Best Places to Live Overseas: Spain vs. Portugal

If you're considering Southern Europe, Portugal and Spain are two enticing options. Portugal has been one of the hottest destinations for expats, retirees and digital nomads over the last several years. This is in part due to Portugal's Golden Visa and D7 Visa programs. The Golden Visa program was very successful, but the government ended the program in October 2023. In this article, we'll compare Portugal and Spain across key factors such as climate, cost of living, quality of medical care, access to the public healthcare system, foreign property ownership restrictions, friendliness of locals, and the ease of obtaining a visa and residency.

1. Climate

Portugal and Spain benefit from Mediterranean climates, but there are variations between the two. Portugal enjoys mild winters and warm summers, offering a more temperate climate overall. The southern region, Algarve, is known for its 3,000 hours of sunshine annually. Spain, due to its size, exhibits diverse weather patterns. The northern coastal regions tend to be cooler and more humid, while the central and southern parts experience hotter summers. If you prefer a warmer and drier climate, Spain might be your preference.

2. Cost of Living

When it comes to the cost of living, Portugal generally offers a more affordable lifestyle compared to Spain. Housing, transportation, groceries, and utilities tend to be cheaper in Portugal, particularly in cities like Porto and Lisbon. Spain, on the other hand, has a slightly higher cost of living overall, with major cities such as Barcelona and Madrid being more expensive. Both countries offer affordable healthcare, but Portugal's tax system is generally more favorable for expats.

"I would encourage them to do so as San Sebastian is a great place and quite possibly the most beautiful small city in Europe. It's important however to either have a good job set up before you get here or barrels of money as San Sebastian vies with Barcelona and Madrid as being Spain's most expensive city, especially as regards housing," remarked one expat who made the move to San Sebastian.

The cost of living is quite low, but the standard of living is high. That is, for very little money, one can rent a nice home, buy a nice car, enjoy travel and local culture and receive medical treatment pennies on the dollar," wrote a retiree living in Tavira in The Algarve.

	Spain	Portugal
Housing	Varies by location, with larger cities being more expensive	Affordable, with lower costs compared to many European countries
Transportation	Reasonable costs for public transportation and fuel	Affordable, with lower fuel costs compared to Spain
Groceries	Moderate prices for groceries and household items	Affordable, with lower costs compared to Spain
Restaurants	Varies, but generally reasonable prices for dining out	Affordable, with lower costs compared to Spain
Utilities	Reasonable costs for electricity, water, and internet	Affordable, with lower costs compared to Spain

3. Visa and Residency Process

When comparing the visa and residency options for foreigners moving to Spain and Portugal, both countries offer a range of possibilities to accommodate different circumstances. Spain provides options such as the Non-Lucrative Visa for retirees or those with passive income, the Golden Visa for investors, and work visas for individuals with a job offer. Portugal offers similar options, including the D7 Visa for individuals with passive income and the Golden Visa for investors, as well as work and entrepreneur visas. Both countries have straightforward tourist visa policies for short-term stays. It's worth noting that the specific requirements and processes may vary, so it is advisable to consult with the respective consulates or immigration authorities for the most up-to-date and detailed information before making any decisions.

"We obtained a Non-Lucrative Visa from the consulate in San Francisco. I have to say that the process was difficult. Since the necessary documents are only good for 90 days, any time there's a delay, you have to start all over: new originals, new translations and new apostiles," said one expat living in Salamanca.

An expat in Portugal advised a newcomer, "with the explosion in numbers of people applying for residency, time frames have been getting longer. I'm sorry about the uneasiness this is causing you and wish you the best. But this will be lesson #1 when moving to Portugal: Bring tons of patience and leave your expectations of time at home." Ultimately, the individual's patience paid off, and she received her visa and residency for living in Portugal.

Spain's Most Popular Visa & Residency Option
Tourist Visa	Allows visitors to stay in Spain for up to 90 days within a 180-day period without the need for a visa.
Non-Lucrative Visa	Designed for individuals who do not intend to work in Spain but have sufficient financial means to support themselves. Suitable for retirees, freelancers, and those with passive income.
Golden Visa	Available to non-EU individuals who invest a significant amount in Spanish real estate, business projects, or government bonds. Grants residency and eventual eligibility for citizenship.
Work Visa	For individuals with a job offer from a Spanish company. The employer usually sponsors the visa application.
Student Visa	For students enrolled in an accredited educational institution in Spain.

Portugal's Most Popular Visa & Residency Option
Tourist Visa	Allows visitors to stay in Portugal for up to 90 days within a 180-day period without the need for a visa.
D7 Visa	Suited for individuals with passive income, such as retirees or those with steady income from investments. Requires proof of financial stability, health insurance, and accommodation.
Golden Visa	Available to non-EU individuals who invest a significant amount in Portuguese real estate, businesses, or job creation. Grants residency and eventual eligibility for citizenship.
Work Visa	Requires a job offer from a Portuguese employer, demonstrating that the position could not be filled by a local candidate.
Entrepreneur Visa	Intended for individuals starting a business in Portugal, including innovative startups.

