Considering Moving Abroad?: Why Portugal isn't the best move for Expats
- Staff
- Oct 27
- 4 min read
For years, Lisbon has reigned as the undisputed gateway to the Portuguese dream. Its rolling hills, iconic yellow trams, and the promise of a vibrant international community made it the de facto destination for every hopeful expat, from digital nomads and remote workers to retirees seeking a sun-drenched, affordable haven.
However, for a growing number of international residents, the postcard perfection has started to wear thin. The reality of sky-high rents, intense crowds, and a cost of living that no longer aligns with Portugal's reputation for affordability has led to a great migration—not just out of Lisbon, but often to other, more stable EU countries, with Spain emerging as the compelling alternative.
The Lisbon Reality Check
As the capital of Portugal and the center of its expat boom, it is crucial to understand why Lisbon no longer holds its crown as the holy grail for newcomers:
Cost of Living Crisis: Housing at the Epicenter Lisbon's rental market has become notoriously challenging. Prices for a suitable apartment, especially in central, desirable neighborhoods, now often match or even exceed those in many other Western European capitals. The intense competition for housing transforms the search for a home into an expensive, stressful, and highly competitive endeavor. This surge is disproportionate to local salaries, creating significant tension and making the city increasingly unaffordable for the Portuguese as well. For a single expat, a one-bedroom apartment in the center can easily exceed €1,200 per month, a figure that skyrockets for short-term digital nomad rentals.
The Transient Tourist Bubble and Overtourism: While an international community is a powerful draw, in Lisbon, the sheer volume of short-term visitors—fueled by years of favorable tourism and residency policies—often makes it feel more like a transient tourist bubble than a deeply integrated community. This can make deep social integration and connection with the local Portuguese culture significantly more challenging. The city's authentic soul is frequently obscured by the crowds, with the daily grind of traffic, noise, and navigating packed public spaces replacing the initial charm for many residents.
Administrative and Professional Frustration: Surveys of expats consistently rank Lisbon low on the Admin Topics and Digital Life indices. Dealing with local authorities can be painfully slow, and the perceived lack of efficient, online administrative services is a common source of frustration. Furthermore, while the remote work scene thrives, the local job market is often rated negatively for career prospects and fair pay, leading many employed expats to feel that local salaries are not compatible with the high cost of living.
Portugal: A Broader Look at Residency Challenges
Beyond Lisbon, Portugal, in general, presents a significant set of administrative challenges for expats seeking long-term settlement.
Bureaucracy, Delays, and the Travel Restriction: The process of obtaining and renewing residency is notoriously difficult and lengthy, often requiring significant patience and persistence. A notable, and for many, prohibitive, hurdle is the restriction on international travel while a residency application is being processed. This can mean no travel outside of Portugal or trips home during this uncertain and often protracted waiting period, which can extend to 18 months or more due to backlogs in the immigration service.
The Path to Citizenship: The timeline for naturalization has become considerably longer for many. The period to apply for citizenship, which was once a clear 5 years of legal residency, has, for some, effectively doubled to 10 years, making the long-term goal of obtaining a Portuguese passport much more distant and uncertain.
Why Spain Stands Out as the European Alternative
For those who started with a dream of life on the Iberian Peninsula but faced the reality check in Portugal, Spain frequently emerges as the logical and more satisfying choice. It offers a compelling, well-established alternative for happy expats, digital nomads, and families alike.
Cost of Living and Diverse Landscapes: Spain boasts a diverse and extensive landscape, from the hyper-vibrant global cities of Barcelona and Madrid to the sunny, low-cost coastal hubs of Andalusia and the cultural richness of its many regions. Crucially, the cost of living in many desirable Spanish cities and towns remains more affordable than in Lisbon, with better value-for-money, particularly for housing, available in secondary cities like Seville or Valencia.
A Robust Infrastructure and Seamless Integration: Spain offers a far more robust public healthcare system and modern infrastructure across its major urban and coastal areas. Spanish expat communities are well-established and integrated into the fabric of Spanish life, making it easier for newcomers to find a sense of belonging, build a social network, and experience a less transient lifestyle. The renowned Spanish culture is a powerful magnet, known for its warmth, delicious regional cuisine, and lively, year-round festivals, providing a truly immersive experience.
Residency and Travel Flexibility: While bureaucracy exists in any country, many expats find the process in Spain more predictable and manageable. Crucially, the country's Digital Nomad Visa offers fewer, or at least less restrictive, limitations on international travel during the residency application and processing period compared to the lengthy lock-down often faced in Portugal. Spain also offers a fast-track to citizenship for nationals of Ibero-American countries (two years), though the standard path is ten years, and dual citizenship is generally restricted.
