Portugal and Spain both offer a strong quality of life by European standards, but the experience of settling into each country can feel very different once everyday realities set in. Monthly expenses, administrative processes, and residency rules shape daily life in ways that are not always obvious from the outside.

This guide looks at living in Portugal vs Spain as it stands in 2026. It compares the cost of living, housing, taxes, healthcare, visas, education, work opportunities, and lifestyle considerations to help you understand which country aligns better with your income structure, family situation, and long-term plans.

Cost of living in Portugal vs Spain

While both countries remain relatively affordable compared to much of Western Europe, Portugal generally maintains a modest cost advantage over Spain. The difference is most visible in housing, utilities, and routine services, although it narrows significantly in smaller Spanish cities and inland regions.

What often matters more than headline costs is how predictable monthly expenses feel. Portugal tends to offer greater stability across everyday categories, while Spain shows wider variation depending on region and city size.

Monthly living expenses

Portugal

In Portugal, a single person can typically live comfortably on €1,200-€1,500 per month, depending on location and lifestyle. This usually covers rent outside prime areas, utilities, groceries, public transport, healthcare costs, and modest leisure spending.

Couples generally spend €2,200-€2,800 per month, including housing, daily expenses, transport, healthcare, and regular meals out. These figures reflect normal expat living costs rather than short-term stays or luxury standards and are most realistic outside central Lisbon.

Spain

In Spain, monthly expenses are slightly higher. A single person typically needs €900 to €1,500, excluding rent. However, a family of four usually ends up spending around €2,800-€3,200 per month, depending on region and housing choices. 

Costs rise notably in large metropolitan areas, while smaller cities and inland regions remain more affordable.

Overall, Portugal remains marginally cheaper, particularly for housing and utilities, although the difference is far narrower than when comparing Portugal with the UK.

Housing costs (renting and buying)

Housing is often the biggest differentiator between the two countries, especially for expats planning to rent long-term or purchase property.

Renting in Portugal

Renting in Portugal varies by region, but remains relatively accessible across much of the country.

One-bedroom apartment (city centre):

• Lisbon: €1,100-€1,500
• Porto: €800-€1,200
• Algarve towns such as Lagos, Tavira, and Faro: €800–€1,100

One-bedroom apartment (outside city centre):

• €600-€1,000 in most regions

Portugal’s national median rent for new lease agreements is around €8 per square metre, which helps keep housing costs manageable beyond Lisbon’s most central neighbourhoods. While demand has increased in popular areas, many cities still offer alternatives where rent does not dominate household income.

Renting in Spain

Housing costs in Spain vary widely by location. In major cities like Madrid and Barcelona, renting a 100 m² apartment in the city centre typically ranges from €1,500 to €2,500 per month, with popular coastal areas such as the Costa del Sol also commanding higher prices. In contrast, smaller towns and inland regions are much more affordable, with rents often falling below €1,000.

Central areas of large cities usually cost around €3,000 to €4,500 per square metre, while regional cities offer far better value. Coastal cities like Alicante and Murcia often have rents between €600 and €900, and inland cities such as Granada and Seville can be even cheaper.

Buying property

Buying property in Portugal is generally more affordable when comparing national averages.

In Portugal, the average price is €1,860 per square metre. The price is higher in Lisbon and the Algarve but remains significantly lower in interior regions. 

In Spain, national averages usually fall between €1,200-€1,800 per square metre, with prices in Madrid and Barcelona often exceeding €4,200 per square metre.

For buyers focused on value rather than prime locations, Portugal tends to offer greater flexibility and broader affordability..

Food, groceries, and utilities

Everyday living costs such as groceries, dining out, and household utilities play a major role in shaping monthly budgets over time. In both Portugal and Spain, food culture is built around fresh ingredients, local markets, and affordable meals, which keeps daily costs manageable compared to much of Western Europe when comparing living in Portugal vs Spain.

Groceries

In Portugal, most expats spend around €200-€300 per person per month. Fresh produce, bread, dairy, meat, and seafood are widely available at reasonable prices, particularly when shopping at local markets or neighbourhood stores.

