Skip to Content

Why Portugal Became the Hottest Country to Move To (And Why Everyone’s Staying)

In the past few years, Portugal has quietly risen to the top of relocation wishlists across the globe. From retirees and digital nomads to families and entrepreneurs, people from all walks of life are packing their bags—and moving to Portugal.

So what makes this sun-drenched European nation the #1 country people are moving to right now? Spoiler: it’s more than just the pastéis de nata.

This travel and relocation guide will break down the exact reasons why Portugal is booming in popularity, who it’s ideal for, and what you need to know before considering a move.

Read here Tips for living in Portugal as Digital Nomad, best things to know before visiting Portugal, best Portugal sim card for tourist and the best Portuguese food

Read here how to pack for Europe and Best eSIM for Europe

BOOK YOUR TRAVEL INSURANCE

Two of our favorite travel insurance: Heymondo Vs Safetwing cheapest travel Insurance. You can get for $135 USD your Heymondo Travel Insurance with Heymondo discount code valid for 90 days. Read our full comparison of Genki vs Safetywing Travel Insurance Review and the comparison Heymondo vs Genki

Quick Easy Tips

Visit multiple regions before choosing where to live—Portugal’s lifestyle varies by coast, city, and countryside.

Factor in Portugal’s slower bureaucracy pace when planning your move.

Start learning basic Portuguese early; it helps with community integration.

Research visa options carefully—Portugal offers several that suit remote workers, retirees, and investors.

Expect a lower cost of living, but still budget realistically for expat-heavy cities like Lisbon or Porto.

One major controversy is whether the influx of foreigners is contributing to rising housing prices. Some locals argue that increases in demand—especially in Lisbon, Porto, and coastal areas—have made renting and buying less affordable for Portuguese residents. Expats often counter that the problem stems from larger structural issues, not arrivals alone. But the tension exists, especially in popular hotspots.

Another point of debate centers on cultural integration. While many newcomers praise Portugal’s friendliness, locals sometimes feel newcomers create enclaves rather than blending into daily life. The question becomes: should immigrants adapt more to Portuguese ways, or is it natural for expat communities to form? Both sides hold valid perspectives, and the conversation continues to evolve.

The most complicated controversy involves digital nomads and remote workers. Critics say they benefit from Portugal’s low cost of living while earning foreign salaries, creating an imbalance in the local economy. Supporters argue that these workers bring economic growth, open businesses, and revitalize quieter regions. This debate highlights the bigger issue: as Portugal becomes more popular, the challenge is ensuring growth supports everyone—not just those moving in.

1. Unmatched Quality of Life at an Affordable Price

12 Culture Shocks for Travelers in Portugal, 8 Best Places to Live in Portugal for Less Than $2000 USD, 12 Best Cities For Living In Europe For Less Than $1500 USD Per Month

Compared to other Western European countries, Portugal offers a high standard of living with surprisingly low costs—especially for housing, food, and healthcare.

Monthly rent for a one-bedroom apartment in Lisbon or Porto can still be significantly cheaper than cities like Paris, London, or New York.

Fresh produce, seafood, and local wine are not only top-quality but also incredibly affordable.

Public healthcare is well-rated, and private care is reasonably priced for expats.

Why people love it: You can enjoy a European lifestyle—historic charm, ocean views, world-class wine—without draining your savings.

2. Incredible Climate Year-Round

12 Best Cities to Live for $2000 USD Per Month, Is Lisbon Worth Visiting? 7 Reasons Why You Should Visit And Reasons Why Not To Visit

Portugal’s Mediterranean climate offers warm summers, mild winters, and over 300 days of sunshine per year—especially in the southern Algarve region.

Winter temperatures in Lisbon often stay in the 50s–60s °F (10–18°C).

Summer highs average in the 80s °F (26–30°C) without the oppressive humidity common in other countries.

Coastal breezes, ocean access, and scenic mountains mean you’re never far from nature.

Why it matters: Great weather leads to a more active, outdoor lifestyle—whether it’s café-hopping, surfing, or evening strolls by the sea.

3. Easy Residency Options for Expats

Portugal has some of Europe’s most accessible residency programs, especially for non-EU citizens:

Golden Visa (Investment-Based):

Offers residency through real estate or business investment

Leads to citizenship in 5 years

D7 Visa (Passive Income/Retirees):

Perfect for retirees, remote workers, or those with independent income

Only requires proof of modest financial means and accommodation

Digital Nomad Visa (New in 2022):

Specifically designed for remote workers earning income from abroad

Allows legal residence for up to 5 years

Why it stands out: These programs are clear, achievable, and come with a path to permanent residency or citizenship.

4. Safe, Peaceful, and Politically Stable

Portugal consistently ranks as one of the safest countries in the world:

Low crime rates

Friendly, respectful culture

Politically stable with a welcoming attitude toward foreigners

According to the Global Peace Index, Portugal is regularly in the top 5 safest countries worldwide—beating out Canada, the UK, and the U.S.

Why it’s appealing: Safety, calm, and a slower pace of life draw in families, solo travelers, and retirees alike.

