Spain and Portugal are two neighboring countries with approximately the same standard of living, climate, similar culture and mentality. When wanting to move to a warm Mediterranean European country, many choose between these two, comparing their pros and cons.
They almost simultaneously introduced programs for obtaining residence permits for digital nomads. In general, migration legislation is quite similar, including options for moving based on investments (the so-called golden visa is valid in both Portugal and Spain). This article will help you make a choice – Portugal or Spain – in which we examined the main aspects of life in both countries and compared immigration opportunities.
Which country is richer – Spain or Portugal
The standard of living in a country is one of the main criteria that potential migrants analyze. It is generally accepted that Spain and Portugal have approximately the same success in economic terms, but there is still a difference. In the first quarter of 2024, Spain’s GDP was EUR 380,710 million, while Portugal’s was EUR 69,492 million. Both countries have seen the same growth in this indicator – 0.8% compared to the previous quarter. In the latest ranking of countries by the International Monetary Fund, Portugal ranked 47th in terms of GDP, while Spain ranked 15th.
Another important indicator of which country is richer is GDP per capita at purchasing power parity. Here, the countries we are considering took 44th and 40th places respectively. Of course, in comparison with many other countries in the world, Portugal has a decent European standard of living, but it is still poorer than its neighboring state, so it is worth getting a residence permit in Spain and moving here.
Cost of living
When considering moving to Portugal or Spain, it is worth analyzing where it is better to live in terms of prices and expenses for basic needs. Estimated expenses per person per month excluding rent in Spain are approximately 700 EUR. A family of four will need an average of 2,500 EUR. This amount includes quality food, wardrobe renewal, rest, leisure, and health care.
In Portugal, the cost of living is not much, but lower. For one person it is about 670 EUR, and for a family – 2,300 EUR. If you analyze the prices of products, in Spain it is somewhat more expensive, but the difference is in the range of several euros or even cents for each item.
The difference in the cost of living is compensated by differences in the income of residents. Given that Spain is richer than Portugal, the level of salaries is appropriate. As of 2024, the Spanish average income is 1,700 EUR. In Portugal, the average salary is 1,050 EUR. The difference in the income of residents is more significant than in prices. This fact once again confirms that Spain is a better place to live.
Where is the best place to buy real estate
The real estate markets in Spain and Portugal are similar in many ways. The variety of properties is approximately at the same level – depending on your preferences, you can choose an apartment in an old house in the central part of the city or a functional new building, a compact house on the coast or a luxurious villa in an elite resort region. Each country has its most expensive and prestigious locations for purchasing real estate – Barcelona, Madrid, Marbella in Spain, Lisbon and Cascais in Portugal.
As for the pricing policy, there is a difference. In each country, the cost depends on the type of property and its location; options in resort areas with higher prices are available. If we consider the example of an average apartment in the capital, in Spain m2 costs from 3,300 to 5,700 EUR, in Portugal – from 3,200 to 6,100 EUR. In general, Spanish properties are somewhat cheaper.
Where are taxes higher – in Spain or Portugal
The tax systems in both countries operate on a similar principle, and the rates are progressive, based on the amount of profit. Since there are many numbers and amounts in each case, it is more convenient to provide information separately for the countries so that you can compare the conditions.
Income tax rates in Portugal are presented in the table:
| Annual income amount in € | Rate B | Rate A |
|---|---|---|
| Up to 7,703 | 13.25% | 13.25% |
| 7,703–11,623 | 14,852% | 18% |
| 11,623–16,472 | 17,251% | 23% |
| 16,472–21,321 | 19.24% | 26% |
| 21,321–27,146 | 22,139% | 32.75% |
| 27,146–39,791 | 26,862% | 37% |
| 39,791–51,997 | 30,768% | 43.5% |
| 51,997–81,199 | 35,886% | 45% |
| From 81 199 | — | 48% |
The principle is as follows: rate B applies to the amount listed first in the first column (the lower limit). Rate A applies to the remaining range. For example, if you earn 40,000 EUR per year, your income tax will be calculated as follows:
- 30.768% of 39,791 EUR = 12,242.9 EUR;
- 43.5% of 209 EUR (40,000-39,791) = 91 EUR.
The total tax amount is 12,333.9 EUR.
When it comes to business rates in Portugal , there are options:
- 21% in the continental zone;
- 20% in the Autonomous Region of Madeira;
- 16.8% in the Azores.