In Spain, grocery costs usually fall within the same range of €200-€300 per person per month. Prices for staple items are comparable to Portugal, although imported goods and branded products can be slightly more expensive in some regions.

Overall, grocery costs are not a deciding factor between the two countries, as both offer good value and strong food quality.

Dining out

In Portugal, an inexpensive restaurant meal typically costs €8-€12, while a mid-range three-course meal for two usually falls between €25-€35. Local cafés and lunch menus make eating out affordable even on a regular basis.

In Spain, casual dining tends to be slightly more expensive. An inexpensive meal usually costs €10–€20, and a mid-range dinner for two can range from €25-€50, depending on city and neighbourhood. Spain offers greater variety in dining styles and late-night culture, but at a higher average price point.

Portugal is generally cheaper for everyday dining, while Spain provides a wider range of options, particularly in larger cities.

Utilities

Household utility costs are relatively close in both countries. In Portugal, monthly utilities for a standard apartment typically range from €100-€130, covering electricity, water, heating or cooling, and waste collection.

In Spain, similar costs usually fall between €85-€220 per month. Prices vary by region and season, with hotter areas seeing higher summer cooling costs.

While utilities are broadly comparable, Portugal remains marginally cheaper on average and tends to offer more predictable billing.

Transport and everyday mobility

Day-to-day mobility affects both cost and convenience, especially for expats who rely on public transport rather than owning a car. Both Portugal and Spain offer reliable transport networks, but pricing and coverage differ by city.

Public transport

Public transport in Portugal is affordable and widely used. In cities such as Lisbon and Porto, a monthly travel pass typically costs €40–€50, allowing unlimited use of buses, metro systems, and trams within urban zones. This makes it practical for many residents to live without a car.

In Spain, monthly public transport costs vary more widely. Prices generally range from €20–€50, depending on the city and travel zones. Large cities such as Madrid benefit from subsidised pricing schemes, which can significantly reduce costs for regular commuters.

Both systems are efficient, but Portugal offers more uniform pricing nationwide, while Spain’s costs depend heavily on location.

Fuel and taxis

Fuel prices differ noticeably between the two countries. In Portugal, petrol prices average around €1.75 per litre. In Spain, fuel is cheaper, averaging approximately €1.52 per litre.

Taxis and short-distance travel are affordable in both countries. Spain’s lower fuel costs can make driving slightly cheaper overall, while Portugal’s compact cities and lower public transport costs reduce the need for car ownership in many areas.

Cost of living in Portugal vs Spain: quick comparison

Taxes and financial considerations in Portugal vs Spain

Taxes are a major factor for expats choosing between Portugal and Spain, particularly for retirees, remote workers, and high earners. While both countries tax residents on worldwide income, the structure, complexity, and long-term impact of each system differ in ways that can materially affect take-home income and financial planning.

For many people comparing is Spain or Portugal better for expats, taxation often becomes a deciding factor once housing and lifestyle differences are narrowed.

How Portugal taxes residents

Portugal taxes residents on their worldwide income. You are considered a tax resident if you spend more than 183 days in the country during a calendar year or if you maintain a habitual residence there.

Income tax

Portugal applies progressive income tax rates ranging from 14.5% to 48%, depending on income level. These rates apply to employment income, pensions, and certain self-employment earnings.

NHR 2.0 (IFICI)

Portugal’s updated incentive regime, commonly referred to as NHR 2.0 (IFICI), offers qualifying individuals a 20% flat tax rate on eligible Portuguese employment or self-employment income.

In addition, certain types of foreign-source income may benefit from exemptions, depending on structure and eligibility. The regime is available for up to 10 years and is particularly relevant for internationally mobile professionals, senior executives, and specialised workers.

Other taxes

Portugal does not impose a wealth tax. Annual property tax (IMI) is relatively low, usually ranging from 0.3% to 0.45% of the property’s taxable value.

