How is life in Portugal for foreigners? Increasing numbers of people from Germany, Switzerland, and Austria are choosing Portugal as their destination. They come for safety, sunshine, and stable EU rules. Many also select Madeira for its climate and lower regional income tax rates.
Below is what you need to know about housing, healthcare, taxes, and residency registration for DACH nationals.
Why DACH expats move to Portugal?
Portugal offers a high quality of life at a fair cost. English is used every day in Madeira, Lisbon, and the Algarve. Property rights are secure. Streets feel safe. The pace is calmer, yet services are modern and digital.
Residency for DACH nationals: no visa, but register
You do not need a visa. However, you must register your residence if you stay longer than 90 days.
- Germany & Austria (EU citizens): apply for the EU Citizen Registration Certificate (Certificado de Registo de Cidadão da União Europeia) at your local city hall (Câmara Municipal).
- Switzerland: No visa is required under free movement rules. Apply for the residence registration at the local authority as well.
Bring passport/ID, proof of address, and proof of means or employment. After registration, handle the basics: NIF (tax number), bank account, and health centre enrolment.
Housing: buy or rent with confidence
Foreigners can purchase property without restrictions. You will need a NIF and a bank account, and you must pay IMT (property transfer tax) and 0.8% Stamp Duty at completion.
- The average price in Madeira (2025): approximately €281,000.
- Annual IMI (municipal property tax): 0.3%–0.45% of the assessed value.
- Long-term rents in coastal towns typically range from €900 to €1,200 per month; inland and Madeira can be lower.
Use a lawyer independent from any agent or manager. That keeps contracts, due diligence, and timelines aligned with your interests.
Healthcare: European quality at lower cost
Register at your local health centre (centro de saúde) once you are a resident. You can also hold private insurance to reduce wait times.
- Private plans often start at €50/month.
- Many clinics in Lisbon, Porto, and Funchal (Madeira) offer English-speaking doctors.
- Out-of-pocket GP visits typically cost well under €90.
For retirees accustomed to higher premiums, Portugal’s system offers genuine savings without compromising quality.
Cost of living: predictable and manageable
Groceries, transportation, and utilities are less expensive than in most DACH regions. Public transport is reliable. Eating out remains affordable. Many couples can live comfortably on €2,500–€3,000 per month, depending on their location and the cost of rent.
Taxes: what to expect (with Madeira savings)
If you spend over 183 days in Portugal in a year, or keep a habitual home here, you are a tax resident. Residents pay tax on their worldwide income under progressive IRS rates (as outlined in the 2025 framework). Non-residents pay tax only on Portuguese-sourced income, typically at a rate of 25%.
Key points:
Residents: progressive tax brackets apply, ranging from 14.5% to 48%.
- Non-residents: 25% on Portuguese-source income; progressive rates on Portuguese property gains.
- Property taxes: annual IMI 0.3%–0.45%; IMT and 0.8% Stamp Duty on purchase.
- Double taxation treaties with Germany, Switzerland, and Austria help prevent double taxation.
Madeira applies lower regional personal income tax rates than those on the mainland in Portugal. Many retirees choose the island for this reason.
Deductions that reduce your personal income tax bill
Residents can use “deduções à coleta” to cut tax owed. Keep invoices on e-Fatura.
- Health: 15% of eligible costs, up to €1,000 per household.
- Education: 30% of tuition/training, up to €800 (or €1,000 for students far from home or studying in Madeira/interior).
- Rent (primary home): 15% up to €600.General family expenses: 35% up to €250 per person or €500 per couple.
- Donations: 25% deductible (subject to limits and recipient type).
These rules apply nationally; Madeira’s lower brackets amplify the effect.
Everyday life: culture and community
Portugal values community, time with family, and outdoor living. Markets, cafés, and coastal walks shape daily routine. Madeira stands out for its safety, cleanliness, and a strong international community in the DACH region. Integration is smooth, and the locals are welcoming, making life in Portugal easier for foreigners.
Practical checklist for a smooth landing
- Enter Portugal with a valid ID/passport (no visa required).
- Obtain NIF and open a bank account.
- If you work or rent out property, register with the Tax Authority and comply with the required filings.
- Within 90 days, register residence at the Câmara Municipal.
- Register at the health centre and consider purchasing private insurance.
- Keep e-Fatura receipts for deductions.
- If buying property, use independent legal and accounting support.
Why many DACH expats choose Madeira
Madeira adds fiscal prudence to natural beauty. It offers lower regional income tax rates, top healthcare, and direct flights to major European hubs. The island supports an active expat community and delivers year-round comfort.
Professional support for life in Portugal for Foreigners
Relocating is simpler with local guidance. Madeira Corporate Services (MCS) supports DACH clients with residence registration (excluding visas), NIF, banking, property structuring, and ongoing tax compliance in Portugal and Madeira. Please feel free to reach out if you would like professional assistance tailored to Germany, Switzerland, or Austria.
The founding of Madeira Corporate Services dates back to 1996. MCS started as a corporate service provider in the Madeira International Business Center and rapidly became a leading management company… Read more
