In recent years, Portugal has become one of the most attractive destinations for European immigration. Its mild climate, relatively low housing and service costs, high level of safety, and various relocation programs make this country especially interesting for retirees, entrepreneurs, freelancers, and families with children. In this article, we will explore who Portugal is most suitable for, what advantages it offers, and what costs one might expect.
Who Chooses Portugal for Immigration?
1. Retirees
Portugal is one of the best destinations for European retirees. The NHR (Non-Habitual Resident) program previously allowed foreign retirees to receive tax benefits for 10 years. However, in 2024, the program was modified, and now benefits apply only to a limited category of applicants.
Main reasons retirees choose Portugal:
- Mild climate with no extreme temperature fluctuations
- Affordable housing and food prices
- Good healthcare system
- Peaceful and relaxed lifestyle
Cost of Living:
- Rent for a one-bedroom apartment in Lisbon: €1,000-1,500
- Rent for a one-bedroom apartment in Porto: €800-1,200
- Utilities: €100-150 per month
- Grocery costs per person: €200-300 per month
- Private health insurance: €50-100 per month
2. Freelancers and Remote Workers
With the rise of remote work, many Europeans consider Portugal an ideal place to live and work. One of the main advantages is the new Digital Nomad Visa, which allows remote workers to reside in Portugal while benefiting from favorable tax rates.
Key benefits:
- High-speed internet (fiber-optic available in all major cities)
- Well-developed network of coworking spaces and cafes
- Community of IT professionals and startups
- NHR tax benefit program (until 2024)
Freelancer Expenses:
- Coworking space in Lisbon: €150-300 per month
- Unlimited internet: €30-50 per month
- Lunch at a cafe: €10-15
- Public transport pass: €40-50 per month
3. Entrepreneurs and Investors
Portugal actively attracts entrepreneurs and investors through programs such as Startup Visa and D7 Visa. Additionally, the Golden Visa program, which allowed residency through real estate investment, was abolished in 2023 for purchases in Lisbon, Porto, and coastal regions. However, investments in business and funds remain viable options.
Business Opportunities:
- Quick company registration (1-2 days)
- Access to the European market
- Low taxes for NHR residents
- Relatively low labor costs (average salary €1,300-1,500)
4. Families with Children
For families with children, Portugal offers quality education and a high level of safety. The country has many international schools with instruction in English, French, German, and other languages.
Education Costs:
- Public schools: free
- Private schools: €300-800 per month
- International schools: €800-2,000 per month
Families should also consider housing and healthcare expenses if relocating without insurance.
Housing: Renting and Buying
Portugal offers more affordable real estate prices compared to other Western European countries. However, demand has increased in recent years, leading to rising prices.
Average Property Prices:
- Lisbon: €5,000-8,000 per m²
- Porto: €4,000-6,000 per m²
- Algarve: €3,000-5,000 per m²
- Central regions: €1,000-2,500 per m²
For those planning to rent, it’s important to consider the price increase in tourist-heavy areas.
Average Rental Prices:
- Lisbon (one-bedroom): €1,000-1,500
- Porto (one-bedroom): €800-1,200
- Algarve (one-bedroom): €700-1,000
Taxes and Legalization
Portugal offers one of the most convenient tax systems for expats.
Main Taxes:
- Income tax: 14.5% – 48% (progressive scale)
- Corporate tax: 21%
- VAT: 23%
- Social security contributions: 11% for employees, 21.4% for employers
Conclusion
Portugal is a country suitable for various categories of immigrants. Retirees can enjoy a comfortable climate and affordable prices, freelancers can work in a welcoming environment, entrepreneurs can expand their businesses in Europe, and families can access quality education and a high standard of living. It is important to consider all aspects of relocation – cost of living, taxes, housing, and income levels – to make an informed decision.
