While the number of expats remains stable in Spain, its neighbouring country has experienced a surge in remote workers and retirees. Since 2018, Portugal’s expat numbers have soared 150 percent, despite the effects of Brexit and the covid pandemic.

As the cost of living continues to rise in Spain, many retirees and digital nomads are looking west for a more affordable alternative. In recent years, inflation and housing costs have hit hard, with the average rent for a one-bedroom apartment now standing at around €972, and filling a shopping basket has become 38.5 percent more expensive since 2019. Additionally, Spain is also considering a 100 percent property tax on non-EU residents, potentially doubling costs for buyers without residency.

By comparison, Housing Anywhere established Portugal as one of Western Europe’s most budget-friendly countries, claiming that a single person’s monthly living costs average around €1,285. According to estimates by Numbeo, the overall expenses in Portugal are 37.9 percent lower than in the UK, making it particularly attractive to retirees and those living on fixed incomes.

Launched in 2022, Portugal’s Digital Nomad Visa has also made it easier for expats to settle, allowing remote workers employed by foreign companies to live in the country for up to a year or more, with a path to permanent residency. Applicants will need to prove a monthly income of €3,480, roughly four times the national minimum wage.

For retirees or those with a passive income, the financial parameters are far lower, requiring a monthly income of €870 – equivalent to the Portuguese minimum wage – for residency under the retirement visa scheme.

In contrast, Spain’s non-working visa for retirees demands proof of an annual income of €30,240, plus additional funds for dependents, which makes Portugal’s system significantly more accessible.

The sunshine and beaches remain the key draws for foreigners, but it’s difficult to compare the weather between the two countries. Spain is much larger and has different climates across its various regions, while Portugal’s smaller size means its climate is generally consistent – hot, dry summers and mild winters, with cooler, wetter conditions in the north.

With lower living costs, flexible visa options, and a growing international community, Portugal is emerging as the go-to destination for Brits seeking a warm, affordable, and relaxed European lifestyle.