Our guide on the most common Mistakes to Avoid as an Expat in Portugal and how to avoid them for your next visit.
Portugal has become a popular destination for expats seeking beautiful landscapes, a relaxed lifestyle, and affordable living. With its stunning coastline, historic cities, and friendly locals, it’s easy to see why so many people are drawn to making Portugal their new home.
However, moving to a new country comes with its own set of challenges and common mistakes. This guide will help you navigate life in Portugal smoothly by highlighting the pitfalls to avoid and how to make your transition as an expat easier.
By avoiding these common mistakes, you can enjoy a smoother transition to life in Portugal and make the most of your experience in this beautiful and welcoming country. Boa sorte (Good luck) on your Portuguese adventure!
Read here Tips for living in Portugal as Digital Nomad, best things to know before visiting Portugal, best Portugal sim card for tourist and the best Portuguese food
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Mistakes to Avoid as an Expat in Portugal
1. Not Learning Portuguese
Mistake: Relying on English to get by, assuming it’s widely spoken everywhere, especially in rural areas and among the older population.
How to Avoid:
Start Learning Before You Move: Familiarize yourself with basic Portuguese phrases and greetings. Apps like Duolingo or Babbel can be helpful.
Take Classes Locally: Once in Portugal, enroll in language classes. Many cities offer affordable Portuguese courses for expats.
Practice Daily: Use Portuguese in everyday interactions, such as ordering at cafés, greeting neighbors, and shopping at local markets.
Tip: Even a basic attempt at speaking Portuguese goes a long way in building rapport and showing respect for the local culture. Simple phrases like “Bom dia” (Good morning) and “Obrigado/a” (Thank you) are much appreciated.
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2. Underestimating Bureaucracy and Paperwork
Mistake: Assuming that setting up a bank account, getting a NIF (tax number), and arranging visas or residency permits will be straightforward and quick.
How to Avoid:
Prepare for Delays: Be patient and expect delays. Bureaucracy in Portugal can be time-consuming, with long waiting times for appointments and processing.
Get a NIF First: Your first step should be obtaining a NIF number (Número de Identificação Fiscal), which is required for almost everything, from opening a bank account to renting a property.
Hire Professional Help: Consider using a relocation agency, lawyer, or accountant familiar with the Portuguese system, especially if you’re navigating complex processes like the D7 visa, Golden Visa, or NHR (Non-Habitual Resident) tax status.
Tip: Make sure to bring multiple copies of your documents (passport, proof of address, visa information) when visiting government offices, as you may need them unexpectedly.
3. Overlooking Health Insurance Requirements
Mistake: Assuming that public healthcare will cover all your needs or forgetting to obtain health insurance before arriving.
How to Avoid:
Understand the System: Portugal has a good public healthcare system (Serviço Nacional de Saúde), but it’s not free for expats unless they are registered residents. Even then, some treatments may not be covered.
Get Private Health Insurance: For quicker access and broader coverage, many expats choose private health insurance, which is affordable compared to other European countries.
Check Residency Requirements: Depending on your visa or residency type, you may need proof of health insurance to complete the process.
Tip: Research local and international health insurance providers like Allianz or Médis for the best options that suit your needs.
4. Choosing the Wrong Location to Live
Mistake: Picking a location based solely on vacation experiences or recommendations without considering factors like cost of living, climate, and local amenities.
How to Avoid:
Visit Multiple Areas Before Settling Down: Spend time exploring different parts of Portugal to find the best fit. Popular areas for expats include:
Lisbon: The capital with a vibrant cultural scene, tech hubs, and plenty of amenities.
Porto: A charming city with a more traditional feel, known for its wine and riverside views.
Algarve: Ideal for retirees or those seeking a relaxed, beach-focused lifestyle.
Silver Coast: Quieter and more affordable, with beautiful coastal towns like Nazaré and Peniche.
Central and Northern Portugal: Less touristy, with lower costs of living and a more authentic Portuguese experience.
Consider Cost of Living: Popular areas like Lisbon and Cascais can be much more expensive than smaller towns or rural areas.
Assess Climate Preferences: The climate varies significantly between regions. The Algarve is sunny and warm year-round, while Porto and the north are rainier.
Tip: Renting short-term initially can give you flexibility to explore and decide on your long-term location without the pressure of committing immediately.
5. Renting or Buying Property Too Quickly
Mistake: Jumping into a long-term rental or purchasing property without understanding local markets, laws, and neighborhood dynamics.
