More and more people are asking the same question: Is Portugal a good place to live? With low crime rates, mild weather, and access to Europe, it’s no surprise that remote workers, retirees, and entrepreneurs are packing their bags. But what’s it really like living in Portugal?

At Touchdown, we’ve helped people from all over the world and in all kinds of situations make the move. From Americans seeking a better lifestyle to crypto-natives wanting tax clarity. 

Here’s what you should know if you're thinking of calling Portugal home.

So, Why Is Everyone Moving to Portugal?

Portugal has gone from a hidden gem to a top relocation hotspot. In 2025, digital nomads, families, and remote employees are still making the move to Lisbon, Porto, and even rural towns thanks to ongoing visa programs, affordable healthcare, and a slower pace of life and safety that will give you peace of mind.

The continued global shift toward remote work and geographic flexibility has only amplified Portugal's appeal. With global uncertainties, people are seeking not just where they can survive, but where they can thrive. Portugal offers that rare mix: a stable democracy, Mediterranean lifestyle, and international openness.

For Americans, especially, Portugal offers a lifestyle upgrade, more walkability, less stress, and often, lower living costs. It's also a gateway to the EU, making it an ideal base for travel, investment, or retirement planning.

Benefits of Living in Portugal

✅ Affordable cost of living (especially outside bigger cities like Lisbon and Porto)
Portugal remains one of the most budget-friendly countries in Western Europe. Rent, groceries, dining, and services are significantly cheaper than in the U.S. or the U.K. While Lisbon and parts of the Algarve have seen price increases, cities like Coimbra, Braga, and inland regions offer excellent value for money without sacrificing quality of life.

✅ Easy access to Europe for travel and business
With its location on the western edge of Europe, Portugal is an ideal gateway to the rest of the continent. Direct flights to Paris, London, Madrid, and Berlin are just a few hours away. The country is also part of the Schengen Area, making travel and business movement seamless across EU borders.

✅ Excellent weather with over 300 sunny days a year
Portugal has a warm, sunny climate most of the year, especially in the south. The Algarve, for example, enjoys more than 300 days of sunshine annually, with mild winters and warm, dry summers. This makes it an attractive year-round destination for outdoor enthusiasts, retirees, and digital nomads alike.

✅ Healthcare ranked among the best in the world
Portugal offers both public and private healthcare systems, both of which are accessible, reliable, and affordable. The public system (SNS) is subsidized for residents, while private insurance often costs under €100/month and offers fast access to specialists and procedures. Many doctors speak English, especially in urban and expat-heavy areas.

✅ Tax incentives for remote workers & freelancers
While the original NHR regime is no longer available to new applicants, Portugal has introduced strong new tax schemes that continue to offer major benefits for expats. These include the updated NHR 2.0 and the IRS Jovem regimes, both of which provide significant tax reductions for eligible residents. Remote workers, freelancers, and independent contractors can still optimize their tax setup with proper planning.

Our head of taxation has written detailed guides on both NHR 2.0 and IRS Jovem, read the NHR 2.0 article here and the IRS Jovem article here.

✅ Safe, peaceful, and family-friendly cities
Portugal consistently ranks in the top 10 safest countries worldwide. Low violent crime, walkable cities, and a strong sense of community make it ideal for families. Public parks, playgrounds, and pedestrian-friendly town centers support a healthy, slower-paced lifestyle.

✅ Welcoming to expats
Portuguese people are known for their hospitality, and expats often note how welcome they feel. U.S. citizens benefit from straightforward visa processes and cultural affinity. While integration may take time, locals are generally patient and happy to help newcomers adjust.

✅ Strong expat communities and international schools
Lisbon, Porto, Cascais, and the Algarve all have vibrant expat populations. From Facebook groups to meetups, there are countless ways to connect. For families, international schools offer English, French, and German curricula, giving parents flexibility and peace of mind when relocating with children.

✅ High quality of food and lifestyle
Fresh seafood, local produce, and rich culinary traditions define daily life in Portugal. From Michelin-starred restaurants to local tascas, the food scene is both affordable and exceptional. Combined with a relaxed culture, excellent wine, and daily café rituals, the lifestyle is hard to beat.

