While Spain has long been a favourite destination for British expats, Portugal is now seeing a surge in popularity, with expat numbers increasing by 150% since 2018. This growth has been driven by remote workers and retirees, despite the challenges of Brexit and the COVID-19 pandemic. According to recent data, 70% of expats who move to Portugal end up staying for five years or more.
One of the main reasons for this shift is affordability. In Spain, the average rent for a one-bedroom apartment is €972, and food prices have risen by 38.5% since 2019. Additionally, Spain is proposing a 100% property tax for non-EU residents, which could double the cost of buying a home. In contrast, Portugal offers a lower cost of living, with Housing Anywhere estimating monthly expenses for a single person at just €1,285. Numbeo reports that Portugal's overall cost of living is 37.9% lower than the UK.
Portugal's Digital Nomad Visa, launched in 2022, has also attracted remote workers. Applicants must prove an income of €3,480 per month, or four times the minimum wage. For retirees, the income requirement is lower at €870 per month, aligning with the country's minimum wage. By comparison, Spain's non-working visa for retirees requires an annual income of approximately €30,240, plus additional amounts for dependents.
Weather remains a key draw for both countries, with Portugal offering hot summers and mild winters, though the north is cooler and wetter. While Spain still appeals to those who can afford it, Portugal is becoming a solid alternative for Brits on a budget, combining sunshine with a lower cost of living.
