If you’re weighing up ‘Portugal vs. Spain: which is better to live in’ for your next chapter, you’re not alone. Directly tackling costs, climates, job prospects, and social scenes, we’ll dissect the defining factors of each country, offering you clear insights to decide which is the better call for your new abode.
Key Takeaways
- Portugal and Spain offer varied climates, with Spain providing more diversity and Portugal offering a consistently warmer Mediterranean climate with a cooler north.
- While the cost of living is generally lower in Portugal, Spain offers higher minimum salaries and a growing economy with more job opportunities in booming industries.
- Portugal has a more expat-friendly process for residency and citizenship, including the golden visa program and Non-Habitual Residency tax benefits.
Cost of Living Breakdown
Generally, Portugal leads in terms of cost of living. With a minimum salary of about €820 per month compared to Spain’s roughly €1,080 per month, Portugal’s economy seems to offer a more cost-effective lifestyle. Yet, the comparison becomes intricate when it involves food, clothing, and utilities.
In Portugal, while food and clothing are quite affordable, certain commodities like automobiles, electricity, and petrol are more expensive than in Spain, making direct comparisons tricky.
Despite the higher living costs in Spain, the country’s economy is improving, offering more job opportunities in certain industries. This is manifested in the growing popularity of cities like Madrid, where the cost of living might be higher, but so are the salaries.
Overall, both Spain and Portugal offer attractive living conditions, but your personal lifestyle and income level might tip the scales in favor of one country over the other.
Climate Comparison
The first difference between Spain and Portugal emerges from their respective climates, which significantly influence quality of life. Portugal offers a consistent Mediterranean climate, with warm temperatures throughout the year.
However, as the only European country to have an Atlantic climate, Portugal offers milder temperatures in the north, making it a haven for those who prefer a cooler climate.
In contrast, Spain’s climate varies greatly due to its vast size, mountainous landscape, and lengthy coastline. Whether you’re a sun-seeker or a snow lover, Spain has a spot for you.
Its larger coastline means that some areas have even warmer sea temperatures, while other regions offer a quick shift in seasons, making it an attractive choice for those seeking variety in weather.
Employment Opportunities
Both Spain and Portugal offer increasing job opportunities, but their markets differ in focus. In Spain, the service sector makes up around 67% of GDP, with growth in startups and tech hubs like Madrid and Barcelona driving new employment. Spain also has strong industries in tourism, wine, and food production.
In Portugal, with a GDP of approximately €250 billion, the job market focuses on tourism, tech, and an emerging renewable energy sector. Additionally, Portugal is becoming a hotspot for digital nomads due to its flexible work environment and lower costs. Spain offers more traditional roles, while Portugal is ideal for remote workers and entrepreneurs.
Residency and Citizenship
For those contemplating a long-term relocation, understanding the prerequisites for residency and citizenship is crucial. Portugal’s affordable residency visas, including the golden visa program, and quicker route to citizenship make it an appealing choice for many.
The main applicant for Portugal’s D7 visa is required to have the equivalent of the Portuguese minimum wage, which is approximately €820 per month. Additionally, they must have 50% more for their partner.
This is considerably lower than Spain’s requirement of an annual income of at least €33,893 for couples. With the growing popularity of golden visa programs, Portugal stands out as an attractive option for potential residents.
When it comes to gaining citizenship, Portugal also has the upper hand. It takes only 5 years to become a citizen in Portugal, compared to 10 years in Spain. Furthermore, Portugal allows dual citizenship, offering more flexibility for expats, especially when considering obtaining a Spanish passport.
Moreover, Portugal offers enticing tax benefits. Their Non-Habitual Residency (NHR) program can provide significant tax advantages for expats, business owners, and people working remotely, which might tip the scales in Portugal’s favor when considering opening a Portuguese bank account.
Tax Incentives and Benefits
Portugal previously attracted expats with its Non-Habitual Resident (NHR) scheme, offering significant tax exemptions for a decade. However, this program was discontinued as of January 1, 2024, for new applicants.
