Portugal VS Italy: Where Should Expats Choose to Live? (2024)

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If you’re thinking about moving to a European country but you’re not sure which one, you may have short-listed Portugal and Italy. Both are beautiful countries with fascinating histories, excellent food, and a million other reasons to move there. But while that may make both countries great to visit, which is the better country to move to?

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The answer is: it depends. Both have their pros and cons, which this article will take a look at.

Table of Contents

Residency Visas

In short, Portugal is an easier country for those that don’t hold an “EU passport” to move to. Specifically, Portugal has several visas that allow foreigners to move to Portugal easily. Examples include:

  • The Golden Visa – Aimed at those that want to buy a property or invest in Portugal, with investment options starting from €280,000.
  • The D7 Visa – Aimed at those with a passive income such as a pension or income from a rental property.
  • The Digital Nomad Visa – Aimed at those that work remotely or run their own business.
  • The D2 Visa – Aimed at those that want to start a business or transfer an existing business to Portugal.

For the golden visa, in particular, you don’t even need to spend the majority of the year in Portugal – just an average of 7 days per year. This makes the golden visa ideal for those that are looking for a second passport and who still want a lot of flexibility to travel throughout the year.

Citizenship Possibilities

If you live in Portugal or Italy for long enough, you’ll be eligible to apply for citizenship through naturalisation. Neither country has a rule against dual citizenship, so you won’t be asked to give up your passport by either county.

For non-EU citizens, that period of time is as follows:

As you can see, Portugal is the better option for those who are mainly looking for a second passport and aren’t sure that they want to stay long-term in either country.

Another important point is that, to obtain Italian citizenship through naturalisation, you need to show a B1-level of Italian[3]https://www.giambronelaw.com/site/advice/gaining-citizenship/italian-citizenship/italian-laws/italian-passport-language-test/. Portugal only requires you to show an A2, which is much easier.

Winner: Portugal

The Language

Italian and Portuguese are nowhere near as popular as French, German, and Spanish, but if you’ve studied either, that may push your decision towards that particular country.

Which is the easiest language to learn, Portuguese or Italian? That’s up for debate but, generally speaking, the two are usually grouped together in terms of language difficulty. However, this is “Portuguese” as opposed to “European Portuguese” and so these studies may be looking at “Brazilian Portuguese,” which most language learners tend to find easier to learn than “European Portuguese.”

Portuguese is probably the more useful of the two languages, although most people won’t use either outside of Italy or Portugal. This is because Italian is only spoken in Italy whereas Portuguese is spoken in several other countries around the world like Brazil, Mozambique, Angola, and Guinea-Bissau. That said, most people that move to Portugal have little interest in visiting African countries like Mozambique and Angola and are often a little nervous about visiting Brazil as well.

A pro and a con of living in Portugal is that English is widely spoken here, particularly in coastal regions like the Algarve and cities like Lisbon and Porto. On the plus side, that means that if you get stuck, you shouldn’t struggle to find someone that can speak English. But the negative counterpoint to this is that because English is so widely spoken, you won’t get as many opportunities to practice Portuguese and so you’re less likely to really learn the language.

Thankfully, there are now a lot more resources for learning European Portuguese, even if some aspects are still challenging.

Winner: Italy

Safety

Comparing safety between two countries is challenging, especially if at least one of the countries doesn’t have great statistical reporting, but one measure that’s often used is the Global Peace Index.[4]https://en.wikipedia.org/wiki/Global_Peace_Index

In 2022, Portugal came in 6th place, after countries like Iceland, New Zealand, and Denmark. Italy ranked 32nd.

While this study isn’t meant to compare personal safety between the two countries, it does line up with most people’s personal experiences, which is that Portugal feels safer.

Winner: Portugal

The Weather

Both are long countries, which means the climate can differ North to South.

Cost of Living

Portugal is cheaper than Italy, particularly when it comes to eating out. Overall, Portugal is a cheaper place to buy and rent property, however some parts of Portugal (like Lisbon) are above average in terms of cost. The cost of living in Italy varies greatly too, with the south usually cheaper than the north.

