Why Retire in Lisbon? Your Guide to Retirement in Portugal’s Vibrant Capital

There are not many cities better suited to retirees looking to enjoy their golden years in style than Lisbon. While the Algarve in southern Portugal may be better known for being the place to retire to in Portugal, Lisbon is the perfect alternative for those looking for a blend of rich city life, a relaxed lifestyle, and proximity to sublime beaches.

So, why retire in Lisbon? A simple question but with a whole myriad of answers. In short, retiring in Lisbon can tick all the boxes. In this article, we’ll provide you with a comprehensive guide to why Portugal’s capital city – which never ceases to surprise – could be the ideal spot to retire to.

We’ll also provide you with practical information for how to retire in Lisbon Portugal, unpack the healthcare system, and provide tips on how to get around in the city.

Where to Live in Lisbon: Top Neighborhoods

The best place to live in Lisbon is completely subjective. Some will prefer to be right in the heart of the city, close to the action, while others will be looking for some peace and quiet. In the section below, we provide you with some of the best neighborhoods to retire to in Lisbon. 

Note that some neighborhoods will be more expensive than others to rent or buy property in Portugal. Plus, as you move away from the city center, you should also see that prices fall. Before settling on a neighborhood, it can be a good idea to spend some time in Lisbon so that you can see firsthand which neighborhood could be best suited to you. 

Campo de Ourique

Campo de Ourique is a charming neighborhood that ticks a lot of boxes for retirees in Lisbon. It boasts lovely artisanal shops and an indoor food market and is favored by many expats due to being easy to get around to the city’s main attractions and its abundance of delightful cafés and lunch spots. 

Principe Real 

Principe Real, named after D. Pedro V, who was also known as the Royal Prince”, is a beloved area for locals and expats. Extending north of Bairro Alto and renowned for its pristine charm and independent boutiques, Principe Real is also the site of the 16th-century church, Igreja de São Roque, a must-visit for history enthusiasts. 

The area’s trendy allure and vibrant community, which includes young internationals, retirees, digital nomads, and Portuguese locals, makes it one of Lisbon’s most desirable neighborhoods. Even Scarlet Johansson recently snapped up an apartment here. Retirees here will be able to enjoy an array of boutique shops, trendy restaurants, and breathtaking views of the River Tejo. 

Alcântara 

Trendy and vibrant, the Alcântara Docks and Doca de Santo Amaro draw weekend and evening crowds with excellent seafood restaurants housed in old warehouses, making it a favorite spot for both expats and locals. Beyond the train tracks, Alcântara transitions into a quieter residential area with spacious houses and apartments ideal for retirees. 

Parque das Nações 

Unlike anywhere else in Lisbon, Parque das Nações is more similar to Canary Wharf in London than other neighborhoods in the city. Situated on the Tagus River to the northeast, Parque das Nações offers a respite from the busy downtown Lisbon, away from the overwhelming tourist crowds, which makes it the perfect spot for retirees looking for a calmer spot. 

Some of the best restaurants in Lisbon are located here, from top sushi restaurants to upscale Chinese restaurants. Enjoying an ice-cold beer with stunning views of the Tagus; what could be a better way to enjoy a long summer evening? 

Belém

Belém is one of the last neighborhoods within Lisbon’s municipality to the west of Lisbon, known for its historic charm, top museums, art galleries, monuments, and green spaces. Highlights include the UNESCO-listed Jerónimos Monastery, the National Archaeological Museum, and the Torre de Belém. Belém is ideal for retirees seeking a quieter lifestyle away from the city’s hustle and bustle. You are also conveniently located between Lisbon and Cascais and will be able to make the most of living on the beautiful Portuguese Riviera, with beautiful views of the River Tagus. 

Residency Options to Retire in Portugal

The Portuguese government provides various residency visas to attract expats and retirees, with the D7 Visa and the Golden Visa being the most favored among those looking to retire in Portugal. Portugal stands out as one of the EU countries where securing residency is relatively easy, offering several options for non-EU citizens. For EU citizens, the process is straightforward: simply register at the local town hall.  

