portugal's immigration system is more accessible than most EU countries. That doesn't mean the process is quick or straightforward, but the pathways exist and work. Thousands of people successfully complete them every year.

English-friendly environment

English is widely spoken across Portugal's cities and expat hubs. You can manage daily life in Lisbon, Porto, and the Algarve without speaking Portuguese, especially during your first few months.

International schools are common throughout the country, which makes Portugal a realistic choice for families. The expat community is large and active, helping smooth out the initial transition period.

Portuguese becomes essential eventually though. You'll need it for bureaucratic processes, deeper community integration, and navigating life outside the main tourist corridors.

Food quality and everyday affordability

Portugal's food culture quietly stands out as one of the country's real strengths. Fresh produce, seafood, and local markets remain accessible and affordable. A kilo of tomatoes costs €2.

People eat out regularly because it fits normal budgets. A neighbourhood tasca serves proper meals for under €10. Coffee culture runs strong and stays cheap, for instance, a cappuccino around €2 at most cafes.

For anyone wondering if Portugal is a good place to live, the combination of food quality and everyday affordability without needing restaurant budgets often makes the difference.

The downsides of living in Portugal

No place is perfect, and Portugal has real drawbacks that affect daily life. Here are the cons of living in Portugal that tilt toward the frustrating side.

Bureaucracy and slow administrative processes

Visa applications, residency renewals, banking setups, and appointments at public offices can take longer than you expect. 

Consulate appointments for visa processing currently run 2 to 3 months out in most locations. Getting a NIF (Portuguese tax number) requires either travelling to Portugal or setting up a power of attorney. Opening a bank account often needs multiple in-person visits with specific documents, unless you have up to date guidance from an expert who can guide you through the process. 

The systems work eventually, but they test your patience. This is one of the cons of living in Portugal as an expat that catches people off guard, especially if you're used to efficient online government services.

Lower local salaries

Portugal's local salaries lag well behind other Western European countries. The national minimum wage sits around €870 per month. Even professional roles in Lisbon or Porto pay significantly less than equivalent positions in London, Paris, or Berlin.

Living in Portugal as an expat works best when you're bringing foreign income with you. Remote workers earning US or UK salaries, retirees with pensions, or entrepreneurs with international clients find Portugal's costs manageable. But if you're job hunting locally and relying on Portuguese wages, the math gets tight fast, especially in expensive areas like Lisbon.

Housing pressure in popular areas

Lisbon, Porto, and the Algarve face housing pressure. The housing and rental markets in these areas have become fiercely competitive. Landlords often prefer one-year leases paid upfront or require guarantors. Finding quality housing at reasonable prices takes time and persistence.

Prices have climbed steadily over the past five years. A decent one-bedroom in central Lisbon now costs what a two-bedroom did in 2019. Porto follows close behind. The Algarve's seasonal tourism adds another layer of complexity, with landlords favouring short-term holiday rentals over long-term residents.

However, availability improves dramatically outside these hotspots. Smaller cities and towns offer more housing at lower prices with far less competition.

Slower pace of life is not for everyone

Portugal's slower pace affects people differently. Shops close for lunch breaks that stretch past two hours. Appointments frequently run late without apology. Government offices operate on schedules that feel disconnected from your needs. The sense of urgency common in the US or UK simply doesn't exist here in the same way.

Some people find this rhythm refreshing and liberating. Others find it frustrating from day one. If you thrive on efficiency and expect things to happen on schedule, Portugal will test your patience constantly. These cultural differences around time become real friction points during your first year.

Most people eventually adjust to the pace. Some never fully adapt. You need to honestly assess how much inefficiency you can tolerate before deciding if Portugal is a good place to live for your personality.

Consumer goods and electronics cost more

Electronics, appliances, clothing brands, and imported consumer goods all cost more in Portugal than in the US or UK. The pattern applies across phones, cameras, kitchen appliances, and most non-food items.

Import taxes and VAT drive prices higher across the board. You'll also find narrower selection, especially for niche products or specific brands. Amazon.es and Amazon.pt operate in Portugal, but their inventory and pricing fall short of what you'd find on Amazon.com or Amazon.co.uk.

