Spain vs. Portugal: Which Destination Is Better for Digital Nomads and Entrepreneurs in 2025?

Spain vs. Portugal: The Ultimate Guide for Digital Nomads and Entrepreneurs

Embarking on a journey as a digital nomad or entrepreneur in Europe often narrows down to two enticing destinations: Spain and Portugal. Both countries offer vibrant cultures, favorable climates, and appealing opportunities for remote workers and business enthusiasts. This guide delves into the nuances of each, helping you make an informed decision tailored to your lifestyle and professional aspirations.

Digital Nomad Visas: A Comparative Overview

Both Spain and Portugal have introduced Digital Nomad Visas (DNVs) to attract remote workers. Here's a breakdown:

• Spain's Digital Nomad Visa:

  • Income Requirement: Applicants must demonstrate a monthly income of at least €2,368.

  • Taxation: Spain offers favorable tax rates for remote workers through the Beckham Law, capping income tax at 24% for the first six years of residency.

  • Application Process: Requires proof of employment or freelance contracts, health insurance, and a clean criminal record.

• Portugal's Digital Nomad Visa:

  • Income Requirement: Applicants need to show a monthly income of at least €3,480.

  • Taxation: Portugal's Non-Habitual Resident (NHR) program offers significant tax benefits, including a flat 20% tax rate on certain incomes and potential tax exemptions on foreign income for up to ten years.

  • Application Process: Similar to Spain, with an emphasis on proof of income, health insurance, and accommodation.

Cost of Living and Lifestyle

While both countries boast a lower cost of living compared to other Western European nations, nuances exist:

• Spain:

  • Accommodation: Cities like Alicante offer rentals as low as £330 per month.

  • Culture and Cuisine: Renowned for its diverse regions, Spain offers a rich tapestry of traditions and culinary delights.

• Portugal:

  • Accommodation: Rentals near major cities, such as areas just outside Barcelona, can be found for approximately $314 per month.

  • Safety: Portugal is often highlighted for its safety, especially in large, tourist-heavy cities.

Entrepreneurial Ecosystem

For entrepreneurs, understanding the startup landscape is crucial:

• Spain:

  • Startup Hubs: Lanzadera, a prominent accelerator in Valencia, has been recognized as the top startup hub in Spain and ranks seventh in Europe.

  • Business Environment: Spain offers a dynamic market with access to the broader European Union, making it attractive for various industries.

• Portugal:

  • Startup Hubs: Portugal hosts several notable hubs, with two ranking in the top 20 across Europe.

  • Business Environment: Known for its supportive environment for entrepreneurs, Portugal offers various incentives and a growing tech scene.

Community and Networking

Building a network is essential:

• Spain: Madrid has seen a significant influx of international professionals, including a growing American community, contributing to a diverse and vibrant expat scene.

• Portugal: Cities like Lisbon and Porto are popular among digital nomads, offering co-working spaces and regular networking events.

Conclusion

Choosing between Spain and Portugal depends on individual priorities, whether it's the cost of living, tax incentives, or the entrepreneurial ecosystem. Both countries offer compelling advantages for digital nomads and entrepreneurs. Assess your personal and professional needs to determine which destination aligns best with your goals.

For personalized assistance with your relocation, explore Visanom to ensure a seamless transition to your chosen destination.