How to Retire in Portugal: Your Updated Guide for 2025

If you are seeking to retire to Europe, Portugal should certainly be on your radar. Portugal boasts a high quality of life, is one of the most affordable European countries, and English is widely spoken alongside an excellent healthcare system and accessible residency options.

This ultimate guide will show you how to retire in Portugal, from walking you through residency options and the cost of living to general advice on how to settle into your new life, we have you covered.

Why Is Portugal such a popular retirement destination?

Portugal has been topping retirement indices for years, due to:

• Affordable lifestyle: Considerably more affordable than other Western European countries and US cities
• Friendliness: Portuguese locals are extremely welcoming to foreigners
• English is widely spoken: Portugal ranks sixth in the latest English Proficiency Index
• Safety: Portugal’s seventh in the 2024 Global Peace Index
• Easy European travel: Easy access across the EU area
• Fantastic quality of life: Portugal boasts a high quality of life with excellent healthcare and 300+ days of sunshine

Retiring in Portugal: Pros and Cons

According to the Global Citizen Solutions Intelligence Unit, Portugal is the world’s second-best country for retirees, considering factors like quality of life, safety, integration, and economics.  In a nutshell, here are the main pros and cons to weigh up when making your decision:

Pros of retiring in Portugal

• A high-quality public healthcare system with world-class private healthcare options
• Low cost of living compared to the USA and other Western European countries
• Value-for-money property options
• Straightforward retirement visa application options
• Ease of transportation
• Excellent dining options
• Pleasant weather
• Ample entertainment and leisure activities, like golfing, kayaking, theatre, and the cinema
• Luxury retirement villages, assisted living, and luxury care homes in Portugal
• Rich in culture
• Modern amenities
• Friendly locals with a large English-speaking population
• Stunning beaches and natural landscapes
• Ease of travel to other European destinations

Cons of retiring in Portugal

• Older buildings might not have central heating, which could make winter nights chilly – make sure your property has good insulation.
• Some stores do not accept cashless payments like Visa and Mastercard, so it can be a good idea to always carry some cash, just in case.
• Bureaucracy and long waiting times at government departments
• The need to learn a little Portuguese to communicate in areas that do not see many tourists and expats.

How to Retire in Portugal: Residency and Visa Options for EU and Non EU Citizens

Anyone can retire in Portugal, but the process varies based on nationality. European Union (EU) nationals, European Economic Area nationals, and Swiss nationals can reside freely, with EU nationals only needing to get a Certificate of Registration after three months.

Non-EU nationals, however, must obtain a visa or residency permit to retire in the country, but the process is largely straightforward. Let’s take a closer look at a few of your residency options below.

Portugal D7 Visa

Portugal is one of the easiest places to get residency for Americans retiring in Portugal and other non-EU nationals. While there is officially no retiree-specific visa, the Passive Income Visa (also known as the D7 Visa or Retirement Visa) is a good choice and is the visa most retirees use to live in Portugal long-term. To be eligible, you need to provide income proof of at least €820 per month.

Your passive income can be from a pension scheme, retirement savings, or any other social security benefits in your home country.

In order to apply for the visa, you need to:

• Be a non-EU national
• Earn a passive income of at least €820 per month (your income can be pension income, social security benefit, transferable equity, real estate, intellectual property, or financial equity)
• Show proof of a place to live in Portugal
• Be willing to reside for more than 183 consecutive days per calendar year in Portugal

Portugal Golden Visa Program

The Portugal Golden Visa, also known as the residence permit for investment activity (ARI), is a five-year residency-by-investment scheme for non-EU nationals with minimum investment requirements starting from €250,000. If you have enough finances to invest in Portugal, the Golden Visa Program can be the best option to retire in Portugal.

The current investment options are as follows:

• Scientific research: Minimum €500,000 investment in science or technology research.
• Subscription to a qualified investment fund: Contribute at least €500,000.
• Job creation: The incorporation of a company and the creation of ten jobs worth at least €500,000.
• Donation: Make a minimum €250,000 donation to support the arts or the restoration of national heritage.

If you meet all the requirements to become an EU citizen under Portuguese nationality law, you can apply for permanent residency and Portuguese citizenship after five years. As a Portuguese citizen, you will have several benefits, including voting in Portugal and membership in the EU. Portugal provides dual citizenship as well.

Cost of Living and Housing in Portugal

Portugal is known for being one of the most affordable European countries without compromising on the overall quality of life it offers.

