In short
Lisbon and Madrid cost about the same — about €2,185 and €2,150 a month for a single person with a central 1-bedroom. Portugal offers Americans a digital nomad visa, a retirement visa and a golden visa. Spain offers Americans a digital nomad visa and a retirement visa. Every figure below is checked against official sources.
The verdict
Which Country Fits You?
Where one side is clearly better for most Americans, it gets the point — the rest depends on your plans.
Choose Portugal if…
- You live on a pension or savings and want the lower bar: D7 visa — passive income from €920 a month (2026).
- You want residence through investment: Golden visa — €500,000 in funds or a company, €250,000 for culture; real estate closed since 2023. Spain's is closed.
- You will run a company — corporate tax is 19% in 2026, falling to 17% by 2028.
Choose Spain if…
- You work remotely and want the lower bar: Digital nomad visa — about €2,849 a month (€34,188 a year); permit up to 3 years.
- You want to apply after arriving visa-free: for the digital nomad and entrepreneur permits — at the UGE, also during a visa-free stay.
- You are a founder: entrepreneur permit — innovative business with a favourable ENISA report.
Cost of Living
Lisbon and Madrid Cost About the Same
| Portugal | Spain | |
|---|---|---|
| 1-bed apartment, city centre | Portugalabout €1,425 (Lisbon) | Spainabout €1,332 (Madrid)✓ |
| 1-bed apartment, outside centre | Portugalabout €1,063 (Lisbon) | Spainabout €1,066 (Madrid) |
| Everyday costs, single person (no rent) | Portugalabout €760 (Lisbon)✓ | Spainabout €820 (Madrid) |
| Total a month — single, central 1-bed | Portugalabout €2,185 (Lisbon) | Spainabout €2,150 (Madrid) |
Living costs: Numbeo estimates for the capital (2026), as shown with sources on each city guide and in the key facts below.
Daily Life
Daily Life in Lisbon and Madrid
| Portugal | Spain | |
|---|---|---|
| Population (capital) | PortugalAbout 576,000; 2.9 million in the metro area | SpainAbout 3.5 million; 7.1 million in the region |
| Public transport (capital) | PortugalNavegante pass €40 (metro area) or €30 (Lisbon only) | SpainZone A monthly pass €32.70 (2026) |
| Nonstop flights to the US | PortugalTAP nonstop from 8 US cities, plus United and Delta | SpainIberia nonstop from 8 US cities, plus American, Delta, United |
| Currency | PortugalEuro | SpainEuro |
Visas & Residence
Visas & Work Permits Compared
| Portugal | Spain | |
|---|---|---|
| Apply from inside the country | PortugalNo — enter on the right visa; a tourist stay cannot be turned into residence | SpainYes for the digital nomad and entrepreneur permits — at the UGE, also during a visa-free stay✓ |
| Digital nomad visa | PortugalD8 visa — remote income of at least €3,680 a month plus €11,040 in savings | SpainAbout €2,849 a month (€34,188 a year); permit up to 3 years✓ |
| Retirement / passive-income visa | PortugalD7 visa — passive income from €920 a month (2026)✓ | SpainNon-lucrative visa — €2,400 a month; no work at all, not even remote |
| Golden (investor) visa | PortugalGolden visa — €500,000 in funds or a company, €250,000 for culture; real estate closed since 2023✓ | SpainClosed since 3 April 2025 |
| Founders & startups | PortugalStartup Visa — accepted by an IAPMEI-certified incubator | SpainEntrepreneur permit — innovative business with a favourable ENISA report |
Tax & Business
Taxes & Company Rules
| Portugal | Spain | |
|---|---|---|
| Special tax regime | PortugalIFICI — 20% flat for 10 years on qualifying skilled jobs; not for pensions | SpainBeckham regime — 24% flat up to €600,000 for 6 years (incl. digital nomads) |
| Usual company | PortugalLda — capital from €1; same-day formation | SpainSL — capital from €1; online formation through CIRCE |
| Corporate tax | Portugal19% in 2026, falling to 17% by 2028✓ | Spain25% (23% or less for smaller companies, 15% for new ones) |
| US tax treaty | PortugalSigned 1994; Social Security agreement since 1989 | SpainSigned 1990, 2013 protocol; Social Security agreement since 1988 |
US citizens & Green Card holdersThe US still taxes you
Wherever you live, the US taxes its citizens on worldwide income. You keep filing a US return, and an FBAR once your foreign accounts total more than $10,000 at any time in the year.
FAQ
Portugal or Spain? Your questions
Is Lisbon or Madrid cheaper?
They cost about the same: a single person with a central 1-bedroom spends about €2,185 a month in Lisbon and €2,150 in Madrid (Numbeo, 2026). Rent for a central 1-bedroom is about €1,425 in Lisbon and €1,332 in Madrid.
Does Portugal or Spain have a digital nomad visa?
Portugal: D8 visa — remote income of at least €3,680 a month plus €11,040 in savings. Spain: About €2,849 a month (€34,188 a year); permit up to 3 years.
How long until I can get citizenship?
Portugal: 10 years since May 2026 (7 for some nationalities). Spain: 10 years for Americans, plus A2 Spanish and civics exams.
