Portugal surges ahead as Europe’s most desirable expat destination

By Steve Thompson, Founder & CEO @ ATLAS BRIDGE WEALTH | Boutique cross-border financial advisory | Chartered Fellow CISI®

November 15, 2025

An Atlas Bridge Wealth Guide for UK Expats

Portugal has firmly established itself as one of Western Europe’s most attractive destinations for individuals and families seeking a fresh start abroad. It has now overtaken Spain as the preferred base for retirees, remote workers, globally mobile professionals, and lifestyle-driven relocators.

Portugal was also voted Europe's Leading Destination 2025 at the most recent edition of the World Travel Awards. Considered the Oscars of Tourism worldwide, the organisation describes this victory as the ‘highest distinction in the industry’, which puts Portugal at the top of the preferences of professionals and the public around the world.

This award consolidates Portugal's position as a destination of excellence, something that has been steadily reinforced over the last 10 years. The ‘Best Destination in Europe’ award is a reflection of a strategy focused on the quality, diversity and innovation of Portugal's tourism offer. 

Over the past few years, Portugal’s expat population has grown dramatically, rising by approximately 150% since 2018, fuelled by its quality of life, favourable tax landscape, and strong sense of community.

Why People Are Choosing Portugal Over Spain

Spain has long enjoyed a reputation for beaches, warm weather and a laid-back lifestyle. But in recent years, rising inflation and escalating living costs have become major deterrents, particularly for retirees, fixed-income households, and remote workers.

Several factors are influencing the shift:

Rising Costs in Spain

• Significant increases in rent and everyday essentials

• Sharp upward pressure on property prices

• Government discussions around a potential 100% tax on property purchases by non-EU buyers without residency, an unprecedented move that could dramatically increase relocation costs

For many would-be expats, these changes have tipped the scales in favour of Portugal, where affordability, stability and long-term tax planning remain far more favourable.

Portugal’s Quality of Life and Cost Advantages

Portugal remains one of Western Europe's most budget-friendly nations.

Even in major cities such as Lisbon and Porto, monthly expenses are generally lower than in the UK, much of northern Europe, and increasingly, Spain.

Typical advantages include:

• More affordable rent and property

• Lower cost of groceries and dining

• Excellent public services for the cost base

• Affordable private healthcare

• A culture that supports healthy, outdoor living

• Safe, family-friendly communities

For internationals seeking a mix of lifestyle, value, and long-term financial stability, Portugal continues to stand out.

Why Relocating to Portugal is More Accessible - Visas

Portugal’s visa system has become a major contributor to its expat boom. While the country has undergone numerous reforms in recent years, it continues to provide clear pathways for legitimate relocation.

Digital Nomad Visa

Ideal for remote workers earning income from abroad. Provides:

• One-year residency (renewable)

• Opportunity to progress to long-term residency and eventual citizenship

• Income threshold starting at just over €3,400 per month

Golden Visa (Still Active in Portugal)

While Spain closed its Golden Visa in April 2025, Portugal maintained a robust and updated programme.

Through a €500,000 investment into a qualifying fund, applicants gain:

• EU Schengen mobility

• A pathway to Portuguese residency

• Minimal physical-stay requirements (7 days in year 1)

• Long-term citizenship potential

• Strong diversification benefits for wealth planning

D7 Visa (Passive Income / Retirement Visa)

One of Portugal’s most popular pathways. Applicants need:

• Minimum passive income of €8,460 annually

• Clean criminal record

• Proof of accommodation

For UK retirees and financially independent expats, the D7 continues to be a stable route to residency and citizenship.

Climate: Sun, Sea and Year-Round Comfort

Portugal enjoys over 300 days of sunshine annually, with:

• The Algarve delivering golden beaches and warm summers

• Lisbon offering cosmopolitan coastal living

• Porto & the North delivering warm summers and cooler, greener landscapes

The Atlantic coastline shapes much of Portuguese life, from cuisine to lifestyle, providing a mix of beauty, nature, and culture that’s hard to match.

Portugal’s Growing Reputation

Portugal’s surge as Europe’s top expat destination reflects a global change in priorities. People today want more than warm weather, they want:

• Financial stability

• A sense of belonging

• Access to quality healthcare

• Safety for their families

• Transparent tax planning

• A better balance between work and life

With affordability, cultural richness and an enviable climate, Portugal continues its ascent as one of Europe’s most desirable places to build a meaningful life.

About Atlas Bridge Wealth....

Atlas Bridge Wealth is a boutique financial planning firm based in Portugal, specialising in cross-border advice for UK expatriates and globally mobile professionals.

We provide:

• UK–Portugal cross-border tax planning

• Retirement and pension planning (including 85/15 optimisation strategies)

• Wealth management and long-term investment planning

• International estate planning and IHT mitigation

• Residency and financial structuring for visa pathways (D7, digital nomad, Golden Visa)

• Ongoing financial stewardship to help expats achieve clarity, confidence and financial freedom

Our role is simple: to help UK expats build a life in Portugal with the right structures, strategies and support from day one.

Disclaimer

The information provided in this guide is for general informational purposes only and should not be considered legal, tax, or financial advice. Atlas Bridge Wealth strongly recommends seeking qualified professional advice before acting on any information within this guide. Investment products, visas and tax strategies carry risk; past performance is not indicative of future results.