There is no inheritance tax between spouses, children, or parents, although limited stamp duty may apply in specific situations. This makes long-term estate planning simpler compared to many European countries.

How Spain taxes residents

Spain also taxes residents on worldwide income. Tax residency is generally triggered once you spend more than 183 days per year in Spain.

Income tax

Spain uses a progressive income tax system, with combined national and regional rates that can reach up to 47%, depending on the autonomous community where you live. This regional variation adds an additional layer of complexity, as effective tax rates can differ significantly between locations.

Wealth and inheritance taxes

Unlike Portugal, Spain applies a wealth tax in several regions, although thresholds, exemptions, and rates vary by autonomous community.

Inheritance tax in Spain is also region-specific, meaning liabilities can differ substantially depending on where you reside and where assets are located. For higher-net-worth individuals, these regional taxes can significantly increase long-term tax exposure.

Overall, Spain’s tax system tends to be more complex and, in many cases, heavier than Portugal’s, particularly for high earners and individuals with significant assets.

Which country is more tax-friendly?

Portugal is generally considered the more tax-efficient option for expats due to its lack of a wealth tax, clearer national rules, and structured incentive regimes such as NHR 2.0.

Spain may still suit individuals who benefit from specific regional tax reductions or who plan to fully integrate into the local economy and employment market. However, careful planning is essential, as regional differences can materially affect overall tax outcomes.

Healthcare and insurance in Portugal vs Spain

Healthcare access and affordability play a central role in long-term quality of life for expats. Both Portugal and Spain offer strong public healthcare systems supported by affordable private insurance options, but the way expats typically use these systems differs slightly between the two countries.

In practice, most expats rely on a mix of public care and private insurance to balance cost, speed, and access to specialists.

Healthcare in Portugal

Portugal’s public healthcare system, known as the SNS, is available to legal residents and provides heavily subsidised care. Healthcare is not entirely free at the point of use, but co-payments are generally low, and many essential services are either free or very inexpensive.

Access to the public system works well for routine care, prescriptions, and emergency treatment. However, waiting times for specialist appointments can be longer, particularly outside major cities, which is why many expats supplement public care with private insurance.

Private health insurance is widely used in Portugal and is considered affordable by European standards. Typical monthly premiums usually fall between €50 and €100, depending on age, coverage level, and provider. English-speaking doctors are common in Lisbon, Porto, and the Algarve, making healthcare navigation easier for new arrivals.

Overall, Portugal’s healthcare system combines affordability with relatively straightforward access, especially when public and private options are used together.

Healthcare in Spain

Spain’s public healthcare system is consistently ranked among the best in Europe. Residents have access to comprehensive care, including primary treatment, specialist services, and hospital care.

Public healthcare coverage is strong across the country, with particularly broad hospital networks in major cities and regional capitals. Compared to Portugal, Spain generally offers wider hospital coverage and specialist availability, especially in large urban centres.

Private health insurance is also common in Spain and typically costs €50-€100 per month, similar to Portugal. Private coverage is often used to reduce waiting times, access private hospitals, and meet visa requirements.

For certain visa routes, such as the Non-Lucrative Visa, private health insurance is mandatory and must meet specific coverage standards, including no co-payments. This requirement makes private insurance a fixed cost for many expats relocating under non-work residency routes.

Both systems offer excellent care; Spain has broader hospital coverage, while Portugal combines affordability with ease of access for expats.

Residency and visa options 

Residency pathways are one of the clearest structural differences between Portugal and Spain. While both countries offer legal routes for non-EU nationals to settle long term, the income thresholds, flexibility, and timelines differ in ways that materially affect relocation planning.

For many people deciding between Spain or Portugal to live, visa structure becomes more important than lifestyle once long-term residency and citizenship are part of the plan.

Portugal residency options

Portugal offers several well-defined residency routes that appeal to retirees, remote workers, and investors, with relatively low income thresholds and a clear path to permanent residency or citizenship.

D7 passive income visa

The D7 visa is designed for individuals with stable passive income, such as pensions, rental income, dividends, or royalties.

