Can’t Decide on Portugal or Spain? Here’s the Real Comparison

If you’re planning a move to Southern Europe, the question often comes down to Portugal or Spain. We considered both and nearly choose Spain as the property market in Portugal was so poor at the time!
Both offer sunshine, a slower pace of life, great food and friendly people — but there are key differences in visa rules, taxes, relocation costs, and culture that can make one country a better fit than the other.

At Your Casa Key, we speak to people every week who are torn between the two. So here’s an honest look at the pros and cons of each to help you start making sense of it all.

Visa Requirements

Portugal:
Portugal’s D7 visa (for passive income or retirement) and Digital Nomad visa (for remote workers) are both popular and relatively straightforward. You’ll need to show steady income (around €820/month minimum per person in 2025) and a 12-month rental contract. The process is usually smooth if your documents are complete, and residency leads to permanent stay after five years.

Spain:
Spain offers the Non-Lucrative visa (for retirees or those with passive income) and a newer Digital Nomad visa. The income threshold is higher — roughly €2,400/month for a single applicant — and Spain tends to require more paperwork and legal fees.

✅ Verdict: Portugal wins for simpler visa routes and lower income requirements.

Cost of Relocation & Living

Portugal:
Rental prices, groceries, and utility bills remain cheaper than in Spain overall, though Lisbon and Cascais have become pricey. Healthcare costs are low, and private medical insurance is affordable (around €60–€100/month).

Spain:
Spain’s property prices are still competitive, but cost of living varies more by region. Coastal areas like Málaga or Alicante can be as expensive as Lisbon. However, Spain’s larger cities have more international schools and transport links.

✅ Verdict: Portugal generally offers better value, especially for long-term rentals and healthcare.

Taxes

Portugal:
Portugal’s Non-Habitual Resident (NHR) tax regime ended for new applicants in 2024, but a replacement programme for skilled professionals is now in place. Pension and foreign income are taxed progressively, but still lower than in many EU countries.

Spain:
Spain’s tax rates are higher, and there’s no broad equivalent to NHR. Expats must declare worldwide income, and regional tax rates vary. Professional advice is almost essential.

✅ Verdict: Portugal remains more tax-friendly overall, particularly for retirees and remote workers.

Climate & Sunshine

Portugal:
Portugal’s Atlantic climate means cooler summers and milder winters. You’ll get around 300 days of sunshine a year, with sea breezes keeping temperatures manageable.

Spain:
Spain enjoys a Mediterranean climate with hotter summers and slightly colder winters inland. You’ll find warmer water and longer beach seasons on the Mediterranean coast.

✅ Verdict: Spain is hotter; Portugal more temperate. If you prefer cooler evenings and greener scenery, Portugal wins.

Culture & Lifestyle

Portugal:
Portugal has a strong sense of community, smaller cities, and a calm pace of life. It’s perfect if you want authenticity, safety, and easy integration. English is widely spoken in urban areas, and locals tend to be welcoming to immigrants.

Spain:
Spain offers more variety in nightlife, cuisine, and cultural events. Big cities buzz late into the night, and there’s a larger expat infrastructure in areas like the Costa del Sol.

✅ Verdict: Spain offers energy and choice; Portugal offers peace and charm.

So, Which Country Is Right for You?

If you’re after:

• A simpler visa route

• Lower relocation costs

• A calm, community-driven lifestyle

→ Portugal will likely suit you best.

If you want:

• Bigger cities and nightlife

• Warmer seas

• A larger expat scene

→ Spain might tick more boxes.

How to Decide Confidently

This isn’t just about sunshine or food — it’s about what kind of life you want to build.
That’s exactly what our Relocation Coaching Calls help with.

In your session, we’ll look at:

• Your lifestyle priorities (retirement, remote work, family life).

• Visa suitability for your income type.

• Which regions match your needs and budget.

• The real-world pros and cons of living in each country.

By the end, you’ll have a clear plan — not another week lost scrolling property sites.

Book your Relocation Coaching Call now and get personalised insight into whether Portugal or Spain fits your future best.
Visit www.yourcasakey.com to schedule yours.

🎥 Watch our YouTube video: “How to Choose Where to Move in Portugal”