Living in Portugal VS Spain: Which Country Is Right For You?

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Written by / Last updated on January 11, 2025

A lot of people think about moving to Spain or Portugal. Both have a similar climate, they have shared histories, similar cultures, and are located right next to each other, so it’s understandable why so many people lump the two together. 

Regardless of which country you choose to live in, you’ll be right next to the other one and so you’ll have plenty of opportunities to travel around both. But travel is one thing and living somewhere is very different, so it’s important to choose the country that’s best for you to live in.

Let’s start with one of the first considerations when comparing the two: residency visas.  

Residency visas

If you aren’t the lucky owner of an EU/EEA or Swiss passport, you’ll need a residency visa in order to move to either Spain or Portugal. Both Spain and Portugal offer very attainable residency visas, offering a gateway to the EU.

Retirement & Passive Income Visas

Both Portugal and Spain offer visas aimed at attracting retirees or those with passive income: Portugal offers the D7 and Spain offers what’s called a non-lucrative visa. In short, Portugal’s D7 has much more attainable income requirements than Spain’s non-lucrative visa.

  • Spain: For an individual applicant, your monthly income should be 400% of the IPREM (Indicador Público de Rentas de Efectos Múltiples), which, as of 2025, equates to €2,400 per month. You will need an additional €600 per month for each dependent.
  • Portugal: For an individual applicant, your monthly income should be at least equivalent to Portugal’s minimum wage which, as of 2025, is €870 per month. You will need an additional 50% for a partner or spouse and an additional 30% for each dependent child. Portugal also requires you to have a year’s worth of savings which is the monthly income amount (e.g. €870 for an individual in 2025) X 12.

Of course, these aren’t the only visas suitable for retirees – both Spain and Portugal also offer a golden visa – but Portugal’s D7 and Spain’s non-lucrative visas are two of the most popular options.

Other Considerations:

  • Spain’s non-lucrative visa doesn’t really allow you to work (although there are some debates as to whether remote work applies here) whereas Portugal’s D7 doesn’t place restrictions on either remote work or work for a Portuguese company.
  • Spain has a wealth tax whereas Portugal doesn’t.
  • You will need to wait 10 years to apply for Spanish citizenship versus 5 years for Portuguese citizenship. Spain also doesn’t generally allow dual citizenship whereas Portugal does.

Remote Work & Digital Nomad Visas

As of 2025, both Spain and Portugal have digital nomad visas as well, which are aimed at remote workers and freelancers. In short, Spain’s digital nomad visa is more attainable, however, there are reasons you may choose Portugal instead.

  • Spain: For an individual applicant, you’ll need to earn at least €2,646 per month as 0f 2025. For a spouse or partner, you’ll need an additional 75% of the minimum wage (or €1,984.50 per month). For each additional applicant, you’ll need an additional 25% of the SMI (or €661.50 per month).
  • Portugal: For an individual applicant, you’ll need to earn at least €3,480 per month as a freelancer or remote worker. Add 50% for a spouse or partner and 30% for each dependent child. You’ll also need to have at least €10,440 in savings.

Other considerations:

  • Portugal doesn’t place any restrictions on you working for Portuguese companies so long as your main income (e.g. €3,480 per month as an individual) comes from non-Portuguese sources. Spain allows you to have 20% of your income coming from Spanish companies.
  • You will need to wait 10 years to apply for Spanish citizenship versus 5 years for Portuguese citizenship. Spain also doesn’t generally allow dual citizenship whereas Portugal does.
  • Those on Spain’s digital nomad visa can potentially avoid Spain’s wealth tax. Portugal doesn’t have a wealth tax.
  • Depending on the type of work, digital nomads may qualify for Portugal’s new NHR 2.0, which offers a flat rate of 20% tax for 10 years. Portugal also offers other tax regimes, such as the Simplified Regime.

Golden Visas

Both Spain and Portugal offer golden visas – visas that offer resident in return for investment. As of 2025, both are similar in that they have removed the real estate options and now the main option is to invest in qualifying funds.

  • Spain: Has announced its program will end in April 2025.
  • Portugal: Has removed some options (notably the real estate option) but is also considering adding new options (like the solidarity option). Excluding the real estate option, which Portugal has removed, Portugal’s golden visa is generally more attainable than Spain’s.

Other considerations:

  • You will need to wait 10 years to apply for Spanish citizenship versus 5 years for Portuguese citizenship. Spain also doesn’t generally allow dual citizenship whereas Portugal does.
  • Spain has a wealth tax whereas Portugal doesn’t, which could be an important consideration if you move to Portugal full-time.
  • Spain’s requirements are marginally easier as you only need to visit Spain once per year, whereas Portugal requires you to spend at least 14 days every two years.

Citizenship Possibilities 

Both Spain and Portugal allow you to apply for citizenship (and that coveted “EU passport”) after a period of living there, a process known as naturalisation. In Portugal, that period is five years [source] whereas in Spain it’s generally 10 years [source].