The contrast is stark when you compare categories. Food remains genuinely affordable in Portugal. Electronics and consumer goods do not follow that pattern. This trade-off matters differently depending on your lifestyle, but it's worth accounting for in your budget if you depend heavily on tech or regularly purchase imported products.

Quick comparison table of the pros and cons of living in Portugal

Living in Portugal as an american

Americans face specific considerations when evaluating whether Portugal is a good place to live for Americans. Here's what matters most for US citizens planning the move.

Visa access and residency pathways

Americans can visit Portugal for up to 90 days within any 180-day period without a visa. Beyond that, you need proper residency. The D7 Visa works for Americans with passive income like pensions or rental income. 

The D8 Digital Nomad Visa suits remote employees earning from US companies. Both lead to permanent residency after five years. 

Taxes and financial planning basics

US citizens face dual tax filing requirements. You file both US and Portuguese returns once you become a Portuguese tax resident, typically after spending more than 183 days in Portugal during a calendar year.

Portugal's NHR 2.0 tax regime (IFICI) can reduce your Portuguese tax burden for qualifying income but it doesn't eliminate US obligations. You still file with the IRS annually. The US-Portugal tax treaty prevents double taxation on most income, but the interaction between systems gets complex. 

Healthcare expectations compared to the US

Portugal's healthcare system works completely differently from the US. Public healthcare (SNS) covers residents at minimal cost. Private healthcare costs a fraction of US prices. 

A private GP visit runs €50 to €80 and private insurance costs €50 to €150 monthly. Healthcare stops being a financial stress point. This shift is one of the key benefits of living in Portugal that Americans consistently mention.

Banking and financial compliance

Opening a Portuguese bank account as an American involves specific hurdles. You need a NIF (tax number) first. Most banks require proof of address in Portugal. Some banks hesitate to work with US citizens due to FATCA compliance requirements.

Touchdown has partnered with Novo Banco to streamline this process. You can open a premium Portuguese bank account online without visiting Portugal. The service includes full application support, priority onboarding, and a dedicated account manager. Turnaround typically takes five days, and Touchdown's team handles the in-person bank visit on your behalf.

US citizens must also report foreign bank accounts to FinCEN annually if combined balances exceed $10,000 at any point during the year. FATCA reporting adds another compliance layer. These requirements don't prevent Americans from banking in Portugal, but staying compliant with both countries' rules matters.

Is Portugal right for your lifestyle?

What is it like to live in Portugal depends on your life stage and priorities. Here's how Portugal fits different situations.

For families

Portugal works well for families. It is safe to live. Kids walk to school alone. Parks are common and the culture welcomes children everywhere without judgment.

International schools operate in Lisbon, Porto, Cascais, and the Algarve with tuition from €6,000 to over €25,000 yearly. Public schools are free but teach in Portuguese. Healthcare for children is accessible through public and private systems.

For retirees

Retirees appreciate Portugal's cost predictability and healthcare access. Monthly expenses stay manageable. The D7 Visa provides clear residency based on pension income and the slower pace suits people no longer rushing through life.

Residency stability matters here. Temporary residency renews easily if you maintain income requirements but permanent residency arrives after five years. Moreover, citizenship also becomes possible at the same point.

For remote workers and freelancers

The D8 Visa provides legal residency for remote employees. Moreover, internet reliability is solid in most cities and they have dozens of coworking spaces. However, freelancers may face more complexity as you'll likely register as self-employed, which means local tax filing and social security contributions. 

Register with Touchdown as a freelancer to access ongoing tax compliance services that manage quarterly payments, annual returns, and social security obligations. The administrative burden is real, but lower costs and better quality of life offset the paperwork for most people.

For entrepreneurs and investors

Portugal offers EU market access without London or Paris costs. Setting up a Portuguese company involves bureaucracy but is achievable. Corporate tax sits at 21% with various deductions available.

Furthermore, the Golden Visa provides residency through investment in funds, research, or job creation. It requires minimal physical presence. Portuguese residency leads to EU citizenship after five years, opening broader mobility across the bloc.

For nightlife-focused or fast-paced lifestyles

Portugal's nightlife exists but doesn't match London, Berlin, or New York. Lisbon's Bairro Alto and Cais do Sodré have bars and clubs but Porto has a quieter scene. 

Options exist, but variety and scale lag behind major international cities. Portugal moves slowly. If you need constant stimulation and things happening quickly, Portugal probably isn't your fit.

