Retire in Portugal: The Ultimate Expat Destination

Portugal has become one of the top locations where American expats choose to retire abroad. With dreamy sunsets over beautiful beaches, excellent seafood, and an affordable cost of living, it is understandable why so many expat retirees are turning their attention to this stunning Western European Union country when choosing to retire abroad.

This article is for US citizens and other non-EU residents looking to retire in Portugal and will provide you with everything that you need to know about Portuguese life. We will explore everything from the Portuguese visa options, such as the Portugal Retirement Visa and Portugal Golden Visa, to the tax implications, such as double tax treaties that can help you avoid double taxation on income tax. We will also help prepare you for every step of the journey ahead, from opening a local bank account to finding the best places in Portugal to retire.

Important Information About American Retirement in Portugal

Moving to another country is an exciting journey filled with opportunities to experience new things. From trying local delicacies to visiting a UNESCO world heritage site, and eventually finding a new home in a major city or on the Portuguese Riviera to settle down in. Considering all this, you will still need to be aware of crucial practical information when settling down in Portugal, which we will run over here.

Healthcare in Portugal

The public healthcare system Portugal offers is very good. The National Health Service or Serviço Nacional de Saúde (SNS) provides free healthcare to children under 18 and people over 65. In addition to providing generally free healthcare for basic health needs to citizens and residents.

If you are a resident in Portugal, you will have access to the SNS and will only need to pay a minimum cost for treatment. Note that for X-rays, scans, and other procedures, an additional fee will be required. For retirees, it is very good to know that the Integrated Medical Emergency System offers very quick response times. 

For your visa applications, private health insurance will be a requirement. Finding a private insurance scheme at an affordable cost is possible in Portugal. With private health insurance, you will be able to book an appointment with a healthcare professional or specialist quickly and who is fluent in English.

The Non-Habitual Residence Scheme

Until the non-habitual residence scheme, or NHR scheme, ended in January 2024 the program provided individuals the ability to retire in Portugal with significant savings and tax advantages for up to ten years. To be eligible for the NHR scheme, applicants had to have the right to reside in Portugal and not have been a Portuguese tax resident in the five years prior to becoming a resident in Portugal. Note that to maintain residency in Portugal, you must have a residential address in Portugal on 31 December of that year, and the property needs to be intended for use as the habitual home. The NHR scheme was an excellent draw card for retirees, as, if structured correctly, they enjoyed very attractive tax rates. Expat retirees who had registered for NHR prior to its ending are still eligible for the tax benefits for the ten year period. In addition to this, Portugal offers the benefits of double tax treaties with the USA and other countries. This means you will not be required to pay US income tax on Portuguese-source income or worldwide income, avoiding tax implications like double taxation when you become a tax resident in Portugal.

The cost of living in Portugal expat retirees

One of the main factors luring so many expats to Portugal is the country’s comparatively low cost of living as it is known for being one of the most affordable European countries. American expats will certainly find that local bills and living expenses are much more reasonably priced in Portugal.

The innovative Quality of Life Index from Global Citizen Solutions places Portugal in 12th place. This index takes into account the cost of living alongside the Sustainable Development Goals, level of happiness of citizens, personal freedoms, acceptance of migrants, and environmental performance.

Lisbon continues to be one of the least expensive capitals in the European Union, even though costs are rising in the capital. Your lifestyle decisions will have a big impact on how much things cost. According to Numbeo, the projected monthly costs in Lisbon for a family of four are €2,582, without rent, and the expected monthly costs without rent for a single person are €734. Here, we will take a deeper look at the cost to retire in Portugal.

Rental and property prices in Lisbon

Portugal typically has substantially lower rental and real estate costs than the US. Here are some Lisbon rental and property price examples. Data from Numbeo shows the following for renting a property in Lisbon as of September 2022:

• A one-bedroom apartment in the heart of the city: €1,299
• An apartment with three bedrooms in the heart of the city: €2,503
• A one-bedroom apartment outside the city center: €911
• A three-bedroom apartment outside the city center: €1,639

In Portugal, buying real estate is a far better long-term investment than renting. Renting can be a good starting point because you can check out different parts of the city and buy a property based on your neighborhood preference. The average asking price for a property in Lisbon was €6,001/m² in 2023. However, the costs drop considerably to €4,061/m² when considering the entire Lisbon Metropolitan Area. It’s crucial to remember that this is the asking price and that the actual price may be higher or lower.

Within the city of Lisbon, you’ll also find quite a range in property prices, depending on the neighborhood. This is because some areas are considered to be more desirable than others and therefore come with a higher price tag. Although prices in Lisbon have been increasing, compared to many other Western European capitals – such as Paris and London, Lisbon is still very affordable.

Lisbon has its pricing range, but you can find real estate in other regions of the country at much lower prices.

If you’re looking to buy property in Portugal, Goldcrest has released a new book – Your Expert Guide to Buying Property in Portugal, which contains information on how to buy property in Portugal step-by-step, how to finance your purchase, and the best locations to buy property in Portugal.

Daily essentials and eating out

In comparison to the US, eating out is quite affordable, daily essentials are fairly priced, and the produce is of very high quality. Portugal is known for its extensive coastline, and the fish and seafood in the country are simply excellent. Note that shopping locally for daily essentials is more cost-effective than purchasing foreign goods.

Portuguese wine is quite reasonably priced and of very good quality – another great benefit of relocating to Portugal if you are a passionate wine-lover. Portugal can compete with the very best wines in the world, and Californian wine-growers have even ventured to Portugal in the past to discover the secrets to winemaking.

