Advantages and Disadvantages of Residing in Portugal by 2025
Portugal, nestled along the western coast of Europe, boasts a Mediterranean climate with over 300 days of sunshine, making it an attractive destination for many. This sun-drenched country has become a popular choice for expats from the United Kingdom, Germany, France, and increasingly, the United States.
The Algarve, Portugal's southernmost region, is particularly popular among retirees and expats. Known for its picturesque beaches, golf courses, and flocks of tourists, the Algarve offers an affordable cost of living compared to Northern European cities. However, coastal resorts in the Algarve have higher rents, especially during peak season, while smaller inland towns are more budget-friendly but may lack amenities.
One of the key factors drawing expats to Portugal is its high-speed internet, which ranges from €30 to €50, and mobile data costing approximately €18. This makes it easier for digital nomads and remote workers to maintain their connections while enjoying the slower pace of life.
Portugal's safety is another major draw. The country ranks 7th on the Global Peace Index, making it one of the safest countries in the world. This, combined with its affordability, has made Portugal an attractive destination for those seeking a safer lifestyle.
For those looking to retire or live in Portugal with passive income, the D7 Visa is tailored to your needs. This visa is designed for individuals who can sustain themselves with steady income from sources like pensions or rental properties generated outside of Portugal. The minimum income requirement for D7 visa applicants in 2025 is €870 per month.
Porto, often considered Portugal's hidden gem, has also become more popular in recent years. The average cost of renting a one-bedroom apartment in Lisbon is €1,400, while in Porto, it's slightly more affordable. Another thriving expat community can be found in Portimao.
However, it's important to note that the winding down of the golden visa program has affected some potential expats' decisions. Nevertheless, Portugal has traditionally been more affordable than many parts of the US and other Western European countries. An estimated 14,000 Americans now call Portugal home, representing a 230% increase since 2017.
In 2025, several institutions in Portugal will offer special visa options for non-EU citizens with stays over three months. These include the D8 Visa for digital nomads (for remote work), the D7 Visa for retirees and individuals with passive income, and the Golden Visa (ARI) Program for investors. These visas enable legal long-term stays and paths to residency.
In conclusion, Portugal's Mediterranean climate, affordability, safety, and friendly expat communities make it an appealing destination for those seeking a slower, safer, and more affordable lifestyle. Whether you're a digital nomad, retiree, or investor, Portugal offers a variety of visa options to help you make your move.