Can you live in Portugal without speaking Portuguese?

You can manage short-term without Portuguese, especially in Lisbon, Porto, and the Algarve. English works in restaurants, shops, and expat areas and the expat community is large enough to build a social circle.

However, long-term integration requires Portuguese. Bureaucracy defaults to Portuguese. Healthcare outside major cities expects it. Building deeper local friendships needs language skills. Most people hit this wall within 6 to 12 months.

Portuguese becomes essential for government offices, legal documents, property issues, or anything outside the expat bubble. Language learning options exist everywhere.There are language schools that offer group classes and apps also provide baseline vocabulary.

How much money do you really need to live in Portugal

Monthly budgets vary dramatically by location and lifestyle. Here's what couples and singles typically spend living near but outside major cities like Lisbon or Porto.

These budgets assume living near but outside city centres. Central Lisbon or Porto adds 30% to 50% to housing costs. Smaller cities like Braga or Coimbra cost less. The D7 Visa requires proof of income around €870 monthly, but that's the legal minimum, not a realistic comfortable budget.

What surprises newcomers most is how dramatically location affects costs. Move 20 minutes from the centre and rent drops significantly. Averages mislead because they blend vastly different lifestyles and locations. Use these budgets as starting points, then adjust for your specific spending patterns and location choice.

How to move to Portugal

Portugal offers several legal immigration pathways for non-EU citizens. The right option depends on your income type, work setup, and investment capacity. The four most common routes are the D7 Visa, the Digital Nomad Visa (D8), Work Visa, and the Golden Visa.

Portugal D7 Visa

The D7 Visa suits retirees and passive income earners. You need a stable monthly income of around €870 or more from pensions, rental income, or investments. No major investment is required. The visa allows residence in Portugal and permits remote work. Family members can be included. It leads to permanent residency or citizenship after five years.

Portugal Digital Nomad Visa (D8)

The D8 Visa works for remote workers employed by non-Portuguese companies. You don't need to find a local job. It allows legal residence while working remotely and provides access to healthcare and public services. Family reunification becomes available after establishing residency.

Portugal Golden Visa

The Golden Visa is a residency-by-investment programme for non-EU nationals. Investment options include funds, research, cultural contributions, or job creation. Real estate no longer qualifies under current rules. The programme requires minimal physical presence in Portugal. Family members can be included. You become eligible for Portuguese citizenship after five years.

Portugal Work Visas

Portugal offers work visas for employees with confirmed job offers from Portuguese companies. The D1 Visa is the main route, requiring a valid employment contract lasting at least 12 months. Your employer must obtain work permit approval before you apply at a Portuguese consulate.

Other options include the Job Seeker Visa for finding employment, the Tech Visa for certified technology companies, and the EU Blue Card for highly qualified workers. Processing typically takes 2 to 3 months, though priority sectors now receive decisions within 20 days.

Your move to Portugal, simplified and supported by Touchdown

Each journey is unique, but the goal is always the same: to help you secure residency, structure your taxes with clarity, and thrive in one of the most beautiful, forward-thinking countries in Europe.

Touchdown is Portugal's leading relocation platform. Backed by a veteran team of expert lawyers, we simplify the entire relocation journey by providing everything you need to set up and thrive in your new home through an integrated, easy-to-use platform.

Are you ready to take the next step? Book a free introduction call with our team to discuss your situation, explore your visa options, and get a clear roadmap for your move to Portugal. We're here to make your relocation straightforward and stress-free.

FAQs

Is Portugal a good place for Americans to live?

Yes, Portugal works well for Americans seeking lower costs, accessible healthcare, and quality of life improvements. The combination of safety, mild climate, and legal residency pathways makes it attractive, though you must navigate dual tax filing and bureaucratic processes.

What is the downside of living in Portugal?

The main downsides are slow bureaucracy, lower local salaries, housing pressure in popular areas, and the need to learn Portuguese for full integration. Consumer goods and electronics also cost more than in the US or UK.

Is it cheaper to live in Portugal or the US?

Portugal is significantly cheaper than most US cities. A couple can live comfortably near Lisbon or Porto for around $3,000 monthly, covering rent, healthcare, groceries, and dining out. Comparable US cities typically cost 50% to 100% more.