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. Citizenship takes about 10 years of residence in both. 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 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 live on a pension or savings and want the lower bar: D7 visa — passive income from €920 a month (2026).
- 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.
Investor Residence
Only Portugal Has an Open Golden Visa
| Portugal | Spain | |
|---|---|---|
| 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 |
| 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 |
| Founders & startups | PortugalStartup Visa — accepted by an IAPMEI-certified incubator | SpainEntrepreneur permit — innovative business with a favourable ENISA report |
| 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✓ |
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.
Settling In
Permanent Residence, Citizenship & Healthcare
| Portugal | Spain | |
|---|---|---|
| Permanent residence | PortugalAfter 5 years, with A2 Portuguese | SpainLong-term residence after 5 years |
| Citizenship | Portugal10 years since May 2026 (7 for some nationalities) | Spain10 years for Americans, plus A2 Spanish and civics exams |
| Public healthcare | PortugalLegal residents can use the public SNS | SpainPublic SNS for workers; others can buy in after 1 year — €60 a month under 65 |
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.
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 |
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.
How much do the Portugal and Spain golden visas cost?
Portugal: Golden visa — €500,000 in funds or a company, €250,000 for culture; real estate closed since 2023. Spain has no open golden visa.
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: 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: 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: 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: 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: Permanent residence | After 5 years of temporary residence, with A2 Portuguese, means of support and accommodation Source: Lei 23/2007 art. 75 (PGD Lisboa) |
| Spain: Long-term residence | After 5 years of continuous legal residence (no absence over 6 months, 10 months in total), with health insurance and sufficient resources; card renewed every 5 years Source: Hoja 50 – Autorización de residencia de larga duración UE (Ministerio de Inclusión) |
| Portugal: Citizenship | Since 19 May 2026: 10 years of legal residence (7 for EU and Portuguese-speaking countries), counted from when the first permit is issued; applications pending before then keep the old 5-year rule Source: Lei Organica n.o 1/2026: Diario da Republica · Portugal Citizenship Law Published: LiveinPT |
| Spain: Citizenship | 10 years of legal, continuous residence for Americans (2 for Ibero-American countries, Portugal, Andorra, the Philippines and Equatorial Guinea; 1 if married to a Spaniard), plus the DELE A2 Spanish and CCSE civics exams Source: Código Civil (BOE) arts. 22–23 · Instituto Cervantes – Nacionalidad española (DELE A2 y CCSE) |
| Portugal: Healthcare | Legal residents can use the public SNS with a user number; private hospital plans cost about €13–77 a month at age 40 Source: gov.pt: Pedir o número de utente do SNS · DECO PROteste: Seguros de saúde Multicare, Médis |
| Spain: Healthcare | Workers and the self-employed are covered by the public SNS; others can buy in through the Convenio Especial after 1 year on the padrón — €60 a month under 65, €157 from 65 Source: Convenio especial de prestación de asistencia sanitaria (Ministerio de Sanidad) |
| 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 |
| 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 |
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