Natalie The biggest mistakes expats make when moving to Portugal are common. Some retirees have wild stories, while working expats often talk about legalities and laws they want to have known. Most expats say they made mistakes.
However, moving countries is a significant lifestyle change, so it is nice to know of potential mistakes to avoid them. There is much to learn about, whether it is medical insurance, public services, tax regimes, or job opportunities. This article discusses common mistakes and gives tips and benefits to help you plan your move.
Biggest Mistakes Expats Make When Moving to Portugal
1: Lack of Preparation for Residency
When you move to a foreign country, the number one thing to do is learn about residency rules. Foreigners can stay for up to 3 months in Portuguese, but after that, they need to register for a residence permit via the Serviço de Estrangeiros e Fronteiras. Apply for a temporary stay, which grants you one year, or an extended stay for over 12 months.
For the Golden Visa Scheme, the Portuguese Government just ended the options of real estate investment or capital transfer in 2023. The program, introduced in 2012 to attract foreign investment, allows investors and their families to live, work, and study in Portugal and apply for permanent residency or Portuguese citizenship after five years. Other avenues to qualify, include job creation or investment funds.
For alternatives, the D2 visa is for foreign citizens who want to create companies, while the D7 visa is for those who will gain money through alternative passive income sources like investing or rentals. The D8 visa is also an option for digital nomads.
2: Neglecting Financial Planning
Think like an accountant and citizen, especially if you keep the property in your home country. Manage finances precisely because Portugal operates in the Euro, and expats receiving pensions or incomes in foreign currencies will need to run two sets of financial records.
Things to consider include currency exchange rates, savings pots for ad hoc emergencies, education costs if going private, and living costs. Know your income, debts, bills, and savings to form monthly and yearly budgets to stick to.
Regarding the cost of living, some say that Portugal is an expensive country, while others say it isn’t. The answer will depend mainly on two factors. Firstly, where are you moving to? Lisbon, the capital city, is more expensive than other places. Secondly, where are you moving from? For many British expats who see the cost-of-living crisis back home, Portugal is better on the pocket.
3: Not Exploring State and Private Healthcare Options
Residency allows state healthcare and doctors (Serviço Nacional de Saúde or SNS), but expats must pay for separate appointments and procedures. Depending on your health needs, you may need private healthcare insurance. Know your private health insurance options and plan accordingly for future events. Additionally, whichever place you move to, research the excellent healthcare options and choice of doctors so you are ready if you do need emergency treatment.
4: Not Balancing Your New Expat Life
Most people first visit on holiday and fall in love with the country for the quality of life. The sunshine easily lures them here. They then move here to rent and live in a town, carry on that lifestyle, and within a few years, their health and finances take an impact. Holiday mode is fun but not sustainable.
Spending all day in bars while ignoring life’s practicalities and responsibilities ensures your move becomes a big mistake. The slow pace, ridiculous red tape and poor customer-friendly service also irritate expats but are unavoidable. However, Portuguese people have their way of life, so plan days accordingly.
5: No Attempts to Learn Portuguese
Many expats think the language is Spanish, but it is Portuguese. Once they arrive, they dabble with learning a few words and never progress. Download an app or learn one word a day. The delight and pride you will feel when you chat with Portuguese people is addictive. Additionally, knowing Portuguese words will also increase your daily quality of life.
6: Rushing Through Property Purchases
Despite Portugal’s high-profile status, many people are surprised by the property prices. Hence, they often buy quickly. Yet a few British expats say they wish they had shopped around more or rented first.
There are many coastal towns to choose from, and the property market includes many apartments, villas, and penthouses. Real estate transactions are stressful times in our lives, so take your time. There is no rush.
Some clients want to pursue renovation projects. But in our experience, this is stress, heartache, and financial strain. In all cases, renovation costs far outweigh the budget. In addition, the price does not add value to the property. Lastly, paperwork takes ages, and workers often work at their own pace with their ideas. So avoid them completely.
7: Overestimating the Children’s Ability
While some children adapt quickly to expat life, others struggle. Before moving, research private and public schools that are free for foreign residents. Private schooling is expensive. Some people prefer private schooling over the public education system, but compulsory education does have a good reputation. If you decide to go private, there are roughly 2,500 international schools nationwide. Also, introduce your children to the language straight away. Children have a remarkable ability to learn languages easily. Then, integrate them into clubs so they make friends quickly.
8: Lack of Exploration
This part of southwestern Europe has marvellous beaches to boast about, but you can get inland to explore rural communities away from the tourist and expat scenes. The average person might explore a few times, then fall into their little comfort zone. Yet Portugal has much to offer, from the small fishing towns to traditional communities.
The crime rate is low, so there is no reason not to spread your wings and immerse yourself deeper into the heart of this brilliant country. From time to time, hit the open road.
Portugal is on the western edge of the European Iberian Peninsula of Europe, bordered to the west and south by the Atlantic Ocean and to the east and north by Spain, and includes the Atlantic archipelagos of the Azores and Madeira. Otherwise for urban travel, major cities to explore include Porto, Coimbra, and Faro.
9: Assumptions About the Weather
Most people generalise the weather, and assume the whole of Portugal is abundant sunshine all year round. Indeed, many places offer that sun but be aware that the north and central parts have lower temperatures, mostly felt during December and January. The Algarve is known for its sunny weather year-round, while the north, including Porto, is more rainier. The summer heat in some inland areas is intense, so air conditioning is a must.
Popular Places to Move to in Portugal
Lisbon: The large expat community in Lisbon consists of international workers who flock for job opportunities, and the nightlife, dining, and shopping scenes are also a major lure. The Avenidas Novas neighbourhood is popular. Otherwise, the Alfama neighbourhood is the old quarter with narrow streets. Estrela is popular with digital nomads, while Baixa is in the city heart. Cascais is a coastal town located just 30 kilometres west of Lisbon. Once a royal retreat, expats love the beautiful beaches, and proximity to the capital.
Porto: The second-largest city, is famous for wine, historic architecture, and the Douro River. This laid-back alternative to Lisbon, has strong foreign communities, and expats like the more affordable living costs. Popular neighbourhoods include Ribeira, Foz do Douro and Boa vista.
Algarve: The southern Algarve region is popular for retirees. There is an abundance of outdoor activities and, of course, 300 days of sunshine a year. The Algarve has well-established expat communities, particularly from the UK, Germany, and the Netherlands, and popular expat neighbourhoods include Faro, Lagos, and Tavira.
Madeira: This autonomous Atlantic region boasts stunning landscapes and slower paces of life. The island enjoys mild temperatures year-round. Madeira has a welcoming and tight-knit expat community, particularly in Funchal. Otherwise, head to Caleta for more rural vibes.
Sintra: Living in Sintra allows easy access to Lisbon while offering more peaceful environments. The town, surrounded by hills, forests, and trails, attracts many nature lovers. Popular areas include Colares and Quinta da Beloura.
Silver Coast: Also called Costa de Prata, and stretching from Lisbon to Porto, expect stunning coastal scenery and traditional Portuguese towns. Less touristy than the Algarve but equally beautiful, the region offers conventional Portuguese lifestyles with fewer tourists. Popular towns include Nazare and Caldas da Rainha.
Use Our Services
We are Spot Blue International, and we hope we have given you lots of tips about the biggest mistakes expats make when moving to Portugal. If you are planning to move and want to buy property, we can help prevent the biggest home-buying mistakes. We can help you each step of the way, from finding a dream home to signing for the deeds and moving in. Call an agent today to chat more, or see our property for sale in all areas of Portugal.
