For expats planning a move to Southern Europe, Portugal and Spain remain two of the most attractive relocation destinations. Both offer excellent healthcare, Schengen mobility, and eventual EU citizenship but their visa routes, timelines, and relocation processes differ significantly.
It is advisable to start the relocation process at least three to six months before your planned move to allow time for visa applications, document preparation, and settling-in logistics.
This guide compares visa requirements, residency benefits, citizenship outcomes, and why more expats now rely on relocation concierge services to manage the move.
Spain and Portugal stand out as two of the most sought-after destinations for expats and digital nomads looking to relocate to Europe. Both countries offer a vibrant mix of culture, history, and modern amenities that attract people from all over the world. Spain, with its energetic cities like Madrid and Barcelona, is famous for its lively atmosphere, world-class cuisine, and dynamic arts scene. Portugal, on the other hand, enchants newcomers with its stunning coastline, charming towns, and rich heritage. Whether you’re seeking the excitement of city life or the tranquility of seaside living, both Spain and Portugal provide a high quality of life and are highly recommended for expats. From the bustling streets of Barcelona to the laid-back beaches of the Algarve, these countries offer endless opportunities for adventure, work, and personal growth, making them ideal for anyone looking to start a new chapter in Europe.
Cultural adjustments are an important aspect of relocating to either country, as the lifestyle and social norms may differ significantly from those in the U.S. It is essential to familiarize yourself with the local culture and customs to ease the transition.
When it comes to choosing between Spain and Portugal for your relocation, it’s important to weigh factors like cost of living, job opportunities, and lifestyle preferences.
If you’re a digital nomad or a professional seeking career growth, Spain’s urban centers offer a thriving startup ecosystem, excellent coworking spaces, and a bustling social scene. Top Spanish cities for expats include Madrid, Barcelona, Valencia, and Málaga, each offering distinct cultures and lifestyles. Valencia is known for its sunny, Mediterranean climate and is very safe with a large, multicultural community.
On the other hand, Portugal is known for its slower pace of life, breathtaking natural beauty, and generally lower cost of living. Portugal’s most popular expat destinations include Lisbon, Porto, the Algarve, and Cascais, each offering unique advantages from urban energy to coastal relaxation. If you value a more relaxed lifestyle and picturesque surroundings, Portugal’s coastal towns and countryside may be the perfect fit. Ultimately, the right choice depends on your personal priorities—whether you’re drawn to Spain’s energy and job market or Portugal’s affordability and laid-back charm, both countries offer a rewarding expat experience.
Once you’ve considered your priorities, the next step is to understand the visa options available in each country.
Best for remote workers earning income abroad.
Requirements
Outcome
Best for retirees or financially independent movers.
Requirements
Outcome
Portugal is widely considered one of Europe’s most structured and predictable immigration systems for expats. The visa application process typically takes 2-4 months, so starting your application 3-6 months before your planned move is recommended.
Best for remote workers.
Spain’s digital nomad visa is designed for digital nomads working remotely for foreign companies who wish to relocate to Spain. Spain’s digital nomad visa offers a streamlined process for non-EU nationals to live and work remotely in the country.
Requirements
The digital nomad visa allows non-EU nationals to live and work remotely in Spain.
The autonomous community of Extremadura is offering up to €15,000 in financial aid to remote workers and digital nomads who relocate there, as part of a €2 million initiative to combat rural depopulation. Extremadura provides a lower cost of living compared to major cities like Madrid, making it an attractive option for digital nomads seeking affordability and incentives.
Outcome
Apply from abroad (consulate):
Apply from within Spain (if eligible for visa-free entry):
Spain’s special expat tax regime allows qualifying remote workers to pay a reduced tax rate of 24% on income up to €600,000 per year.
Best for retirees or those living from savings. The non-lucrative visa for Spain allows you to live in Spain without working and is suitable for retirees or those with passive income.
Requirements
Americans moving to Spain can choose from several types of long-term visas, including the work visa, self-employment visa, tourist visa, retirement visa, and investor visa. The self employment visa is designed for entrepreneurs and self-employed individuals who wish to start a business in Spain; it requires submitting a business plan, registering with tax authorities, and complying with social security regulations. The tourist visa is intended for short-term stays and is required for tourists visiting Spain, with specific validity and application processes.
