FAQ’s

The cost of living in Portugal is generally lower than in many Western European countries. Expenses vary by location, with larger cities like Lisbon and Porto being more expensive than smaller towns and rural areas. On average, a single person can expect to spend between €850 and €1,200 per month, including rent. Families will need more, depending on lifestyle choices and housing needs. Budgeting for groceries, utilities, transportation, and leisure activities is essential for an accurate monthly cost estimate.

Portugal enjoys a Mediterranean climate, characterized by hot, dry summers and mild, wet winters. The Algarve region is known for its particularly sunny climate, with over 300 days of sunshine per year. Northern areas, including Porto, experience more rainfall and slightly cooler temperatures, especially in winter. The central and southern regions offer a balanced climate, making Portugal attractive year-round.

Portuguese is the official language. English is widely spoken in tourist areas, major cities, and within the younger population. In professional settings, especially in tech and international businesses, English proficiency is generally high. Learning basic Portuguese, however, is highly recommended for daily interactions and integrating into local communities.

Portugal has a high-quality healthcare system, including both public and private services. Residents can access public healthcare by registering with the Portuguese health system, which provides services at a low cost. Private healthcare offers faster access and more choice regarding physicians and hospitals.

The Portuguese education system is well-regarded, offering public schooling from preschool to higher education. Instruction is in Portuguese, with English taught as a second language. For expat families, numerous international schools offer instruction in English and other languages, following different curriculums (e.g., American, British, IB). These schools are mainly found in Lisbon, Porto, and the Algarve.

Expats can choose from several visa options, including the Golden Visa (for investors), the D7 Visa (for retirees or income earners), and the Tech Visa (for skilled tech professionals). The D7 Visa is popular for its relatively low income requirements and allows residency if you can prove a stable income from pensions, real estate, investments, or intellectual property.

To open a bank account, you’ll need your passport, Portuguese tax number (NIF), proof of address, and sometimes proof of employment or income. Non-residents can open a bank account with similar requirements. Many banks offer services in English and have dedicated services for expats.

Expats become tax residents after spending 183 days in Portugal in a year or having a habitual residence there. The Non-Habitual Resident (NHR) program offers tax benefits for the first ten years, including reduced tax rates on certain foreign income. It’s essential to consult with a tax advisor to understand your obligations and benefits under Portuguese tax law.

To gain residency, expats must apply for a visa (if required by their nationality), followed by a residence permit upon arrival. The SEF (Serviço de Estrangeiros e Fronteiras) manages residence applications. Requirements include proof of income, health insurance, and a clean criminal record. After five years of legal residency, you may apply for permanent residency or citizenship.

Residents registered in the Portuguese health system have access to public healthcare services at low costs. Non-residents can use health services but are generally required to pay or use private health insurance. EU citizens can use their European Health Insurance Card (EHIC) for temporary stays.

Expats can use their foreign driver’s license for the first 185 days. After this period, you must exchange your license for a Portuguese one. The process involves submitting an application to the IMT (Instituto da Mobilidade e dos Transportes), and sometimes a driving test is required, depending on the country of origin.

Portugal has strict laws regarding drug possession, noise pollution, and alcohol consumption in public spaces. It’s also mandatory to carry identification at all times.

The process includes finding a property, obtaining a Fiscal Number, signing a preliminary contract (Contrato de Promessa de Compra e Venda), paying a deposit, and then completing the purchase with a notarial deed (Escritura Pública). It’s essential to conduct a property survey and check legal documents before buying. Contact us to help you in this process.

There are no significant restrictions on foreigners buying property in Portugal. Non-EU citizens may need to obtain a Schengen visa to visit and purchase property, but ownership rights are the same as for Portuguese citizens.

Additional costs include property transfer tax (IMT), stamp duty, notary fees, and legal fees, amounting to approximately 7-10% of the purchase price. It’s also wise to factor in annual property taxes (IMI).

A Fiscal Number is required for all financial transactions in Portugal, including property purchase, opening a bank account, and utility contracts. It can be obtained from the local tax office (Finanças) and is necessary for both residents and non-residents.

Expats can apply for mortgages, which typically cover up to 70% of the property value for non-residents and up to 80% for residents, with repayment periods up to 30 years. Required documentation includes proof of income, tax returns, and a good credit score. Interest rates vary, so shopping around for the best offer is advisable.