If you are retiring in Portugal as an American, the cost of living in Portugal, including rent,  is around 33 percent lower than in the USA. Not including rent or mortgage payments, a couple should be able to comfortably retire in Portugal with an annual income of between €15,536 and €17,263 ($18,000 and $20,000) if talking about outside major cities, and up to €20,716+ ($24,000+) in major cities, although this will depend on your lifestyle. 

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

Here is a more specific breakdown of the costs of some of the goods and services in Portugal to give you a better idea of what you could expect to pay:

Buying a property in Portugal

If you are considering buying property in Portugal, below you can find average property prices for popular regions. This information is from the Portuguese real estate databank Confidencial Imobiliário.

• Lisbon (City): €6,934 per m²
• Lisbon Metropolitan Area: €4,935 per m²
• Porto (City): €4,883 per m²
• Porto Metropolitan Area: €3,937 per m²
• Algarve: €4,385 per m²
• Alentejo: €3,181 per m²

Access to Healthcare

Public healthcare

The National Health Service, or Serviço Nacional de Saúde (SNS), provides excellent free healthcare to children under 18 and people over 65. If you are a resident of Portugal, you will have access to the national health service and will only need to pay the minimum healthcare costs for treatment. Note that for X-rays, scans, and other tests, you will need to pay an additional fee. Private healthcare is also an option and is becoming increasingly popular with expats in Portugal.

If you are retiring to Portugal, rest assured that the Integrated Medical Emergency System offers very quick response times.

Portugal’s healthcare system provides fundamental health, accident, and disease coverage. Portugal has high-quality healthcare: the country is ranked 23rd in the Global Health Care Index 2025. Both public and private hospitals are contemporary and well-equipped, and many medical professionals in both institutions speak English.

In Portuguese pharmacies, prescription drugs can be given out right away. With a few exceptions, the price of many generic medications ranges from 10 percent to 25 percent less than what they would be in the United States.

Private healthcare

Private healthcare in Portugal is excellent and affordable, with English widely spoken and quicker waiting times.

Americans retiring in Portugal will find that healthcare is very affordable. Depending on your age and the scope of your coverage, private health insurance could cost between €30 and €60 every month for basic healthcare plans. On the opposite end of the price range, prices for more comprehensive private health insurance plans could cost up to several hundred euros each month.

You can read more about healthcare in Portugal to get everything that you will need to know about the healthcare system in Portugal, including private health insurance and the public health service.

Taxes for Retirees in Portugal

• Taxation on worldwide income: Regarding your worldwide income, you are considered a Portuguese tax resident if you spend more than 183 days in Portugal annually. All income must be reported.
• Portugal has Double Tax Agreements (DTAs) with both EU and non-EU nations, making sure your income is not taxed twice. Portugal has a DTA with the USA and the UK.
• We recommend working with an accountant to optimize your tax affairs in Portugal.

Transferring Pensions to Portugal: Key Points

• EU Citizens: For EU citizens, you can transfer your social security contributions from other EU countries to Portugal. These combined years will count towards your Portuguese public pension eligibility.
• Non-EU Citizens: If you’re a non-EU national, you will need to check your existing social security or pension agreements between Portugal and your home country. These agreements dictate how your contributions or pensions may be recognized.

Portuguese retirement age: The retirement age in Portugal is 66 years and seven months for both men and women in 2025 (to increase to 66 years and nine months in 2026).

Pension options

Portugal has a public state pension system. You can find out more on the Portugeuse government website. For private pensions, plans are widely available and often supplement state pensions.

If you become a tax resident in Portugal, your foreign pension may be subject to taxation. This will depend on DTAs between Portugal and the country from which your pension is paid. We advise seeking tax advice for your specific situation.

Opening a Bank Account in Portugal: Step by Step Guide

Step 1. Get a NIF

When moving to the country, you will need to have a NIF number (Portuguese Tax Identification Number or Número de Identificação Fiscal), which is required to open a Portuguese bank account and carry out major financial transactions. 

How to get it: To get a NIF, you will need to bring your passport and proof of address to your local Finanças office (Portuguese Government Tax Office). If you already live in the country, you may provide your Portuguese address. If your address is outside of Portugal, you will also need to have a tax agent in Portugal to act on your behalf. 

Step 2. Gather your documents

ID: Valid passport or national ID card

Proof of address: Recent utility bill or rental agreement.

Proof of income: Recent payslip, employment contract, or proof of pension.​

Portuguese NIF number: Your tax identification number, as obtained in step 1.​

Step 3. Open a Portuguese bank account

To open a local bank account, visit the local branch, although some banks allow you to set up an account online. Millennium BCP, Novo Banco, Banco BPI, and Banco Santander Totta are some of the best banks to consider in Portugal. While many employees in banks speak English, it can be worth speaking some basic Portuguese.  

