Home » Portugal Travel News » Spain Rising Costs Push Expats Toward Portugal as They Discover the Unbeatable Lifestyle and Thriving Opportunities Across the Border
Published on
October 28, 2025
Spain has long been a favourite destination for expats, thanks to its warm climate, vibrant culture, and Mediterranean lifestyle. However, with rising living costs, particularly in major cities like Madrid and Barcelona, many expats are now seeking alternatives. Portugal, with its more affordable cost of living, favourable visa options, and welcoming atmosphere, has become the go-to destination for those looking for a similar lifestyle at a fraction of the price. The country’s growing popularity among remote workers, retirees, and digital nomads highlights its appeal as a more accessible, budget-friendly haven, making it an increasingly attractive alternative to Spain.
Portugal has become an increasingly popular destination for expats, with a sharp rise in numbers over recent years. While Spain has long been a favorite for those seeking a warm climate, vibrant culture, and Mediterranean lifestyle, it is Portugal that is seeing a surge in popularity among remote workers and retirees. Since 2018, Portugal’s expat population has increased by 150%, and with 70% of expats staying for five years or more, it’s clear that the country offers a lifestyle that resonates deeply with foreigners. But what exactly is it about Portugal that is making it such an attractive alternative to Spain?
Affordability: A Key Factor in Choosing Portugal
One of the main reasons expats are flocking to Portugal is the significant difference in cost of living. While Spain remains a popular choice, many are finding it increasingly difficult to sustain a lifestyle there due to rising costs, particularly in major cities like Madrid and Barcelona. The cost of renting a one-bedroom apartment in Spain averages €972 per month, but in popular expat hotspots, this figure can be considerably higher. The rising property prices in Spain, combined with a proposed 100% property tax for non-EU residents, have further discouraged potential expats looking to settle in the country.
On the other hand, Portugal has been dubbed “one of the most budget-friendly countries in Western Europe.” Housing Anywhere, a housing marketplace, reports that the cost of living for a single person in Portugal averages just €1,285 monthly. According to Numbeo, Portugal’s overall cost of living is 37.9% lower than in the UK, which makes it an especially appealing destination for retirees looking to stretch their pensions further. With lower rent and more affordable living expenses, Portugal offers a quality of life that many expats find hard to resist.
The Digital Nomad Visa: A Gateway for Remote Workers
Portugal’s rise in popularity is also due to the introduction of its Digital Nomad Visa, launched in 2022. This visa, aimed at remote workers, allows individuals to live in Portugal while working for foreign companies. Applicants must prove they have a monthly income of at least €3,480, or four times the national minimum wage, to qualify for the visa. This option has been especially appealing to digital nomads, who are looking for a place with great weather, an affordable lifestyle, and a welcoming community.
The Digital Nomad Visa offers a one-year residency option, with the possibility of extending it to a long-term residency visa. This gives remote workers the flexibility they need to experience life in Portugal while enjoying the benefits of living in a European country. Compared to Spain’s more stringent income requirements for retirees (around €30,240 annually), Portugal’s system is much more accessible for those working remotely or relying on passive income.
Lower Tax Requirements for Retirees
For retirees, Portugal offers a more affordable option than Spain, particularly when it comes to residency requirements. In Portugal, retirees can apply for a residency visa with an income requirement of just €870 per month—aligned with the country’s minimum wage. This makes it an attractive option for those living off pensions or savings. In contrast, Spain requires retirees to have an income equivalent to 400% of the Public Income Index (IPREM), which amounts to approximately €30,240 annually, in addition to additional funds for dependents.
Portugal’s more flexible and lower-income requirements for retirees, coupled with its affordable cost of living, make it an increasingly popular choice for those seeking a peaceful and affordable retirement in Europe.
Beautiful Weather and Lifestyle Appeal
Weather has always been one of the main draws for those considering Spain, with its sunny climate and idyllic Mediterranean beaches. However, Portugal offers a similar climate with slightly milder temperatures, especially in the north. The country’s southern region, the Algarve, is famous for its warm, sunny climate, which makes it a favourite destination for both expats and retirees.
Portugal’s coastline offers beautiful beaches, picturesque towns, and relaxed living, all within easy reach. While Spain, being a larger country, has a more varied climate across different regions, Portugal’s relatively small size allows for easy access to both coastal and rural areas, making Cities like Lisbon and Porto offer a blend of culture, history, and modern amenities, while the Algarve offers a more laid-back and rural experience, which is particularly popular among retirees.
Welcoming Expats and Thriving Communities
One of the most appealing aspects of living in Portugal is the sense of community that expats find. The country has become a melting pot for foreigners from all over the world, with a large expat community in cities like Lisbon, Porto, and the Algarve. The local Portuguese people are known for their hospitality, making it easier for foreigners to integrate into society. Expats often find themselves immersed in the local culture, enjoying Portuguese food, wine, and traditions, and making lasting connections with their neighbours.
The country’s growing popularity as a destination for digital nomads and retirees has resulted in a thriving expat community. This makes it easier for newcomers to adapt to their new lives in Portugal and access the support they need.
Conclusion: The Appeal of Portugal
In recent years, Portugal has emerged as an increasingly popular choice for expats, particularly for remote workers, retirees, and digital nomads. With its affordable cost of living, attractive visa options, beautiful climate, and welcoming communities, it’s easy to see why Portugal is becoming the new go-to destination for those seeking a life in Europe. While Spain continues to be a great choice for many, Portugal’s unique offerings make it a compelling alternative for those seeking a sunny and affordable lifestyle in Europe.