✅ Legal residency options for various income levels and professions
Portugal offers a wide array of visa pathways, including the D7 (passive income), D8 (remote work), Golden Visa (investment), and family reunification. These routes accommodate freelancers, retirees, entrepreneurs, and remote employees, making legal residency more accessible than in many other EU countries.

What’s It Like Living in Portugal?

Living in Portugal is about a mix of great food, a strong sense of community, and enough modern comforts without the chaos of big city life. Most expats report lower stress, better work-life balance, and more time spent outdoors.

Whether you're in Lisbon, Porto, the Algarve, or a quiet inland town, life moves a little slower, but smarter. Public transport is reliable, people are friendly, and the pace of life is intentionally relaxed.

Locals value social interaction, outdoor leisure, and family time. It’s not unusual to see cafes filled at 4 pm or families enjoying the beach together on a weekday.

Portugal offers a high standard of living across multiple domains: food, healthcare, housing, transportation, and public services. Many people find that their day-to-day life improves significantly; they walk more, eat better, and stress less.

Portugal also places a high value on sustainability. Cities like Lisbon and Porto have been recognized for their efforts in green infrastructure and low emissions, making them attractive to environmentally conscious expats.

Living in Portugal as an American: Perks & Realities

Visa Access: The D7 and D8 visas are still popular and accessible. The D7 visa is perfect for those with passive income, while the D8 targets remote workers.

Language: English is widely spoken in cities like Lisbon, Cascais, and Porto. While learning Portuguese helps with integration and bureaucracy, you’ll find that many services accommodate English speakers. From legal paperwork to online delivery apps, English support is often available.

Community: Expats from the US are particularly drawn to Portugal’s warm culture. American-friendly communities thrive in Lisbon, the Silver Coast, and the Algarve. There's no shortage of Facebook groups, community centers, and international events to make connections quickly.

Tax Benefits: Though Portugal phased out the NHR regime for new applicants in 2024, new incentives have taken its place. Under NHR 2.0 and IRS Jovem, many expats, especially freelancers, remote workers, and young professionals can still access favorable rates and deductions.

If you're curious whether you qualify, try our free Touchdown Advisor to get a clear recommendation.

Healthcare: Portugal offers a dual public-private system. U.S. expats often opt for private insurance, which is affordable and offers fast access to care. Many private hospitals even have English-speaking staff. Compared to the US, healthcare costs are drastically lower without compromising quality.

Banking & Currency: Portugal uses the euro (€), and opening a bank account is relatively straightforward with the right documents. U.S. citizens should be aware of FATCA compliance, and Touchdown can help ensure you're set up legally and efficiently.

Lifestyle Breakdown: Is Portugal Right for You?

👨‍👧‍👦 For Families

• Safe neighborhoods and low crime

• Top-tier international and bilingual schools

• Affordable healthcare and childcare

• Nature, beaches, and parks everywhere

• Parental leave policies and work-life balance favor family life

• Accessible public education and healthcare

🧑‍💼 For Singles or Professionals

• Lively expat scenes in Lisbon and Porto

• Co-working spaces and startup ecosystems

• Access to EU-based business and tech events

• Reliable internet and remote work infrastructure

• Active dating culture and social events

• Excellent connectivity for weekend trips around Europe

🕺 For Party-Lovers

• Lisbon’s Bairro Alto and Pink Street remain nightlife hubs

• Porto’s riverside bars and live music scenes

• Lagos and Albufeira bring year-round beach parties

• Music festivals like NOS Alive, Super Bock Super Rock, and Boom attract global crowds

• Clubs open late and the vibe is laid back but energetic

💰 For Tax-Savvy Individuals

• D8 and independent worker visas offer simplified filing

• Capital gains and crypto taxes can be structured favorably with good planning

• Touchdown can connect you with licensed tax professionals for custom strategies

• Special regimes exist for pensioners and retirees

• Good benefits for freelancers, you can read more about the freelancer setup here

☀️ For Weather Seekers

• Mediterranean climate with mild winters and sunny summers

• Algarve: over 300 days of sun/year

• Great for outdoor lovers: surfing, hiking, and more

• Seasons are distinct but never extreme

• Clean beaches and fresh coastal air contribute to wellness

Portugal Living Conditions: Daily Life, Safety, and Services

Portugal scores highly on safety, ranking among the top 10 most peaceful countries in the world according to Global Peace Index. Cities are walkable, public transport is clean and reliable, and food quality is excellent. Violent crime is rare, and local communities are tightly knit.