5. High English Proficiency

While Portuguese is the official language, English is widely spoken in major cities, tourist areas, and among younger generations.

Most government documents and services are available in English

Many locals switch to English when they realize you’re a foreigner

Multilingual expat communities are thriving, especially in Lisbon, Porto, and the Algarve

Bonus: Learning Portuguese is still appreciated—and opens more doors—but you can comfortably settle in without fluency on day one.

6. A Landscape That Has Everything

Porto Santo Beach Madeira

From golden beaches to medieval cities, Portugal offers a variety of backdrops to suit every lifestyle:

Lisbon: A vibrant capital full of history, tech startups, food, and nightlife

Porto: Charming, artsy, and slightly more affordable than Lisbon

The Algarve: A haven for beach lovers, retirees, and sunseekers

Silver Coast: Coastal towns like Nazaré and Peniche that are laid-back and less touristy

Madeira & the Azores: Island paradises for nature lovers and remote workers

Why people choose it: You can live in the city, the mountains, or by the sea—without sacrificing access to services or culture.

7. Excellent Healthcare

Portugal’s healthcare system ranks well in Europe, and private healthcare is both high-quality and affordable for expats.

Public system (SNS) is available to residents with legal status

Private insurance can cost as little as €40–€100/month depending on age and coverage

Why it’s important: You don’t have to compromise health or well-being for affordability.

8. Tax Incentives for Foreigners

Portugal’s Non-Habitual Residency (NHR) tax regime offers favorable tax treatment to new residents for up to 10 years.

Reduced or zero tax on foreign income (like pensions or freelance earnings)

Especially attractive to retirees and remote workers with non-Portuguese income

Note: As of 2024–2025, reforms are being discussed, so check current rules before applying.

What’s changed

In Portugal, residents are taxed on their worldwide income, and in 2025 the personal income tax brackets for residents now range from about 12.5% up to 48% (depending on income) plus solidarity surcharges.

The previous flagship regime, the NHR (Non-Habitual Resident) status, allowed many new Portuguese tax residents to enjoy favourable tax treatment on foreign-source income (dividends, interest, capital gains, pensions) under certain conditions.

That regime has been phased out for most new applicants and replaced by the IFICI programme. Under IFICI (often described as “NHR 2.0”), only individuals who qualify (principally via “highly qualified professions”, innovation or research roles, or certain strategic activities) may benefit from special tax treatment.

Among the changes is the fact that foreign-sourced income such as pensions, dividends, and capital gains are now more tightly controlled and often taxed at the regular resident rates unless covered by a double tax treaty or other specific exemption.

9. World-Class Food, Wine, and Culture

Miranda do Douro Portugal underrated Portugal cities to visit

Portugal’s cuisine is fresh, local, and deeply rooted in tradition:

Fresh seafood, regional cheeses, and iconic dishes like bacalhau (salt cod)

Port wine from the Douro Valley and bold reds from the Alentejo

Weekly markets, local festivals, and a strong café culture

Why it matters: It’s not just about moving somewhere affordable—it’s about enjoying life to the fullest.

10. A Growing, Welcoming Expat Community

Portugal’s reputation as a top expat destination has led to supportive communities across the country:

Facebook groups, local meetups, co-working spaces, and expat events make it easy to connect

English-language services help with banking, legal matters, and real estate

Many locals are warm and open to newcomers

Bottom line: You won’t feel alone—and you won’t have to figure it all out on your own.

Final Thoughts: Why Now?

Portugal is hitting a sweet spot: it’s still affordable, welcoming, and rich with opportunity—but word is spreading fast.

Whether you’re:

A retiree looking for sunshine and slower living

A remote worker craving lifestyle and affordability

A family seeking safety, education, and space

Or just someone searching for a reset—

Portugal offers all that and more.

So if you’re thinking of a move abroad, don’t overlook this gem on Europe’s Atlantic coast. There’s a reason Portugal keeps showing up at the top of global “Best Places to Move” lists—and now, it’s your turn to see why.

Portugal’s rise as the most desirable place to relocate isn’t a coincidence—it’s the result of a rare mix of affordability, safety, community, and lifestyle that people are struggling to find elsewhere. The country offers a slower pace of life without sacrificing modern comforts, and that balance is powerful. Once people experience it firsthand, it becomes easy to understand why so many decide to stay for good.

What makes Portugal especially compelling is how accessible it feels. You don’t need a luxury budget, perfect language skills, or a dramatic life change to settle in comfortably. Locals are warm, the infrastructure is strong, and the daily rhythm just makes sense. It’s the kind of place where small details—coffee on a terrace, ocean sunsets, friendly neighbors—play a huge role in overall happiness.

Ultimately, Portugal isn’t just trending—it’s resonating with people who want stability, simplicity, and quality of life. The move isn’t about escape for most newcomers; it’s about finding a place that aligns with the life they’ve wanted all along. And right now, Portugal is offering that in a way few countries can match.

Disclaimer: This post may contain affiliate links. If you click on these links and make a purchase, we may earn a commission at no extra cost to you. Please note that we only recommend products and services that we have personally used or believe will add value to our readers. Your support through these links helps us to continue creating informative and engaging content. Thank you for your support!