When considering a move to a European country, two popular choices often come to mind: Spain and Portugal.
Spain is the only European country to share a border with an African country, Morocco, highlighting its unique geographical position.
Both countries offer unique advantages and experiences, making the decision a challenging one.
This article will compare various aspects of living in Spain and Portugal, helping you make an informed decision. The comparison will cover key factors essential for retirees considering moving to either of the two countries.
Cost of Living
Portugal:
Portugal boasts a lower cost of living compared to many other European countries.
The Portuguese minimum wage is €820 per month in 2024, which is paid over 14 months, effectively making it €956.66 per month if calculated over 12 months.
This makes Portugal an attractive option for those looking to stretch their budget further. Additionally, for those considering residency through programs like the golden visa or the digital nomad visa, having a Portuguese bank account with a minimum balance is required.
This highlights the financial aspects related to residency, including tax benefits and the overall affordability of living in Portugal.
However, it’s important to note that while food and clothing are affordable, certain commodities like automobiles, electricity, and petrol can be more expensive than in Spain.
Spain:
Spain offers a slightly higher cost of living, but it also provides higher minimum salaries, around €950 per month.
Major cities like Madrid and Barcelona can be more expensive, but they also offer more job opportunities and higher salaries.
Overall, Spain’s cost of living is still lower than many other European countries, making it a viable option for many expats.
Climate, Natural Beauty, and Major Cities
Portugal:
Portugal offers a consistent Mediterranean climate with warm temperatures throughout the year.
The northern regions, including cities like Porto, have a maritime temperate climate with milder temperatures, wet winters, and warm summers.
The central region, including cities like Coimbra, is slightly drier and hotter.
The southern region, particularly the Algarve, is known for its hot, dry summers and mild winters, making it a popular destination for tourists and expats alike.
The Azores and Madeira islands have subtropical climates with higher precipitation and humidity due to Atlantic influences.
Spain:
Spain’s climate is highly diverse, with 13 different Köppen climate classifications.
The Mediterranean climate (Csa) is prevalent along the southern and eastern coasts, including cities like Valencia, Palma de Mallorca, Sevilla, and Malaga, characterized by hot, dry summers and mild, wet winters.
The northern regions, such as Galicia and the Basque Country, have an oceanic climate (Cfb) with mild temperatures and high rainfall.
The central plateau, including Madrid, experiences a continental climate with hot summers and cold winters.
The Canary Islands have a tropical climate with stable temperatures year-round, while the southeastern regions, including Almeria and Murcia, have a hot desert climate (BWh) with very little rainfall.
Southern Spain is renowned for its vibrant cultural scene, energetic festivals, and diverse traditions, along with impressive landscapes that offer numerous opportunities for outdoor activities.
Residency Visas, Digital Nomad Visas, and Golden Visa Programs
Portugal:
Portugal offers several residency visas, including the popular D7 visa for passive income earners and the Golden Visa program for investors.
The D7 visa requires proof of a stable income, such as pensions or rental income, and is relatively easy to obtain.
Portugal also offers a digital nomad visa, the D8 visa, which is a 12-month visa renewable up to four times. However, it cannot be used toward a citizenship application. The D8 visa requires a minimum monthly income of €3,280.
The golden visa programs in Portugal provide residency pathways for non-EU citizens through substantial investments, with revised criteria compared to Spain’s requirements.
Spain:
Spain offers the Non-Lucrative Visa for those with sufficient financial means to support themselves without working in Spain.
This visa requires a higher income than Portugal’s D7 visa.
Spain also has a digital nomad visa, which requires a minimum monthly income of €2,334.
Both countries’ digital nomad visas allow remote workers to live and work legally while enjoying the local culture.
Tax Benefits and Portuguese Bank Account
Portugal:
Portugal’s Non-Habitual Residency (NHR) regime offers significant tax benefits for new residents.
Under the NHR, foreign income can be exempt from Portuguese income tax for up to ten years, making it an attractive option for retirees and high earners.
Social security contributions are also relatively low, adding to the financial appeal.
However, it is important to note that the NHR regime has undergone changes, now referred to as NHR 2.0, which may affect the specific benefits and eligibility criteria.
Spain:
Spain offers the Beckham Law, which allows foreign workers to be taxed at a flat rate of 24% on income up to €600,000 for the first six years.
This can be beneficial for high earners, but it is not as advantageous as Portugal’s NHR regime.
Spain’s tax system is progressive, with higher rates for higher incomes.
Healthcare System
Portugal:
Portugal’s healthcare system is highly regarded, with both public and private options available.
The public system provides comprehensive coverage, and private insurance is affordable.
English is widely spoken in hospitals, making it easier for expats to navigate the healthcare system.
Spain:
Spain’s healthcare system is ranked among the best in the world.
It offers a mix of public and private healthcare, with the public system providing extensive coverage.
Spain’s healthcare is slightly more advanced in terms of global rankings, but both countries offer high-quality medical care.
Cultural and Social Life, and Portuguese Food
Portugal:
Both Portugal and Spain offer unique cultural experiences, but Portugal’s culture is deeply rooted in its history and traditions.
The country is known for its friendly and welcoming people, making it easy for expats to integrate. Portuguese food, with its emphasis on seafood and fresh ingredients, is a highlight.
The slower pace of life and emphasis on quality of life make Portugal an appealing destination.
When comparing the practicality of learning Spanish versus European Portuguese, Spanish is often seen as more beneficial for travel throughout Latin America.
Additionally, there are notable differences in temperament, energy, and outlook on life between Spanish and Portuguese culture.
Spain:
Spain offers a vibrant and diverse cultural experience.
The country is known for its lively social life, with numerous festivals, events, and a rich tapas culture.
Spanish people are known for their warmth and hospitality, making it easy for newcomers to feel at home.
Spain’s larger cities offer a more dynamic social scene, while rural areas provide a more traditional experience.
The practicality and wide usage of Spanish across Latin America make it more beneficial for travel and work in Latin American countries.
Moreover, the wide usage of Latin American Spanish across the region enhances its practicality for travel in most of Latin America.
Conclusion
Choosing between Spain and Portugal ultimately depends on your personal preferences and circumstances.
Both countries offer unique advantages, from Portugal’s lower cost of living and tax benefits to Spain’s vibrant culture and higher salaries.
Whether you prefer Portugal’s tranquility and slower pace or Spain’s dynamic social life and diverse climate, both countries provide excellent opportunities for a fulfilling life in Europe.
For those who prioritize financial benefits and a relaxed lifestyle, Portugal may be the better bet.
On the other hand, if you seek a more vibrant social scene and higher earning potential, Spain could be the ideal choice.
Regardless of your decision, both Spain and Portugal offer a high quality of life, making either country a great place to call home.
We at Live Happily in Portugal can help you every step of the way if you have decided to choose Portugal or if you have questions regarding your specific circumstances.
Just reach out via our contact form. We are happy to help you.