Portugal or Spain?

It’s tough to choose between Portugal and Spain. Check out the difference in cost of living, taxes, culture, and more!

Article by Viv Europe - Official Legal and Relocation Partner to KipperTree

06 04 2023

It’s always been a difficult decision to choose between Portugal and Spain. Moving to the south of Europe is a dream for many people. Let’s do an in-depth analysis of which country fits an expat’s ideal lifestyle better, Portugal or Spain!

Generally, both countries are similar to a great extent, be it the climate, way of life, people, food, landscapes, and a lot more.

However, some major differences have made the neighbouring countries rivals for quite a long time. And the differences which make one ex-pat think about choosing a better one for his residence. Read all about living in these countries and choose the best one for yourself! 

Portugal or Spain? Why do ex-pats choose them

Expats make a difficult decision to be away from their homeland. Leaving their comfort zone for the desired opportunities and luxuries they’re somehow not getting in their homeland. Both Spain and Portugal are idealized in the mind of the world as Iberian paradises of sun, food, and human warmth.

But with the relocation process, there are some concerns to consider. For example, quality and cost of life, tax benefits, visa application, and a few others, on which one won’t compromise.

The world is full of possibilities. You can go anywhere and settle, coping with the cultural shocks. However, ex-pat life may be exciting on one end and challenging on the other end. But what is your dream destination, Portugal or Spain?

Differences between the countries

While both countries are similar in some regards, you’ll find many differences between the culture, everyday life, and even the meals they eat. From different ways of greeting people to what language they speak most commonly, you should be aware of the contrasting lifestyles. 

Given below is the comparative analysis for those deciding to come and live in Western Europe. We are considering the two charming options, either Portugal or Spain.

The natural border between Portugal and Spain

Let’s talk about some key factors that ex-pats think of when considering living in either of these countries.

Cost of living in each country

The first thing to consider when relocating to a new country is undeniably the cost of living. Living in Spain isn’t out of reach, but the cost of living in Portugal is a fraction cheaper.

Lisbon and Porto are the most expensive cities in Portugal. However, the cost of living there is lower than that in Madrid or Barcelona. From food to residency, Portugal usually offers you many more affordable rates than Spain.

A single person’s monthly expenses are nearly €100 cheaper and can mean even more savings if you choose to live away from the city centres. That’s one major reason why ex-pats tend to choose Portugal. 

Take a look at the comparative summary of the costs of living in Portugal and Spain

Also, if you’re not going to live in big cities and are looking for calmer, smaller towns like Braga or Évora, the rents in Portugal are even much lower than that of Spain.

Some ex-pats even prefer to live in smaller towns, not just because of cheaper rent, but also because of the privacy and peace. 

The labour market in Portugal and Spain

Here is one difference that can spark some second-guessing in the minds of ex-pats. Although the locals and ex-pats can live reasonably well on a budget in Portugal, the labour market isn’t as evolved as in Spain.

From the salary point of view, Portugal does not offer a great salary as compared to Spain. The job market in Portugal is known for being very competitive. On the other hand, Spain has a stronger economy and higher-paying jobs. 

Despite Spain’s strengths, it still has a very high unemployment rate of 12.67%, which is more than double of Portugal and way above the advised normal average of 5%. 

Look at the table to get to know a few facts about work in Portugal and Spain.

In both Portugal and Spain, the areas of information technology and biotechnology are on the rise. The labour market in both countries is currently more competitive than before. Even so, working conditions are good, and telecommuting is increasingly widespread.

Portugal also offers an easier way out for digital nomads that want to enjoy living here. Through the new visa for digital nomads, ex-pats no longer have to worry about setting up a business or proving passive income resources to work remotely in Portugal. 

For further information on just which country is right for you read the full article here