Where Do Most Foreigners Live in Portugal? | Expat City Guide

Since Brexit, British citizens need a visa to live in Portugal for more than 90 days. Here’s what you need to know:

D7 Passive Income Visa

This is the most popular option for retirees and those with passive income (pensions, investments, rental income). Requirements include:

• Minimum monthly income of around £700-£800 (varies by family size)
• Proof of accommodation in Portugal
• Health insurance coverage
• Clean criminal record

Processing time: 2-4 months. Cost: Approximately £80-£120 for application fees.

Golden Visa

For investors willing to make significant investments (minimum €250,000 in property or other qualifying investments). Processing time: 6-12 months. Cost: €5,000+ in government fees plus investment amount.

Digital Nomad Visa

New option for remote workers earning at least 4x the Portuguese minimum wage (£2,800+ monthly). Valid for 1 year, renewable.

Importing your belongings to Portugal can be straightforward if you follow the rules correctly:

Personal Belongings Exemption

You can import household goods duty-free if you meet these conditions:

• You’ve lived in the UK for at least 12 months before moving
• You’ve owned and used the items for at least 6 months
• You’re moving to Portugal as your main residence
• You don’t sell the items for 12 months after import

Required Documents

• Inventory list (detailed, with values)
• Proof of residence in UK (utility bills, council tax)
• Proof of new residence in Portugal (rental contract or property deed)
• Passport and residence visa documentation
• Bill of lading/air waybill from removal company

Shipping Times and Costs

From UK to Portugal:

• Sea freight: 7-14 days, costs £1,500-£4,000 depending on volume
• Air freight: 2-5 days, costs £3,000-£8,000+ (much more expensive)
• Road transport: 3-7 days, costs £1,200-£3,500

Healthcare in Portugal is generally excellent and affordable, but the system works differently than the NHS:

Public Healthcare System

Once you have residency, you can register for the Serviço Nacional de Saúde (SNS). Annual registration fee is around £30-£50. After registration:

• GP visits: £5-£10
• Specialist consultations: £15-£25
• Hospital treatment: £20-£50 per day
• Prescription medications: 37% of cost (many common drugs under £5)

Private Healthcare

Many expats choose private health insurance for faster access and English-speaking doctors:

• Basic private insurance: £30-£60 per month
• Comprehensive coverage: £60-£120 per month
• Private GP visit: £30-£50
• Private specialist: £50-£100

EHIC/GHIC Cards

UK-issued EHIC cards are no longer valid. Apply for a GHIC (Global Health Insurance Card) which covers emergency treatment only – not sufficient for residency.

Setting up banking in Portugal is essential for daily life and proving financial stability for residency:

Opening a Portuguese Bank Account

Requirements typically include:

• Passport
• Portuguese tax number (NIF)
• Proof of address in Portugal
• Proof of income/source of funds

Most banks don’t charge monthly fees for basic accounts. Popular banks include Caixa Geral de Depósitos, Millennium BCP, and Santander.

Transferring Money from UK

Options for transferring your pension or savings:

• Traditional banks: High fees (3-5%) and poor exchange rates
• Specialist services (Wise, Revolut): Much better rates, fees around 0.5-1%
• Forward contracts: Lock in exchange rates for future transfers (useful for property purchases)

Typical transfer costs: £20-£50 per transaction with specialists vs £100-£300 with traditional banks.

Pension Considerations

UK state pensions can be paid directly to Portuguese bank accounts. Private pensions may have different rules – check with your provider. Portugal offers tax benefits for foreign pensioners under the Non-Habitual Resident (NHR) scheme (though this is changing in 2024).

Transportation in Portugal varies greatly by region, and driving rules differ from the UK:

UK Driving Licence in Portugal

British citizens can drive in Portugal with their UK licence for the first 185 days after getting residency. After that, you must exchange it for a Portuguese licence:

• No test required for UK licence holders
• Cost: Approximately £40-£60
• Process: Apply through IMT (Instituto da Mobilidade e dos Transportes)
• Documents needed: Passport, NIF, proof of address, medical certificate

Bringing Your UK Car

You can import your UK-registered car duty-free if:

• You’ve owned and used it for at least 6 months in the UK
• You’re moving to Portugal as your main residence
• You keep it for at least 12 months after import

However, right-hand drive cars can be difficult to sell later, and parts/service may be harder to find.

