Choosing between Spain and Portugal for living

Terms used

• Convenio especial — The convenio especial is a paid scheme that lets residents without Social Security cover join Spain's public healthcare for a monthly fee.
• Empadronamiento — Empadronamiento is your registration at your local town hall as a resident, needed for a health card.
• IFICI — IFICI is Portugal's narrower tax regime for qualifying new residents, replacing the NHR.
• NHR — The NHR was Portugal's former tax regime for new residents, now closed to new entrants.

Key rules

• Golden visas: Neither country sells residence for property any more, though Portugal's fund and other investment routes remain.
• Spanish citizenship: Spain's wait is long unless you are Ibero-American or Portuguese, who need only 2 years.
• Rent: Lisbon and Porto rents are now comparable to or above Madrid, Barcelona and Valencia.
• Healthcare: In Spain, cover depends on whether you work; in Portugal, residents register at a local health centre.
• Language: English helps more in Portugal, but Spanish official paperwork is in Spanish.

The short answer

Spain and Portugal differ less than reputation suggests. Portugal is no longer the cheap, low-tax option it was. Spain is no longer the harder one to enter. The real gaps now are in residency routes, the tax picture after the old NHR regime, housing pressure, healthcare access, English use and how long citizenship takes. The side-by-side comparison below also puts Italy, France and Greece next to Spain.

Residency routes

Both countries offer routes for non-EU nationals, and neither sells residence for property any more. Spain's real-estate golden visa closed in April 2025. Portugal's real-estate golden visa route closed in October 2023, while fund and other investment routes remain.

Spain offers:

• A non-lucrative visa: you need sufficient funds and private health insurance, and you cannot work.
• A digital nomad visa for remote work for foreign companies, with a three-year initial permit.
• Work permits tied to a job offer.
• An entrepreneur visa with an approved business plan.
• Arraigo permits, which are based on social, work or family ties, under a reform that took effect in May 2025.

Portugal offers:

• D7 for passive income or a pension.
• D8 for remote work.
• D2 for self-employed people and entrepreneurs.
• D3 for highly qualified work.
• A job-seeker visa and standard work visas with a contract.

Portugal has tightened some of these recently, such as the job-seeker visa and qualified work. Income thresholds in both countries change, so confirm the current figure with the consulate before you apply. In Portugal, the immigration agency AIMA issues residence permits.

Tax after the NHR

Neither country now offers a broad tax holiday. Both have a narrower regime for new arrivals.

Spain's special regime for inbound workers applies for the year of arrival plus five years. It taxes employment income up to €600,000 at a flat 24%. You must not have been a Spanish tax resident in the previous five years. You must also move for a job, as a director, as an entrepreneur, as a highly qualified professional, or as a remote worker. It is explained in full on the Spain or Portugal for remote workers page.

Portugal's replacement, IFICI, covers a narrower group: qualifying roles in research, higher education, tech and startups. It gives a flat 20% rate on qualifying Portuguese-source income for 10 years. Pensions are taxed normally. People already in the old NHR keep their benefits.

If you are retired or live on investment income, neither regime is likely to help you. Compare each country's ordinary tax rules instead.

Cost and housing

Overall living costs remain somewhat lower in Portugal. Groceries, dining and utilities are generally a little cheaper. Local salaries are lower too, which matters if you plan to earn locally.

Rent is where the gap has closed. Rents in Lisbon and Porto are now comparable to, or above, those in Madrid, Barcelona and Valencia. The Algarve costs about the same as Spanish costas such as Málaga and Alicante in high season.

Both markets are tight, with scarce rentals in the big cities and coasts. Spain lets regions declare stressed rental zones with rent caps. Catalonia applies them. Check whether your target area is one. Neither country bans foreigners from buying. Spain has debated a heavy tax on non-EU buyers, so check the latest before you buy.

Compare rents in the exact city you would live in, not national averages. Across the whole country, both Spain and Portugal sit below the EU average on price levels.

Healthcare

Spain: if you work and pay into Social Security, you get public healthcare through that. If you do not, for example on a non-lucrative visa, you need private insurance with no co-payments or waiting periods. After at least one year of registered residence you can join the public system through the convenio especial, a monthly fee. It is about €60 for under-65s and about €157 for those 65 and over in recent years. To get a health card you need empadronamiento, your registration with the town hall.

Portugal: register at your local health centre with your residence permit, passport and proof of address. You receive an SNS user number and use the system on the same terms as Portuguese residents, with small user fees for some visits. Capacity varies, and a family doctor may not be available. Many expats add private insurance to avoid long waits.

English in daily life

English is easier in Portugal. It is widely usable in Lisbon, Porto and the Algarve. In Spain it works in tourist areas, but official paperwork is mostly in Spanish. Plan to learn the language if you choose Spain.