Living in Portugal for Retirees: Practical Information

Moving to another country can be a hassle, and there are several things that you will need to consider.

Transportation in Portugal

While traveling by car is probably the easiest way to get around the country, Portugal has excellent transport links from Northern Portugal to the Algarve in the south that are both efficient and cheap – both trains, buses, and the metro are each convenient to use – just excuse the times when the buses are running slightly late. There are also three international airports on Continental Portugal – in Lisbon, Porto, and Faro – making it easy to make foreign trips.

Inheritance tax for retirees in Portugal

Portugal does not impose an inheritance tax on real estate. However, there is a 10 percent flat-rate stamp fee. Unless otherwise specified, spouses, descendants, and parents are not subject to this payment. The process of inheritance also involves a little administrative cost.

Any succession process must follow the rules of the nation where the deceased person resided, according to the Portuguese Civil Code. US inheritance law will be in effect if you retire from the US to Portugal. If the other spouses are Portuguese permanent residents, Portuguese law may still be applicable if both spouses are foreign nationals. By mentioning it in the will, this can be prevented. Make sure you create a thorough will that has been approved by a lawyer. Having separate wills in Portugal and the place of origin may be even better for retirees from the US, UK, Australia, and Canada.

Lifestyle in Portugal: What to expect

It is very easy to move to Portugal and live an active lifestyle. With the Portuguese climate – 300 days of sunny days per year, mild temperatures in the winter months, and even the winter sun encouraging you to go outside – you can easily live a very active lifestyle.  

There are many watersport activities that you can try. For those who prefer to keep their feet on dry land, the golf courses in Portugal are some of the finest in the world. Activities range from yoga to cooking classes and everything in between.  

The cuisine of Portugal is also generally very healthy, despite the Portuguese sweet tooth and love of pastries – try the famous pastel de nata or bola de berlim and you should see why. The cuisine has a strong focus on fresh fish, salads, and fruits, making it very easy to keep up a healthy and active lifestyle.  

Best Places to Retire in Portugal

There are many beautiful locations in Portugal. Each will have its own traditions, cultures, foods, and individual quirks. Finding the perfect location for you is one of the first things that you should consider when retiring in Portugal.

The Algarve

• Consistently ranks as one of the best retirement destinations in the world by Forbes
• English is widely spoken
• 300+ days of sunshine per year
• Beautiful beaches, 39 golf courses, waterspots, and delicious gastronomy
• Great healthcare options, relaxed lifestyle, and high quality of life
• Towns such as Tavira, Faro, Silves, and Lagos offer excellent property options by the coast

Lisbon

• Portugal’s capital is the perfect mix of tradition and innovation
• An array of cultural activities and events for retirees to enjoy
• Easy access to terrific beaches
• Popular neighborhoods include Estrela, Belem, Campo do Ourique, and Principe Real
• Home to many UNESCO World Heritage Sites, rich arts, and incredible restaurants

Cascais

• Sophisticated coastal town strategically located just 30 minutes from Lisbon, combining beautiful beaches with city convenience
• Charming town with a local feel and home to elegant buildings and unique architecture
• A growing expat community and modern amenities
• The perfect place for luxury lifestyle buyers

Porto

• Portugal’s second-largest city is now one of the best European cities to retire to
• Known for its riverside beauty, port wine culture, and UNESCO historic center
• Quieter and more affordable cost of living than Lisbon
• One of Portugal’s true gems, with a strong expat community and laid-back lifestyle
• Perfect for retirees seeking a milder climate

Bottom Line

Retiring in Portugal in 2025 is a dream for many—and with good reason! Whether you’re drawn to the golden beaches of the Algarve region, the buzz of Lisbon, or the charm of Porto, there’s a perfect spot for everyone. To make the move stress-free, start by getting familiar with residency requirements, especially if you’re coming from outside the EU, as visas can take time.

Budgeting is key, too. While Portugal offers an affordable lifestyle, costs can vary depending on where you settle. Picking up some basic Portuguese will go a long way toward helping you feel at home (and impressing the locals!). And don’t forget healthcare—Portugal’s system is excellent, but having private health insurance can give you peace of mind.

Before you take the plunge, spend some time exploring different areas to find your ideal fit. With its warm Portuguese culture, relaxed lifestyle, and stunning scenery, retiring in Portugal might just be the best decision you ever make!

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: We have a close network of partners, including 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.