The recognition comes from the company Allianz Care, which placed Portugal at the top of its list of five popular countries for people considering a move abroad. These findings were subsequently featured by American travel magazine Travel + Leisure.

Portugal’s combination of coastal living, relative affordability compared with some other Western European countries, and established international communities were among the factors being highlighted.

However, the recognition comes at a time when foreign residents in Portugal are also reporting increasing concerns about housing costs, bureaucracy and employment opportunities.

Why Portugal came first

Allianz Care identified several factors that make Portugal attractive to people relocating internationally, including its climate, healthcare services, personal safety and range of residency options.

The country also benefits from an established international community, particularly in Lisbon, Porto and the Algarve.

For Americans considering a move abroad, Lisbon remains a favorite destination because of its international schools, business opportunities and connections to other European cities.

Porto offers a different experience, with its historic centre, cultural attractions and growing international community.

Braga is attracting interest from families looking beyond Portugal’s largest cities, while the Algarve remains particularly popular with retirees seeking a warmer climate and access to the beach and coast.

The Allianz list placed Spain second, followed by Mexico, the United Arab Emirates and Thailand.

Each destination appeals to different groups of international residents, from retirees and remote workers to professionals pursuing overseas career opportunities.

Although Portugal topped the Allianz selection, a separate survey by international expatriate organisation InterNations provides a more detailed picture of the experience of living in the country.

Its 2026 Expat Insider survey placed Portugal eighth overall among 31 destinations, an improvement on its 17th-place position in the previous year’s ranking.

The survey evaluates several aspects of expatriate life, including personal finances, quality of life, employment, essential services and the experience of settling into a new country.

Portugal performed particularly well for personal finances, placing fourth in that category.

This suggests that many international residents continue to find the country financially attractive compared with alternative destinations, although individual experiences vary considerably depending on income and location.

The findings also show why different international rankings can produce different results.

Allianz’s selection is a relocation guide drawing on several sources, while InterNations surveys people already living abroad about their experiences.

The challenges behind the rankings

Portugal’s international reputation does not mean that settling into the country is without difficulties.

In its 2025 country analysis, InterNations highlighted concerns about bureaucracy, housing expenses and the local employment market.

Portugal ranked 40th for working abroad and 34th for essential services in that year’s survey.

Healthcare also received mixed assessments. Although Portugal has an established public healthcare system, some respondents reported difficulties accessing services.

Housing presents another challenge, particularly in areas that have experienced strong demand from international buyers and tenants.

Lisbon, Porto and parts of the Algarve have seen considerable pressure on residential property markets, making affordability an increasingly important consideration for people planning to move.

The difference between earning a Portuguese salary and receiving income from abroad can also influence how affordable the country feels.

These factors explain why a destination can score highly for lifestyle while receiving less favourable assessments for employment or administrative procedures.

Algarve remains a major attraction

The Algarve continues to feature prominently in international coverage of Portugal as a relocation destination.

Its beaches, climate and foreign communities have long made the region attractive to retirees and second-home owners.

International schools, healthcare facilities and transport connections also contribute to its appeal for families and working professionals.

However, the region’s popularity has brought challenges of its own, particularly in the availability and cost of housing in sought-after coastal areas.

For prospective residents, choosing where to live can be as important as choosing the country itself.

Living costs, access to services and employment opportunities can differ considerably between Lisbon, Porto, the Algarve and smaller inland municipalities.

Portugal’s latest international recognition reinforces its appeal to people considering life overseas, but the contrasting survey results also show that the experience of moving abroad depends on much more than sunshine and scenery.

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