How to Live in Portugal as an Expat or Digital Nomad

If you, like many others, came back from a Portugal vacation thinking that you’ve found your place, and you started wondering how to live in Portugal, we have news for you. 

An increasing number of expats, digital nomads, and retirees make that same move each year, but not only for the weather and culture. Portugal offers residency pathways that are accessible, a healthcare system that works, and a legal environment that’s foreign-income-friendly.

Now, it’s not as simple as booking a flight and staying long-term, you will need a visa and the right paperwork, but with the right knowledge, you can make your dreams come true.

Residency Options: How to Live in Portugal Legally

If you want to understand how to live in Portugal long-term, residency is the key. The country offers several legal pathways that cater to different profiles: remote workers, retirees, investors, students, and family members. 

But which one fits your situation best?

D7 Visa – For Passive Income and Retirees

This is Portugal’s most popular visa for retirees and anyone with passive income (from pensions, dividends, or rental properties).

Minimum Income Requirement (2025):

*Based on 100% of the Portuguese minimum wage. These figures may rise.

Key perks:

• Path to permanent residency and citizenship
• Visa-free travel
• Access to public healthcare (SNS)

Approval depends on more than income; you need proof of accommodation in Portugal, a clean background, and a bank account with a couple of thousand euros. Most rejections happen when applicants rush or submit vague financials.

If you’re planning retirement and this option interests you, read more in our blog: Is Portugal a good place to retire?

Digital Nomad Visa – For Remote Workers

Launched in 2022, the D8 visa in Portugal is meant for remote workers earning income from outside Portugal.

Requirements:

• Monthly income of at least €3,480 gross
• Employment contract or proof of freelance work
• Tax residence outside Portugal

This visa is ideal for tech workers, creatives, and freelancers with stable contracts abroad. You can apply for a temporary stay visa (up to 1 year) or a residency visa (renewable up to 5 years).

Golden Visa – For Investors

Though real estate no longer qualifies, Portugal’s Golden Visa still allows you to live in the country through fund investment or business creation.

Golden Visa options (2025):

Why consider it:

• Only ~7 days/year of physical presence required
• Family members included
• Direct path to EU citizenship in 5 years*

*There are some talks currently that the Government is thinking about prolonging this period to 10 years.

Other Pathways

• Family reunification – Join a spouse or parent legally residing in Portugal
• Student visa – For full-time study; can be extended if you find work
• Job-seeker visa – 120-day visa to look for work in Portugal

Cost of Living in Portugal

Living in Portugal comes with real financial advantages, especially when you compare it to other Western European countries. 

While Lisbon, Porto, and the beach towns along the Algarve have seen noticeable price hikes in the last few years, the day-to-day cost of living across most of the country remains manageable. 

Rent, dining, healthcare, and public services still offer decent value, and there are plenty of ways to make your money go further if you choose your location wisely and understand the system.

If you’re planning a long-term stay, living in Portugal comfortably often comes down to balancing lifestyle with location. 

Inland towns, smaller cities, and less tourist-saturated areas offer a slower pace and fewer crowds; they’re also significantly cheaper. 

Whether you’re relocating solo or with a family, keeping track of recurring monthly costs like rent, utilities, transport, and groceries will help you plan realistically.

Average monthly expenses:

• Rent (1-bed apartment): €550-€1,700
• Utilities + Internet: €100-€150
• Groceries: €270-€500
• Public transport: €45-50 (monthly pass)
• Private health insurance: €40-€100
• Dining out: €8-€15 per meal in a mid-range spot

Tips and tricks:

• You’ll spend less in cities like Évora, Viseu, or even parts of the Algarve.
• Rent typically drops by 20-30% outside urban cores.
• Coworking memberships can be pricey, especially in Lisbon or Porto, look into libraries, cafés, or shared Wi-Fi spaces in smaller towns.
• Watch out for “gringo pricing” when dealing with landlords or service providers, learn basic Portuguese and compare before signing anything.
• Visa renewals, document translations, and local lawyers can eat into your budget, so plan those bureaucratic costs in advance.

The cost of living in Portugal will vary depending on how much space you need, how often you eat out, and whether you’re located in a high-demand area. But, with careful planning and a bit of local knowledge, it’s a place where quality of life and affordability go hand in hand. 

Choosing the right city, knowing how to negotiate, and budgeting for more than just the basics can make your experience much smoother and more enjoyable.