Of course, there are exceptions to that and don’t assume that just because wages are lower in Portugal than the cost of living is also lower, as Portugalist reader, Giorgio, points out.

Other than Milan, Italy is much, much cheaper than Porto and Lisbon right now. Salaries are higher, and for remote workers taxes are lower (28% between income tax and social security up to 85.000€ per year). Cost of living is also lower, with bills, rents, and some food genres all cheaper than here. I’m definitely spending more to live in Porto (average salary 1000 per month) than I spent in Turin (average salary 2000).

Giorgio B

But while Portugal is typically more affordable, wages are lower. If you’re planning to work (as opposed to moving as a retiree or moving as a remote worker) you should factor this point into your decisions. However, another point worth noting is that Italy is one of the few EU countries that, as of 2022, does not have a minimum wage.[5]https://www.morningfuture.com/en/2022/02/14/employment-minimum-wage-nobel/

Winner: Portugal

Food

Obviously, this blog is biased and thinks Portuguese food is fantastic, but Italian food is one of the most popular foods in the world for a reason. The quality of food that you’ll find in restaurants and delis in Italy is incredible, and most people will be more familiar with Italian dishes than with those from Portugal.

Two upsides to Portuguese food are that it’s generally more affordable and, secondly, that it’s unchartered territory. There are lots of dishes to discover in Portugal, with regional differences depending on where you live.

Fish and seafood is another area where Portugal stands out. While both countries have great selections, Portugal has a better (and more affordable) range than Italy thanks to its location on the Atlantic.

Winner: Italy

Culture

Portugal and Italy have similar cultures, and both have a strong focus on food and family. While this can be appealing to outsiders moving from countries like the UK and US that are less family-focused, the downside is that it can be hard to integrate into either culture.

One major difference in culture between the Italians and the Portuguese is in noise and passion. The Portuguese, on the other hand, are generally calmer, quieter, and some would even say a little subdued. Of course, these are both stereotypes and don’t apply to every person.

Both cultures have interesting histories, and there’s always lots to see and do, but for most people, Italy is the clear winner here. There is history and culture on every corner in Italy, and most people have much more of an interest in Italian history and culture than they do Portuguese history and culture.

Bureaucracy is a big problem in both countries, which means that businesses and governments are often very inefficiently run and you’ll spend a lot of time trying to get anything done. Anecdotally, it seems that Italy is worse than Portugal in this department.

Fashion is something else to consider. In short, the Italians famously dress better and if you want to have any hope of fitting in, you’ll need to put more effort into your clothes and appearance.

Winner: Italy

Size

Population-wise, Italy is bigger than Portugal – around 6 times as big. For some people, particularly those that want to live in a city, bigger is better and there are far more big cities to choose from in Italy. Portugal really only has Lisbon and Porto and Porto is quite a small city whereas Italy has several larger cities like Rome, Milan, Naples, and Turin. Of the two, Italy is also the more economically developed.

Both countries are very diverse geographically, with big differences between North and South, but Italy is perhaps more diverse. Italy is probably in a slightly better position for those that want to explore the rest of Europe. While Portugal’s location on the west coast means that flight times to the US and Canada are shorter, it does take slightly longer to get to anywhere else in Europe.

Winner: Italy

Conclusion

Both countries have their pros and cons and it can be difficult to decide which is the better option. If you have a strong preference for either, give that a lot of weight, even if you’re weighing up factors like cost of living, language, and culture. It’s easier to live somewhere you actually want to live rather than somewhere you picked because it made sense on paper.

That said, if you don’t have a strong preference, there are a lot of reasons to consider Portugal, such as:

  • It’s safer
  • It’s more affordable
  • Residency visas for non-EU citizens are more attainable
  • You can apply for a passport in just 5 years
  • English is more widely spoken

But there are plenty of reasons to move to Italy as well, such as:

  • The food
  • The history and culture
  • The language is probably slightly easier, particularly in terms of the way European Portuguese is pronounced
  • The diversity in terms of weather and landscape

It’s worth noting that while you may choose to live in one, you will still be able to visit the other. However, if your plan is to do this regularly, be sure to check that your nearest airport has a good selection of flights there (Lisbon and Porto usually do, but Faro and other airports may not).