Do I still pay US taxes if I move?
Yes. The US taxes its citizens on worldwide income wherever they live. You keep filing a US return, and an FBAR once your foreign accounts total more than $10,000. Foreign tax credits and the treaties usually prevent paying twice on the same income.
Portugal vs Spain: key factsLast verified 2 October 2026
| Portugal: Lisbon rent | 1-bedroom about €1,425 a month in the centre and €1,063 outside (Numbeo, September 2026) Source: Numbeo: Cost of living in Lisbon |
|---|---|
| Portugal: Lisbon living costs | A single person spends about €760 a month without rent — about €2,185 with a central 1-bedroom (Numbeo, September 2026) Source: Numbeo: Cost of living in Lisbon |
| Spain: 1-bed apartment, Madrid | about €1,332 a month in the centre, €1,066 outside (Numbeo, October 2026) estimate Source: Numbeo – Cost of Living in Madrid |
| Spain: Living costs, single person (Madrid) | about €820 a month without rent — about €2,150 with a central 1-bedroom estimate Source: Numbeo – Cost of Living in Madrid |
| Portugal: Lisbon population | 575,739 in the city (2024 estimate); about 2.9 million in the metropolitan area Source: INE: Retrato municipal Lisboa 2025 · Renascença: Censos 2021 Área Metropolitana de Lisboa |
| Spain: Madrid population | 3,497,277 (1 January 2026), about 19% foreign nationals; 7.11 million in the Madrid region Source: Ayuntamiento de Madrid – Padrón Municipal: Primeros resultados 2026 · Madrid Economía 2026 (Observatorio Económico, Ayuntamiento de Madrid) |
| Portugal: Lisbon transport | Navegante monthly pass €40 for the whole metro area or €30 for Lisbon only; free for under-18s, students up to 23 and Lisbon residents over 65 Source: Carris: Frequent travellers (Navegante prices) |
| Spain: Madrid transport pass | Zone A monthly pass €32.70 in 2026 (40% subsidy on €54.60), €10 under 26, free from 65; discounts confirmed to 31 December 2026 Source: Xataka Móvil – Madrid confirma precios del abono transporte para 2026 · Merca2 – La bonificación del transporte público en Madrid extiende su descuento hasta final de año |
| Portugal: Flights from the US | TAP flies to Lisbon from Newark, New York, Boston, Washington, Chicago, Miami, San Francisco and Los Angeles; United and Delta add more Source: TAP: Flights from United States · Echo Boomer: United reforça Lisboa-Washington Verão 2026 |
| Spain: Flights from the US | Iberia flies nonstop to Madrid from New York (JFK and Newark), Boston, Miami, Chicago, Washington, Dallas, Los Angeles and San Francisco; American, Delta, United and Air Europa add more, and United also flies Newark to Barcelona, Málaga, Palma, Bilbao and Santiago (some seasonal) Source: BoltFlight – Iberia evaluates four new nonstop US routes (21 Jul 2026) · Aviación al Día – United Airlines … new cities in Spain for summer 2026 |
| Portugal: Entering as a tourist | Since 4 June 2024 you can no longer switch from a visa-free stay to residence (manifestação de interesse abolished) — you need a residence visa from a consulate first Source: Estrangeiros: Extintas as manifestacoes de interesse: APCMC |
| Spain: Digital nomad permit length | Visa from a consulate for up to 1 year, or a residence permit of up to 3 years applied for inside Spain at the UGE (also during a visa-free stay), decided in 20 working days; renewals of 2 years with no overall cap Source: Regulación de la residencia de nómadas digitales (Sepin) · Consulate General of Spain in Houston – Telework Visa (Digital Nomad Visa) · Consulate General of Spain in Washington – Telework (Digital nomad) Visa |
| Portugal: D8 digital nomad visa | Remote income from outside Portugal of at least €3,680 a month (4 × minimum wage) plus €11,040 in savings; a temporary-stay version lasts up to 1 year Source: A DEEP DIVE Into Portugal's D8 Requirements: Portugalist |
| Spain: Digital nomad visa | Gross income of at least 200% of the minimum wage — €34,188 a year in 2026 (about €2,849 a month; US consulates quote €2,442 × 14) — plus 75% of the minimum wage for the first family member and 25% for each other; a degree or 3 years of experience; at least 3 months with your employer or clients, an employer operating for 1 year, and freelancers may earn up to 20% from Spanish clients Source: Consulate General of Spain in Washington – Telework (Digital nomad) Visa · Consulate General of Spain in Houston – Telework Visa (Digital Nomad Visa) |
| Portugal: D7 passive income visa | Passive income of at least €920 a month in 2026 (+50% for a spouse, +30% per child); consulates usually expect about 12 months of that (€11,040) in a Portuguese bank Source: What Portugal's 2026 Minimum Wage Rise Means for Visas: Portugalist · Portugalist: D7 visa requirements 2026 |