Outcome
Spain’s system is strong but often involves more paperwork and longer timelines to citizenship.
Not sure which visa route fits your income and timeline? StartAbroad’s team specializes in Portugal and Spain relocations and offers a free 15-minute consultation to help you compare options before you start paperwork.
Portugal is frequently chosen specifically for its faster citizenship route.
Spain offers the same end result — but usually on a longer timeline.
When relocating to the Iberian Peninsula, understanding your healthcare and insurance options is essential for a stress-free transition. Both Portugal and Spain offer high-quality public healthcare systems, but expats will find important differences in access, costs, and the role of private health insurance—especially during the initial years of residency.
Spain has a universal healthcare system that provides coverage to more than 99% of its citizens and many EU residents. Public healthcare in Spain is free for legal residents who are employed or self-employed. To access public healthcare, residents must register at the local Social Security office to obtain a healthcare card.
In Spain, if you are not employed and do not qualify for free public healthcare, you can pay into a pay-in-scheme that requires an affordable monthly fee to access the public system. Spain’s public healthcare system covers about half the cost of prescription drugs, so private insurance is advisable for those who need expensive medications. Many expats use public healthcare for general needs and private insurance for additional services or quicker access.
Many expats use public healthcare for general needs and private insurance for additional services or quicker access.
Portugal has a universal healthcare system called the Serviço Nacional de Saúde (SNS) that provides coverage to all legal residents. Public healthcare in Portugal is accessible to legal residents who are employed or self-employed and contribute to the Social Security system (Segurança Social). To access public healthcare, residents must register at their local health center (Centro de Saúde) to obtain a Número de Utente (healthcare user number), which you’ll use for all medical appointments and services.
Healthcare in Portugal is not entirely free. Residents pay small co-payments (taxas moderadoras) for most services, typically around €5 for general consultations and €20 for emergency services. However, certain services are free, including maternity care, vaccinations, and services for children under 18 and seniors over 65. The SNS provides subsidized prescription drugs, though patients cover a portion of medication costs.
If you are not employed and do not qualify for public healthcare through social security contributions, you will need private health insurance. Many expats use public healthcare for general needs and private insurance for additional services such as dental care, vision care, or quicker access to specialists.
The cost of living can vary widely depending on your chosen location, lifestyle, and personal spending habits. Generally, Portugal is considered more affordable than Spain, particularly when it comes to housing and everyday expenses.
A single person can expect to spend between €1,500 and €3,000 per month in Portugal, depending on location and lifestyle. The cost of living in Portugal is approximately 34-40% lower than in the United States, with overall living costs significantly more affordable than in major US cities. Rent in Lisbon is roughly 65% lower than in New York City.
Housing is often the largest expense for expats in Portugal, typically making up a substantial portion of monthly living costs. Rent for a one-bedroom apartment ranges from €400-€700 in smaller cities and interior regions to €1,200-€1,500 in Lisbon’s city center. Porto, Portugal’s second-largest city, offers mid-range pricing with one-bedroom apartments typically costing €800-€1,000 per month. The average national rent is approximately €16.40 per square meter, or around €1,312 per month for a typical 80m² apartment.
Major cities in Portugal, particularly Lisbon and Porto, have experienced significant housing price increases in recent years. Property prices average around €4,239 per square meter in the Lisbon metropolitan area, while the Centro region offers more affordable options at approximately €1,716 per square meter. The Portuguese rental market can present challenges for foreigners due to high demand in popular areas. Platforms like Idealista are commonly used for housing searches in Portugal.
Groceries in Portugal are budget-friendly, with monthly food costs typically ranging from €200-€300 for one person. As an agricultural country, Portugal offers affordable fresh produce and local products. Eating out in Portugal is very affordable compared to other Western European countries and the United States, making it easy to enjoy the country’s food and wine culture.
Utilities and public transportation remain affordable by European standards. A monthly public transport pass costs around €40 in Lisbon and €20-€30 in smaller cities like Porto. Portugal has well-integrated bus and train systems providing access to various regions of the country.
