Best Places to Live Overseas: Italy vs. Portugal

If you're contemplating becoming an expat in Southern Europe and torn between Italy and Portugal, this article is for you. Both nations offer a rich history, stunning landscapes, and excellent food and wine. However, they each have distinctive features to consider, including climate, cost of living, healthcare, and the local attitudes.

1. Climate

Italy and Portugal are renowned for their typically Mediterranean climates, featuring warm summers and mild winters. Italy, due to its length, has more regional variation, from Alpine conditions in the north to Mediterranean in the central and south. Coastal regions have mild winters and warm, dry summers, whereas the inland areas can experience harsher winters and hotter summers. Portugal’s climate is milder. The southern region, Algarve, is a favorite among digital nomads and expats for its sunny days, while northern areas have a cooler, rainier climate, resembling that of Western Europe.

"One thing you can't change is the weather; Italy has so many diverse climatic areas, mountain, sea, you should be able to find something you love to wake up in every day, just make sure you see it at least once at its worst - in the off season - and then you will never be unpleasantly surprised," reported one member.

2. Cost of Living

If your decision hinges on the cost of living, Portugal could be the better choice. According to Numbeo, a database comparing worldwide living costs, Portugal is generally cheaper than Italy in terms of accommodation, groceries, and dining out. Additionally, utilities and internet are less expensive. Italy, however, is not overly pricey, particularly when compared to other Western European countries. Certain regions, like the South and inland areas, are more affordable than the bustling cities like Milan or Rome.

"As far as standard of living, if you have little money and live in an expensive area, central Rome, Milan, Florence, then you will have a low standard of living. That same income spent in less expensive areas will give you a higher standard of living. Your original post indicates that the areas you know are the tourist areas, Amalfi, Tuscany, etc. Those place are beautiful indeed but you can find "real Italy" where there are fewer tourists but real Italians. There are places that are also beautiful and full of history and culture that you don't need to wait on line for. Those are the places you want to live," advised one member.

"The cost of living is quite low, but the standard of living is high. That is, for very little money, one can rent a nice home, buy a nice car, enjoy travel and local culture and receive medical treatment pennies on the dollar," explained one member living in Tavira, Portugal.

Expense Category	Italy	Portugal
Rent (1-bedroom in city center)	€700 - €800	€600 - €700
Utilities (Monthly)	€100 - €150	€70 - €100
Meal at Inexpensive Restaurant	€15	€10
Monthly Transportation Pass	€35	€30
Internet (60 Mbps or more, unlimited data)	€30	€30

3. Healthcare

Both countries offer high-quality healthcare. According to the 2020 Euro Health Consumer Index, Italy ranks higher than Portugal. The Italian public healthcare system, Servizio Sanitario Nazionale (SSN), provides free or low-cost healthcare to all residents, including digital nomads and expats with a residency permit. Portugal’s Serviço Nacional de Saúde (SNS) also offers free or low-cost care to residents, though some services require a nominal fee. Both countries have excellent private healthcare options, too. It's worth noting that while Portugal has made substantial improvements in its healthcare system, some rural areas may not have the same level of access as in urban centers.

"Our family has been using public healthcare for over 3 yrs. At first I was a little worried. The bureaucracy of getting into the system didn't make me feel any better. Now that all our services are in place we are quite happy with the care we receive for both medical and dental (private dental office). We also use special care services for our 9 yr old son who was born with an orthopedic disability. Getting all services in place took a lot of footwork. Often times we felt like we were getting the run around but it all worked out. Compared to living in the US, our annual medical cost dropped 95%. Our son also qualifies for the Italian version of Social Security. Something we never qualified for in the US," wrote one member in Italy.

"Yes, we have access to Portuguese National Health which is quite good depending on where you go. And we have a supplemental at 48 Euros per month which gives us choices and pays out quite a lot of the out of pocket expense. If we see doctors and dentists and opthalmologists who belong to our plan, costs and copays are controlled and quite low. The care has been excellent," remarked one member in Cascais.

Visas and Residency

Italy and Portugal are both part of the Schengen Agreement, allowing EU citizens free movement. For non-EU citizens, each country has different visa and residency requirements. In Italy, long-stay visas require proof of financial means, health insurance, and accommodation. Similarly, Portugal requires proof of income and health insurance for its residence visas. Portugal, however, offers the 'Golden Visa' program, which allows residency through investment, typically in real estate. This program has been popular among non-EU nationals seeking an easy route to European residency.

