Expats ditch Spain for sunny destination with lower cost of living

Many people dream of moving to Spain. From the warm climate to the food and vibrant culture, it seems to offer everything an expat could want.

But while expat numbers are remaining stable in Spain, it's the country's neighbour that's seeing a huge boom in numbers thanks to remote workers and retirees. Since 2018, Portugal's expat numbers have increased 150%, despite the effects of Brexit and the COVID pandemic. So, what is it about the country that's making it such a popular choice? And with 70% of expats to Portugal ending up staying for five years or more, what do they love about the lifestyle?

Lower cost of living

One major reason Brits choose Portugal over Spain is affordability. In a recent TikTok video, a woman laid bare the realities of living in Spain, saying: "Basically, you're working to survive". Rents can vary across the country, with the average for a one-bedroom apartment at €972, but many of the cities popular with expats can cost significantly more. Spain is also proposing a 100% property tax for non-EU residents, so if you plan to buy a property before getting residency, it could cost you double.

Inflation has also hit food prices in Spain. Filling a shopping basket hasbecome 38.5% more expensive since 2019, with wages not keeping up with the rise, meaning day-to-day living is getting pricier.

By contrast, Housing Anywhere dubbed Portugal "one of the most budget-friendly countries in Western Europe", claiming that the cost of living for a single person was just €1,285 monthly. Numbeo, where you can compare the cost of living in different countries, claims Portugal's overall cost of living is 37.9% lower than the UK, making it an attractive option for retirees.

Visas have opened up Portugal

Another reason why Portugal has attracted more expats is the Digital Nomad Visa. Launched in 2022, the scheme is aimed at remote workers who want to live in Portugal while working for a foreign company. There's a one-year visa available, or a longer term option that can lead to permanent residency. Applicants will need to prove they have an income of €3,480, or four times the minimum wage.

But if you plan to retire to Portugal, or live off a passive income such as being a landlord, the income requirements for that visa are much lower at €870 per month which aligns with the country's minimum wage.

By contrast, Spain also offer a non-working visa for retirees, where income needs to be 400% of the Public Income Index (IPREM), which as of 2025 is approximately €30,240 per year, plus an additional 100% of the IPREM for each dependent family member, meaning the income threshold for retirees is higher.

Weather

Arguably, the main draws of moving to Spain are the sunny weather and the beaches. It's difficult to compare the weather between the two countries, as Spain is much larger and has different climates in different regions. Most of Portugal has hot summers and mild winters, and it's a little cooler in the north with a bit more rain.

While there are still plenty of reasons to move to Spain if you can afford it, Portugal is becoming a popular option for Brits on a budget. With a lower cost of living, but still plenty of sunshine, it could be a solid alternative.