From Italy to Portugal: My Complete Relocation Story and What I Wish I Knew

Why I Left Italy

I'm Marco, a 34-year-old freelance UX designer from Milan. In January 2025, I packed two suitcases and moved to Lisbon. This is not a "travel blogger" story — this is a raw, honest account of what relocating to Portugal actually looks like when you're doing it alone, with a regular income, and zero connections in the country.

Let me start with why. Italy is beautiful. The food is unmatched. But as a freelancer earning €45,000/year, I was paying 43% effective tax rate including IRPEF, INPS contributions, and regional surcharges. After taxes, I was left with roughly €25,500. My rent in Milan was €1,400/month. Do the math — I was barely surviving in one of Europe's most expensive cities.

When I discovered Portugal's NHR (Non-Habitual Resident) regime, everything changed. A potential flat 20% rate on my freelance income? I was skeptical, but the numbers were too compelling to ignore.

The Research Phase (3 Months Before Moving)

Tax Deep Dive

I spent weeks on ReloMap comparing tax scenarios. Here's what I discovered:

Italy: €45,000 gross → ~€25,500 net (43% effective rate) Portugal NHR: €45,000 gross → ~€36,000 net (20% flat rate)

That's €10,500 more per year in my pocket. Over the NHR's 10-year duration, we're talking about potentially €100,000+ in savings. But the devil is in the details.

The NHR regime changed significantly in 2024. The new version is more restrictive — you need to work for a qualified employer or in a "high value-added" profession. As a UX designer, I qualified under the "architects and engineers" category, but I had to provide documentation proving my specialization. This took three weeks of back-and-forth with the Portuguese tax authority (Autoridade Tributária).

Housing Research

Lisbon's rental market is brutal. I made every mistake in the book:

I signed a lease remotely — Don't do this. I rented an apartment in Alfama through an agency that looked legitimate. The photos were real, the contract looked proper. But when I arrived, the apartment had severe mold issues that weren't visible in photos. Getting out of that lease cost me €2,000 in legal fees.

I underestimated rental prices — In 2025, a decent 1-bedroom in Lisbon center costs €1,200-1,500. Not the €800 you see in some "move to Portugal" YouTube videos from 2021. Those prices are gone.

Idealista.pt is your friend — But only for browsing. The best apartments are found through local Facebook groups ("Arrendar em Lisboa") and word of mouth.

What Actually Worked

After the mold apartment disaster, I booked an Airbnb for one month (€1,100) and apartment-hunted in person. I found my current place in Santos — a renovated 1-bedroom with good natural light for €1,250/month. The landlord is Portuguese, speaks some English, and has been incredibly helpful.

Pro tip: Portuguese landlords strongly prefer tenants who can show proof of regular income and offer 2-3 months upfront. My bank statements sealed the deal.

The Bureaucracy Phase (First 2 Months)

NIF (Número de Identificação Fiscal)

You need this for literally everything — opening a bank account, signing a lease, getting a phone contract. You can get it at the local Finanças office or through a fiscal representative.

I used a fiscal representative (€150) because the wait times at Finanças in Lisbon are insane — I'm talking 3-4 hours with no guarantee of being seen. The representative got my NIF in 48 hours.

Residency Registration

After getting my NIF and signing my lease, I needed to register at the local Junta de Freguesia (parish council). This was surprisingly painless — 30 minutes, no appointment needed. They gave me a proof of residency document on the spot.

Bank Account

I opened an account at ActivoBank (the digital-friendly subsidiary of Millennium BCP). The process took 45 minutes at the branch. You need: passport, NIF, proof of address (utility bill or lease), proof of income.

Warning: Portuguese banks are stuck in the 1990s when it comes to digital experience. The app crashes, transfers take 2-3 business days, and customer support is Portuguese-only. I keep my Revolut as my primary card and use the Portuguese account only for rent and local direct debits.

Social Security (Segurança Social)

As a freelancer, I registered as a "trabalhador independente" (independent worker). The contribution rate is 21.4% of 70% of your declared income — effectively about 15% of gross income. This was an unpleasant surprise that many NHR guides conveniently forget to mention.

So my actual effective rate wasn't 20% — it was closer to 35% including social security. Still better than Italy's 43%, but not the dramatic difference I expected.

The Real Cost of Living in Lisbon (My Actual Numbers)

After 18 months, here's my real monthly budget:

Category	Monthly Cost	Notes
Rent	€1,250	1BR in Santos, utilities included
Groceries	€280	Pingo Doce + Lidl, cooking 80% at home
Eating out	€200	3-4 meals/week out, mostly lunches
Transport	€40	Navegante card (unlimited metro/bus)
Utilities	€0	Included in rent
Internet	€35	NOS 500Mbps fiber
Phone	€15	MEO prepaid
Health insurance	€95	Allianz private (mandatory for NHR)
Gym	€40	Fitness Hut
Co-working	€0	I work from home + cafes
Entertainment	€150	Culture, concerts, events
Total	€2,105

Compare this to my Milan budget of €2,800/month and the picture becomes clear. I'm saving about €700/month more while living a comparable (arguably better) lifestyle.

What I Love About Lisbon

The light — Lisbon has 2,800 hours of sunshine per year. Coming from Milan's gray winters, this alone is worth the move.

The food — Pastel de nata, bacalhau, bifana. Portuguese cuisine doesn't get the credit it deserves.

The pace — Life moves slower here. People actually sit down for lunch. Nobody rushes.

The expat community — There's a massive international community. I've made more friends in 18 months here than in 5 years in Milan.

Safety — I walk home at 3 AM feeling completely safe. That's priceless.

What I Don't Love

Bureaucracy — Everything takes longer than it should. "Amanhã" (tomorrow) is the national motto.

Language barrier — Most young Lisbonites speak English, but government offices, banks, and healthcare are Portuguese-only.

Housing crisis — It's getting worse. Golden Visa tourism drove prices up, and local salaries can't keep up.

Customer service — Coming from Italian "il cliente ha sempre ragione," Portuguese service culture is... different.

Saudade — I miss my family. Video calls aren't the same as Sunday lunch at nonna's.

Advice for Italians Considering Portugal

Do your tax math carefully — Include social security contributions, not just income tax

Never rent remotely — Always see the apartment in person

Learn basic Portuguese — "Fala inglês?" gets old fast. I'm taking lessons on iTalki.

Get a fiscal representative — Worth every euro of the €150 fee

Budget for the transition — Have at least €5,000 liquid for unexpected costs (I spent €3,500 in my first month on deposits, fees, and the mold apartment disaster)

Use ReloMap before deciding — I wish I had this tool 2 years ago. The tax calculator alone would have saved me weeks of spreadsheet work.

18 Months Later: Would I Do It Again?

Absolutely. Despite the bureaucratic headaches, the mold apartment, and missing my family, moving to Portugal was the best financial and lifestyle decision I've ever made. I'm saving more, working less, and living better.

The key is going in with realistic expectations. Portugal isn't paradise — it's a real country with real problems. But for an Italian freelancer tired of paying half their income in taxes, it's the closest thing to a rational choice I've found.

Marco is a member of the ReloMap community. His experience is personal and may not reflect all situations. Tax regulations change frequently — always consult a qualified professional.

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