Citizenship

Spain requires 10 years of legal residence for naturalisation, reduced to 2 years for Ibero-American and Portuguese nationals. You also pass a Spanish language exam (unless exempt) and a civic knowledge test. Processing often takes over a year.

Portugal is moving from 5 years toward 7 years for most foreigners, with a language test and a civic test. The clock runs from the grant of your residence permit. Confirm the final rules with the Instituto dos Registos e do Notariado before you rely on a date.

How to decide

Start with your income source: pension, remote work, a local job or a business. Match it to a visa. Then check tax, a specific city's rents, and healthcare. The checklist, documents and timeline below take you through the steps.

Spain beside Portugal, Italy, France and Greece on the deciding factors

Portugal is the easiest of the five for English speakers and costs less than Italy or France. Spain matches it on price but needs more Spanish. Italy and France cost more, and France is the most expensive of the five.

The five countries side by side

How to read this table

• Prices are national averages. Rent in Madrid and Lisbon is higher than the national figures suggest.
• Money thresholds change. Income and funds requirements for visas are updated regularly, so ask the consulate for the current figure before you apply.
• Healthcare fees vary by region. In Spain, the monthly fee and the rules differ slightly between regions. In Portugal, a local health centre may not have a family doctor available.
• Tax can decide the choice. Italy's special regimes only suit you if you meet their conditions. Check eligibility with the tax office before you move, not after.
• EU citizens skip the visa column. The residency routes above are for non-EU nationals.

Timeline and deadlines

Lead times and deadlines

• Apply to Spain's Tax Agency for the special regime for inbound workers using Modelo 149: within six months of registering with Social Security or starting work

• Register at your local health centre in Portugal to get your SNS user number: once you hold your residence permit

• Start counting your Portuguese citizenship residence years: from the day your residence permit is granted, not the day you apply

Documents you need

Documents you need

• Residence permit for Portugal, issued by the immigration agency AIMA, needed to register at your local health centre (centro de saúde).

• Passport, needed to register at a Portuguese health centre and receive your SNS user number (número de utente).

• Proof of address in Portugal, needed to register at your local health centre.

• Empadronamiento, the registration certificate from your Spanish town hall, needed to get a health card from your regional health service.

• Private health insurance policy with no co-payments or waiting periods, required for a Spanish non-lucrative visa and not needed if you are covered through work.

• Employment contract, needed for a standard Portuguese work visa.

• Modelo 149, the form to apply to Spain's Tax Agency for the special inbound workers tax regime, filed within six months of registering with Social Security or starting work.

Checklist

Compare Spain and Portugal

• Compare rents in the exact city you would live in, because Lisbon and Porto rents are now comparable to or above Madrid, Barcelona and Valencia.

• Look up the latest EU price level comparison for household spending in both countries, remembering these are national averages and not city prices.

• Match your income to a Portuguese visa: D7 for passive income or a pension, D8 for remote work, D2 for self-employment, D3 for highly qualified work, or a work visa with a contract.

• Check whether your job qualifies for Portugal's IFICI regime, which gives a flat 20% rate for 10 years on qualifying Portuguese income, with pensions taxed normally.

• Check whether you qualify for Spain's special regime for inbound workers, explained in Spain or Portugal for remote work.

• Find out whether your target Spanish area is a stressed rental zone with rent caps, since regions such as Catalonia apply them.

• Choose your Spanish healthcare route: cover through work, or private insurance first and the convenio especial after one year of registered residence.

• Ask your Portuguese health centre whether a family doctor is available, and decide whether to add private insurance to avoid long waits.

• Plan for official paperwork in Spanish, since English works well in Lisbon, Porto, the Algarve and tourist areas but Spanish bureaucracy is mostly in the local language.

• Compare citizenship timelines: Spain needs 10 years of legal residence, reduced to 2 years for Ibero-American and Portuguese nationals.

• Ask the Portuguese registry office for the current residence years needed for citizenship, since the nationality law has just changed.

Quick answers about Spain and its rivals

Is living in Portugal cheaper than living in Spain?

Yes, Portugal is somewhat cheaper overall, but the gap in rent has largely closed in Lisbon and Porto.

Can I manage daily life in English in Spain or Portugal?

Yes, English is easier in Portugal, but in Spain it works mainly in tourist areas. Portugal ranks higher than Spain for English proficiency, and English is widely usable in Lisbon, Porto and the Algarve. Official paperwork in Spain is mostly in Spanish, so plan for some help with it.

How does Spanish tax compare with the UAE and Thailand?

Spain taxes you on worldwide income once you are a tax resident, while the UAE charges no personal income tax. Spain's combined top rate is typically around 47% to 54% depending on the region, and savings income is taxed at 19-30%. Thailand taxes foreign income you bring into the country, with rates up to 35%.