Living in Portugal: Healthcare, Taxes & Banking

Understanding the systems that keep your daily life running, healthcare, taxes, and banking, is just as important as finding a nice place to rent. Here’s what people actually deal with when living in Portugal long-term.

Public Healthcare (SNS)

Portugal’s national health service (Serviço Nacional de Saúde – SNS) covers everything from general consultations to surgeries, at incredibly low prices by international standards. 

Once you become a legal resident, you’re entitled to use it, just like a local. A standard doctor’s appointment costs about €5-€10. Emergency room visits are often under €20. Prescriptions are partially subsidized based on need.

But there are drawbacks. Wait times for specialists can drag out for months. And if you live in a rural area, the nearest hospital may be 40 minutes away. That’s why many expats get private health insurance (average: €40-€80/month) to skip the queues and access English-speaking doctors.

Taxes

This is where most foreigners hit a wall. Portugal taxes worldwide income once you’re a tax resident (i.e., spending over 183 days per year here). That includes pensions, dividends, crypto and royalties.

The NHR used to be Portugal’s tax system for high-earning expats: 10 years of low or 0% tax on most foreign income. But as of 2024, it’s been phased out for new applicants, replaced by narrower tax incentives tied to specific professions in the new IFICI regime.

That means most new residents now need a smart tax plan, often involving:

• Keeping tax residency abroad (if on a short-term visa)
• Structuring income through offshore vehicles
• Working with a Portuguese accountant early (budget €500-€1,000 for setup)

Portugal also has a wealth tax on properties over €600,000 (AIMI), but no inheritance or gift tax between family members. Capital gains on real estate can apply unless it’s your primary residence.

Opening a Bank Account

Opening a Portuguese bank account used to be a bureaucratic maze, but most major banks (Millennium BCP, Santander Totta, Novo Banco) now have English-speaking staff and digital onboarding, especially if you’re applying for a visa and need to show proof of funds.

You’ll need:

• NIF (tax number)
• Passport or residence card
• Proof of address (can be temporary)
• Initial deposit

Where to Live in Portugal

Choosing where to live in Portugal can shape your entire experience. The country is small but diverse. From Lisbon’s energetic vibe to the slow pace of the Alentejo, lifestyle and cost can vary dramatically between regions. 

And if you’re serious about living in Portugal, don’t pick a place based on a vacation, pick it based on infrastructure, long-term costs, and integration potential.

Lisbon

Lisbon is where most digital nomads and international professionals land first. It has co-working spaces on every corner, excellent transport, and a large expat community. If you work remotely for a tech company or run your own business, this is the most connected base.

Keep in mind that housing prices are brutal. Rent for a one-bedroom apartment in central Lisbon is rarely under €1,500. You’re also competing with a tight long-term rental market where many landlords prefer short-term lets or demand six months of rent up front.

Best for: remote workers, international families, startup founders.
Avoid if: you want peace, space, lower costs.

Porto

Porto is just as cool, with much of the charm of Lisbon, but with far fewer tourists, and about 20-30% lower rent. It is a go-to place for artists, foodies and people who want a slower pace of life.

Infrastructure is also there: a metro system, an international airport, and growing tech communities. Plus, the Douro Valley is an hour away for weekend wine breaks.

Best for: solo expats, creatives, freelancers, and couples.
Avoid if: you want beach weather year-round, it’s rainy in winter.

The Algarve

The Algarve is known for sun, golf, and British pensioners. But it’s also one of the most affordable places for a comfortable life by the sea. Towns like Lagos, Tavira, and Alvor now have English-speaking services, good healthcare, and a lower cost of living than Lisbon.

Groceries are cheap, and there’s a strong, long-term expat community, especially retirees.

Best for: retirees, families, slow-paced living.
Avoid if: you need access to international business hubs or dislike heat.

Coimbra

Coimbra rarely makes the lists, but it’s one of the smartest choices if you want a livable, affordable city with strong healthcare, public transport, and a good mix of locals and foreigners. It’s a university town, so English is widely spoken, and there’s a nice rhythm of cultural life without crowds.

You’ll find affordable apartments, walkable neighborhoods, and plenty of nearby nature.

Best for: long-term residents, families, students, or early retirees on a budget.
Avoid if: you’re looking for a beach or international nightlife.

Inland Towns (Dão, Beiras, Alentejo)

If you want space, silence, and traditional life, small towns in central Portugal offer incredible value. Stone houses, low property taxes, and locals who actually want you to stay long-term.

But this comes with some cons: fewer English speakers, more bureaucracy, slower internet, and fewer public services. If you’re not fluent in Portuguese, integration can take effort.

