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For years, Spain has been the dream destination for Brits chasing sunshine, good food and a slower pace of life. From the Costa del Sol to the Balearic Islands, it’s been the go-to choice for retirees, remote workers and anyone hoping to swap grey skies for blue ones. But the tide seems to be turning. A growing number of expats are now choosing Portugal instead – a country just across the border that offers the same Mediterranean charm, but at a noticeably lower cost. In fact, official figures show that since 2018, the number of foreigners settling in Portugal has jumped by a staggering 150 per cent, despite the challenges of Brexit and the pandemic. So what’s behind this shift? And why are so many people deciding to pack up their lives in Spain and start over in its smaller, quieter neighbour? Portugal’s cost of living is winning over expats For most, the answer is simple: money. Spain might still look affordable compared to the UK, but the reality on the ground has changed dramatically in recent years. A viral TikTok video summed it up perfectly when one British woman living in Spain said, “Basically, you’re working to survive.” Prices have been creeping up everywhere – and not just for housing. The average rent for a one-bedroom flat now sits around €972, but in big expat hotspots like Barcelona, Madrid or Valencia, you’d be lucky to find anything below €1,200. Food shopping has also become much more expensive, with prices up nearly 40 per cent since 2019, while wages haven’t kept pace. And there’s another cloud on the horizon: Spain has proposed a 100 per cent property tax for non-EU buyers, meaning that if you’re British and haven’t yet secured residency, buying a home could soon cost you double. Across the border, Portugal looks increasingly appealing. According to Housing Anywhere, it’s one of the most affordable countries in Western Europe, with an average cost of living for one person at about €1,285 a month – a figure that includes rent, bills, food and transport. The comparison is stark. Numbeo, which tracks global living costs, estimates that Portugal is nearly 38 per cent cheaper than the UK, and significantly cheaper than much of Spain. For retirees or digital nomads trying to make their savings stretch further, those numbers make a big difference. Easier visa options and lower income requirements Another factor luring expats to Portugal is its more flexible visa system. In 2022, the country introduced its Digital Nomad Visa, designed for remote workers earning their income from abroad. Applicants can choose between a short one-year stay or a longer visa that can eventually lead to permanent residency. To qualify, you’ll need to show proof of income of at least €3,480 per month, roughly four times the national minimum wage. But it’s retirees who really benefit. Those living off pensions or rental income can apply for a passive income visa with far lower requirements — just €870 per month, which is the equivalent of Portugal’s minimum wage. By contrast, Spain’s non-lucrative visa comes with a much steeper price tag. Applicants need to prove an annual income of €28,800, plus an extra 100 per cent of the Public Income Index (IPREM) for each dependent family member. For many pensioners, that’s simply out of reach. These more accessible conditions, combined with Portugal’s welcoming attitude toward foreign residents, are making it an increasingly attractive option for those who want to stay long-term without breaking the bank. Sunshine, sea and a slower pace of life Of course, the weather still matters, and Spain continues to have the edge when it comes to sheer variety – from the warm Mediterranean coast to the dry plains of Andalusia. But Portugal’s climate is no less inviting. Most of the country enjoys hot summers and mild winters, while the north sees a bit more rain but stays lush and green all year round. The Algarve, with its golden beaches and over 300 days of sunshine annually, remains one of Europe’s most popular regions for retirees. Beyond the weather, many expats say they’re drawn to Portugal’s laid-back rhythm. Life here moves at a gentler pace — fewer crowds, less stress, and a stronger sense of community. And with English widely spoken, settling in tends to be easier than newcomers expect. Spain losing ground as expats turn to Portugal Spain will always hold a special place in the hearts of British expats — the sun, the lifestyle, the culture – it’s all still there. But for those watching their budgets, Portugal is fast becoming the smarter choice. With its lower cost of living, simpler visa rules, and still-plentiful sunshine, Portugal offers much of what Spain does – only cheaper, calmer, and with fewer bureaucratic hurdles. And for a growing number of Brits chasing that dream Mediterranean life, that’s reason enough to head west.