Spain has a few exceptions and it’s faster if you’re a refugee (five years) or two years if you’re from Portugal, the Philippines, Andorra, Equatorial Guinea, or any Latin-American country [source].

Both Spain and Portugal offer citizenship via marriage. In Portugal, you have to have been married for three years or in a long-term relationship or “stable union,” but don’t have to have lived in Portugal. In Spain, you can apply for citizenship through marriage after one year of being married and living in Spain [source].

Portugal allows dual citizenship. Spain does, but only with specific countries and in limited circumstances. This fact alone could make Portugal the winner as most people will want to hold onto their other passport.

Both countries require you to have an A2 level of the language, which is upper-beginner. Some will argue that Spanish is easier. While this is up for debate, it is true that some people (particularly Americans) will already have some grounding in Spanish which will make learning the language that bit easier. Either way, the A2 requirement is quite a low bar to entry and could be achieved within as little as a few months.

The language

Deciding which country is better when it comes to language is a difficult question to answer.

Spanish is definitely more practical for travel as it’s spoken throughout most of Latin America. Portuguese is spoken in other countries besides Portugal, but most people are more likely to visit Mexico or Chile rather than Guinea-Bissau or Angola.

It’s debatable whether one language is harder than the other, but most people will say Spanish is easier, especially when compared to “European Portuguese” (as opposed to “Brazilian Portuguese”). Spoken Portuguese is very hard to understand and there are many more TV shows and films to learn from in Spanish. 

However, another important consideration, is that English is spoken more in Portugal. This means it’s easier to move to, at least initially.

So, which country is better from a language point of view? That’s up for debate, but the fact that English is so widely spoken in Portugal (particularly in places like Lisbon and the Algarve) makes it a popular choice for prospective expats.

Integration

Are the Spanish or the Portuguese more welcoming? Which country is it easier to integrate into? This is an almost impossible question to answer, as there are so many variables to consider.

Anecdotally, many people say that the Portuguese are friendlier and more welcoming of foreigners. However, this is typically based on visiting Portugal rather than living here. That’s not to say that the Portuguese are unfriendly once you live here, but both Spain and Portugal are fairly closed countries and making local friends can be quite challenging.

Being able to rely on English does make it easier to make acquaintanceships and to get by in Portugal. To make friends in either country, however, you’ll need to speak the language and put a lot of effort into making local friends.

Taxes

According to Tax Foundation, Portugal is worse than Spain when it comes to taxes [source]. However, this chart only compares “normal” rates of income tax and doesn’t take into account regimes like the new NHR 2.0 tax regime, which is open to newcomers to Portugal (you can typically ignore blog posts talking about the old NHR regime as this is no longer open to new applicants).

Unlike the old NHR regime, this is unlikely to benefit those with retirement income such as pensions or US social security. For those in highly qualified industries, however, this may offer appealing tax rates for the first 10 years.

For high net worth individuals, Spain’s wealth tax may make the country very unappealing. According to Tax Foundation, “Spain’s net wealth tax is a progressive tax ranging from 0.2 percent to 3.75 percent on wealth stocks above €700,000 ($784,000; lower in some regions), with rates varying substantially across Spain’s autonomous regions (Madrid offers a 100 percent relief)” [source].

Portugal still offers a golden visa regime, which potentially allows visa holders to avoid Portuguese tax completely if they don’t live in Portugal full-time. Spain has announced their golden visa program will end in April 2025.

The weather

Portugal and Spain both have incredibly similar weather: both have hot parts such as the Alentejo in Portugal and Andalucia in Spain and both have greener areas like the North of Portugal and Galicia in Spain. Both also have their own islands, which have their own climates which are separate to the mainland. 

Overall, however, Spain probably wins when it comes to weather as it has more areas with mild winter weather than Portugal. In Portugal, the mild winter weather is limited to anywhere south of Lisbon and especially around the Algarve. Spain, in comparison, has a much larger area of good weather that covers the South Coast and up to areas like the Costa Blanca. In this area, you’ll find several cities like Valencia, Murcia, and Malaga, whereas the only large city Portugal has that gets winter sun is Lisbon. 

The sea is also much warmer in Spain than it is in Portugal as Spain is on the Mediterranean Sea whereas Portugal is on the Atlantic Ocean. However, Portugal is a better destination for surfers with several great surf spots like Nazaré, Sagres, and Ericeira. 

Island-wise, the Canaries are a better bet for weather, although Madeira is known for its year-round mild weather too.

Unfortunately, apartments in both Spain and Portugal tend to be very cold in winter due to a lack of central heating. The lack of insulation means noise is also an issue in both, but Portugal probably does slightly better on the noise front – although Spanish properties are more likely to have air conditioning.

Cost of living

It’s difficult to compare the cost of living across both Spain and Portugal.

Many people look at the minimum wage and conclude that Portugal must be cheaper since it has a lower minimum wage. However, property prices are now higher across a lot of Portugal, despite the lower minimum wage. And despite the lower purchasing power, Portugal is actually more expensive than Spain for a lot of things including essentials like cars, electricity, and fuel. Walk through a Spanish town and you’ll see air con units on all of the apartment balconies. Not so in Portugal as it’s more expensive to run them. 