Best for: off-grid expats, homesteaders, remote workers with cars.
Avoid if: you rely on public infrastructure or modern conveniences.

Living in Portugal: The Bureaucracy

Knowing how to live in Portugal is not just picking a city and getting a visa. Once you arrive, the real work begins. You’ll have to navigate some pretty slow bureaucracy that only a local lawyer or long-term expat can walk you through.

Here’s a step-by-step look at what you actually need to do, in the right order, if you’re planning to live in Portugal long-term:

Get Your NIF (Tax Number)

You can’t open a bank account, sign a lease, or even buy a SIM card in some cases without a NIF (Número de Identificação Fiscal).

Open a Bank Account

Once you have a NIF, open a Portuguese bank account to transfer funds, set up direct debits, or apply for residency. Most major banks ask for:

• Passport
• NIF
• Proof of address 
• Employment or income proof (optional for basic accounts)

Banks like ActivoBank, Millennium BCP, and Santander Totta are expat-friendly. Expect some form of monthly fee (~€3-€6).

Secure Long-Term Housing

AIMA (Agency for Integration, Migration and Asylum) expects you to show proof of stable accommodation, not just a booking.com receipt. This can be:

• A long-term rental contract (6-12 months)
• A signed letter from a friend/family if you’re staying with them
• In some cases, a notarized promise of future residence

Important: Most leases are still offline and paper-based. Get familiar with Portuguese rental contracts (“Contrato de Arrendamento”) and ensure it’s registered with Finanças, or it may be rejected for residency.

Register with Your Local Freguesia

Once you’ve got an address, register with your freguesia (civil parish). This gets you the Atestado de Residência, often required for things like:

• Changing your driver’s license
• Enrolling kids in school
• Applying for a health number (Número de Utente)

It’s a small but crucial document that proves you’re actually living where you say you are. Most freguesias require:

• Passport
• Lease or utility bill
• Two Portuguese witnesses (varies)

Apply for Your Residence Permit

If you came in on a visa, you’ll be scheduled for an in-country AIMA appointment, often 60-90 days after arrival. Bring:

• All original documents submitted during visa process
• Passport
• Proof of residence
• NIF, bank statements, and proof of health coverage

Tip: Photocopy everything. Twice. And always expect delays.

Get Your Utente Number (Healthcare Access)

If you’re a legal resident, you qualify for public healthcare. You’ll need a Número de Utente, which you can get at your local health center (Centro de Saúde).

Bring:

• Passport + residence card
• NIF
• Atestado de Residência
• Proof of address

Exchange Your Driver’s License (If Applicable)

Americans and Brits can drive on their home license for 185 days, after which they must swap it for a Portuguese one. The process varies depending on your home country’s agreements with Portugal. 

UK citizens are covered by a simplified swap deal; Americans will often need a medical exam and an apostilled driving record.

This is where a lot of expats get stuck, because no one gives them a clear roadmap. Miss a step or show up at the wrong time, and you’re rescheduling appointments two months out.

How to Live in Portugal – Pros and Cons

There’s no shortage of Instagram reels romanticizing living in Portugal, but behind the coastal drone shots and “digital nomad” hashtags, daily life is slower, more layered, and often contradictory.

The Good Stuff 

The lifestyle is healthier

You walk more. You sit down for meals. The food isn’t pumped with additives. Even in cities, no one’s rushing to their fourth side hustle or eating lunch at their desk. A €9 lunch menu (soup, main, drink, dessert) is standard across most towns.

It’s safe, day and night

Portugal ranks as one of the safest countries in Europe. Petty theft happens, especially in tourist zones, but violent crime is rare. You can walk home at 1 a.m. in Lisbon without worrying, something many Americans or Brits notice immediately.

English is widely understood in urban areas

Especially in Lisbon, Porto, and the Algarve. That said, learning Portuguese, even basic phrases, makes daily life dramatically smoother. Locals appreciate the effort, and it helps with bureaucracy and integration.

Nature is easy to access

Surfing before work, weekend hikes in Sintra, and wine tastings in the Douro. Portugal has beaches, mountains, and forests, and you don’t need a car to reach most of it.

The Bad Stuff

The bureaucracy can break you

Even with a visa in hand, you’ll still face outdated systems: appointments that take months, offices that require in-person forms, and online platforms that glitch constantly. Many expats end up hiring lawyers or relocation agents just to manage things they should be able to do themselves.