Current NHR holders can still benefit, but no new entries are allowed under this scheme. In contrast, Spain’s tax system is more traditional, with progressive income tax rates ranging from 19% to 47%, but it does not offer a comparable tax incentive program for expats
In contrast, Spain's tax system is more traditional, with progressive income tax rates ranging from 19% to 47% depending on income. Spain does not have a similar tax incentive program like Portugal’s NHR, making it less advantageous for expats seeking tax breaks. However, Spain offers tax deductions for families, home purchases, and certain investments, which might appeal to some residents
Comparing Portuguese Visas
Language and Communication
Another pivotal factor to consider during relocation is the language. While both countries speak Romance languages, Spanish is generally considered easier to learn than Brazilian Portuguese, thanks to its simpler verb tense structure and pronunciation.
Since English is more prevalent in Portugal, it simplifies communication for English-speaking expats, who might also find European Portuguese less challenging than Brazilian Portuguese. In this context, it’s essential to be aware of the differences between spoken Portuguese in these two countries.
Conversely, for those planning to travel or work in Latin America, learning Latin American Spanish could be more beneficial, given its wide usage across the region. But don’t let language barriers deter you - Spanish people in both Spain and Portugal are welcoming and understanding when it comes to foreigners trying to learn their language.
Lifestyle and Culture
In terms of lifestyle and culture, Spain and Portugal provide distinct experiences. Portugal has a slower, more reserved vibe, perfect for those seeking a peaceful life, while Spain is known for its dynamic and vibrant culture.
Both Portugal and Spain, the two countries rich in cultural heritage, offer unique experiences. Portugal, with its grand festivals and charming towns, provides a quaint and tranquil ambiance. Conversely, Spain, known for its fiestas, siestas, and the vibrant atmosphere of a Spanish town, promotes a vivacious lifestyle.
Whether Portugal’s tranquility or Spain’s vibrancy attracts you, both countries provide a unique cultural experience that will enrich your expat journey.
Food and Gastronomy
Spain and Portugal’s culinary scenes are a gastronome’s delight. Portugal boasts a rich seafood tradition, with dishes like grilled or fried cod taking center stage. The country’s cuisine is gaining traction and is starting to outshine Spain’s culinary reputation.
Conversely, Spain is recognized for its tapas culture. Classic dishes like Paella Valenciana, Gazpacho, and Tortilla Española are a must-try. Over time, Spain’s tapas culture has become more innovative, incorporating new ingredients and techniques, even extending to sweet dessert options.
Regardless of whether you’re a seafood aficionado or a tapas enthusiast, both countries promise a culinary voyage to titillate your palate.
Real Estate: Buy or Rent?
In Spain and Portugal, the real estate landscape presents distinct opportunities for both renters and buyers, influenced by each country's tax policies and market conditions. Spain's real estate market is more mature and diverse, particularly in urban areas like Madrid and Barcelona.
The country has a structured property tax system and imposes a wealth tax on high-value properties. Renting in Spain can be more expensive, especially in major cities, making it a significant consideration for expats and investors alike.
On the other hand, Portugal offers slightly more affordable options, especially in its emerging markets like Lisbon and Porto. The Portuguese government has implemented favorable tax conditions for property owners, with lower property tax rates and no wealth tax on most properties. This, combined with competitive rental prices, makes Portugal an attractive option for those looking to invest or settle down
Healthcare and Insurance
Healthcare is a critical consideration for expats. Spain and Portugal offer robust public healthcare systems. In Portugal, the SNS provides universal coverage to residents, with private insurance often used to bypass wait times.
Spain offers a similar setup, with a highly rated public healthcare system and widely used private options for faster care. Private health insurance premiums are more affordable in both countries than stated earlier: in Portugal, they range from €60 to €100 per month, and Spain offers similar options.
Both countries provide quality healthcare, but expats may find Portugal's health system more accessible and Spain's faster for specialized care
- Public Healthcare System: Portugal offers comprehensive public healthcare through SNS with full access for expats contributing to social security, whereas in Spain, the public healthcare system is universally accessible and highly rated globally.
- Private Healthcare: Portugal’s private sector is often used to bypass long wait times, whereas in Spain, private healthcare is also widely utilized to access faster and more personalized care.
- Healthcare Insurance: In Portugal, private health insurance is commonly held by expats for additional coverage, whereas in Spain, private insurance supplements the public system, especially for quicker access to specialists
Transportation and Connectivity
Public Transport
Spain boasts an extensive public transport network, particularly in cities like Madrid and Barcelona, with comprehensive metro systems, well-connected buses, and the AVE high-speed trains that link major regions.
