If you've been dreaming of a fresh start by the sea, Portugal might be at the top of all those online lists. Known for its mild climate, wines, and inviting culture, it’s no wonder North Americans are increasingly looking to Portugal as their new home. But it’s essential to understand the realities of expat life here beyond the travel brochures. While Portugal can be a wonderful place to live, it’s not without its challenges, especially for those used to a comfortable, middle-class lifestyle in North America.


Start by asking; will you be an immigrant or an expat?  Portugal is a welcoming place - but to love living there you need to love Portugal for what it is - not what you want it to be. Assimilation is crucial to understanding your neighbors and being part of their world. Foreigners who come with criticism or ideas how to improve a nearly 900-year old nation often meet with frustration. Portugal cannot be viewed with rose colored glasses.


The Visa

Portugal has visa options for North Americans, from the D7 visa (for those with passive income) to the Golden Visa, designed for those investing in Portuguese real estate. Understanding the requirements, costs, and processing times for each is essential before making any concrete plans, so set an appointment at your local consulate.


Safety

Portugal is one of the safest countries in Europe, but as with any move, it’s important to research specific neighborhoods or areas. Many North Americans feel secure in Portugal, but learning about local customs, emergency numbers, and nearby healthcare facilities will help in the search.


Health Insurance

Portugal has an excellent public healthcare system, but as a resident you may want to consider private health insurance, especially if you’re not eligible for the public system immediately. Research the cost of private insurance and the scope of coverage to find what best meets your needs. Costs are low versus the US. Some people opt for a combination of both public and private healthcare to ensure comprehensive care and access.


Housing Quality and Costs

Portugal’s housing market has changed considerably in recent years due to expats. Quality rentals or homes are not as cheap as advertised, especially in popular areas like Lisbon, Porto, and the Algarve. Rebuilding ruins, or just building a new home comes with real challenges and costs. Older homes often have poor insulation, no heating or cooling, and may have issues with dampness in the winter.  Decide whether renting or buying is best for your situation. Familiarize yourself with the disorganized buying process in Portugal, mortgage rules, and how property laws differ. Then consider utilities, groceries, transportation, and dining out to build a realistic budget. Also, ask about potential tax benefits for foreign residents, such as the Non-Habitual Resident (NHR) tax plan.


Education

If you’re moving with children, researching Portugal’s education system is crucial. Portugal offers a range of options, including public schools, private institutions, and international schools, particularly in Lisbon, Porto and the Algarve. Understand the curriculum, language requirements, and potential fees involved as private school tuition will be much higher than you think.


Work and Income

Finding local work will be challenging without Portuguese language skills. Average salaries are much lower than in North America, and Portuguese tax rates are 23-45%. Property taxes, however, are much lower.


Cost and Style of Living

Yes, most costs, like dining out and public transport can be lower, as are groceries. But electric, gas, and a car are not. Life in Portugal can be slower-paced, with different dining hours, long meals, an emphasis on family time, and less of a focus on work culture. Understanding these differences can stop culture shock. Yet, the many bureaucratic hurdles and longer wait times for services are part of the deal.


Climate

Portugal’s climate is mild, but it is a big enough place that it depends now here you are. The winters can be chilly, especially in homes without heating. Summers are hot and dry. But the “where” is that matters.


Language

Learning Portuguese can be challenging to some, and it is a requirement of citizenship. While many Portuguese people, especially in urban areas and popular expat zones, speak English, learning Portuguese is a must to integrate and navigate daily life. Ask yourself how comfortable you are with language learning or if you’d need language support once you’re there. It is difficult to live in Portugal if you don’t try. The University of Coimbra has an excellent Portuguese for foreigners summer program.


Politics

Portugal is a left leaning republic, with lots of laws and taxes to support its citizens. The North tends to be more conservative, and the center more moderate, while the rural south is left leaning. While a far right party has made gains in recent elections, it seems more of a response to a long mandate by the Socialist Party. Currently the center right Social Democrats lead a minority coalition in Parliament. While they love to argue and debate politics, link football (no, they don’t call it soccer) they will not bend much in their opinions. Arguments are more of a sport, so be careful.





Social and Cultural Considerations

Portugal has a reputation as a welcoming place, but housing cost shifts due to over-tourism and expats have brought some negative sentiment. The gentrification of some places is driving up prices, and that will create friction.

While Portuguese will be the first to criticize their homeland, they often don’t enjoy hearing it from foreigners - so be careful with what you say.

Think it through - Portugal is a complex, wonderful and infuriating place. Don’t fall for the sunny photos of Lisbon or the beaches in the Algarve-living. Real life is not the same, and it is a very different place.