Have thoughts about living in either Italy or Portugal? Share them in the comments below. And if you liked this article, you might enjoy our comparison of living in Spain vs Portugal.

Portugal VS Italy: Where Should Expats Choose to Live? (2024)

FAQs

Is Italy or Portugal better for expats? ›

Both cultures have interesting histories, and there's always lots to see and do, but for most people, Italy is the clear winner here. There is history and culture on every corner in Italy, and most people have much more of an interest in Italian history and culture than they do Portuguese history and culture.

Where is the best place to retire Portugal or Italy? ›

It ranked countries on an index that took into account healthcare, governance, property prices, climate, cost of living, housing costs and more. The safety of Portugal was also among the reasons Portugal was named the best place to retire – the country ranks 6th on the Global Peace Index.

Is it better to go to Italy or Portugal? ›

Ideally, we'd recommend seeing both. If that's not an option, then we'd say choose Italy for food and culture but go to Portugal for beaches and weather. Italy should also be the easier of the two to get to thanks to its abundance of airports and train links, but Portugal is cheaper overall.

Which country is safer Portugal or Italy? ›

Security. When it comes to which country between Portugal and Italy is safer, it is worth mentioning that Portugal is the clear favorite. Data from the Global Peace Index ranks Portugal as the fourth safest destination in the world while Italy takes the thirty-first place.

Are American expats welcome in Portugal? ›

Portugal has become a top-choice European country for Americans Expats, Nomads and Retirees in recent years for many reasons. Portugals fast and straightforward pathway to citizenship certainly plays a factor. After 5 years of residency those who speak a basic level of A2 Portuguese language can apply for citizenship.

Where do most American expats live in Portugal? ›

The main places American expats live in Portugal are Lisbon, Cascais, Porto, Algarve, and Coimbra. Lisbon: Lisbon is Portugal's capital city and offers a vibrant cultural scene, a bustling nightlife, and easy access to the rest of Europe.

Where do most Americans retire in Portugal? ›

Lisbon is one of the cities where expats are happiest with their life abroad, according to the Internations Expat City Ranking 2022, where the Portuguese capital comes in fourth. (Valencia, Dubai, and Mexico City are first, second, and third, respectively.)

Is it hard for an American to retire in Portugal? ›

It is relatively easy to retire in Portugal. The Algarve region in the south of the country is especially popular with retirees. At least 100,000 retirees are estimated to be living in that region alone. A significant number of them are British retirees.

Is Portugal good for American retirees? ›

Portugal's living costs for retirees

You can live comfortably with an estimated €1,300-€1,500 (US$1,500-1,700) per month in small towns or €1,700 ($2,200) in larger urban areas such as Lisbon or Porto. Groceries, eating out, rent, utilities, and health care are especially affordable in Portugal.

Is it better to live in Portugal or USA? ›

Moving to Portugal will actually save you money! Consumer prices are around 40% cheaper, and rent is over 50% cheaper in Portugal on average. However, keep in mind that salaries are, on average, 75% lower in Portugal. Let's take a look at an overview of the cost of living in Portugal vs the USA in 2023.

Is Portuguese more difficult than Italian? ›

Both Portuguese and Italian are among the easier languages for English speakers to learn due to their shared Latin roots. This means that there are many cognates – words that share the same root and therefore have a similar spelling and pronunciation in both languages.

Is Italy a good place to retire for Americans? ›

Italy is one of the most popular vacation spots in Europe. It's also a great option if you're thinking about retiring abroad. The country is known for its delicious food, beautiful towns and mild weather, making it about as ideal a retirement destination as you'll find.

Where does Portugal rank in quality of life? ›

Portugal is not only one of the friendliest countries in the world, it is also a very safe place to live. According to the 2021 Global Peace Index, Portugal ranked as the fourth safest country in the world, after Iceland, New Zealand, and Denmark. Portugal has one of the lowest crime rates in Europe.

