10 Common Mistakes People Make When Moving to Portugal (And How to Avoid Them)
Thinking about moving to Portugal? You're not alone. As of early 2025, Portugal has become home to over 1.5 million foreign residents, marking a significant increase in its immigrant population .
Whether you're a digital nomad, retiree, or like us, seeking a new lifestyle, Portugal's appeal is undeniable.
But before you pack your bags and cancel your direct debits, let's discuss some common pitfalls newcomers face—and how to sidestep them.
I don’t want to sugar coat things, Moving abroad is a big deal – and Portugal, for all its charm, has a few surprises up its sleeve. So before you pack your bags and cancel your direct debits, let's discuss some common pitfalls newcomers face—and how to sidestep them.
1. Not Understanding Portuguese Tax Rules Before You Move
One of the biggest relocation mistakes people make is assuming the tax system in Portugal is straightforward.
It’s not.
Portugal has offered generous schemes like the NHR (Non-Habitual Residency) tax regime, but rules are changing in 2025 and it’s not as simple as just “moving and saving.”
In fact if you’re thinning you’re going to pay less tax in Portual then think again.
Because it turns out Portugal has one of the highest income tax rates in Europe, with the top bracket reaching 48% for annual earnings over €78,834.
Add in social security contributions, and your effective tax rate can climb even higher — not exactly the tax haven many imagine.
I highly recommend you speak to a Portuguese tax advisor before you move. Especially if you work remotely, have international income, or plan to retire here.
2. Underestimating Portuguese Bureaucracy
Portugal’s pace of life is famously laid-back. Unfortunately, so is its bureaucratic system. Setting up your NIF (Número de Identificação Fiscal), opening a Portuguese bank account, registering your residency – these things take time and a lot of patience.
We had to spend two hours in a government office just to put the water bill in our name. They needed to see our passports and even the deed for our house to make the change.
My advice, start early and bring plenty of snacks.
Patience is key out here.
There is a huge mindset shift we all go through when we arrive here, we have to learn both patience and acceptance.
3. Assuming Everyone Speaks English
Yes, many people in Lisbon or the Algarve speak English – especially in tourist areas. But if you're moving to rural Portugal or want to truly integrate, relying solely on English will make life tricky.
Learn the basics of European Portuguese (not Brazilian – different accent, different vibe). Apps like Memrise or classes from locals are a great place to start.
We’ve tried the apps but personally, I think the best way to learn is with a tutor. We’re still only getting to grips with the basics but as soon as we’ve finished renovating and settled in we’ll hire a private tutor.
We highly recommend the Lonely Planet Portuguese phrase book to get you started.
4. Rushing Into Buying Property in Portugal
Property prices can seem like a bargain, especially if you’re coming from the UK or US. But jumping into a purchase too soon is risky – the housing market in Portugal is competitive, and some areas just won’t suit your lifestyle.
We ignored all of that advice and bought a house the moment we arrived.We lived in it for a few weeks just to figure out how much work it really needed – turns out, a lot.
We’ve still got a few more weeks of renovations ahead before we can properly move in, but honestly, we feel like we made the right choice.
Most people will rent first. Spend a few months getting a feel for different towns and villages before they commit.This is sensible.We are not sensible.
5. Overlooking Residency Requirements
Depending on your visa, Portugal has minimum stay requirements to keep your residency valid. For example, many residence permits require you to live in the country for at least 183 days per year.
What to do instead: Research your visa type (D7, D8, Golden Visa, etc.) and make sure your lifestyle fits the rules. A residency consultant can help you avoid nasty surprises.
Check out the free guides on Portugalmadesimple.com to see what visa you need.
6. Not Setting Up Health Insurance Properly
Portugal has an excellent public healthcare system, but expats often don’t qualify straight away. Plus, public hospitals can have long wait times.
There is always the option to buy private health insurance which is a good idea, at least your first year. It’s affordable and often required when applying for a visa.
I found it to be very expensive, we’re talking around €500 ish a month to insure a family of four. So we’re just being super careful for now and hiding all the skateboards.
7. Assuming All Parts of Portugal Are the Same
Portugal is small, but wildly diverse. Lisbon is buzzy and international. The Algarve is sunny and touristy. Porto has its own rhythm. The Azores and Madeira? A world apart.
Before we settled on the Algarve, we spent two months travelling the country in a campervan — and in that time, we realised just how much this country packs into a small space.
Every region has its own pros and cons, quirks and charms. We’d drive through some towns and I’d get that weird gut feeling — yep, I could spend the rest of my life here.
If you can, travel around before you commit. Try the coast, try the countryside. Notice the weather, the pace of life, the cost of groceries, the sound of the neighbourhood at night.
Because where you live in Portugal really shapes the kind of life you build here.
8. Forgetting to Budget for Hidden Costs
Shipping your stuff, visa applications, property taxes, translator fees – it all adds up.
Many expats underestimate how much the move will cost beyond rent or mortgage payments.
Add a 20% buffer to your moving budget. Trust us, you’ll use it.
For example, we had to pay almost €600 to hire the Notary office to get our mortgage.
There are hidden costs hiding everywhere.
9. Comparing Portugal to Spain (Just… Don’t)
Look, they’re neighbours. But Portugal is not Spain. The culture, the food, the history, the language – totally different. And yes, locals do notice when you mix them up.
I’ve had a few funny looks when I panic and bust out a “gracias” instead of “obrigado.” (Old habits die hard.)
But here’s the thing: the more time you spend here, the more you realise how rich and unique Portuguese culture really is.
It’s quieter, more reserved, but also incredibly warm and proud. And I honestly can’t say this enough — the people here are some of the kindest, most welcoming humans we’ve ever met.
10. Moving Without Visiting First
You’d be surprised how many people move here based on YouTube videos and Instagram reels. Then they arrive and realise their dream town has no bakery, no bus, and a rooster that starts at 4am.
Visit for a few weeks or even a couple of months. Live like a local. Test the Wi-Fi. Try the coffee. Notice what the town feels like in winter, not just the summer months.
Final Thoughts: Move Smart, Not Fast
Portugal really can offer the lifestyle you’ve been dreaming of – slower mornings, better weather, But you’ve got to do your homework. Take it from someone who's done it: the move is easier when you're informed.
Stef
Thinking About Visiting or Moving to Portugal?
Whether you're planning a family holiday or a full-blown relocation, PortugalMadeSimple.com has everything you need — from real-life tips and town guides to moving checklists and cost breakdowns (no fluff, just the good stuff).
We’ve done it, we’re living it, and we’re sharing everything we’ve learned to make your journey a whole lot easier.
👉 Visit PortugalMadeSimple.com — and let’s make Portugal make sense.
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