The baseline income requirement is approximately €870 per month for the main applicant. A spouse requires an additional 50 percent of this amount, and each dependent child requires an additional 30 percent.

Applicants receive an initial entry visa valid for four months. After arrival in Portugal, a residence permit is issued for two years and can be renewed. 

After five years of legal residence, D7 holders may apply for permanent residency or Portuguese citizenship, subject to standard legal and language requirements.

D8 digital nomad visa

The D8 visa targets remote workers, freelancers, and digital professionals who earn income from outside Portugal.

The commonly cited income threshold is €3,480 per month, based on four times Portugal’s minimum wage. Applicants must demonstrate consistent, verifiable income and ongoing remote work arrangements.

This route is particularly popular with professionals who want EU residency without entering the local job market.

Golden Visa (investment route)

Portugal’s Golden Visa remains available following recent reforms, with the primary qualifying route now focused on regulated investment funds rather than real estate.

The standard option requires a €500,000 investment in approved Portuguese funds. One of the key advantages is the low physical presence requirement. Applicants need to spend just seven days in the first year and 14 days in each subsequent two-year period.

Golden Visa holders may apply for Portuguese citizenship after five years, making it one of the fastest investment-linked routes to EU citizenship in Europe.

Spain residency options

Spain’s residency routes are generally more restrictive and come with higher income requirements, particularly for non-working residents.

Non-Lucrative Visa (NLV)

The Non-Lucrative Visa is designed for individuals who can live in Spain without working or generating active income inside the country.

Applicants must prove sufficient financial means equivalent to 400% of Spain’s IPREM, which translates to roughly €28,800 per year for a single applicant, with additional funds required for dependents. Income must come from passive sources such as pensions, investments, or savings.

Employment with Spanish companies is not permitted, and remote work is generally restricted under this visa category. Holders are also expected to reside in Spain for most of the year, as extended absences can negatively affect renewals.

The visa is issued for one year initially, followed by two-year renewals. Permanent residency becomes available after five years, while eligibility for Spanish citizenship typically requires ten years of legal residence.

Digital Nomad Visa (DNV)

Spain’s Digital Nomad Visa, introduced under the Startup Act, allows non-EU nationals to live in Spain while working remotely.

This route is intended for remote employees or freelancers working primarily for non-Spanish companies or clients. Applicants must demonstrate a stable remote work arrangement and meet a minimum income threshold, generally around €2,500–€3,000 per month, depending on personal circumstances and household size.

Limited income from Spanish sources may be allowed, but the majority must originate abroad. The visa can be issued for up to one year when applied for from outside Spain, or as a longer residence permit if applied for from within Spain.

Time spent on the Digital Nomad Visa counts toward long-term residency, although Spanish citizenship still generally requires ten years of residence.

Work and employment-based Visas

Spain also offers residency through employment or self-employment, though these routes are more complex and typically require prior approval.

Employment visas require a job offer from a Spanish employer, sponsorship, and compliance with labour market regulations. Self-employed or entrepreneur visas require a viable business plan, proof of qualifications, and evidence that the activity will benefit Spain’s economy.

These routes can lead to long-term residency but are generally less accessible without a confirmed employer or business framework in place.

Family Reunification Visa

The Family Reunification Visa allows close family members to join a legal resident in Spain.

Eligible family members typically include spouses or registered partners, dependent children, and in some cases dependent parents. Applicants must demonstrate adequate income, suitable housing, and legal residency status in Spain.

The residence rights granted under this route are usually linked to the status and validity of the sponsoring family member’s permit.

Other residency pathways

Spain also offers student visas for full-time academic programs, as well as special residency permits under arraigo provisions, which apply in limited cases involving long-term presence, employment history, or strong social ties within Spain.

These pathways are situational and not typically used for planned relocation, but they remain part of Spain’s broader residency framework.

Important note on the golden visa

Spain ended its Golden Visa program in 2025, meaning property investment no longer provides a pathway to residency for new applicants. Existing permit holders are unaffected, but real estate investment alone can no longer be used to obtain Spanish residency.

