Pros & cons of buying a property in Portugal

Cons

Learning to speak Portuguese

If you’re in a shop, museum or on the street in Portugal, you’ll probably be able to get by speaking the English language. But when you move away from everyday scenarios, there are many situations where only Portuguese is spoken, including any dealings that you need to have with government agencies. As a minimum, you will need to be able to speak Portuguese at a basic conversational level, so it’s important to factor in the cost and time required to learn a new language. 

Low salaries

The national minimum wage in Portugal is €823 per month, which works out to €9,870 per year). If you’re thinking about moving to Portugal from the USA, this is much lower than the monthly minimum wage in the USA, which is $1,256 (€1,233.76). And if you’re thinking of moving to Portugal from the UK, this is also lower than the monthly minimum wage in the UK, which is £1,536.20 (€1821.74).

No central heating

Portugal is generally warm in the summer, but during the winter months, it can be cold in certain regions. Many properties don’t have heating or insulation, so you’ll need to buy heaters and pay for the energy required to keep them switched on during winter.

Expensive accommodation costs

Although basic items tend to be affordable in Portugal, utility bills and accommodation costs can be high. Electricity and fuel are also expensive, so it’s vital to think about your monthly budget when considering all of the moving to Portugal pros and cons.

Weather

The climate in Portugal can be very hot - up to 40 degrees celsius during the summer. And even in warm areas all year round, it is often very rainy during the winter months. It hardly ever snows in Portugal.

The slower pace of life

Not everyone loves the quiet lifestyle enjoyed by the people of Portugal. Many locals aren’t in any rush to get to places, which can be difficult if you value punctuality. You should also bear in mind that shops and restaurants usually close for a few hours in the middle of the day. They also tend to be closed all day on Sundays. Bureaucratic processes also tend to be slow, and frustrating if you’re trying to resolve a problem. This includes processes such as obtaining planning permission or setting up a business.

Driving

The exception to the ‘slower pace of life’ rule is the style of driving. Portuguese drivers tend to move fast and are often impatient to overtake other cars on the road. As a result, there are regular accidents on the roads. It’s important to be alert and react quickly and calmly when faced with a sudden driving hazard.

Paying by card can be problematic

Bank cards in Portugal are issued by Multibanco. Mastercard and Visa are not universally accepted, so it’s important to check whether international bank cards are accepted. Otherwise, you will need to carry cash.

Overtourism

The pandemic led to many people having to cancel their travel plans. When the borders reopened, the urge to travel meant exceptionally high numbers of tourists planning to visit understaffed holiday destinations across Europe, including Portugal. In addition, schemes that encourage foreign investment have led to over-tourism. Many cities in Portugal lack the infrastructure to cope with the number of tourists. Overtourism also significantly strains public transport services and the housing market. 

Pros

Weather

If you’re a sun worshiper or keen surfer, the weather is probably one of the best incentives to move to Portugal. Most places in Portugal enjoy a warm climate, although the weather does vary by region. It tends to be sunny during July, August, and September. Rainfall is low in the south, while it tends to be rainier in the northwest.

Regions in the northeast generally enjoy long, warm summers. August is the hottest month, with an average daytime temperature of around 28 degrees celsius in Lisbon. The ocean is at its warmest during August and September, with sea temperatures ranging between 13 and 19 degrees Celsius.

Winters can be warm, too. In Lisbon the average daily temperature in Lisbon is around 15 degrees Celsius. It rarely snows, and if it does, the snow tends to melt very fast. Snow is more likely to fall in the mountains.

Fantastic beaches

If you love spending time on the beach, you’ll be spoilt for choice in Portugal. Beautiful white-sand beaches span the whole western and southern areas of Portugal.

Safety

The crime rate in Portugal is relatively low. The majority of Portuguese people are welcoming and friendly, and they treat others with kindness and warmth. In 2021, Portugal was ranked the 29th safest country in the world (World Economic Forum, the Global Institute for Peace). The World Population Review ranks it as the second safest country in Europe, thanks to its military force, armed police units, security officer presence, and political stability.

Good road networks

There is considerably less traffic on the roads in Portugal compared to other countries in northern Europe, although there can be heavy traffic in the major cities during peak hours. The dual carriageways and motorways network is generally good, and the major roads don’t tend to get too busy.

Cost of basic items

Compared with other countries in the European Union, the cost of living in Portugal is relatively low. Basic necessities such as bread, food, and wine are usually available at reasonable prices. Local markets are an affordable way to stock up on fresh seasonal produce if you want to save money on your shopping.
 

Entertainment and activities

There is entertainment and recreation to suit all personalities in Portugal. The locals enjoy activities such as diving, surfing and fishing. Other options include swimming in the ocean, exploring the mountain ranges, or visiting historic monuments, castles and fortresses. In the 2021 World Travel Awards, The Algarve was recognised as the world’s leading beach destination, and Turismo de Portugal was voted Europe’s Leading Tourist Board.

Education

The standard of both secondary and higher education is good in Portugal. If you obtain a degree from a university in Portugal, this will be recognised throughout the European Union, which is useful if you want to find employment in other EU countries.

If you choose to study at a university in English, degree and higher education courses are taught in Portuguese and English in some institutions. However, not all institutions offer English courses, and those that do are usually more expensive.

Healthcare

The Portuguese government invests around 9.5% of Portugal’s GDP in healthcare spending each year. If you’re a Portuguese citizen or resident in Portugal, healthcare services are covered by the state when you attend a public hospital. However, patients must pay a ‘standard user fee’ or ‘taxas moderadoras’. 

If you want to be seen more quickly, you can choose to pay for private healthcare services. Choosing to access private healthcare means you’ll have access to telephone consultations with your doctor, and the overall level of service is better. Private health insurance cover will fund part or all of the cost of treatment, depending on your chosen policy and circumstances.

Tax benefits

If you are a foreigner with a residence permit in Portugal, you can apply for Non-Habitual Residence (NHR) tax status. This means you won’t have to pay income tax you earn abroad, provided that it has been taxed at the source. Having NHR status means investors can minimise the amount of income tax they pay in Portugal. 

For skilled professionals, including programmers, scientists, engineers, and entertainers, taxes are 20% instead of 48%. To be eligible for NHR status, you must be a tax resident of Portugal, which means you must live in Portugal for a minimum of 183 days during the year, either in a rented or purchased property. You will only be eligible for the tax exemption if you have not been a Portuguese tax resident during the last five years. Special tax status is granted for a maximum of ten years. Speak to a tax professional to find out more.

Many people speak English

Most Portuguese people can speak English, so you don’t need to be fluent in Portuguese to live there. The people also tend to be friendly and helpful towards expats.

Relaxed pace of life

If you enjoy a relatively calm and quiet lifestyle, you will probably enjoy living in Portugal. Most Portuguese people enjoy a relaxed pace of life, and they are rarely in a rush to get to places. Even major cities like Porto and Lisbon are not as busy as other international cities such as London and New York.

Conclusion

There is no such thing as the ‘perfect’ place to buy property, but there are plenty of reasons why Portugal should be high on your shortlist. If you’re considering buying a property in Portugal, it’s important to consider the moving to Portugal pros and cons in our guide.

After conducting your research, weigh the pros and cons of moving to Portugal and decide whether any of the negative aspects of moving to Portugal are deal-breakers.