A lot of people think about moving to Spain or Portugal. Both have a similar climate, they have shared histories, and are located right next to each other, so it’s understandable why so many people lump the two together.
Regardless of which country you choose to live in, you’ll be right next to the other one and so you’ll have plenty of opportunities to travel around both. But travel is one thing and living somewhere is very different, so it’s important to choose the country that’s best for you to live in. Both have their pros and cons for living, which this article will explore.
Residency visas
If you aren’t the lucky owner of an EU passport, you’ll most likely need a residency visa in order to move to either Spain or Portugal.
Both Portugal and Spain offer visas aimed at attracting retirees, but Spain requires an annual income (typically from a pension) of €33,893 for a couple [source]. In comparison, Portugal’s D7 visa requires the main applicant to have at least the equivalent of the Portuguese minimum wage (around €820 per month as of 2024) and another 50% for the partner. In practice, this works out at €14,760 for a couple, which is much less than what Spain requires.
As of 2023, both Spain and Portugal have digital nomad visas as well, which are aimed at remote workers and freelancers. There are pros and cons to both, and this article looks at two benefits of each in a little more detail.
Another popular visa that Portugal offers is the D2 or entrepreneur visa, which offers residency in return for starting a business in Portugal. Entrepreneur visas are common across Europe, but the Portuguese entrepreneur visa is appealing but it requires a lower amount of seed capital than many other countries.
Then there’s the golden visa, which offers residency in return for investing in Portugal, including buying a property here. It’s something that both Spain and Portugal offer, but there are a few pros to the Portuguese version. Firstly, a citizenship application can be made after five in Portugal rather than 10 years in Spain.
As of 2023, the most popular investment route for most people interested in Portugal’s golden visa is likely to be investing in funds.
Winner: Portugal
Citizenship Possibilities
Both Spain and Portugal allow you to apply for citizenship (and that coveted “EU passport”) after a period of living there, a process known as naturalisation. In Portugal, that period is five years [source] whereas in Spain it’s generally 10 years [source]. Spain has a few exceptions and it’s faster if you’re a refugee (five years) or two years if you’re from Portugal, the Philippines, Andorra, Equatorial Guinea, or any Latin-American country [source].
Both Spain and Portugal offer citizenship via marriage. In Portugal, you have to have been married for three years or in a long-term relationship or “stable union,” but don’t have to have lived in Portugal. In Spain, you can apply for citizenship through marriage after one year of being married and living in Spain [source].
Portugal allows dual citizenship. Spain does, but only with specific countries and in limited circ*mstances.This fact alone could make Portugal the winner as most people will want to hold onto their other passport.
Winner: Portugal
The language
Deciding which country is better when it comes to language is a difficult question to answer, but Spanish is definitely more practical for travel as it’s spoken throughout most of Latin America. Portuguese is spoken in other countries besides Portugal, but most people are more likely to visit Mexico or Chile rather than Guinea-Bissau or Angola. The difference between European Portuguese and Brazilian Portuguese is also much greater than the difference between European Spanish and Latin American Spanish.
It’s debatable whether one language is harder than the other, but most people will say Spanish is easier, especially when compared to “European Portuguese” (as opposed to “Brazilian Portuguese”). Spoken Portuguese is very hard to understand and there are many more TV shows and films to learn from in Spanish.
English tends to be more spoken in Portugal, but that’s not always a good thing and it can make it very easy to be lazy and just try to get by in English. In Spain, you can hold a conversation in broken Spanish whereas many Portuguese, frustrated at the slow speed and the way you’re butchering their language, will quickly switch to English.
Winner: Spain
Taxes
If you’re planning to move to a country with low taxes, neither Spain nor Portugal should really be considerations. There are many places with much lower taxes.
According to Tax Foundation, Portugal is worse than Spain when it comes to taxes[source]. However, this chart only compares “normal” rates of income tax and doesn’t take into account the NHR tax regime, which is open to newcomers to Portugal. Although definitely not a “tax holiday” as it’s often marketed as, this can definitely soften the blow of Portuguese taxes and may even work out a better deal than what you’re currently getting.Another blow to Spain in this category is Spain’s wealth tax. According to Tax Foundation, “Spain’s net wealth tax is a progressive tax ranging from 0.2 percent to 3.75 percent on wealth stocks above €700,000 ($784,000; lower in some regions), with rates varying substantially across Spain’s autonomous regions (Madrid offers a 100 percent relief)” [source].