You can read our article on Spain vs Portugal Golden Visa. 

Education and family life

Both Portugal and Spain offer solid public education systems and a wide range of international schools, but costs, language environment, and scale differ in practice.

Portugal

Portugal provides free public schooling to legal residents, with instruction primarily delivered in Portuguese. For families intending to settle long-term, this can support faster cultural integration for children, though language adjustment is often needed during the first year.

International schools are concentrated in Lisbon, Cascais, Porto, and the Algarve. These schools typically follow British, American, or International Baccalaureate curricula and are popular with expat families seeking continuity. Annual tuition generally ranges from €7,000 to €15,000, depending on school and grade level.

Beyond schooling, Portugal is often seen as family-friendly due to its high safety levels, walkable neighbourhoods, and slower pace of life. Daily routines tend to feel calmer, which appeals to families with younger children.

Spain

Spain’s public education system is well-regarded and widely accessible, with instruction delivered in Spanish and, in some regions, co-official languages such as Catalan or Valencian. Integration works well for families committed to long-term residence, though language immersion can be more demanding at first.

International schools are widely available across major cities and expat hubs, offering British, American, and IB programmes. Fees are typically higher than in Portugal, often ranging from €10,000 to €20,000 or more per year, particularly in Madrid and Barcelona.

Spain offers a broader selection of large metropolitan areas, which can appeal to families seeking more school choice, extracurricular activities, and international exposure. However, this often comes with higher living and education costs.

Salaries, work opportunities, and lifestyle trade-offs

One of the most practical differences between Portugal and Spain lies in earning potential versus cost structure. While both countries offer a strong quality of life, they suit different income models and career priorities.

Salary reality

Spain generally offers higher average salaries than Portugal, particularly in larger cities and established economic centres. This is most noticeable in sectors such as technology, engineering, finance, healthcare, and multinational corporate roles. Madrid and Barcelona, in particular, provide broader employment opportunities and higher wage ceilings.

Portugal’s average salaries are lower, even in Lisbon and Porto. However, lower earnings are partly offset by a cheaper cost structure, especially for housing, transport, and healthcare. 

For people earning locally, the gap in salaries is real. For those earning internationally, the difference matters far less.

Best fit by income type

Portugal tends to work best for retirees, remote workers, freelancers, and investors who are not dependent on local salaries. Lower living costs, clearer non-work residency pathways, and tax incentives make it easier to maintain a comfortable lifestyle on foreign income.

Spain is often a better fit for professionals seeking larger job markets, higher-paying local roles, and long-term career development within urban environments. Its stronger labour market depth appeals to those planning full relocation and integration into local employment systems.

For many expats, the decision ultimately comes down to whether lifestyle flexibility or career progression is the primary priority..

Lifestyle differences

While both countries share strong food culture, social life, and outdoor living, the rhythm and atmosphere of daily life can feel quite different once you settle in.

Climate

Portugal’s climate is shaped by Atlantic influence. Summers are generally milder, especially along the coast, and winters remain cool rather than cold. This makes year-round living comfortable for people who prefer moderate temperatures and less extreme heat.

Spain’s climate varies more by region. Mediterranean and southern areas experience hotter summers and warmer winters, while inland regions see greater temperature swings. 

For those who enjoy long, hot summers and extended outdoor evenings, Spain can feel more appealing, particularly in the south.

Pace of life

Portugal is known for a slower, more measured pace of life. Daily routines often revolve around neighbourhood cafés, local markets, and shorter workdays. Social life feels calm and community-oriented, with less pressure to rush through the day.

Spain tends to operate at a more energetic tempo. Social life is lively, dining happens later, and cities remain active well into the evening. This suits people who enjoy a vibrant atmosphere and frequent social events, particularly in larger urban centres.