Another issue is that the cost of living is quite varied across both countries. Madrid and Barcelona both have a very different cost of living compared to somewhere like Vigo, much like Lisbon has a much higher cost of living than Bragança.

In short, it’s difficult to say. Many things are now cheaper in Spain, but it does depend on where you’re living.

Healthcare

Measuring healthcare, even across neighboring European countries, is quite challenging. Most healthcare studies put Spain higher than Portugal: for example, a 2023 ranking by by health index score gave Spain a score of 79.7 and Portugal a score of 77.4, putting Spain 6 positions ahead. And anecdotally, it does seem like the Portuguese healthcare system is more burdened the the Spanish equivalent.

However, even though the Spanish system may be slightly better, if you move to Spain as a non-EU/EEA/Swiss citizen, you’ll have to pay a Convenio Especial to use the public system (€60 for those under 65 and €157 for those over 65). You’ll also need to have private health insurance.

Portugal, on the other hand, requires you to have private health insurance for your AIMA appointment but doesn’t require you to keep paying for it once you become a resident. In practice, however, many new expats continue paying for private health insurance and use the private hospitals for routine checkups rather than the public hospitals.

This isn’t a requirement, however. You could potentially:

  • Pay for travel insurance for the 120-day period in which you wait for your AIMA appointment
  • Have health insurance for your AIMA appointment
  • Cancel your private health insurance once you have successfully registered for the public healthcare system (you will need to wait for your residency permit to arrive and then to go to your local centro de saúde)

One other benefit is that doctors in Portugal tend to speak a good level of English. This isn’t necessarily the case with all hospital staff, but it does make communicating healthcare issues that bit easier.

Food

Which country has the better food is really a matter of preference? This website is obviously biased and so will say Portuguese food is better, but…it’s also true. 

Spain does have some fantastic dishes and the tapas culture is great. Portugal may have petiscos, which are like a Portuguese version of tapas, but they’re just not as exciting and most petiscos bars are aimed at tourists anyway. 

But Spanish food, particularly in the South of Spain, is fried and beige. Portuguese food, in comparison, is often grilled and uses a lot more fresh fish. There are good foodie regions of Spain – San Sebastian and the whole region of Galicia is fantastic – but Portugal is much better overall. 

Both Spain and Portugal produce fantastic and affordable wines, and it really will come down to a matter of preference. Portugal has port wine, vinho verde, and is very good for reds, particularly from the Douro and Alentejo, but Spain produces much better sparkling wine (cava) and some fantastic whites, particularly albarinos. The Rioja region is also as good if not better than the Douro. 

Neither, unfortunately, is great for vegetarians or vegans, but Spain actually has several tapas that are authentically vegetarian, so it’s slightly easier to get by. 

Culture

It would take multiple articles to discuss both Spanish and Portuguese culture. Spain and Portugal definitely have a lot in common culturally, more so than Portugal and Thailand for example, but the differences are significant as well. 

I have lived and worked in both Portugal and Spain. While Portugal is slower paced and people more reserved and introverted, Spain is more dynamic and vitalistic, more modern in many ways. Spaniards are outspoken and a lively folk who seem to have energy for everything. – Grupsen (Portugalist commenter)

Both are laid-back, very family-focused, and quite closed to outsiders, but Spanish people are much louder and more confident whereas the Portuguese are shier and more reserved (although a few beers can change that). The Portuguese are a little more introspective, and reserved, and, through their love of saudade, can often come across as having quite a negative view of life, whereas the Spanish come across as more jovial and vibrant. 

Both are patriotic, both the Portuguese are perhaps much more so, and focus a lot more on their colonial past than the Spanish. In Spain, the country is much more divided and people tend to be more proud of their region than Spain as a whole. In fact, several regions want independence from Madrid whereas this struggle for independence isn’t an issue in Portugal. 

Size

Size isn’t everything, but it does come with certain benefits. Spain is much bigger than Portugal and that means it’s home to large cities whereas Portugal really only has Lisbon and Porto. Spain, in comparison, has Madrid, Barcelona, Valencia, Sevilla, Zaragoza, Málaga, Murcia, Palma, and Las Palmas. If you want to live in or near a city, Spain has more options. 

Bigger also means better flights: Spain is just better for international flights, particularly from Madrid and Barcelona, and often you’ll have to fly from Portugal to Spain to get an affordable international flight. Both are quite far from the rest of Europe for driving, but Portugal much more so.

Bigger also means better online shopping – Portuguese shoppers have to shop at Amazon Spain, for example – which may not seem important now, but may become important once you move somewhere. 

Conclusion

It’s difficult to say which country is better for expats to live in, Spain or Portugal. Ultimately, it’ll come down to two things: practicalities like visas and citizenship and which one you fall in love with. 

This site is biased, but thinks that’ll be Portugal. 

If you enjoyed this article, you might also enjoy our comparison of living in Portugal vs Italy.

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