Portugal's Most Popular Visa & Residency Option
Visa/Residency Type	Description	Requirements
Work Visa	Allows foreigners to live and work in Portugal.	Job offer from a Portuguese employer, valid passport, clean criminal record, and proof of accommodation.
Self-Employment Visa	For foreigners intending to undertake self-employed or freelance work.	Proof of economic and professional viability of the project, clean criminal record, and proof of accommodation.
Study Visa	For foreigners intending to study at a Portuguese educational institution.	Admission letter from a Portuguese educational institution, evidence of financial means, health insurance, and clean criminal record.
Residence Visa for Retirees or Income Earners	For foreigners who wish to reside in Portugal and have a regular income or pension.	Evidence of regular income or pension, clean criminal record, and proof of accommodation.
Golden Visa (ending 7/1/23)	For foreigners making a significant investment in Portugal.	Investment of at least €500,000 in real estate, €1 million transfer of capital, or the creation of at least 10 jobs.

Italy's Most Popular Visa & Residency Option
Visa/Residency Type	Description	Requirements
Employment Visa	Allows foreigners to live and work in Italy.	Job offer from an Italian employer, valid passport, clean criminal record, and proof of accommodation.
Self-Employment Visa	For foreigners intending to undertake self-employed or freelance work.	Evidence of sufficient financial resources, proof of professional skills or entrepreneurial activity, and clean criminal record.
Study Visa	For foreigners intending to study at an Italian educational institution.	Admission letter from an Italian educational institution, evidence of financial means, health insurance, and clean criminal record.
Elective Residence Visa	Allows foreigners to reside in Italy without engaging in any work.	Evidence of substantial, steady private income and a place to live in Italy.
Investor Visa	For foreigners making significant investment in Italy.	Investment of at least €1 million in an Italian limited company, €2 million in Italian government bonds, or €500,000 in an innovative startup.

Attitude of Locals

Both Italians and Portuguese are renowned for their friendliness and hospitality. In Italy, there is a strong sense of community and familial bonds, with locals typically being warm and expressive. Portuguese people are also friendly and welcoming, with a relaxed, easy-going attitude that many digital nomads and expats find appealing. However, note that in both countries, learning the local language can make integration smoother. English is spoken in tourist areas and among younger generations, but is not as common among older or rural populations.

Both Italy and Portugal offer beautiful environments, excellent food, rich culture, and friendly locals for a potential expat. Your decision might hinge on personal preferences, like climate or cost of living. Portugal offers a cheaper cost of living and sunnier climate, while Italy has diverse landscapes and a world-renowned healthcare system. Whichever you choose, you're sure to have a memorable and enriching expat experience.

"Once you become friends with Italians, they sort of treat you like true family. You will see a very considerate and loyal side to them then. They will do such wonderfully kind things which, will make you question why they behave so intolerably to strangers. I now understand there are aspects to their culture which makes it difficult at times to see just how wonderful they truly are. I do love living in Italy and the good really does outweigh the bad."

"We find the Portuguese to be very friendly and welcoming. We’ve been invited to multiple gatherings (holiday, Tues night, weekend) at neighbors and other friends houses. They also like to invite us to cultural events in different towns and show us the best of their country. It really has been a great experience so far," said one member.

Italy vs. Portugal: A Comparison of Key Factors

	Italy	Portugal
Cost of Living	Medium-High	Medium
Taxes	High	Medium-Low
Climate	Varies (Mediterranean to Alpine)	Mediterranean
Ease of Obtaining Residency	Moderate	Relatively Easy
Easiest Visa to Obtain	Work Visa	Residence Visa
Access to Quality Healthcare	High	High
Quality of Public Healthcare System	Good	Good
Ability of Expats to Use Public Healthcare System	Yes	Yes
Best Places to Live	Florence, Rome, Milan	Lisbon, Porto, Faro
5 Biggest Cities	Rome, Milan, Naples, Turin, Palermo	Lisbon, Porto, Vila Nova de Gaia, Amadora, Braga
Best Coastal Places to Live	Amalfi Coast, Cinque Terre, Sardinia	Algarve, Cascais, Lagos
Best Places for Expat Families to Live	Turin, Bologna, Verona	Lisbon, Cascais, Porto