Making the move to Portugal or Spain can be a dream come true, but getting settled financially is often a big challenge for expats. Whether you’re moving to explore new job opportunities, retire, or simply enjoy a new environment, having a good plan for your finances will help you start off on the right foot. Here are ten important money tips along with helpful advice, all designed to support you as you adjust to life in your new country.

1. Master the Local Tax System

Taxes in Portugal and Spain are not always straightforward and differ quite a bit from what you might be used to. In Portugal, there used to be a popular Non-Habitual Resident (NHR) scheme giving generous tax breaks. However, not everyone qualifies for it anymore under the recent changes. Spain also has its own complex system, including wealth taxes and requirements for reporting assets abroad.

What You Can Do:

• Talk to a local tax expert before you relocate.
• Find out if you are eligible for tax benefits such as the NHR.
• Take time to learn about any agreements between your home country and your new residence to avoid being taxed twice on the same money.

2. Set Up a Local Bank Account

If you only use your original bank account from home, you may end up paying a lot in transfer charges and losing out on poor exchange rates. Opening a bank account in Portugal or Spain allows you to handle day-to-day things like paying bills or receiving wages much more easily.

Helpful Pointers:

• Look for banks with services in English and those that are known to help expats.
• Compare the costs of running different accounts, their features for online banking, and international transfers.
• Consider whether a bank offering accounts in multiple currencies would make your life simpler.

3. Stick to a Practical Budget

Prices can vary greatly from city to city in Portugal and Spain, especially between large urban centres like Lisbon, Madrid, or Barcelona and smaller communities. By creating a detailed budget early on, you help protect yourself from unexpected costs.

Things to Remember:

• List out every fixed expense (like rent, fees, or regular bills) along with your variable expenses (such as groceries or entertainment).
• Keep yearly costs such as taxes and insurance in mind right from the start.
• Review your spending plan every few months and leave a little extra for anything unforeseen.

4. Build Up an Emergency Fund

While settling into a new country is exciting, surprises—both good and bad—will inevitably crop up. A dedicated emergency fund is something you’ll be glad to have in case you are between jobs, need urgent medical care, or return home unexpectedly.

Minimum Savings Targets:

• If you’re employed, aim for 6 to 8 months’ worth of living expenses.
• Self-employed? Increase that to around 8 to 12 months and consider extra funds for things like visa renewals.

Arrange to set aside money automatically each month and keep this separate from your main checking and investment accounts for safety’s sake.

5. Get Ready for Healthcare Costs

Portugal and Spain both offer strong public healthcare, but new arrivals might not qualify for it straight away. You may need to buy private health insurance at first, which can also provide speedier access and access to care in English if you need it.

Checklist Before You Move:

• Find out what you’re entitled to, depending on your residence status.
• Research expat-friendly health insurance and compare coverage.
• Keep a record of healthcare-related receipts and papers for tax or reimbursement claims later.

6. Use Smart Currency Exchange Services

Sending and receiving money from abroad isn’t always cheap. Currency fluctuations and bank fee mark-ups can eat into your savings. Modern tech solutions and online currency exchange platforms can help you save on these costs.

How to Save Money:

• Try tools like Wise or Revolut for small payments between countries.
• For moving large amounts, contact a regulated currency specialist who may give even better exchange rates.
• Traditional banks usually aren’t the best for cross-border payments, so unless necessary, look for alternatives.

7. Invest and Diversify Carefully

When thinking about investments, remember that Spanish and Portuguese rules are different than back home. Many expats benefit from locally-approved investment options that help manage inheritance questions and minimize taxes in their new country.

Common Sense Investing:

• Choose a financial advisor who knows the specifics of expat life and local regulations.
• Spread out your investments across different types and currencies.
• After big life changes or about once a year, take another look at your investment plan to make sure it’s still right for you.

8. Plan How Your Money Will Be Handed On

The way your estate is handled after your passing may be different in your new home compared to your own country, especially if you own property or assets across several nations. Without preparation, taxes and bureaucracy could become quite complicated.

What To Do Now:

• Write out a will that meets the rules where you live now.
• If needed, set up trusts or use tax-efficient savings products.
• Each year or after any major family change, update your estate planning to avoid headaches later.

9. Get Support from an Independent Financial Advisor

Financial rules are regularly updated and being an expat adds extra layers of complexity. Finding Expat Financial Advice Portugal & Spain on the ground can save you from making costly mistakes.

Ways To Choose:

• Look for someone who has successfully worked with immigrants from other countries.
• Verify their qualifications, official registration, and reviews.
• Ask other expats for honest recommendations—most are willing to share their experiences and suggestions.

A reputable local advisor can guide your investment, retirement, and tax decisions, tailoring their advice for the specific needs of expats living in Portugal or Spain.

10. Make Friends and Learn from the Expat Community

One of your greatest resources is other people who have walked the same path. Expat groups in Portugal and Spain are full of tips on banking, investments, and services—usually passed along from members’ own experiences.

How to Connect:

• Search for Facebook groups or community forums related to expats in your city or region.
• Turn up at meetups, seminars, or events where expats share knowledge about life in your new country.
• Exchange contacts for accountants, lawyers, real estate experts, and more.

Frequently Asked Questions

Is Portugal or Spain a better choice for expats from a financial point of view?

Each country offers its own benefits. Portugal is seen as more affordable for daily living, while Spain tends to provide bigger markets for jobs and a wider range of investment options. Choose your destination based on your budget, career, plans for retirement, and qualifying for local programs.

What are some financial errors new expats usually make?

• Failing to seek proper advice on money matters locally.
• Overlooking the effect that new tax systems or currency exchange have on personal finances.
• Forgoing a serious budget or not preparing for unexpected costs.
• Not organizing a local will or planning how their estate will be handed down.

Conclusion

Beginning a new life in Portugal or Spain is a thrilling experience, but careful attention to your finances is key. Understanding the tax situation, budgeting actively, safeguarding your money, and getting good support will make your transition much smoother. Don’t hesitate to consult a specialist familiar with expat situations—you’ll be setting yourself up for long-term success in your new home.

Quick Summary Table: 10 Money Tips for New Expats

Tip	Your Action
Master Local Tax Rules	Find an advisor, seek incentives, research laws
Set Up a Bank Account	Pick expat-friendly banks, compare services
Stick to a Practical Budget	Adjust often, track all expenses, save extra
Build an Emergency Fund	6-12 months’ living expenses, keep separate
Prepare for Healthcare Costs	Research eligibility, compare providers
Use Smart Exchange Services	use tech tools, avoid regular banks
Invest and Diversify Carefully	Seek tailored advice, mix asset types
Plan for Your Estate	Local will, trusts, review annually
Hire a Financial Advisor	Verify expertise, ask expats’ opinions
Join the Expat Community	Forums, meetups, recommendations

With these tips in mind, you’ll be ready to make the most of your expat life and get your finances working for you right from the start!