Language and integration

English is widely spoken in Portugal’s major cities and expat hubs, including Lisbon, Porto, and the Algarve. This makes early integration easier, especially when dealing with services, healthcare, and daily errands. However, learning Portuguese significantly improves long-term integration and helps with bureaucracy outside major cities.

In Spain, Spanish is more essential for daily life. While English is common in tourist areas and expat-heavy regions, routine interactions are often conducted in Spanish, and in some regions, additional local languages are used. Long-term integration tends to require stronger language commitment.

Safety, stability, and quality of Life

While both Portugal and Spain are considered safe by European standards, there are small but meaningful differences in how residents experience day-to-day security and overall quality of life.

Safety

Portugal is consistently ranked as one of the safest countries in the world, with low violent crime rates and a strong sense of security reported across the nation. According to the 2024 Global Peace Index (GPI), the leading international measure of safety and peacefulness compiled by the Institute for Economics and Peace, Portugal ranks 7th globally and 5th in Europe based on indicators like societal safety, low conflict, and stability.

Spain is also regarded as a safe country overall. However, large cities such as Madrid and Barcelona experience higher levels of petty crime, including pickpocketing and theft in busy areas. While serious crime remains uncommon, urban density and tourism contribute to a slightly higher risk in major metropolitan centres.

Quality of life

In Portugal, quality of life is often driven by affordability, safety, and a calmer pace of living. Walkable cities, accessible public transport, and predictable monthly costs reduce daily stress and make long-term planning easier.

Spain’s quality of life is shaped by active city life and constant social energy, especially in larger urban centres. Cities like Madrid and Barcelona offer packed cultural calendars with live music, theatre, exhibitions, football match days, and neighbourhood festivals running throughout the year. In places such as Barcelona, Valencia, and Seville, late dinners, outdoor cafés, street events, and public squares keep social life going well into the evening.

For expats, this makes it easier to build routines and connections quickly. Language exchanges, coworking spaces, international meetups, and professional events are common, particularly in major cities, which help newcomers integrate faster. This lively pace appeals most to working professionals and younger expats, though it often comes with higher costs, busier streets, and a faster daily rhythm than quieter destinations.

When comparing overall living standards, both countries perform strongly. The difference lies less in outcomes and more in lifestyle preference and tolerance for pace, density, and cost variation.

Best places to live in Portugal vs Spain

Both Portugal and Spain offer a wide range of cities and regions, each suited to different lifestyles, budgets, and priorities.

Portugal

Among the best places to live in Portugal, Lisbon and the nearby coastal town of Cascais offer strong international connectivity, established expat communities, and access to high-quality healthcare and international schools. These areas are among the most expensive in Portugal, but they appeal to professionals and families seeking urban amenities alongside coastal living.

Moreover, Porto combines cultural depth with better value than Lisbon. Housing costs are lower, daily life feels less pressured, and the city offers a strong sense of local character. It is popular with expats who want city life without capital-level pricing.

The Algarve remains one of Portugal’s most popular regions for expats and retirees. It is known for its climate, beaches, and established international infrastructure. While prices have risen, smaller towns such as Tavira still offer good value compared to larger resort centres.

Other than that, the Silver Coast appeals to those seeking affordability and a quieter lifestyle. Living costs are lower than in Lisbon and the Algarve, and the region offers coastal access with fewer tourists and a slower pace.

Spain

Madrid is Spain’s economic and administrative centre, offering strong job markets, cultural institutions, and transport connections. It suits professionals who want a major city lifestyle, although living costs are higher than in most other Spanish cities.

Barcelona also combines urban life with coastal access and a large international community. It is popular with creatives and professionals but comes with high housing demand and rising rents.

Valencia offers a balance between affordability and city living. It provides beaches, reliable infrastructure, and a slower pace than Madrid or Barcelona, making it attractive to expats seeking value without sacrificing amenities. 

Moreover, Seville appeals to those drawn to traditional Spanish culture and lower living costs. The city offers historic charm and a relaxed lifestyle, though summers can be very hot.

This region is popular with retirees and long-term expats. It offers warm weather, coastal living, and relatively affordable housing, supported by a strong international community.