Services like grocery delivery, public hospitals, and city offices have become more digital since the pandemic, though some bureaucracy remains old-school. That’s where local knowledge or a partner like Touchdown becomes invaluable.

Public transportation includes metro, trams, buses, and even ferry routes. Lisbon and Porto have growing metro systems, and even rural areas are connected by long-distance buses and trains.

The cost of living remains accessible. Rent in Porto or Coimbra can be even 50% less than Lisbon. A meal at a restaurant can still cost under €20, and utilities are manageable for most expats. It’s possible to live comfortably on less than €2,000/month outside major cities.

Food culture emphasizes fresh, local ingredients. Markets are abundant, and even budget supermarkets stock organic produce and fresh seafood. Eating well is not a luxury in Portugal, it’s a way of life.

What is the Downside of Living in Portugal?

Bureaucracy. While improving, getting visas, setting up bank accounts, or registering documents can take time and patience. That’s why many expats work with relocation partners.

Other downsides include:

• Lower average salaries for locals (important if you plan to find a local job)

• Delays in public service and infrastructure maintenance

• Limited variety in retail and international brands compared to the US

• Slower pace can frustrate those used to hustle culture

• Renting can be competitive in Lisbon and Porto

Still, most expats find the trade-off more than worth it.

Is Portugal Friendly to US Citizens?

Absolutely. Portugal is one of the most welcoming countries to Americans, both culturally and diplomatically. U.S. citizens can stay up to 90 days visa-free, and popular visas like the D7 and D8 are tailored for their lifestyle. American expats also tend to form strong social circles.

American culture (from movies to music) is well-known, and many locals are excited to connect. In major cities, you’ll also find American-style cafes, grocery products, and English-speaking communities.

Is it Cheaper to Live in Portugal or the US?

Unless you're comparing to rural parts of the US, Portugal can be significantly cheaper:

• Lisbon is often compared to Austin or Denver, but according to Numbeo, it costs 20-30% less

• A private health insurance plan costs €30-€100/month

• Dining out, groceries, and utilities are all more affordable

Remote workers earning in dollars enjoy one of the best cost-benefit ratios in Europe.

Can I Move to Portugal if I Only Speak English?

Yes. Most urban services (hospitals, banks, real estate) accommodate English speakers. You can survive and even thrive with English alone, especially in major cities and tourist areas. 

But with that said, learning Portuguese will improve your experience and help with bureaucracy, so it might be worth it to learn.

Portugal also offers free and subsidized language classes for immigrants, and apps like Duolingo make it easy to pick up basic language and conversational skills on the go.

How Touchdown Helps You Move to Portugal

Moving abroad can be overwhelming. Visas, taxes, bank accounts, NIFs, housing, and more can feel like a maze. That’s where Touchdown comes in.

We offer:

• Visa and residency support (D7, D8, and more)

• Tax planning and filing with local experts

• Help obtaining your NIF, NISS, and opening a Portuguese bank account

• Ongoing compliance and renewal services

• One-on-one consultations to help plan your move

• Support with life after landing

We combine legal expertise, tax knowledge, and local know-how to support every step of your relocation journey. Whether you’re moving solo or with a family of five, Touchdown makes sure you land smoothly.

With Touchdown, you're not just moving, you're arriving with confidence.

Final Thoughts: So, Is Portugal a Good Place to Live?

Yes, especially in 2025. Despite some bureaucracy and slower systems, Portugal remains one of the best places in the world to live. For Americans and other expats, it offers:

• A high quality of life

• Access to Europe

• Lower costs

• Friendly people

• Strong expat support systems

If you're ready to explore life in Portugal, we can help you make a smart, smooth transition.

We specialise in relocation, tax strategy, and business setup for global professionals landing in Portugal.

Join a growing, connected international community that is thriving in some of the fastest growing corners of the world. Portugal - now; Spain - soon; the rest of the world - to come. 

👉 Want to know more? We’ll walk you through it – no jargon, just straight answers. Answer a couple of questions in the Touchdown Advisor to book a free introduction call with our team.