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Choosing between Portugal and Spain

How Portugal and Spain compare on cost, tax, visas, healthcare, and daily life for people deciding where to move.

Last verified: September 2026.

Who this is for

  • Non-EU citizens weighing Portugal against Spain for retirement, remote work, or investment.
  • EU citizens choosing which Iberian country to live in, not yet resident in either.

Not for you if: you have already chosen Portugal and need the visa steps. Read Visas and Residency in Portugal.

Updated September 2026. Portugal's new nationality law took effect on 19 May 2026: 7 years' residence for EU and Portuguese-speaking citizens, 10 for everyone else.

Portugal and Spain are both sunny, safe, and cheaper than most of western Europe. The real differences are in the rules. Portugal asks less income for a retirement or remote-work visa. Spain's tax deal for new arrivals is open to more people. Spain ended its golden visa in April 2025, while Portugal keeps a fund-based one. For citizenship, Portugal now needs 7 or 10 years. Spain needs 10, or 2 for Latin Americans and Portuguese. This guide sets the facts side by side so you can choose.

The short comparison

PortugalSpain
Retirement or passive income visaD7: from €920 a month for one adultNon-lucrative visa: €2,400 a month for one adult
Digital nomad visaD8: €3,680 a monthTelework visa: €2,442 a month
Golden visaYes, through funds, research, culture, or jobs (no property)Closed on 3 April 2025
Citizenship by residence7 years (EU and Portuguese-speaking countries), 10 years (others)10 years; 2 years for Latin America, Portugal, Andorra, Philippines, Equatorial Guinea
Keep your old passportYesOnly for the 2-year countries above
New resident tax regimeIFICI: 20% on qualifying work income for 10 years, narrow list of jobsSpecial regime: 24% on income up to €600,000, for 6 years, open to most employees
Public GP visitsFreeFree for residents in the public system

Amounts are 2026 figures from each government. Both visas need more for family members.

If you are an EU citizen

This section applies to EU, EEA, and Swiss citizens. You can live in either country without a visa. You register locally after three months. In Portugal, you get a registration certificate from the Câmara.

For you, the choice comes down to tax, citizenship, cost, and lifestyle. The visa sections below do not apply.

Visas for retirees and people with passive income

This applies to non-EU citizens who will not work locally.

Portugal (D7 visa): Portugal measures your income against its minimum wage, which is €920 a month in 2026. One adult needs at least that. A second adult adds 50%. Pensions, rents, dividends, and savings can count. See Getting the D7 Retirement and Passive Income Visa for Portugal.

Spain (non-lucrative visa): Spain asks for 400% of its benefit index (IPREM). That is €2,400 a month in 2026 for one person, plus €600 per dependant. You need public or private health insurance with an insurer authorised in Spain. You cannot work on this permit.

For a single retiree, Spain's threshold is about 2.6 times Portugal's.

Visas for remote workers

This applies to non-EU citizens who work for clients or employers outside the country.

Portugal (D8 visa): you need four times the Portuguese minimum wage, which is €3,680 a month in 2026. You also show proof of tax residence. See Getting the D8 Digital Nomad Visa for Portugal.

Spain (telework visa): you need 200% of the Spanish minimum wage, which is €2,442 a month in 2026. Add €916 for the first family member and €306 for each extra one. You must get a Spanish foreigner number (NIE) first. You can only work for companies outside Spain.

On remote work, Spain asks for less income than Portugal.

Investment visas

Portugal: the golden visa (ARI) still exists, but property no longer qualifies. The main routes are:

  • €500,000 in Portuguese investment funds that are not real estate funds
  • €500,000 in scientific research
  • €250,000 for arts or national heritage
  • creating at least 10 jobs, or €500,000 in a company with five permanent jobs

See Applying for the Portugal Golden Visa.

Spain: Spain closed all its investor residence visas on 3 April 2025, including the property route. There is no Spanish golden visa to apply for.

Citizenship and passports

Portugal: since 19 May 2026, you need 7 years of legal residence if you are an EU citizen or from a Portuguese-speaking country. Everyone else needs 10 years. You also pass a test of Portuguese language and culture, and show you know your civic rights and duties. Portugal lets you keep your other nationality. See Getting Portuguese Citizenship by Naturalisation.

Spain: the general rule is 10 years. Citizens of Latin American countries, Andorra, the Philippines, Equatorial Guinea, and Portugal need 2 years. Refugees need 5. Everyone outside those groups must formally renounce their previous nationality.

If you are from the US, UK, Canada, or Australia, Portugal is the only one of the two where you keep your passport. For a Brazilian, Spain is faster: 2 years against Portugal's 7.

Tax for new residents

Both countries tax residents on worldwide income. Both have treaties to stop double taxation.

Portugal: standard income tax rates run from 12.5% to 48% in 2026. The IFICI regime replaced the old NHR scheme. It gives a 20% flat rate on qualifying work income for 10 years. You must not have been tax resident in the previous five years. It covers a narrow list of jobs, such as university teaching, research, and highly qualified roles in certain companies. It does not cover pensions. See Qualifying for the IFICI Tax Regime That Replaced NHR.

Spain: the special regime for workers moving to Spain (often called the Beckham law) taxes Spanish work income at 24% up to €600,000. Above that, the rate is 47%. It lasts for the year you move plus the next five. It suits employees and some entrepreneurs more broadly than IFICI. You opt in on form 149.

For retirees, neither country has a special regime for pensions. You pay normal rates, subject to your tax treaty.

Healthcare

Portugal: once resident, you register with the public health service (SNS). GP and health centre visits are free. The only user fee left is for hospital emergency visits without a referral from the SNS. Some areas are short of family doctors, so many residents also buy private insurance. See Healthcare in Portugal.

Spain: residents who work or pay into social security use the public system. Non-lucrative visa holders must hold health insurance, public or private, from a company authorised in Spain.

Both systems are universal for contributors. Waiting times vary by region in both.

Cost of living and housing

Both are among the cheaper countries of western Europe. Rents in Lisbon, Porto, Madrid, and Barcelona are high for local wages. In both countries, the big savings are away from the big cities and the busy coasts.

Local pay is lower in Portugal. The 2026 minimum wage is €920 a month in Portugal and €1,221 in Spain, both paid 14 times a year. If you plan to earn locally, compare job offers against local rents. If your income comes from abroad, smaller towns in either country stretch it furthest. For a monthly budget, see Cost of Living in Portugal.

Language and daily life

Spanish is spoken worldwide and is easier to start learning. Portuguese pronunciation is harder, but many younger Portuguese speak good English. That helps in your first year.

For Portuguese citizenship you must pass a language test, so plan to learn either way.

Portugal is smaller, quieter, and on the Atlantic, with cooler sea water and milder summers on the coast. Spain has more big cities, more regional variety, and hotter inland summers. The Canary Islands stay warm all year.

How to decide

Portugal usually suits you if:

  • you retire on a modest pension, below Spain's €2,400 threshold
  • you want an EU passport and to keep your current one
  • you want a golden visa, since Spain no longer offers one

Spain usually suits you if:

  • you are a remote worker under Portugal's €3,680 threshold
  • you are an employee who qualifies for Spain's 24% regime but not for IFICI
  • you are from Latin America and want citizenship in 2 years

Spend a few weeks in each before you commit. Rent first in both countries, and check each rule again before you apply.

Sources

This guide is written from official Portuguese and EU sources and, for prices and contact details, the providers' own websites.

Last verified September 2026. Rules and fees change; check the official source before acting.

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