Monthly costs in Spain typically range from €2,000 to €4,000 for a single person. The cost of living in Spain is significantly lower than in the US, with overall living costs being 30-50% lower than in major US cities. Rent in Madrid is 50-60% lower than in New York City.
Housing represents the largest expense for most expats in Spain, accounting for roughly 40-50% of total monthly costs. Rent for a one-bedroom apartment typically ranges from €500-€700 in smaller areas to €1,400-€1,800 in prime areas like Madrid and Barcelona. Renting a home in Spain is about half the cost of renting in the United States. The average property price per square meter in Barcelona and Madrid is around €3,000–€5,000.
Major cities in Spain are facing a housing crisis, so securing temporary accommodation before committing to a long-term lease is recommended. The Spanish rental market can be tricky for foreigners due to bureaucratic challenges. Platforms like Idealista or Fotocasa are recommended for housing searches.
Groceries are considerably cheaper in Spain than in the rest of Europe and the United States. Eating out is extremely affordable in Spain compared to the US or other parts of Europe.
Utilities and public transport remain affordable by European standards. Public transportation includes buses and train systems, which are well-integrated and provide access to various regions.
When planning your move, it’s essential to research the local market, especially if you’re considering generating rental income or investing in property. Factor in expenses such as utilities, transportation, and groceries, as well as any additional costs related to your visa process or relocation services. Careful budgeting and thorough research will help ensure a smooth transition and allow you to make the most of your new life in either country.
For families relocating to Portugal or Spain, access to quality education is a top priority. Both countries offer a variety of options, including public, private, and international schools. International schools are especially popular among expats, as they often follow globally recognized curricula such as the International Baccalaureate (IB) or the British curriculum, and provide instruction in English or other languages.
In Spain, cities like Madrid and Barcelona are home to renowned institutions such as the International School of Madrid and the British School of Barcelona.
Portugal also boasts excellent options, including the International School of Porto and the British School of Lisbon. When choosing a school, it’s important to research each institution’s offerings, visit campuses if possible, and consider your family’s budget and educational needs. This careful approach will help ensure a smooth transition for your children and peace of mind for your family.
Understanding your tax obligations is crucial when relocating to Portugal or Spain as a non-resident. Both countries offer attractive tax regimes for expats, but the rules and benefits differ.
Spain operates a progressive tax system with rates from 19% to 47%. Residents pay tax on global income, while non-residents only pay tax on Spanish-sourced income.
The Beckham Law offers qualifying expats a 24% flat tax rate on Spanish income for up to five years. American expats still file US tax returns annually and report global income, even while living in Spain. The US-Spain tax treaty helps prevent paying tax twice, though filing in both countries remains mandatory.
Those with foreign assets exceeding €50,000 must complete Form 720, Spain’s required foreign asset declaration. Both residents and non-residents are required to file tax returns in Spain.
Portugal has a progressive income tax system with rates starting at 12.5% and ranging up to 48% depending on taxable income level. Residents are taxed on worldwide income, while non-residents are taxed only on Portuguese-sourced income.
The original Non-Habitual Residence (NHR) regime, which offered favorable tax treatment to new residents, ended on March 31, 2025. Most expats relocating to Portugal in 2026, including D7 visa holders (retirees with passive income) and D8 digital nomad visa holders, will pay standard progressive tax rates.
American expats in Portugal continue filing US tax returns each year and reporting global income. While the Portugal-US tax treaty prevents double taxation, filing requirements remain in both countries.
It’s important to stay on top of your tax returns, social security contributions, and any visa-related tax requirements to remain compliant. Consulting with a tax professional who understands the nuances of both systems is highly recommended to ensure you maximize benefits and avoid surprises. Proper planning will help you navigate the complexities of international tax obligations and make your move to Spain or Portugal as smooth as possible.
While immigration lawyers remain useful in complex legal cases, the reality is that most relocation problems aren’t legal — they’re practical.