Marbella attracts expats seeking an upscale lifestyle with year-round sunshine. While more expensive than many Spanish regions, it offers strong healthcare access, international schools, and established expat networks.

Pros and cons of living in Portugal vs Spain

Both Portugal and Spain offer a high standard of living, but each comes with trade-offs that matter depending on income type, lifestyle expectations, and long-term plans.

Portugal pros

• Lower overall cost of living, especially for housing, utilities, and transport outside Lisbon
• Clearer and more accessible residency pathways with lower income requirement.
• Faster route to citizenship compared to many EU countries
• Consistently ranks among the safest countries in Europe
• High English proficiency in major cities and expat hubs, easing early integration

Portugal cons

• Administrative processes can be slow, particularly for immigration and public services
• Smaller cities outside Lisbon and Porto may feel limited in terms of large-scale cultural and professional opportunities.

Spain pros

• Strong public healthcare system with broad national coverage
• Larger cities with more extensive cultural, social, and professional opportunities
• Diverse metropolitan areas offering active nightlife, events, and infrastructure
• Mediterranean climate in many regions, with warm winters and hot summers suited to outdoor living

Spain cons

• Higher income thresholds for residency, especially for non-working applicants
• Wealth tax applies in some regions
• Longer citizenship timeline, typically requiring ten years of residence
• Higher housing costs in major cities such as Madrid and Barcelona

Living in Portugal vs Spain: Which country is right for you?

Choosing between Portugal and Spain is less about which country is objectively better and more about which one aligns with your priorities and income structure.

Choose Portugal if

Portugal is a strong fit if you value affordability, stability, and predictability. It works particularly well for people with passive or remote income who want lower monthly costs and clearer non-work residency options.

It is also better suited to those seeking a faster path to citizenship and a calmer pace of life, especially outside the largest cities.

Choose Spain if

Spain suits those who want larger cities, stronger local job markets, and a more energetic social and cultural environment. It works best for people who meet higher income requirements and plan to fully relocate, spend most of the year in the country, and integrate into daily Spanish life.

If career opportunities, city scale, and cultural variety are top priorities, Spain may be the better match despite higher costs.

Touchdown makes relocating to Portugal easy

Every move to Portugal starts differently. Some people come for work, others for family, and many for a better lifestyle, but everyone begins with the same question. Which visa do I actually qualify for? Touchdown is built by expats for expats and simplifies this first step by giving you a clear starting point. 

You can use the free Eligibility Checker to understand your options. Once you know where you stand, it becomes much easier to understand your visa choices. 

Most people end up between the D7 Passive Income Visa, which suits retirees and individuals with stable passive income, and the D8 Digital Nomad Visa, designed for freelancers and remote professionals. 

Touchdown explains the requirements for each and helps you understand which one aligns with your goals, but the support doesn’t stop at choosing a visa. 

The team guides you through every step of the process, preparing documents, submitting applications, reviewing your rental contract to ensure it meets immigration rules, obtaining your NIF, opening a bank account, and handling tax matters such as NHR2 or setting up a company if your work model requires it.

You can book a 1:1 consultation where the team reviews your situation and outlines the path that fits your income, family setup, and long-term plans.

Living in Portugal vs Spain: FAQs

Is it better for Americans to live in Spain or Portugal?

Portugal is often more accessible for Americans due to its lower living costs, simpler residency options, and widespread English use. Spain may be a better fit for those seeking larger cities, stronger job markets, and a more vibrant urban lifestyle.

For more details, you can read our article on moving to Portugal from the USA. 

Is it cheaper to live in Spain or Portugal?

Portugal is generally more affordable, especially for housing, utilities, and transportation. Spain can be similar in smaller cities, but major urban centres like Madrid and Barcelona are typically more expensive.

Can you live in Portugal on $1,000 a month?

It is possible in smaller inland towns with low rent and a modest lifestyle, but it would be very tight. Most expats find €1,200-€1,500 per month to be a more realistic amount for comfortable living.