This makes public transport a convenient and affordable option in urban areas. Portugal’s public transport system, while reliable in Lisbon and Porto, is less widespread, particularly in smaller towns and rural areas. Although metro and bus systems are functional in major cities, the overall coverage is more limited than in Spain
Car Dependency
Spain's urban areas see lower car dependency due to the extensive public transport options available. However, in rural regions, owning a car remains necessary due to less frequent public transport.
In contrast, Portugal shows higher car dependency overall, particularly outside major cities where public transport options are more limited. This makes car ownership more common and often essential for those living in suburban or rural areas
Education and Family Life: Building a Bright Future
When choosing between Spain and Portugal, families need to consider the quality and affordability of education and overall family life.
Both countries offer robust public education systems that are highly accessible to residents, making them attractive options for families seeking a European lifestyle with a focus on their children's future.
Education: Quality Learning, Affordable Living
In Spain, education is free and compulsory for children aged six to sixteen, with public schools providing a solid foundation in both primary and secondary education. The country also offers bilingual education options, particularly in regions like Catalonia and the Basque Country.
University education in Spain is relatively affordable, with public universities charging annual tuition fees ranging from €1,000 to €2,000 for undergraduate degrees, which is significantly lower compared to many other European countries.
Portugal, on the other hand, also provides free public education for children from age six to fifteen, with a strong emphasis on language learning and cultural studies. The country is known for its welcoming approach to foreign students, offering various programs in English to accommodate international families.
Additionally, Portugal’s university system is becoming increasingly recognized for its quality, with tuition fees that remain competitive within the European Union.
Leisure and Tourist Attractions
Spain offers a broader range of leisure and attractions catering to diverse interests. From the architectural marvels of Barcelona’s Sagrada Familia and Madrid’s Prado Museum to the historic sites of Toledo, there’s something for everyone.
Alternatively, Portugal is renowned for its:
- Surfing beaches
- Quaint towns
- Enchanting Quinta da Regaleira
- Mysterious Capela de Ossos (Bone Chapel)
- Captivating regions of Faro, Lagos, and Sagres
These offer unique experiences that are not to be missed.
Whether you’re drawn towards adventure, history, or culture, both Spain and Portugal guarantee surprising adventures and memorable experiences.
Expat Communities and Support
Flourishing expat communities in both Spain and Portugal extend support and networking opportunities for newcomers. The dynamic cities of Lisbon and Madrid host a vibrant expat scene, with numerous cultural events, social meetups, and co-working spaces catering to the international community.
Whether you’re a digital nomad, a retiree, or a job seeker, you’ll find a welcoming and supportive network in both countries. The expat communities in Spain and Portugal offer a wealth of resources and experiences, making your transition to a new country smoother and more enjoyable.
Summary
In conclusion, both Spain and Portugal offer attractive options for expats, with their unique blend of culture, lifestyle, and opportunities. Whether you’re drawn to the consistent Mediterranean climate and lower cost of living in Portugal or the diverse climate zones and vibrant culture of Spain, your choice ultimately depends on your personal preferences and lifestyle.
Both countries offer a high quality of life, rich cultural experiences, and supportive expat communities that make them ideal for starting a new chapter of your life.
Frequently Asked Questions
Is it better to live in Spain or Portugal?
It is better to live in Portugal as it is ranked as the fourth safest country in the world, while Spain is ranked 31st in terms of safety and security. Choose Portugal for a safer living environment.
Is it cheaper to retire in Spain or Portugal?
Retiring in Spain generally comes at a lower cost than retiring in Portugal, making it a more affordable option for many people. Portugal is considered the best European country for retirement based on factors like cost of living and healthcare.
Is Spain or Portugal friendlier?
Both Spain and Portugal are known for their warm and welcoming cultures, with people in both countries generally being friendly and hospitable to visitors. Personal experiences of friendliness may vary based on individual interactions and perspectives.
What are the main differences in climate between Spain and Portugal?
So, the main difference in climate between Spain and Portugal is that Portugal offers a consistent Mediterranean climate, while Spain's climate varies due to its size, mountainous terrain, and extensive coastline.
Which country offers more employment opportunities for expats?
For expats seeking employment opportunities, both Spain and Portugal offer growing job markets with a focus on different industries. Spain is seeing growth in startups and wine production, while Portugal is popular among remote workers and digital nomads.
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