Expats Flee Spain for Portugal: Cost of Living Crisis Hits Hard

URGENT UPDATE: A significant shift is occurring as expats are rapidly leaving Spain in favor of Portugal, driven by soaring living costs and enticing benefits for remote workers. The latest data reveals that since 2018, Portugal has seen a staggering 150% increase in expat numbers, despite challenges from Brexit and the COVID-19 pandemic.

Why the surge? Many are drawn to Portugal’s affordability amid Spain’s escalating costs. In a viral TikTok video, a British expat lamented, “Basically, you’re working to survive,” highlighting the financial strain in Spain. The average rent for a one-bedroom apartment in Spain now stands at €972, with popular expat cities commanding even higher prices.

Inflation has also hit Spain hard, with the cost of groceries rising by 38.5% since 2019. In stark contrast, a single person’s monthly cost of living in Portugal is just €1,285, making it one of the most budget-friendly countries in Western Europe, according to Housing Anywhere.

Additionally, Portugal’s Digital Nomad Visa, launched in 2022, has attracted remote workers. This visa allows foreigners to live in Portugal while working for foreign companies, requiring proof of an income of €3,480 per month. Retirees, however, can qualify with a significantly lower threshold of just €870 per month, aligning with the country’s minimum wage.

In comparison, Spain’s non-working visa for retirees demands an income of €30,240 annually, significantly higher than Portugal’s requirements.

Portugal’s climate also plays a role in its appeal, offering hot summers and mild winters. While Spain boasts beautiful beaches and diverse climates, the financial benefits and lifestyle flexibility in Portugal are increasingly hard to ignore for budget-conscious expats.

As this trend continues, the ramifications for both countries could be profound. Spain’s property market may face pressures as expats seek economically viable options in Portugal. With the allure of lower living costs and the Digital Nomad Visa, expect Portugal to continue its rise as the go-to destination for expats.

Stay tuned for updates as this developing trend reshapes the expat landscape in Europe.