Expats usually struggle with:
Moving abroad is a major life change, and while many guides are available online, the relocation process can be complex and is best navigated with professional help. Careful planning and professional assistance are key to avoiding difficulties when handling bureaucracy in a new country.
Best for:
However, immigration lawyers typically focus only on legal filings and court representation — not the practical aspects of moving. For finding housing, opening bank accounts, or scheduling appointments, relocation concierge services are better suited.
Relocation concierge services help manage the entire move, not just visa paperwork.
For Spain relocations, the process involves securing a proper visa, obtaining a NIE (Número de Identidad de Extranjero — your foreigner identity number, essential for banking, renting, and buying property), and completing empadronamiento (registering your address with local authorities, required for residency). You’ll also need to find housing and obtain health insurance.
For Portugal relocations, you’ll need to obtain a NIF (Número de Identificação Fiscal — Portugal’s tax identification number, required for banking, renting, and most official transactions), secure housing, and navigate residency registration steps. Health insurance is also required.
A company like StartAbroad works with expats before, during, and after relocation to:
Instead of solving one legal issue, they help ensure the whole relocation process runs smoothly — which is why many expats now start with a consultation before applying anywhere.
Relocating to Portugal or Spain involves several essential steps to ensure a smooth transition and legal residency.
For Spain relocation, you will need to secure a proper visa (digital nomad, non-lucrative, or work visa depending on your situation), obtain a NIE (Número de Identidad de Extranjero, your foreigner identity number essential for banking and property transactions), complete empadronamiento (registering your address with local authorities), find compliant housing, and obtain health insurance. The visa application process typically takes four to eight months, so starting three to six months before your planned move is recommended. Spain offers citizenship after 10 years of legal residency.
For Portugal relocation, the process involves securing a visa (D8 digital nomad or D7 passive income visa are most common), obtaining a NIF (Número de Identificação Fiscal, Portugal’s tax identification number), registering with local authorities, finding housing, and obtaining health insurance. Portugal’s visa process typically takes two to four months. Portugal offers citizenship after five years of legal residency, though proposed legislation may extend this to 10 years.
Both countries require careful planning and document preparation. Many expats use relocation concierge services to navigate the bureaucratic steps, coordinate appointments, and ensure all paperwork is completed correctly. Understanding visa requirements, tax obligations, healthcare access, and citizenship pathways before starting your application helps avoid delays and ensures a successful move.
Before starting paperwork, it can help to speak with a relocation specialist who understands visa routes, timelines, and documentation requirements.
For guidance on navigating your move to Portugal or Spain, StartAbroad offers a free 15-minute consultation to review visa options and next steps. During the call, they typically help expats compare visa options based on income and goals, understand realistic timelines, identify required documents, and avoid common mistakes that delay approvals.
For many movers, this first step provides clarity on whether Portugal or Spain is the better fit – before committing to a visa strategy.
An estimated 10 million Americans live outside the United States. Most assume that leaving the US also means leaving US tax responsibilities behind; however, this
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This website is operated by AnyExpat Ltd. Throughout the site, the terms “we”, “us” and “our” refer to AnyExpat Ltd. AnyExpat Ltd offers this website, including all information, tools and services available from this site to you, the user, conditioned upon your acceptance of all terms, conditions, policies and notices stated here.
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SECTION 1 – ONLINE STORE TERMS
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Any ambiguities in the interpretation of these Terms of Service shall not be construed against the drafting party.
SECTION 18 – GOVERNING LAW
These Terms of Service and any separate agreements whereby we provide you Services shall be governed by and construed in accordance with the laws of Clyde Offices, 2nd Floor, 48 West George Street, Glasgow, BFP, G21BP, United Kingdom.
SECTION 19 – CHANGES TO TERMS OF SERVICE
You can review the most current version of the Terms of Service at any time at this page.
We reserve the right, at our sole discretion, to update, change or replace any part of these Terms of Service by posting updates and changes to our website. It is your responsibility to check our website periodically for changes. Your continued use of or access to our website or the Service following the posting of any changes to these Terms of Service constitutes acceptance of those changes.
SECTION 20 – CONTACT INFORMATION
Questions about the Terms of Service should be sent to us at [email protected].