Salaries are low

If you’re planning to work locally, expect average wages of €900-€1,300/month unless you’re in a specialized field like tech or medicine. That’s why most expats rely on remote work or passive income. If you don’t have a reliable income source in place, you will struggle.

Customer service runs on its own clock

Don’t expect Amazon Prime speeds, 24/7 support, or fast responses to complaints. The pace is slower, and you’ll either adapt, or drive yourself mad. “Tomorrow” can mean next week. “We’re looking into it” might be the end of the conversation.

Winter can be damp

Portuguese homes aren’t built for winter. Central heating is rare. Insulation is minimal. If you move there expecting California-like comfort, be ready to spend a few cold, humid months indoors. Buy a dehumidifier, seriously.

How to Live in Portugal as an American, Brit, or Other Nationality

The basic process of how to live in Portugal applies to everyone: get a visa, register your residency, and sort out your finances. But your citizenship changes the paperwork, rights, and speed at which you can get things done. Here’s what Americans, Brits, and other nationals need to know.

Americans Living in Portugal

Americans don’t have special agreements with the EU, so everything hinges on your visa. The D7 visa is by far the most popular route for retirees and remote workers, but the Digital Nomad Visa is getting more popular for higher earners.

Key tips:

• Bring an FBI background check, apostilled (takes ~4-8 weeks)
• U.S. documents often require translation + apostille
• Get your NIF and open a Portuguese bank account before applying, even from abroad

Banking tip: Americans face FATCA compliance, so some banks are hesitant. Millennium BCP and Santander Totta tend to be the most US-friendly.

Brits Living in Portugal (Post-Brexit)

Before Brexit, British citizens could live and work in Portugal freely. Now, you’re considered a third-country national, same as Americans. That means visa requirements apply.

Key points:

• UK citizens still benefit from the mutual recognition of driver’s licenses
• There’s a streamlined path for healthcare access, especially for pensioners with an S1 form
• If you lived in Portugal before 2021, your rights are protected under the Withdrawal Agreement

For retirees, the D7 visa remains the most straightforward. For remote workers, the Digital Nomad Visa works if your income is above the €3,480/month threshold.

EU Citizens Living in Portugal

If you’re from France, Germany, Italy, Spain, or any EU country, you don’t need a visa to live in Portugal. But you do have to register your residence if staying longer than 90 days.

Here’s what’s required:

• Proof of income or employment
• Health insurance (public or private)
• Proof of address
• Registration with your local Câmara Municipal (town hall)

That gets you your Certificado de Registo de Cidadão da União Europeia, valid for 5 years.

Brazilians and Lusophone Countries

Citizens of Brazil, Angola, Mozambique, and other Portuguese-speaking countries often benefit from simplified residency and work rights under the CPLP (Community of Portuguese Language Countries) agreements. Brazil, in particular, has reciprocal deals allowing easier visa processing and recognition of documents.

Other Common Nationalities:

If Living in Portugal is Your Goal, Bitizenship Can Help

If you’re exploring long-term options for living in Portugal, then at some point, you’ll want to move beyond residency and think about full Portugal citizenship. 

That’s where Bitizenship comes in.

We specialize in helping clients secure Portuguese residency and eventual citizenship through a crypto-compatible investment route: the Unbound Fund, a fully qualifying vehicle under Portugal’s current Golden Visa rules. 

And it’s ideal for you, if you want a clear path toward an EU passport.

Our team handles every step of the process, starting with fund onboarding and legal structuring, and continuing all the way through document preparation, AIMA scheduling, and coordination with trusted Portuguese immigration lawyers and tax professionals.

We make sure everything is compliant, efficient, and built around your personal goals, whether that’s diversifying your citizenship portfolio or simply setting up a more stable future abroad.

If your goal is long-term EU mobility, greater financial freedom, and a strategic Plan B for your family, we’ll help you get there, with clarity from day one to your Portuguese passport.

Final Thoughts

Still wondering if Portugal’s right for you? It probably is.

Portugal almost has it all. The paperwork is clear. The cost of living stretches your budget without lowering your quality of life. The pace is slower, and the lifestyle is better. You can walk more, eat better, and still afford a decent place to live.

It’s not perfect. Things move slow, and some systems are outdated. But if you’re looking for a place that offers stability, safety, and a real chance to build a new chapter, Portugal delivers.

FAQ About Living in Portugal

Ale is the co-founder of Bitizenship. He cares about the craft of building quality products that make life better for people. He writes about these topics, as well as freedom, wealth, and global mobility, in a newsletter read by thousands of modern citizens.