When considering a move to Southern Europe, expatriates often find themselves torn between Portugal and Spain. Both nations offer rich cultures, favourable climates, and attractive lifestyles, but key differences make Portugal—particularly Madeira—the better choice for those seeking stability, safety, and long-term prosperity. This article examines the critical factors that make Portugal stand out as the superior option in 2025.
Political Stability: Portugal’s Clear Advantage
Political stability is key for expatriates as they value predictable living and investment environments, and Portugal has consistently demonstrated a stable and democratic political landscape. This fact is attested by The World Bank’s Political Stability Index when comparing Portugal and Spain.
The above is because Spain has struggled with regional independence movements, most notably in the Autonomous Community of Catalonia, which continues to create political and economic uncertainty. Frequent governmental changes and coalition struggles add to the unpredictability, making Spain a less stable option for expatriates.
Safety: Portugal is Among the Safest Countries in Europe
Safety is another primary concern for those considering relocation to another jurisdiction as expats. Portugal consistently ranks as one of the safest countries in the world, with low violent crime rates and a peaceful society; according to Numbeo’s Crime Index, Portugal scores better than Spain.
The Portuguese Autonomous Region of Madeira, in particular, is known for its safety and low crime rates, making it a favourite among families, retirees, digital nomads and international investors regardless of nationality. On the other hand, Spain has higher incidents of petty crime, especially in central regions, where pickpocketing and scams are commonplace.
Portugal’s Sustainable Growth vs. Spain’s Uncertainty
Portugal’s economy has been showing resilient and stable growth throughout the fiscal years of 2023 and 2024, a trend projected to continue throughout 2025. Madeira, too, experienced an FDI growth surge of 8.7% in 2024, driven by MIBC, a vibrant tourism sector, and a solid real estate market. The Portuguese and Madeiran governments have developed business-friendly legislation, tax incentives, and digital nomad visas, making Madeira an attractive expat destination.
Spain has a larger economy and has suffered from bureaucratic hurdles, changing labour laws, and taxation, which have discouraged international investors.
Cost of Living: More Value for Money in Portugal
Portugal is also known for its lower cost of living than Spain. Rent, groceries, and utilities are more affordable in Portuguese cities and even more so in Madeira than in mainland coastal cities and towns. Spain’s major cities, particularly Madrid and Barcelona, have seen rising property prices, making homeownership and rentals increasingly expensive.
Quality of Life: Portugal’s Unmatched Lifestyle
Wherever one decides to reside, either Portugal or Spain both offer:
- excellent quality of life standards;
- top-class public healthcare;
- breathtaking sceneries and
- welcoming communities that are well-used to the English language.
Despite this, however, Madeira, with its mild year-round climate, natural landscapes, and easy-going lifestyle, is perfect for those desiring an utterly stress-free existence without foregoing an urban lifestyle. Moreover, life in Spanish has a faster pace, more congestion, and bureaucratic complexity, which may be hard for foreigners.
Conclusion: Portugal is the Clear Winner
For expatriates seeking stability, safety, economic opportunities, and an excellent quality of life, Portugal—especially Madeira—outshines Spain. Whether you are an investor, retiree, or digital nomad, Portugal provides a secure and prosperous environment for a fulfilling life abroad, and we at MCS are here to assist you in relocating to Portugal.
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
