In Spain, about 6 million immigrants call the country their home, thanks to the many wonderful things it offers, making up one eighth of the population. In Portugal, almost one million people are immigrants and consider Portugal their home.

Exploring Retirement Options: Spain vs. Portugal


Deciding whether to retire in Spain or Portugal hinges on several factors and personal preferences. Both countries present appealing choices for retirees, each with unique benefits and downsides. Here's a comparison to guide your decision-making:

Navigating Visa Procedures

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Before seeking a visa for Spain, ensure you fulfill the particular prerequisites for your chosen visa category. Prove self-sufficiency for a retirement visa. Seek guidance from an immigration lawyer in Spain or Portugal for tailored advice on visa criteria.

Spain and Portugal belong to the Schengen region, so their visa processes are alike. Various visa types cater to different visit purposes. In Portugal, the D7 Visa allows retirees to enter and stay. For Spain, you can retire with a retirement visa Spain known as the Non-Lucrative Visa.

Though the visa application process appears similar, disparities exist in the Golden Visa program between the two nations. Portugal offers residency or citizenship after 5 years, while Spain requires over a decade for citizenship. Factor in the non lucrative visa Spain cost for a comprehensive relocation budget.


Taxation Insights

For those considering retirement abroad, tax concerns loom large. Neither Portugal nor Spain boasts the lowest taxes in Europe. Portugal generally levies higher taxes compared to Spain, according to data from the Tax Foundation. However, Portugal offers the Non-Habitual Tax Regime (NHR), taxing all income at 20%, with foreign income, like pensions, taxed at 10%. Changes to the NHR, effective January 2024, allow applications until year-end under specific conditions.

For tax residency and other legal matters, retirees first need to give an NIE Spain application. Spain, conversely, lacks tax incentives for expatriates, imposing a flat 24% tax on local income and a progressive tax on foreign income, alongside a region-dependent wealth tax on assets exceeding €700,000.


Unveiling Living Expenses

In terms of the cost of living, Portugal generally has the edge. With a minimum monthly salary of approximately €775 compared to Spain's €950, Portugal offers a more budget-friendly lifestyle. However, comparing expenses like food, clothing, and utilities adds complexity. While Portugal offers affordable food and clothing, certain items such as cars, electricity, and fuel are pricier than in Spain, making direct comparisons challenging.

Despite Spain's higher living costs, its economy is on the upswing, creating more job prospects in specific sectors. This trend is evident in the rising popularity of cities like Madrid, where living expenses may be higher but so are wages. Ultimately, both Spain and Portugal present appealing living environments, but individual lifestyle preferences and income levels can sway the decision in favor of one country over the other.


Travel and Transportation Insights

Both European countries boast extensive transportation networks, offering various options for travel including trains, taxis, city buses, and private vehicles. Portugal's public transport system is particularly efficient and widely used by locals for daily commuting. Nevertheless, Spain's national roads surpass those of Portugal, with some segments of four major highways being toll-free. Fuel prices tend to be lower in Spain compared to Portugal, with gasoline priced at €1.79 per liter in Portugal and €1.59 in Spain, as reported by Numbeo.


Weather Patterns

Spain and Portugal differ significantly in their climates, affecting residents' quality of life. Portugal enjoys a consistent Mediterranean climate with warm temperatures year-round. However, its Atlantic climate in the north provides milder temperatures, appealing to those who prefer cooler weather. In contrast, Spain's diverse climate, influenced by its size, mountains, and coastline, offers something for everyone, from sun-seekers to snow lovers. With a vast coastline, Spain provides varying sea temperatures and quick shifts in seasons, catering to those who seek weather variety.


Medical Services and Coverage

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Both Spain and Portugal offer high quality healthcare systems, with Portugal having a universal public-private insurance system, and Spain having a mix of private providers and a government-run program. In Portugal, health insurance offers extensive coverage, priced at around $584 monthly for a 40-year-old with a Silver plan.

Spain has excellent international flight connections, featuring prominent airports such as Madrid Barajas and Barcelona Airport, whereas Portugal provides a more streamlined travel experience, with airports like Lisbon Portela and Porto Airport situated conveniently close to city centers.