Which nationalities visit Portugal the most? ›

Spain accounted for over one million overnight visitors in Portugal in 2021 – the highest figure among top countries of origin for international tourism in the European country that year. In the second and third place were France and the United Kingdom.

Which is safer Europe or USA? ›

Yes, Europe is typically safer than the USA. In fact, 13 of the world's top 20 safest countries are located in Europe. In contrast, the United States ranks in 129th place on the latest Global Peace Index. That's lower than Egypt, Zimbabwe, and Republic of the Congo.

Why are Americans retiring in Portugal? ›

Portugal has long been a top location to retire to. With dreamy sunsets over beautiful beaches, an affordable cost of living, excellent seafood, and attractive tax benefits, it is understandable why so many retirees are turning their attention to Portugal.

Do US expats pay taxes in Portugal? ›

If you've lived in Portugal for 183 days or less, you're likely considered a non-resident and will only owe taxes on Portugal-sourced income. Non-residents are taxed with a flat rate rather than a sliding scale.

Why are so many Americans moving to Portugal? ›

Three uniquely American concerns when moving to Portugal

Combined with its relatively warm temperatures, plentiful recreational activities, widespread knowledge of English among many locals, and relatively low cost of living, Portugal is a natural destination for Americans looking to relocate.

Does Portugal tax US Social Security? ›

As part of the Non-Habitual Resident (NHR) tax scheme, D7 visa holders pay just a 20% tax on Portuguese-sourced income and a 10% tax on foreign-sourced income (which would include foreign retirement and social security payments).

Where do most English speaking expats live in Portugal? ›

Lisbon has the most expats in Portugal. The Lisbon metropolitan area has almost three million residents as of 2022, of which over 555,000 people are expatriated.

What city do most Americans live in Portugal? ›

Most Americans in Portugal live in Lisbon, Porto, or the Algarve. Portugal offers an array of stunning locations, whether you are looking for a buzzing city, peaceful village, or waterfront beach house.

Where should Americans move in Portugal? ›

9 Best Places to Live in Portugal for Expats
  • Lisbon. As Portugal's capital city, Lisbon is perfect for expats, families, and students wanting the buzz of a big city – but not at the expense of culture. ...
  • Porto. Next on the list is Porto! ...
  • Braga. ...
  • Aveiro. ...
  • Coimbra. ...
  • Portimão. ...
  • Funchal on Madeira island. ...
  • Chaves.
Feb 21, 2023

Which European country is best for American retirees? ›

Greece and Malta are some of the easiest and best places to retire in Europe, as they have large English-speaking communities. Other European destinations that are also suitable for retirement are Portugal, Spain, and Turkey.

What are the disadvantages to retiring in Portugal? ›

Some cons of retiring in Portugal include:
  • Bureaucracy can be slow.
  • Understanding double taxation can be tricky.
  • Winters can be cold.
  • Learning Portuguese is difficult.
  • Cultural shock.
  • Slow pace of life.
  • Lots of tourists.
May 31, 2023

How much money does an American need to move to Portugal? ›

That would not include the amount of money you need to have in your Portuguese bank account. So if you're getting the D7 visa (the most common one) and you need about 8,000 euros in your bank account, then you would need about $19,000 total to move to Portugal.

How much does a house cost in Portugal? ›

2023 Portugal House Prices in U.S. Dollars by Region
RegionUSD price per sqftUSD average price
Metropolitan Lisbon$ 357$ 714,000
Algarve$ 320$ 640,000
Madeira$ 253$ 506,000
Norte$ 212$ 424,000
3 more rows
Apr 25, 2023

Can I live in Portugal on my social Security? ›

If you have social security credits in both the United States and Portugal, you may be eligible for benefits from one or both countries. If you meet all the basic requirements under one country's system, you will get a regular benefit from that country.