Public Transport

Quality varies significantly:

• Lisbon/Porto: Excellent metro, bus, and tram systems (£35-50/month pass)
• Algarve: Limited bus service, car essential (£60-80/month for car running costs)
• Smaller cities: Basic bus service, car recommended

The amount needed depends on your lifestyle and location, but here are realistic estimates:

• Comfortable retirement (couple): £1,800-£2,500 per month in Lisbon/Algarve; £1,400-£2,000 in smaller cities
• Modest retirement (single person): £1,200-£1,600 per month in most areas
• Minimum for D7 visa: Around £700-£800 per month (plus 50% for spouse, 30% for each child)

This includes housing, utilities, groceries, healthcare, transport, and some leisure activities. Property ownership significantly reduces monthly costs compared to renting.

Yes, British citizens can buy property in Portugal with the same rights as EU citizens. There are no restrictions on foreign ownership. However, there are important considerations:

• Legal representation: Always hire an independent Portuguese lawyer (cost: £800-£1,500)
• Property taxes: Annual property tax (IMI) is 0.3-0.8% of property value
• Notary fees: Around 0.8% of property value
• Registration fees: 0.5-1% of property value
• Golden Visa changes: As of 2023, Golden Visa property investments are restricted in high-density areas like Lisbon and Porto

Property prices vary dramatically: Algarve coastal properties (£250,000+) vs Silver Coast villages (£100,000-£150,000 for similar properties).

Portugal is consistently ranked as one of the safest countries in the world (3rd in Global Peace Index 2023). Violent crime is extremely rare, and most areas are very safe for expats. However:

• Pickpocketing: Can occur in tourist areas of Lisbon and Porto – use normal precautions
• Scams: Rare, but be cautious of rental scams (always view property before paying deposits)
• Road safety: Portuguese drivers can be more aggressive than UK standards
• Natural disasters: Very low risk – occasional forest fires in summer (mainly inland areas)

Most British expats report feeling safer in Portugal than in the UK, especially in smaller towns and rural areas.

You can manage in tourist areas and expat communities with just English, but learning Portuguese significantly improves your experience:

• Official matters: Government offices, banks, and legal processes often require Portuguese
• Daily life: Supermarkets, local shops, and services in smaller towns may have limited English
• Social integration: Locals appreciate efforts to speak Portuguese, even basic phrases
• Healthcare: Private hospitals in tourist areas have English speakers, but public system may not

Many expats take Portuguese lessons (£8-£15/hour) or use language apps. Basic conversational Portuguese can be learned in 3-6 months with regular practice.

The complete process typically takes 3-6 months:

• Visa application: 2-4 months processing time
• Property search/purchase: 1-3 months (if buying)
• Shipping belongings: 1-2 weeks transit time, plus 1-2 weeks for customs clearance
• Residency registration: Must be completed within 4 months of arrival

Best moving times are spring (March-May) and autumn (September-November) to avoid summer tourist crowds and winter rains. Summer moves (June-August) can be more expensive and crowded.

Portugal has a Mediterranean climate with regional variations:

• Algarve (South): Hot, dry summers (25-30°C) and mild winters (10-15°C). Over 300 sunny days per year.
• Lisbon/Coast: Warm summers (22-28°C) and mild, rainy winters (8-14°C). Less extreme temperatures than south.
• Porto/North: Cooler summers (20-25°C) and wetter winters (6-12°C). More rainfall throughout the year.
• Interior/Mountains: Hotter summers and colder winters, with occasional snow in mountain areas.
• Madeira: Subtropical climate year-round (18-25°C), rarely dropping below 15°C even in winter.

Overall, Portugal has milder winters than the UK and less extreme heat than other Mediterranean countries.

Yes, you can receive your UK state pension in Portugal. It will be paid in pounds sterling directly to your Portuguese bank account. Important points:

• Pension increases: Your UK state pension will continue to receive annual increases (unlike some other countries)
• Taxation: UK state pensions are taxable in Portugal, not the UK (under double taxation agreement)
• Bank charges: Check with your Portuguese bank about receiving international payments – some charge fees
• Exchange rates: Consider using a currency specialist for better rates when converting to euros

Private pensions may have different rules – check with your pension provider before moving.

For families with school-age children, consider these factors:

• International schools: Lisbon (Cascais/Estoril area) has the best selection, with annual fees of £8,000-£15,000 per child
• Porto: Has a few international schools but fewer options than Lisbon
• Algarve: Several international schools, particularly around Lagos and Almancil
• Public schools: Free and generally good quality, but instruction is in Portuguese
• Family-friendly areas: Cascais, Estoril, Comporta (Silver Coast), and Tavira (Algarve) are popular with expat families

Consider proximity to schools, healthcare facilities, and family activities when choosing your location.