How to Avoid:
Rent Before You Buy: Spend at least six months to a year renting before considering buying property. This gives you time to get to know the area, property market, and your needs.
Check Legalities: Hire a reputable real estate agent and lawyer to navigate the property market. Ensure you understand property taxes, inheritance laws, and regulations.
Visit the Property in Different Seasons: If you’re buying, visit the area during different times of the year to understand seasonal changes, noise levels, and traffic.
Tip: Beware of scams targeting expats in the rental market. Never send money or sign contracts without viewing the property in person.
6. Neglecting Financial Planning and Tax Obligations
Mistake: Not understanding Portugal’s tax system and potential obligations in your home country, which can lead to unexpected tax bills and complications.
How to Avoid:
Consult a Tax Advisor: Hire an advisor familiar with both Portuguese and international tax laws, especially if you have complex financial situations like foreign pensions or investments.
Research the NHR Tax Scheme: The Non-Habitual Resident (NHR) scheme offers significant tax benefits for new residents, but you must apply within the first year of becoming a tax resident.
Know Double Taxation Agreements: Portugal has treaties with several countries to avoid double taxation. Make sure to research if this applies to your situation.
Tip: Consider setting up a Portuguese bank account, as some payments and transfers require a local IBAN.
7. Not Understanding Residency and Visa Requirements
Mistake: Assuming that a tourist visa is sufficient for a long-term stay or not knowing which visa type to apply for.
How to Avoid:
Understand the Different Visa Options:
D7 Visa: Suitable for retirees or those with passive income.
Golden Visa: Requires a significant investment in property or business.
Digital Nomad Visa: New visa aimed at remote workers.
Plan for Long Processing Times: Portugal’s visa and residency applications can take several months. Start the process early to avoid overstaying or being caught without legal status.
Register for Residency: If you’re from the EU/EEA, you’ll need to register for a residency certificate (Certificado de Registo de Cidadão da União Europeia). Non-EU citizens must apply for a residence permit.
Tip: Always keep copies of your visa, residence permit, and passport when traveling, as you may need them for various bureaucratic processes.
8. Disregarding the Cost of Utilities and Services
Mistake: Focusing only on rent or property prices and underestimating the costs of utilities, internet, and other services.
How to Avoid:
Get Estimates for Utilities: Electricity, water, and internet costs can add up, especially in rural areas where heating or air conditioning is needed. Request utility bill estimates from landlords or agents.
Research Internet Options: Some rural areas may have limited high-speed internet options. Check with local providers before committing.
Check Hidden Fees: Look out for additional fees such as condo association fees (condomínio) or garbage collection (taxa de resíduos).
Tip: Use comparison websites like ComparaJá to find the best deals for utilities, internet, and mobile services.
9. Misunderstanding Portuguese Work Culture
Mistake: Approaching business and work interactions the same way you would in your home country, which can lead to frustration or misunderstandings.
How to Avoid:
Be Punctual, But Expect Flexibility: Arrive on time for meetings, but understand that Portuguese culture values personal relationships over strict adherence to schedules.
Embrace a Slower Pace: The work pace can be more relaxed compared to other Western countries. Be patient and avoid pushing for quick decisions.
Build Personal Relationships: Networking and personal relationships are crucial. Take the time to build trust with colleagues and partners.
Tip: Avoid discussing business matters right away during social gatherings, as it may be seen as impolite.
10. Not Integrating with the Local Community
Mistake: Sticking to expat circles and not making an effort to integrate with the local Portuguese community, which can lead to isolation and a lack of authentic experiences.
How to Avoid:
Join Local Groups and Activities: Participate in local clubs, classes, or volunteer opportunities to meet Portuguese people and other residents.
Attend Festivals and Events: Experience traditional festivals like the Santo António Festival in Lisbon or the Festa das Flores in Madeira to immerse yourself in the culture.
Shop Locally: Support local businesses, visit traditional markets, and interact with vendors to practice the language and build connections.
Tip: Living in a smaller town or village can encourage more interaction with locals than in larger cities, where it’s easier to remain in an expat bubble.
About the Author: Ruben, co-founder of Gamintraveler.com since 2014, is a seasoned traveler from Spain who has explored over 100 countries since 2009. Known for his extensive travel adventures across South America, Europe, the US, Australia, New Zealand, Asia, and Africa, Ruben combines his passion for adventurous yet sustainable living with his love for cycling, highlighted by his remarkable 5-month bicycle journey from Spain to Norway. He currently resides in Spain, where he continues sharing his travel experiences with his partner, Rachel, and their son, Han.