What are the pros and cons of living in Portugal as an American? ›

Pros and Cons of Living in Portugal – Summary Table
Pros of Living in PortugalCons of Living in Portugal
3. English is the second language in Portugal3. The ocean is very cold
4. Pace of life4. Scary drivers
5. Good education5. Bad customer service
6. Cost of living6. Cold winters
3 more rows

Does Portugal have free healthcare? ›

Mainly yes, Portugal has a free healthcare system. It's free for all Portuguese citizens and residents. Citizens and residents of the country who contribute to the Social Security Fund can receive free medical care through the National Health Service, SNS.

What US state is most like Portugal? ›

The similarities between Portugal and California are astounding, right from the climate, beaches, and even nature. You will find plants and hills that are almost identical in both places. While California is relatively larger than Portugal as a country, there are so many similarities that they share.

Can expats own guns in Portugal? ›

Legally, only licensed gun owners can lawfully acquire, possess or transfer a firearm or ammunition. To gain a gun license in Portugal, one must be over 18 years old and pass a background check, which considers criminal and mental health records.

Are more Americans moving to Portugal? ›

Last year, nearly 10,000 American citizens lived in Portugal, an impressive 239% increase over 2017, according to data provided by the Portuguese government. In 2019, the number of Americans attending the Carlucci American International School of Lisbon increased by 60%, The New York Times reported.

Can someone who speaks Portuguese understand Italian? ›

Italian doesn't have the Arabic influence that affects the pronunciation of many Spanish letters and words, and there are many Portuguese-Italian cognates, so if you learn Portuguese, you might find you understand spoken Italian quite well.

Which one is easier Portuguese or Italian? ›

Granted, Portuguese might turn out to be a little more challenging, as it's spoken across four continents and, as such, has way more dialects. In addition to that, the gap between written and spoken language in Portuguese seems to be a lot wider than in Italian.

What is closer to Spanish Italian or Portuguese? ›

Based on lexical similarity, you will find that Portuguese is the closest to Spanish. Just remember that you will need to rethink the way the words are pronounced. You will also want to know which words are different between the languages. Following Portuguese is Italian as the second closest language to Spanish.

What is the downside of retiring to Italy? ›

Con: The cost of living can get quite high in the main cities. The high cost of living is a common problem associated with living in major cities throughout Italy. Many people who are moving to the country have no idea how much it'll cost them, and they can be caught off guard by some unexpected expenses.

Will Italy tax my US Social Security benefits? ›

In conclusion, Italy does tax retirement income, including US social security benefits, but there are tax treaties and agreements in place to avoid double taxation. As a retiree in Italy, you may also be subject to Italian social security contributions if you work or have income in Italy.

Where do most Americans move to in Italy? ›

Lazio is the most popular region

Lazio, which includes Italy's capital Rome, is home to some 2,800 Americans, making it the most popular region among US nationals.

What country has #1 quality of life? ›

1. Sweden. Sweden is the top country in 2022 best quality of life rankings. The country stands out in the ranking of quality of life for health systems and well-developed public education, security, economic stability, and politics.

Which country in Europe has the best quality of life? ›

2023 Best countries in Europe to live in
RANKINGCountryQuality of life score (Higher is better)
1Spain174
2Portugal164
3Netherlands197
4Slovenia169
11 more rows
Jun 2, 2023

What is Portugal number 1 in the world? ›

1 as favourite country in the world by Condé Nast readers. This October the results for the Condé Nast Traveler Readers' Choice Awards survey were revealed, with Portugal occupying a few top-ranking positions, including the number 1 position on the Top 20 countries in the World.

Who is the most loved person in Portugal? ›

Cristiano Ronaldo is the most famous person to come out of Portugal, as well as the most followed person on Instragam with 395 million followers.

How many Americans travel to Portugal? ›

In 2019, there were 1,202,247 guests from the United States, which almost surpassed the Brazilian market (1,281,675). In 2022, the United States is expected to stay ahead of Brazil as the first non-European tourist market: until July, there were 766,335 Americans visiting Portugal - compared to 495,880 from Brazil.

What is the best country in Europe for an American? ›

Switzerland: Although many European countries offer a better quality of life than the U.S., Switzerland takes the cake. It's globally ranked for its safety, infrastructure and natural beauty. All of this, of course, comes at a cost: Switzerland is one of the world's most expensive countries to live in.

