If you are stuck on deciding whether to move to Italy or Portugal, you are likely not choosing between a “good” option and a “bad” one.
You are choosing between two very appealing versions of a better life.
Both countries attract people who want more beauty, more breathing room, and a lifestyle that feels less rushed.
But as someone who helps people land in Italy every day, I can tell you: the day-to-day reality is not the same.
Portugal has become more expensive and “international”, while Italy — specifically in regions like Abruzzo, where we reside — remains deeply rooted and, surprisingly, often more tax-efficient for the right person.
1. The Tax Duel: Italy’s 7% vs. Portugal’s ITS
This is the biggest “game changer” for 2026.
- The Portugal Shift: The legendary NHR (Non-Habitual Resident) program that offered tax exemptions is effectively over for new arrivals. It has been replaced by the ITS (Incentivised Tax Status), which is much more restrictive and focused on specific “high value-added” jobs.
- The Italy Expansion: Under Law 34/2026, Italy has expanded its 7% Flat Tax Regime. Previously limited to tiny villages, it now applies to towns with up to 30,000 residents in Abruzzo and the southern regions. This means you can live in vibrant coastal hubs like Francavilla al Mare or historic gems like Sulmona while paying just 7% tax on all foreign income for 10 years.
2. Cost of Living: Algarve vs. Abruzzo
Portugal was once the budget king, but in 2026, the most sought-after areas (Lisbon, Porto, and the Algarve) have seen massive housing inflation.
- Portugal: Rent for a one-bedroom in Lisbon now averages €1,100+.
- Italy: While Milan is expensive, regions like Abruzzo offer a much higher quality of life for your Euro. You can find a high-standard apartment for €600–€800 in areas that offer both sea and mountain access. In 2026, Italy often provides more “home” for your money than the Portuguese coast.
3. Digital Nomad Visas: The 2026 Thresholds
If you are working remotely, the entry barriers have changed:
- Italy Digital Nomad Visa (for non-EU individuals): Requires a minimum income of roughly €28,000 per year (€2,333/month). It is a relatively straightforward path if you have a registered Codice Fiscale and a registered lease.
- Portugal Digital Nomad Visa: The income requirement has climbed significantly, now requiring roughly €3,480 per month (approx. €41,760/year).
4. Language and Social Integration
Portugal has a practical advantage: English is more widely spoken in major hubs and among the younger population. This makes the “First 6 Months” feel easier.
Italy, however, rewards immersion. Outside of tourist centers, speaking Italian is essential for bureaucracy, utilities, and making real local friends.
Italy is not a “plug-and-play” expat destination; it is a place where you build a life.
But for many, that extra effort results in a sense of belonging that is much deeper than what you find in “expat bubble” zones.
5. Bureaucracy: The “Hands-On” Reality
Let’s be real: both countries love paperwork.
- Portugal is often perceived as more “transparent” in its digital systems, but the sheer volume of applicants has created massive backlogs.
- Italy remains patchwork and relationship-based.
This is why local support matters more in Italy.
You don’t just need the right form; you need to know which office handles it this week.
It’s why we do what we do—to turn the Italian “No” into a “Yes” through local presence.
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Finding the Move That Fits You
If your priority is a “Soft Landing” and you have a high remote salary, Portugal is a fantastic choice.
But if you want a life that is deeply rooted, culturally varied, and significantly more tax-efficient for retirement or mid-range incomes, Italy — and specifically Abruzzo — is the winner in 2026.
At Wanderlust Abruzzo, we specialize in the “Italian Depth”.
We help you navigate the 7% tax registration, find that perfect home, and bridge the language gap so you can focus on the life you moved here for.
Stop asking which country is “better” and start asking where you want your “Ordinary Tuesday” to happen.
If the answer is an Italian piazza in Abruzzo with a view of the mountains and the sea, we are here to clear the path.
Book Your Free Relocation Strategy Call with us today
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Frequently Asked Questions (FAQs)
Which country is cheaper for retirees: Portugal or Italy?
With the expansion of the 7% flat tax to larger towns (up to 30,000 people), Italy is currently more tax-efficient for pensioners. While Portugal’s cost of living is slightly lower in rural areas, the tax savings in Italy often outweigh the difference.
Can I use the public healthcare system in both?
Yes. In Italy, voluntary enrollment in the SSN provides high-quality coverage for an annual fee. Portugal’s SNS is also excellent, but has faced longer wait times due to population growth.
Is the Digital Nomad Visa renewable?
Both are. Italy’s Digital Nomad Visa is generally issued for one year and is renewable. Portugal’s is usually issued for two years. Both can lead to permanent residency after 5 years.
How is the internet for remote work?
Italy has surged ahead with fiber-optic rollout in Abruzzo, as well as other regions. Both countries are excellent for remote work, but Italy’s regional variety offers more unique “home office” locations.
Do I need to speak the language to open a bank account?
In Portugal, you can often find English-speaking staff. In Italy, it is highly recommended to have a bilingual relocation assistant for your bank appointment to ensure you understand the terms and local SDD (direct debit) setups.
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