To try this yourself, try the Vinho Verde, a delicious green wine that is ideal for a summer evening. This wine is produced in one of the biggest and oldest wine regions in the world, the Vinho Verde region in northwest Portugal. It supports thousands of producers, creates a vast amount of economic activity and employment, and significantly aids in the growth of Minho and the entire nation.

The following are some examples for a US citizen looking to retire in Portugal of the typical costs in Portugal for basic foods:

Transportation

You may well be startled by how close-knit everything is in Portugal if you’re an American. It is possible to travel in less than eight hours from Sagres in the southwest of the country to Bragança in the northeast of Portugal. Yes, Portugal is a staggering 107 times smaller than the United States.

Portugal has fairly reasonable travel costs. One-way public transit costs €1.60, while a monthly bus pass will set you back €40. For those who would rather travel by car, gas prices are €2.02 per liter.

Even though taxis are quite reasonably priced, Uber and Bolt are also fantastic options for getting around town. These services are quite affordable compared to taxis in the USA, especially in New York, and are simple to use with an app. In Portugal, Uber and Bolt’s drivers are fantastic knowledge resources who can advise you on everything from top eateries and the finest places to go sightseeing, to some of the Portuguese cuisine’s delicacies you should try.

Becoming a Permanent Resident or a Citizen in Portugal

You can apply for permanent residence or Portuguese citizenship after receiving your temporary residence permit in Portugal and renewing it when necessary for five years. The cost of a Portuguese permanent residence is $240, and the following documentation will be required:

• Passport
• Two recent colored identical photos on a blank background
• A standard application form
• Valid temporary residence
• Proof of proper accommodation
• Proof of having sufficient means of subsistence

Verification of a fundamental understanding of the Portuguese language. There are some alternatives for this document:

• A certificate from an institution that the government recognizes and proves that you have completed school-prescribed language lessons. 
• Completing the Institute for Employment and Professional Training’s requirements for elementary Portuguese (IEFP)
• Teaching Portuguese as a Foreign Language (CAPLE), approved by the Ministry of Education and Science, as a necessary Portuguese education certificate

Benefits of permanent residence in Portugal

Permanent residents of Portugal have access to a range of advantages, including social security, quality healthcare, and high-quality education. For American retirees in Portugal, social security is very crucial. Another perk is that the Schengen region is open to unrestricted travel for permanent residents of any of the Schengen countries. You can also apply for family reunification and bring your relatives to Portugal if you are a permanent resident.

Can American expats in Portugal obtain Portuguese citizenship?

Yes, dual citizenship is permitted between Portugal and the United States of America. You can apply for citizenship after five years of residence in Portugal. Similar to when applying for permanent residency, you must demonstrate that you speak a little Portuguese.

When you become a citizen of Portugal, you automatically become a citizen of Europe. After that, you are free to reside, work, study, and access the healthcare system in any nation in Europe.

It can be a little challenging to apply to become a Portuguese citizen. We advise working with qualified experts to help you on your journey, and our professionals can help you to navigate the application process quickly and easily.

Practical Information on Moving to Portugal

We’ll go over the crucial information that you’ll need to know before moving to the country in this section of our article.

Getting a NIF

You must obtain a NIF (Number of Identification Fiscal or Número de Identificação Fiscal, as well as Number of Contribuinte or Número Contribuinte) from a Finanças office (Government Tax Office). You will need this number when making transactions in Portugal.

You must bring your passport and proof of address to your local Finanças office. If you already live in the country, provide your Portuguese address; otherwise, your address outside of Portugal will suffice. As an American, you will also need to have a tax agent in Portugal to obtain your NIF, as is the case for all non-EU citizens. To avoid the huge lines, we recommend arriving at the Finanças office twenty minutes before they open. You will be given your NIF number, which you can use for any Portuguese transactions. You can also apply for your NIF easily online and from your home country through our partner GetNIF Portugal.

Opening a Portuguese bank account

To open a bank account in Portugal, you must have your NIF number. You must also have a valid ID (passport), proof of address (utility bill in your name), and evidence of employment with you. Millennium BCP, Novo Banco, Banco BPI, and Banco Santander Totta are some of the best banks to consider in Portugal. In many cases, you will also be asked to provide a deposit and, in certain cases, a Portuguese phone number. If you need help with opening your bank account in Portugal, you can visit the GetNIF service.

Goldcrest: How We Can Help You 

Goldcrest is a buyer’s agent that is based in Lisbon. We provide expert, impartial advice on real estate investments and how to buy property in Portugal. From scouting out the perfect property through to property acquisition, we have you covered throughout the process.

If you are looking to purchase property in Portugal, don’t hesitate to get in touch. Our team of skilled experts is available to solve all your real estate doubts, helping you with the property search and offering insightful expertise and strategic advice.

Why choose Goldcrest?

• Local knowledge: With offices located across Portugal, our presence nationwide allows us to assist you personally across the country.
• Independent service: As an independent buying agent, we do not represent any development or project. Our service is entirely tailored toward each individual client, providing you with everything you need to secure the perfect property at the best possible price. As an impartial advisor on the market, we work solely on behalf of our client and provide a service tailored to your needs and requirements.
• Streamlined process: Our real estate agents speak English and Portuguese, and our service is completely focused on providing you with a hassle-free buying experience, saving you time.
• Experienced team: Our expert real estate team has a vast local knowledge of the Portuguese property market. We have cutting-edge technology and metasearch tools at your disposal to provide full market coverage, ensuring the best investment choices and negotiated prices.
• Network of partners: Lawyers, property management services, builders, architects, designers, and landscape gardeners, again saving you time and hassle by providing you with trusted experts in their field of work.