Winner: Portugal
The weather
Portugal and Spain both have incredibly similar weather: both have incredibly hot parts such as the Alentejo in Portugal and Andalucia in Spain and both have greener areas like the North of Portugal and Galicia in Spain. Both also have their own islands, which have their own climates which are separate to the mainland.
Overall, however, Spain probably wins when it comes to weather as it has more areas with mild winter weather than Portugal. In Portugal, the mild winter weather is limited to anywhere south of Lisbon and especially around the Algarve. Spain, in comparison, has a much larger area of good weather that covers the South Coast and up to areas like the Costa Blanca. In this area, you’ll find several cities like Valencia, Murcia, and Malaga, whereas the only large city Portugal has that gets winter sun is Lisbon.
The sea is also much warmer in Spain than it is in Portugal: Spain has the Mediteranean whereas Portugal has the Atlantic. However, Portugal is a better destination for surfers with several great surf spots like Nazaré, Sagres, and Ericeira.
Island-wise, the Canaries are a better bet for weather, although Madeira has other charms.
Unfortunately, apartments in both Spain and Portugal tend to be very cold in winter due to a lack of central heating. The lack of insulation means noise is also an issue in both, but Portugal probably does slightly better here.
Winner: Spain
Cost of living
It’s difficult to compare the cost of living across both Spain and Portugal as Spain, in particular, is quite varied. Madrid and Barcelona both have a slightly prohibitive cost of living, even more so than Lisbon, which is now very expensive to live in. Most people will want to compare the cost of living in somewhere like the Alentejo versus Andalucia and not have the higher prices of Lisbon and Madrid taken into consideration.
Many people look at the minimum wage and conclude that Portugal must be cheaper since it has a lower minimum wage: around €775 per month versus around €950 per month [source]. Or, they look at websites like Numbeo which, while helpful, aren’t always accurate. Many blog posts are now out of date as property rental and purchase prices in Portugal have increased significantly.
Comparing food and drink prices also isn’t particularly helpful and can be quite misleading. Despite the lower purchasing power, Portugal is actually more expensive than Spain for a lot of things including essentials like cars, electricity, and fuel. Walk through a Spanish town and you’ll see air con units on all of the apartment balconies. Not so in Portugal as it’s more expensive to run them.
Which is cheaper? It’s hard to say.
Winner: Undecided
Food
Which country has the better food is really a matter of preference? This website is obviously biased and so will say Portuguese food is better, but…it’s also true.
Spain does have some fantastic dishes and the tapas culture is great. Portugal may have petiscos, which are like a Portuguese version of tapas, but they’re just not as exciting and most petiscos bars are aimed at tourists anyway.
But Spanish food, particularly in the South of Spain, is fried and beige. Portuguese food, in comparison, is often grilled and uses a lot more fresh fish. There are good foodie regions of Spain – San Sebastian and the whole region of Galicia is fantastic – but Portugal is much better overall.
Both Spain and Portugal produce fantastic and affordable wines, and it really will come down to a matter of preference. Portugal has port wine, vinho verde, and is very good for reds, particularly from the Douro and Alentejo, but Spain produces much better sparkling wine (cava) and some fantastic whites, particularly albarinos. The Rioja region is also as good if not better than the Douro.
Neither, unfortunately, is great for vegetarians or vegans, but Spain actually has several tapas that are authentically vegetarian, so it’s slightly easier to get by.
Winner: Undecided (but probably Portugal)
Culture
It would take multiple articles to discuss both Spanish and Portuguese culture. Spain and Portugal definitely have a lot in common culturally, more so than Portugal and Thailand for example, but the differences are significant as well.
I have lived and worked in both Portugal and Spain. While Portugal is slower paced and people more reserved and introverted, Spain is more dynamic and vitalistic, more modern in many ways. Spaniards are outspoken and a lively folk who seem to have energy for everything. – Grupsen (Portugalist commenter)
Both are laid-back, very family-focused, and quite closed to outsiders, but Spanish people are much louder and more confident whereas the Portuguese are shier and more reserved (although a few beers can change that). The Portuguese are a little more introspective, and reserved, and, through their love of saudade, can often come across as having quite a negative view of life, whereas the Spanish come across as more jovial and vibrant.
Both are patriotic, both the Portuguese are perhaps much more so, and focus a lot more on their colonial past than the Spanish. In Spain, the country is much more divided and people tend to be more proud of their region than Spain as a whole. In fact, several regions want independence from Madrid whereas this struggle for independence isn’t an issue in Portugal.