4. Quality of Medical Care and Access to Public Healthcare

Both Portugal and Spain have excellent healthcare systems, but there are some differences. Portugal's National Health Service (SNS) provides universal coverage and is known for its high standard of care. The country boasts modern hospitals and clinics, particularly in urban areas. Expats can access public healthcare through the SNS, either by paying contributions or through reciprocal agreements with their home country.

Spain also offers a comprehensive public healthcare system, known as the Sistema Nacional de Salud (SNS). The SNS provides universal coverage and is highly regarded for its quality of care. As an expat, you may be eligible for public healthcare by registering with the social security system or through reciprocal agreements. Additionally, private healthcare options are widely available in both countries.

5. Restrictions on Property Ownership by Foreigners

It's important to understand the regulations and limitations associated with purchasing property as a foreigner in each country. In Spain, property ownership is generally accessible to non-EU citizens without significant restrictions, except for potential limitations on rural, coastal, and agricultural land. Reciprocity agreements and the principle of reciprocity play a key role, allowing citizens of countries that grant Spanish citizens property ownership rights to enjoy the same privileges. Similarly, Portugal follows a similar principle of reciprocity, enabling citizens of countries with property ownership rights for Portuguese citizens to purchase property in Portugal.

Property Ownership Restrictions for Foreigners
Restrictions	Spain	Portugal
Reciprocity	Applies the principle of reciprocity, allowing citizens of countries that grant Spanish citizens property ownership rights to purchase property in Spain.	Applies the principle of reciprocity, allowing citizens of countries that grant Portuguese citizens property ownership rights to purchase property in Portugal.
Non-EU Citizens	Non-EU citizens can freely purchase property in Spain without restrictions.	Non-EU citizens can purchase property in Portugal without significant restrictions, although additional requirements may apply in specific cases.
Rural and Coastal Areas	Some restrictions may apply to the purchase of property in rural and coastal areas, with special permits or additional requirements.	Some restrictions may apply to properties located in national interest areas, such as coastal zones or protected natural areas, with special permits or additional requirements.
Agricultural Land	Foreigners may face restrictions on purchasing agricultural land in Spain, particularly large plots, to protect local farming and agricultural interests.	Additional requirements and permits may apply for non-EU citizens purchasing agricultural land in Portugal.

6. Friendliness and Welcoming Attitude of Locals

One of the crucial aspects of expat life is the warmth and friendliness of the local community. In this regard, both Portugal and Spain have reputations for being welcoming to foreigners. Portuguese people are known for their hospitality, friendliness, and relaxed attitude. They generally embrace multiculturalism and are patient with language barriers. Spanish people are also known for their warmth and sociability. The locals are often eager to engage with expats, and the country's diverse cultural heritage fosters a sense of openness and inclusivity.

Portugal vs. Spain: A Comparison of Key Factors

	Spain	Portugal
Cost of Living	Moderate	Affordable
Taxes	Moderate tax system	Favorable tax system
Climate	Varied; Mediterranean climate with cooler north and warmer south	Temperate; mild winters and warm summers
Ease of Obtaining Residency	Relatively straightforward; various visa options available	Relatively straightforward; various visa options available
Easiest Visa to Obtain	Non-Lucrative Visa (for retirees or non-working individuals)	D7 Visa (for retirees or passive income earners)
Cost of Living	Varies by location, with larger cities being more expensive	Affordable, with lower costs compared to many European countries
Access to Quality Healthcare	Excellent; modern hospitals and clinics with advanced medical facilities	Excellent; modern healthcare infrastructure with high standards of care
Quality of Public Healthcare System	High standard; well-regarded public healthcare system	High standard; robust public healthcare system
Ability of Expats to Use Public Healthcare System	Yes, through social security registration or reciprocal agreements	Yes, through social security registration or reciprocal agreements
Best Places to Live	Barcelona, Madrid, Valencia, Seville, Malaga	Lisbon, Porto, Coimbra, Faro, Cascais
5 Biggest Cities	Barcelona, Madrid, Valencia, Seville, Zaragoza	Lisbon, Porto, Vila Nova de Gaia, Amadora, Braga
Best Coastal Places to Live	Barcelona, Valencia, Malaga, Alicante, Cadiz	Lisbon, Porto, Cascais, Albufeira, Faro
Best Places for Expat Families to Live	Madrid, Barcelona, Valencia, Seville, Bilbao	Lisbon, Cascais, Porto, Coimbra, Faro