For small and medium-sized companies, a reduced rate of 17% applies to the first 25,000 EUR of income, and the normal rate applies to the rest.
In Spain, income tax for individuals is set at the following rates:
- 19% — up to 12,450 EUR;
- 24% — 12,450–20,199 EUR;
- 30% — 20,200–35,199 EUR;
- 37% – 35,200–59,999 EUR;
- 45% – 60,000–299,999 EUR;
- 47% — more than 300,000 EUR.
For businesses in Spain, the fixed rate is 25%. But new companies on the market in the first tax period with a positive base and subsequent ones can use a reduced rate of 15%. It is difficult to say for sure where the taxes are higher, because the rates in both countries are approximately at the same level, and it is worth comparing more precisely depending on the planned activities and projected income.
Comparison of residency programs
When planning immigration with a residence permit in one of these countries, it is important to choose the best program for your needs, capabilities and goals. For example, you can apply for a golden visa in Portugal or Spain, but this requires significant investment – from 250,000 or 500,000 EUR, respectively. Below, we will compare several of the most popular ways to move to these countries today.
For business
Ambitious entrepreneurs may consider Portugal or Spain for emigration from Russia and other countries. Both countries have programs for obtaining a residence permit for a startup without conditions for fixed investments, but it is required to submit a promising business plan. In Portugal, it is necessary to justify in the project options for reaching an annual turnover of 325,000 EUR. The permit is issued for 2 years and extended for 3. To obtain a startup visa to Spain, it is enough to offer an innovative idea that will be approved by the authorized body. A Spanish residence permit is granted immediately for 3 years.
Based on financial independence
To obtain a D7 visa in Portugal for the FNL, you must prove a stable income of at least 820 EUR per month for the main applicant, 50% of the amount for the partner and 30% for children. You must demonstrate the presence of income for 12 months. When obtaining a residence permit in Spain for financially independent people, you must have an income of 2,400 EUR, and for each dependent included in the application, you must additionally earn 600 EUR. At the same time, although the FNL cannot work, it has the right to make investments and receive passive income, for example, from renting out real estate or as dividends.
As a digital nomad
Both countries have programs for remote workers in the IT sector. In Portugal, the applicant must earn at least 3,280 EUR per month, first a visa is opened for 4 months, and then a residence permit for 2 years can be obtained. The conditions for a nomad visa in Spain are somewhat more attractive, since the amount of confirmed income is lower (2,268 EUR). Initially, an annual visa is issued, and then a residence permit for 3 years at once.
Where is it more comfortable to live?
When choosing which country is better – Portugal or Spain, it is worth considering a few more aspects:
- Climate .
Both countries have a warm Mediterranean climate with a large number of sunny days – 280 in Spain and 300 in Portugal. Those who do not like cold winters, rainy autumns and generally gloomy, grey weather for most of the year should move here. The difference in climate between the countries is small – Spain is drier and hotter, but in the central part the winters are quite cold, and Portugal has higher humidity, snow in the north, but a more gentle, not too hot summer. - Products .
Residents of both countries have access to fresh fruits and vegetables, inexpensive but high-quality seafood almost all year round. The countries have established restrictions on the use of herbicides, so the products grown on their territory are safe. As for the cuisine, in Spain it is more vibrant, authentic, has a large number of local specialties, while in Portugal there is no such variety. - Medicine .
The quality and efficiency of the Spanish healthcare system is considered one of the best in Europe and the world, which is why it surpasses Portugal. The country regularly ranks high in various subject rankings – innovation in medicine, quality of service, science and technology, financial sustainability of the industry. The medical system in Portugal also meets European standards and is considered affordable, but Spain still demonstrates advanced positions in the global context. - Mentality .
In this aspect, it is difficult to determine the difference between Spain and Portugal. Representatives of both nations are open, emotional, hospitable. These are people who always smile, give compliments, surprise with their easy and positive attitude to life. The Spanish and Portuguese are also extremely friendly to foreigners, try to help when necessary, in no case do they show superiority, so adaptation is easy.
So Portugal or Spain?
In one of the most authoritative quality of life ratings from the UN, Spain is in 27th place, and Portugal is in 42nd place. The selection takes into account the life expectancy of the population, the quality of education, and the level of GDP per capita. Portugal has a slightly more comfortable climate and a lower cost of living, but Spain has higher salaries, better healthcare, and cheaper real estate. The latter country also wins in terms of economic development and the benefits of migration programs. As we can see, Spain surpasses Portugal in most parameters.