| Spain: Non-lucrative visa | Passive income or savings of 400% of IPREM — €2,400 a month or €28,800 a year in 2026 — plus €600 a month (€7,200 a year) per dependant; no work of any kind, including remote work Source: Consulate General of Spain in New York – Non-Working Residence Visa · Consulate General of Spain in Chicago – Non-Lucrative Residence Visa |
| Portugal: Golden visa (ARI) | Five routes in 2026: €500,000 in qualifying non-real-estate funds, €500,000 research, €250,000 culture, €500,000 company capital with 5 jobs, or 10 jobs; real estate and €1.5M capital transfer closed since October 2023 Source: Lei 23/2007 consolidated text (PGD Lisboa) art. 3 · Lei 56/2023: Diário da República |
| Spain: Golden visa | Closed: Organic Law 1/2025 repealed the investor visa from 3 April 2025. Applications filed before that date are decided under the old rules, and existing holders can renew Source: Inversores – Unidad de Grandes Empresas (Ministerio de Inclusión) |
| Portugal: Startup Visa | For non-EU founders accepted by an IAPMEI-certified incubator; leads to a residence permit Source: Portaria 344/2017 (Informador) |
| Spain: Entrepreneur permit | For an innovative business with a favourable ENISA report; visa for 1 year or a permit of up to 3 years applied for inside Spain at the UGE, decided in 20 working days Source: Nota informativa: modificaciones introducidas en la Ley 14/2013 por la Ley de empresas emergentes (ECIJA) · Consulate General of Spain in Houston – Telework Visa (Digital Nomad Visa) · Billin - La visa de emprendedor en España (Ley 14/2013) |
| Portugal: IFICI (successor to NHR) | 20% flat tax for 10 years on income from qualifying highly skilled jobs, research and startups, with most foreign income exempt — not pensions; you must not have lived in Portugal in the previous 5 years Source: Incentivo fiscal a investigacao cientifica e inovacao: AT leaflet · Startup Portugal: Legal Bites #03 IFICI |
| Spain: Beckham regime | 24% on employment income up to €600,000 (47% above) for the year of arrival plus 5 years, if you were not resident in the previous 5 years and move for a job, remote work (incl. the digital nomad visa), a directorship or an innovative business — not for non-lucrative visa holders. Optional: file Modelo 149 within 6 months of starting work Source: Artículo 93 Ley del IRPF (Iberley – consolidated text) · Modelo 149 – Instrucciones para cumplimentar la comunicación (Agencia Tributaria) |
| Portugal: Usual company type | Lda or single-member Unipessoal Lda: capital from €1 per share; same-day Empresa na Hora (€360) or Empresa Online (€220 with standard articles) Source: Decreto-Lei 33/2011 (Diário da República) · InvoiceXpress: Como criar uma empresa em Portugal em 2026 |
| Spain: SL (limited company) | Minimum capital €1 since October 2022, fully paid in; below €3,000, 20% of profits must go to a reserve and founders are liable for the shortfall up to €3,000 if the company is wound up Source: Uría Menéndez - La Ley Crea y Crece: menos trabas y costes para crear, operar y financiar negocios · Real Decreto Legislativo 1/2010, Ley de Sociedades de Capital (consolidated) |
| Portugal: Corporate tax | 19% in 2026 (18% in 2027, 17% in 2028); 15% on the first €50,000 for SMEs, 12.5% for certified startups; plus up to 1.5% municipal surcharge Source: CIRC art. 87 (Portal das Finanças) · PwC Tax Summaries: Portugal corporate income |
| Spain: Corporate tax | 25% standard; in 2026 companies under €10M turnover pay 23% and under €1M 19% on the first €50,000 and 21% above; new companies 15% for their first 2 profitable years and certified startups 15% for up to 4 Source: PwC Worldwide Tax Summaries - Spain: Taxes on corporate income (reviewed 30 Jun 2026) |
| Portugal: US tax treaty | Signed 1994, in force since 1996; the saving clause keeps US taxation of citizens Source: Portugal tax treaty documents: IRS |
| Spain: US tax treaty | Signed 1990; the 2013 protocol has applied since 27 November 2019 — dividends 15%, 5% (10%+ holding) or 0% (80%+); the US still taxes its citizens Source: Treasury Announces Entry into Force of Tax Treaty Protocols with Japan and Spain (US Treasury) · PwC Worldwide Tax Summaries - Spain: Withholding taxes |
Go deeper
The full guides
Across Europe
Every guide and comparison
- OverviewMove to Europe
- CountriesAll 29 Countries
- LivingExpat Guides
- RetirementRetire by Country
- CitiesBest Cities to Live In
- BusinessCompany Formation
- FoundersStartup Visas
- InvestorsGolden Visas
- Remote workDigital Nomad Visas
- RetirementRetirement Visas
- CitizenshipCitizenship by Descent
- CostsCost of Living
- HealthHealthcare
- TaxTax Residency
- PetsMoving with Pets
- DrivingUS Driver's License
- PropertyBuying Property
- EducationStudy in Europe
- SafetySafety & Stability
- WorkWork-Life Balance
- TravelTravel & Schengen
- LifestyleLifestyle
Portugal or Spain — Let's Decide Together
Book a free consultation. We look at your income, work, family and timing, and tell you which route fits and what the move will really cost.