Sunshine (Lisbon)
7.8
hr/day
Sunshine (Algarve)
8.6
hr/day
Top income tax
48%
standard IRS
NHR flat rate
10%
eligible foreign income
Est. cost (Lisbon)
~€1,400
per month
Air quality PM2.5
9 µg/m³
WHO: Good
Safety rank (GPI)
#7
global
Broadband
97 Mbps
median fixed

Portugal — Sunshine, Tax Rates & Cost of Living

Portugal's Atlantic coast runs cooler and cloudier than the interior — the Algarve averages 3,141 calibrated sunshine hours while Porto sits at 2,451. That's a 27% difference within one country, larger than the gap between Lisbon and Berlin.

Sunshine & cost by region

Region Sunshine hr/day Temp range (°C) Est. cost/mo
Algarve8.612–29~€1,300
Alentejo8.28–35~€900
Lisbon area7.811–28~€1,400
Setúbal coast7.711–27~€1,100
Porto6.78–25~€1,100

Climate, air quality & connectivity

MetricLisbonAlgarve (Faro)
Precipitation mm/yr726503
Rainy days/yr8261
Avg humidity74%71%
PM2.5 (annual avg)9 µg/m³ — WHO Good (<10)
Global Peace Index1.3 — Rank #7 globally
Median broadband97 Mbps fixed

Portugal's Algarve takes 503 mm across 61 rainy days — nearly all October–March, leaving summer bone dry. Porto, 300 km north, receives over 1,150 mm across 118 days. That rainfall gap between Portugal's north and south is larger than the difference between Lisbon and Dublin.

Monthly sunshine hours — Lisbon

ERA5-calibrated values. January–December.

Portugal tax rates

Tax type Rate Notes
Income tax (IRS)28–48%Progressive; surcharge applies above €80k
NHR regime10% flat10-year scheme for new residents; replaces standard IRS on eligible foreign income
Capital gains28% flatOn securities and real estate gains
Crypto (held >365 days)0%Long-term crypto gains exempt as of 2023
Crypto (held <365 days)28%Short-term treated as capital gains
Corporate (IRC)21%Standard rate; reduced rates for SMEs
VAT (IVA)23%Standard rate; 6% for essentials

Portugal vs peers

Metric Portugal Spain Georgia Italy
Sunshine hr/day7.87.46.06.3
Top income tax48%47%20%43%
Capital gains tax28%23%0%26%
Est. cost/mo~€1,400~€1,600~€800~€1,600
Special regimeNHR 10%Beckham LawFlat 20%Flat €100k

Frequently asked

How many sunshine hours does Lisbon get per year?

Lisbon averages 2,853 calibrated sunshine hours per year — about 7.8 hours per day. This is ERA5 satellite data corrected against WMO ground stations, not a raw estimate. It places Lisbon well above Paris (1,662), Berlin (1,625), and London (1,477), but below Seville (2,900) and the Algarve (3,141).

Is Portugal good for retirement tax-wise?

Portugal's NHR (Non-Habitual Resident) regime was its strongest tax draw — a flat 10% rate on eligible foreign income for 10 years. The original NHR scheme closed to new applicants in 2024 but was replaced by IFICI (similar structure). For those without the regime, the standard IRS tops out at 48% on high income, making it less attractive. Capital gains tax is 28% flat.

Which part of Portugal gets the most sun?

The Algarve leads with 3,141 hr/yr — outperforming even Lisbon by 10%. The Alentejo interior follows (2,980 hr/yr), benefiting from continental dryness. Porto, on the Atlantic northwest, is Portugal's cloudiest major city at 2,451 hr/yr. All values are ERA5-calibrated.

How does Portugal's cost of living compare to Spain?

Portugal generally runs 10–20% cheaper than equivalent Spanish cities. Lisbon (~€1,400/mo) vs Madrid (~€1,600/mo); Porto (~€1,100/mo) vs Barcelona (~€1,700/mo). The Algarve competes directly with Costa del Sol at similar price points (~€1,200–1,300/mo). The Alentejo interior is Portugal's most affordable region at ~€900/mo.

Can Americans retire in Portugal?

Yes — Portugal's D7 Passive Income Visa is the standard route for American retirees. It requires demonstrating minimum passive income (currently ~€760/mo). The IFICI regime (successor to NHR) may provide flat-rate tax on eligible foreign-source income. US-Portugal tax treaty applies but does not eliminate Portuguese tax obligations on local-source income.

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Open Portugal in the map

Explore calibrated sunshine data at 0.5° resolution across all of Portugal — region by region.

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