What is the safest country for an American travel? ›

The safest vacation countries 2023

The safest country in the world is currently Austria, followed by Germany and Denmark. There have been few changes at the top of the table for years. Iceland, in particular, which is remote and only relatively sparsely populated, has always been right at the top.

What is the top 3 safest country? ›

Countries Ranked by Safety
#CountryGlobal Peace Index
1Iceland1.11
2New Zealand1.27
3Ireland1.29
4Austria1.3
75 more rows

What is the best EU country for American expats? ›

Spain. There are numerous reasons why, for many American expats, Spain tops the list of best countries in Europe to live in. For a start, the country boasts a diverse and rich culture and quality of life, with something to offer everyone.

What part of Italy has the most expats? ›

Some of the most popular cities for English-speaking expats include Rome, Milan, Florence, and Turin.

What are the best EU countries for US expats? ›

If you can handle the cold, Germany and the Netherlands are two of the most popular countries for expats, both offering international communities and unique residency options. Switzerland: Although many European countries offer a better quality of life than the U.S., Switzerland takes the cake.

What is the easiest EU country for an American to move to? ›

It's no wonder Expat Insider ranked the country as the 5th best destination for expats in their 2021 study. In this guide, we will share with you the amazing reasons Portugal is the easiest European country to move to for every American.

What is the easiest country to live in Europe as an American? ›

Spain is one of the easiest European countries to move to as a US citizen. Since you are from an English-speaking country you can easily get a temporary visa via the North American Language and Cultural Assistant program.

What is the best country to live in Europe 2023? ›

Based on this criteria, Spain came on top as the best country in Europe in 2023, followed by Portugal and Netherlands in second and third place. We ranked the countries based on a formula that takes into account the lowest cost of living and the highest quality of life, using the latest Numbeo data.

Why do people leave move to Portugal? ›

Combined with its relatively warm temperatures, plentiful recreational activities, widespread knowledge of English among many locals, and relatively low cost of living, Portugal is a natural destination for Americans looking to relocate.

Can I collect Social Security in Portugal? ›

If you have social security credits in both the United States and Portugal, you may be eligible for benefits from one or both countries. If you meet all the basic requirements under one country's system, you will get a regular benefit from that country.

How much money do you need to live comfortably in Portugal? ›

A couple with a mid-range income can get by with €1,700 a month in the smaller cities of Portugal. If a couple is starting out in Lisbon, their monthly expense will be €2,000 onwards a month. If you are single, you can get by comfortably with €1,200 a month in Porto or Lisbon, and even less in Portugal's smaller towns.

Are American expats welcome in Italy? ›

Americans who intend to stay in Italy for less than 90 days don't need to worry about visas. However, if you plan to go for an extended period, you'll have to apply for a long-stay visa. This is a crucial step because you can't apply for an Italian residence permit without this long-stay visa.

Where do most Americans retire in Italy? ›

However, no one can deny the architectural beauty of Milan, rich with culture and history, and the natural beauty that the region provides, especially the famous Lake Como, all of which make this Italian region among the most popular for retired Americans.

Where do most English speaking people live in Italy? ›

In fact, some of the best cities for English speakers to settle in are Rome, Bologna and Milan. These cities have lots of English speakers and English job opportunities. You'll even find English sign boards when using public transport and be able to order in English at restaurants.

Which US state is best for expats? ›

What's the best state for expat taxes?
  • Alaska.
  • Florida.
  • Nevada.
  • South Dakota.
  • Texas.
  • Washington.
  • Wyoming.
Oct 25, 2022

Where in Europe can an American retire? ›

Which Countries Issue Retirement Visas in Europe?
Retirement VisaAlternative Option
SwitzerlandYes
GermanyNoResidence permit
BulgariaYes
United KingdomNoSettlement Visa
30 more rows

What is the most American city in Europe? ›

Originally Answered: What is the most 'American' city in Europe? There is no american city in europe but can likely find Kaiserslautern in germany Germany. It's the location of many American military bases, and over the decades it's become very Americanized.

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