Portugal
Mild climate, tax incentives and a vibrant expat scene along the Atlantic.
Important Notice: No Individual Advice
The information provided is for general informational purposes only and does not constitute individual legal, tax, or financial advice. Please consult qualified professionals for personal decisions.
Key Metrics
Cost of Living
Cost Breakdown
Quality of Life
Taxes
Tax information for Portugal
Tax resident after 183 days or primary residence in Portugal
2024
June 30th of following year
No - worldwide income
🇵🇹 The Portuguese Tax System: NHR, Pensions & 2024 Changes
10 years of tax benefits for new residents! Flat 20% on 'High Value' professions (IT, doctors, engineers). Foreign income often TAX-FREE (if taxed at source). BUT: CLOSED for new applications from 2024 – only for those who applied before 2024!
Foreign pensions were taxed at only 10% flat rate – extremely attractive for EU retirees! From 2024: New NHR applications no longer possible. Existing NHR holders keep 10% until their 10 years expire.
New 'Incentivo Fiscal Ă Investigação CientĂfica e Inovação' partially replaces NHR. 20% flat tax on Portuguese income for researchers, startups, qualified jobs. Foreign income: Normal taxation! Less attractive than old NHR.
Without NHR: Progressive tax from 13.25% to 48% (from €81,199). Plus solidarity surcharge 2.5-5% for high incomes. Social security: 11% employee + 23.75% employer. Self-employed: 21.4% on 70% of income.
Dividends, interest and capital gains: 28% withholding (flat). Option for assessment with progressive rates (worthwhile with low total income). Crypto: Short-term (<1 year) 28%, long-term tax-free!
Since 2022: Visa for remote workers with income ≥€3,040/month (4x minimum wage). Entitled to NHR application (if applied before 2024). After 5 years: Permanent residence possible. Portugal very popular with digital nomads!
NHR window is CLOSED (since 2024)! Those moving to Portugal now pay normal taxes (up to 48%). IFICI only for specific professions. Golden Visa heavily restricted (no more real estate). Cost of living rising fast (Lisbon +40% since 2019).
Income Tax
| From | To | Rate |
|---|---|---|
| €0 | €7,703 | 13.25% |
| €7,703 | €11,623 | 18% |
| €11,623 | €16,472 | 23% |
| €16,472 | €21,321 | 26% |
| €21,321 | €27,146 | 32.75% |
| €27,146 | €39,791 | 37% |
| €39,791 | €51,997 | 43.5% |
| €51,997 | €81,199 | 45% |
| €81,199 | Unlimited | 48% |
NHR status offers 10-year tax benefits for new residents
Pension Tax
Foreign pensions under NHR status at 10% flat rate
Capital Gains Tax
Dividend Tax
Dividends subject to 28% withholding by default (assessment optional)
VAT
23%Important Notice
This is not tax advice. NHR status should be discussed with a Portuguese tax advisor.
This is not tax, legal, or investment advice. Tax laws change frequently and can be complex. The information provided is for general informational purposes only. Please consult a tax advisor licensed in Portugal for your specific situation.
Healthcare
Healthcare in Portugal
SNS + private
Private for NHR visa
Expat Access
After 3 months. Limited
Excellent, English-speaking
€60-120/month recommended
Climate Change & Future Outlook
Climate risks in Portugal
Portugal is EXTREMELY climate vulnerable - one of Europe's most vulnerable countries (ND-GAIN #166!). 2017 megafire: 500,000 hectares burned, 120+ deaths. Wildfires exploding, droughts intensifying, heat escalating. Mediterranean region globally most drying (of 26 regions!). Strong adaptive capacity (ND-GAIN #35), but risks overwhelming.
Climate Scenarios
Switch between IPCC SSP pathways
SSP2-4.5
Current policy trajectory – ~2.7°C warming by 2100, moderate mitigation.
Values are approximations relative to our SSP2-4.5 baseline. They illustrate directional change, not exact national projections.
Overall Climate Risk
Projected risk index (0 = low risk, 100 = extreme risk)
Risk Categories
Personal climate risk assessment
Tune the analysis to your health profile and comfort level.
Age group
Sensitivity
Risk tolerance
Personalized risk index
Current level: Very High
Priority risks
Extreme Weather
Base 90 → Personal 90
Water & Drought
Base 88 → Personal 88
What to prioritize
- •Look for reliable shelter options and emergency communication plans.
- •Check long-term water security and avoid regions with frequent restrictions.
- •Budget for higher insurance/utilities and diversify income streams against climate shocks.
Adaptation Measures
- •Environmental Fund: €2B climate fund
- •Fire monitoring: 24/7 satellite surveillance
- •Reforestation: Replace eucalyptus with fire-resistant trees
- •Carbon-neutral 2050: Ambitious goal
- •IPMA app: Fire & heat warnings (CRITICAL!)
- •Fire prevention: Clearing property mandatory
- •Prefer coast: Inland becoming uninhabitable
Climate Resilience
Moderate adaptive capacity. ND-GAIN #35 readiness (good!), but #166 vulnerability = very high. EU funds available, but eucalyptus problem unsolved. Weaknesses: Outdated infrastructure, rural regions neglected, tourism dependency.
Tips
- đź’ˇReal estate: ONLY coast! Inland = fire zone. Porto/Lisbon >20m above sea level.
- đź’ˇAvoid Algarve: Becoming desert + overpriced. Prefer Northern Portugal (Porto).
- đź’ˇSummer fires: June-October EXTREMELY dangerous. Have evacuation plan!
- đź’ˇWater rights: Vital to check in drought zones!
Pros
- •EU member: Access to climate funds
- •Carbon-neutral 2050 commitment
- •24/7 satellite fire monitoring
- •Northern Portugal remains livable (Atlantic climate)
Cons
- •2017 megafire: 500,000ha, 120+ deaths = future preview!
- •Inland UNINHABITABLE due to fires + heat
- •Agriculture collapsing (-30%)
- •Algarve becoming desert
Notes
Portugal is extremely climate vulnerable (#166 of 191 countries!). The 2017 megafires are not isolated incidents, but a preview of the future. Inland Portugal becoming uninhabitable due to wildfires and heat. For expats: ONLY coastal regions (Porto, North Lisbon) are safe long-term. Avoid Algarve (becoming desert!). Property buyers: >20m above sea level, never inland, fire evacuation plan essential. Summer becoming life-threatening (June-October).
Data sources
Scientific Disclaimer
Climate projections are based on models with inherent uncertainties. Actual outcomes may differ. We present mainstream scientific consensus (IPCC) but acknowledge uncertainty ranges. This is not financial advice. Consult climate scientists and experts for specific decisions.
Safety & Security
Safety & Crime in Portugal
Safety Indicators
Comparison with DACH Region
For comparison: Germany (CPI: 78), Austria (CPI: 71), Switzerland (CPI: 82)
Notes
Standard precautions recommended in urban areas.
Visa & Immigration
Immigration Options for Portugal
Visa Options
D7 Visa
For retirees and passive income
D2 Visa
For entrepreneurs
Path to Permanent Residency
Permanent residency after 5 years. Citizenship after 5 years with language test.
Important Notice
Visa and immigration regulations change frequently. The information provided is for general informational purposes only. Please consult the official government website or an immigration attorney for current and accurate information.
Climate
Data Sources & Updates
Data Sources
- OECD Tax Database(OECD Terms of Use)
- NOAA Climate Data(Public Domain)
- WHO Global Health Observatory(CC BY-NC-SA 3.0)
- World Bank World Development Indicators(CC BY 4.0)
- Numbeo Quality of Life Index(CC BY 4.0)