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Moving to Portugal

A mild climate, safety, cost of living and a welcoming culture: more and more Europeans choose Portugal. Here is what to know before you go.

Over the past fifteen years Portugal has become one of the favourite destinations for Europeans moving abroad: retirees drawn by the climate and, until 2023, by tax advantages, young professionals, remote workers, entrepreneurs and students. This page summarises the main steps; rules change often, so always check official sources and take advice from an accountant or lawyer familiar with both countries.

Entering and staying: the documents

As EU citizens, Italians and other Europeans can enter Portugal with an identity card and live and work freely. For stays of more than three months, however, you must register with the Câmara Municipal (town council) where you live and obtain the Certificado de Registo de Cidadão da União Europeia, for a small fee. After five years of legal residence you can apply for a permanent residence certificate.

The most important document is the NIF (Número de Identificação Fiscal), the Portuguese tax number, essential for renting or buying a home, opening a bank account, signing a work contract or even a phone contract. It is issued by the tax offices (Finanças). Workers also need a NISS, the social security number.

Healthcare

For short stays the European Health Insurance Card is enough. Once resident, you register with the national health service at your local centro de saúde to obtain a número de utente. The public service is good but has long waits and a shortage of family doctors, so many foreigners also take out private insurance (see healthcare in Portugal).

Registering with your home country

Italians who move abroad for more than twelve months must register with AIRE, the registry of Italians resident abroad, within ninety days, through the consulate's portal. The consular section of the Italian Embassy in Lisbon handles passports, documents and services; there are also honorary consuls in other cities. Citizens of other countries should check their own consulate's rules.

Taxes

You are considered a Portuguese tax resident if you spend more than 183 days a year in the country or have your habitual residence there. Residents pay IRS, the income tax, at progressive rates.

For years Portugal attracted foreigners with the non-habitual resident (NHR) regime, which offered a flat 20% rate on qualified work income and very low taxation of many foreign pensions. The regime closed to new entrants at the end of 2023. In its place came IFICI, also called "NHR 2.0", with a 20% rate for ten years on employment and self-employment income, but reserved for highly qualified professionals in fields such as research, innovation, engineering, IT, medicine and higher education, employed by companies or bodies that meet specific requirements. You must not have been a Portuguese tax resident in the previous five years, and the application must be filed by 15 January of the year after you become resident.

Pensions

With the end of the old regime, foreign pensions of new residents are taxed under ordinary rules and the relevant double tax treaty. Under the Italy-Portugal treaty, broadly speaking, public pensions (such as those of former civil servants) remain taxed in Italy, while private pensions, such as INPS pensions from private employment, are taxed in Portugal at progressive rates. The tax advantage that drew many retirees has therefore shrunk considerably; what remains is the climate, the quality of life and a lower cost of living outside the big cities (see cost of living).

Working and remote work

The job market offers opportunities above all in IT, multilingual call centres, tourism and services, where foreign languages are often in demand; wages, however, are lower than in much of Western Europe (see working in Portugal and doing business in Portugal). Lisbon, Porto and Madeira have become popular with remote workers, with many coworking spaces. Anyone working remotely for an employer in another country should check their tax and social security position carefully.

Housing

Finding a home is the main difficulty, especially in Lisbon and Porto, where rents have risen sharply: landlords usually ask for a deposit and some months in advance. Mid-sized inland and central towns such as Coimbra, Braga, Viseu or Évora are far more affordable. See buying a home in Portugal.

Flights

Lisbon, Porto, Faro and Madeira have direct flights from many European airports, with full-service and low-cost airlines (see getting to Portugal and Portuguese airports). For studying and Erasmus, see studying in Portugal.