Expats ditch Spain for sunny destination 37% cheaper than the UK | Europe | Travel
You could enjoy mild winters and hot summers (Image: Getty)
Spain is a dream retirement destination for many thanks to its mild climates in winter, the vibrant food scene, colourful culture, and beach and mountain scenery. It seems to offer everything an expat could need.
However, while tourism numbers have risen in Spain, expat numbers have remained stable, but there’s a neighbouring country that’s experiencing a boom in people moving to its shores. And while it has many similarities to Spain, crucially it offers a lower cost of living that’s bound to appeal to retirees.
Portugal’s expat numbers have increased 150% since 2018, despite the effects of Brexit, COVID, and the cost of living crisis. So, what is it about the country that is making it so appealing to Brits? With 70% of expats choosing to stay five years or more, there’s no doubt something about the lifestyle that keeps them in the country.
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Many expats are looking for alternatives to Spain (Image: Getty)
Cheaper living costs
Many retirees who become expats do so to enjoy a cheaper cost of living. While Spain historically has been cheaper than the UK, it has faced rising costs. For example, the cost of filling a shopping basket has increased 38.5% since 2019, meaning day-to-day living is getting more expensive.
Some expats have also been put off by plans for property taxes of 100% for non-EU residents buying in Spain. While this is still a proposal and not yet law, in future it could cost a lot more to buy a home in the country. However, expats can avoid this tax by ensuring they become a resident before they buy.
Portugal, on the other hand, has been dubbed “one of the most budget-friendly countries in Western Europe” by Housing Anywhere, who estimate the cost of living for a single person to be just €1,285 monthly, around £1,120. This means someone on a state pension with a small private pension could cover their expenses.
Numbeo, a website that compares the cost of living in different countries, estimates that Portugal’s overall cost of living is about 37.9% lower than the UK.
More visa options
Portugal has also been opened up to expats thanks to its range of visa options. In 2022 it launched the Digital Nomad Visa, meaning expats who work for a foreign company can live in Portugal either for one year or longer term. Applicants will need to have an income of four times the minimum wage, so at least €3,480 a month, just over £3,000.
Portugal has lower income requirements for retirees than Spain (Image: Getty)
However, if you’re coming to Portugal as a retiree, or living off a passive income from investments such as property, the income requirements are much lower. The D7 visa asks that you can show earnings of €920 per month, around £800, and have a bank balance of 12-months income to fall back on.
Spain also offers a non-working visa for retirees, or others who want to live in the country and won’t be working. However, this is set at 400% of the Public Income Index (IPREM), so as of 2026, you’d need to show an income of around €2,400 per month, just over £2,000.
Climate
Comparing the weather between Spain and Portugal is difficult because Spain is much larger, so the climate can vary quite a bit between regions. Generally, British expats tend to head to the sunnier south for mild winters and long, hot summers.
Southern areas of Portugal such as the Algarve tend to have warmer, sunnier weather (Image: Getty)
Portugal’s climate has a similar pattern. The north tends to be a bit cooler and rainier, and the south tends to be mild in the winter. It’s not warm enough for winter sun holidays, but you won’t get the grey gloom and freezing temperatures seen in the UK.
Overall, Spain is still a great destination for retirees and expats who can afford it. But Portugal can be an excellent alternative for those on a lower income and can help your money go further.
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