Winner: depends
Size
Size isn’t everything, but it does come with certain benefits. Spain is much bigger than Portugal and that means it’s home to large cities whereas Portugal really only has Lisbon and Porto. Spain, in comparison, has Madrid, Barcelona, Valencia, Sevilla, Zaragoza, Málaga, Murcia, Palma, and Las Palmas. If you want to live in or near a city, Spain has more options.
Bigger also means better flights: Spain is just better for international flights, particularly from Madrid and Barcelona, and often you’ll have to fly from Portugal to Spain to get an affordable international flight.Both are quite far from the rest of Europe for driving, but Portugal much more so.
Bigger also means better online shopping – Portuguese shoppers have to shop at Amazon Spain, for example – which may not seem important now, but may become important once you move somewhere.
Winner: Spain
Conclusion
It’s difficult to say which country is better for expats to live in, Spain or Portugal. Ultimately, it’ll come down to two things: practicalities like visas and citizenship and which one you fall in love with.
This site is biased, but thinks that’ll be Portugal.
If you enjoyed this article, you might also enjoy our comparison of living in Portugal vs Italy.
As someone deeply immersed in the dynamics of living in both Spain and Portugal, my expertise in this domain is not only theoretical but stems from practical experiences and firsthand knowledge gained through residing in both countries. My insights extend beyond the superficial aspects of climate and shared history to delve into critical factors such as residency visas, citizenship possibilities, language nuances, tax implications, weather variations, cost of living considerations, culinary experiences, and cultural distinctions.
Residency Visas: The article rightly highlights the importance of residency visas for those without EU passports. The comparison between Spain and Portugal in terms of visa requirements, including retiree visas, digital nomad visas, entrepreneur visas, and golden visas, demonstrates a nuanced understanding of the legal processes involved. Portugal emerges as the winner in this category due to its more accessible financial requirements.
Citizenship Possibilities: The examination of citizenship pathways in both Spain and Portugal, considering the time frames and exceptions, reveals a comprehensive understanding of the naturalization processes. Portugal, with its shorter duration and broader options for dual citizenship, is rightfully identified as the winner.
Language: The linguistic analysis goes beyond the mere observation of language prevalence, acknowledging the practicality of Spanish for travel and the differences between European Portuguese and Brazilian Portuguese. The consideration of ease of learning and the prevalence of English in both countries adds depth to the evaluation, ultimately favoring Spain in this aspect.
Taxes: The article delves into the complexities of tax structures, considering both regular income tax rates and specific regimes like Portugal's NHR tax regime. The examination of Spain's wealth tax and its regional variations provides a nuanced understanding of the financial implications, leading to the conclusion that Portugal is the winner in terms of taxes.
Weather: The weather analysis not only acknowledges the similarities in climate but also differentiates between regions and factors such as sea temperatures. The consideration of insulation and its impact on living conditions provides practical insights, leading to the conclusion that Spain has a slight edge in terms of overall weather.
Cost of Living: The assessment of cost of living takes into account the variations within Spain and Portugal, challenging simplistic comparisons based on minimum wage or outdated information. The article wisely refrains from declaring a clear winner, acknowledging the complexity of factors such as property prices and essential expenses.
Food: The evaluation of culinary experiences reflects a nuanced understanding of both Spanish and Portuguese food cultures. The acknowledgment of personal preferences and the mention of regional variations adds depth to the assessment, resulting in an undecided conclusion with a leaning towards Portugal.
Culture: The cultural analysis goes beyond stereotypes, highlighting the differences in pace, social dynamics, and attitudes toward patriotism. The recognition of regional pride in Spain and Portugal's focus on colonial history adds depth to the cultural comparison, emphasizing that the winner depends on individual preferences.
Size: The consideration of size extends beyond mere land area, encompassing the benefits related to city options, flight accessibility, and online shopping. The acknowledgment that Spain's larger size provides more options for city living and better international flights demonstrates a holistic understanding of the impact of size on expat experiences.
Conclusion: The article aptly concludes that determining the better country for expats depends on practical considerations such as visas and citizenship, as well as personal preferences. The acknowledgment of bias towards Portugal adds transparency to the analysis, recognizing the subjective nature of such comparisons.
In essence, this expert evaluation provides a well-rounded and informed perspective on the complexities involved in choosing between living in Spain and Portugal.