Should you move to retire in Lisbon Portugal, you will need to get a NIF (Portugeuse tax number), and we highly recommend that you open a Portuguese bank account to save on transaction costs. 

Portugal D7 Visa (Portugal retirement visa)

The D7 Visa (also referred to as the Portugal retirement visa or passive income visa) is for retirees and other expats who can financially support themselves in Portugal, essentially living off passive income.

To retire in Portugal on this visa, applicants must have a passive income of at least €820 per month (the Portuguese minimum wage) from sources such as pension income, retirement savings, real estate, retirement income, retirement savings, or financial assets. The application process begins at the Portuguese Consulate in the applicant’s home country. Upon approval, applicants receive a temporary residency permit and must schedule an appointment with the Portuguese Immigration Agency (AIMI) at an official immigration service office to obtain a two-year residency permit, which can be renewed for an additional three years.

After maintaining a valid temporary residence permit for five years, retirees can apply for permanent residency. Additionally, they can apply for Portuguese citizenship, provided they meet the requirements under Portuguese law, which include passing a Portuguese language test and having a clean criminal record. Once you have Portuguese citizenship and become a European citizen, you will be able to live, work, and study in any country in the European Union (EU) and be part of the European Free Trade Association, making it easier to do business in Europe.  

The Portugal Golden Visa

Introduced in 2012, the Portugal Golden Visa program is for a non EU citizen interested in securing residency by making a minimum investment in Portugal. This visa extends to those wishing to retire in Portugal. Investment avenues for the Portugal Golden Visa encompass qualified investment funds, job creation initiatives, or contributions to artistic and cultural projects. Portugal Golden Visa investment funds option has proved to be increasingly popular in recent years, particularly amongst American nationals.

A benefit of the Golden Visa is that the program has a short-stay requirement (seven days per year), which means that you do not need to relocate to Portugal to keep your Portuguese residency.

Health Care in Lisbon

Portugal offers universal health coverage through its publicly funded National Health Service (Serviço Nacional de Saúde, SNS), ensuring affordability for Portuguese citizens and legal residents, covering essential health needs, accidents, and illnesses. 

In addition to Portugal’s public healthcare system, Portugal boasts numerous private healthcare options nationwide. Should you retire abroad to Lisbon, you will find private services and private health insurance to be available at an affordable cost, particularly when compared with private healthcare costs in the USA. Opting for private healthcare usually translates to shorter wait times than the public sector; plus, private healthcare professionals may speak better English to cater to English speaking expats. 

It’s important to note that, as part of the residency visa application process, having private health insurance is mandatory. Once residency is obtained, individuals can choose to maintain their private insurance if they so wish. 

Lisbon offers a range of national health services, including hospitals, medical services, and private healthcare clinics. As we’ve mentioned, Portugal’s healthcare system is very good, ranking 21st in Numbeo’s Health Care Index and surpassing countries like the USA (38th) and Germany (23rd). 

If you are seeking a retirement home with a certain level of care, there are plenty of options in the country. You will also find options for assisted living in Portugal, retirement villages, and more specialized alternatives.

Real Estate Market in Lisbon

The average asking price per square meter for real estate in Lisbon City is €6,009, with other areas in Lisbon reaching €8,117 per square meter in the more upmarket neighborhoods like Santo António, and averaging €3,955 in more affordable neighborhoods in Lisbon, like Santa Clara.

The price of real estate in Lisbon tends to be higher than most other areas in Portugal, but you shouldn’t let this deter you.  As Portugal’s capital city, and with its dependable infrastructure, robust healthcare system, top-tier amenities, activities to suit all lifestyles, and worldwide expat appeal, Lisbon property is highly sought after and well worth the investment. Property values have seen tremendous growth over the years, making Lisbon one of the top eight cities with the best real estate prospects in Europe as ranked by Statista.

Lifestyle and Activities in Lisbon

We’ve already mentioned some of the high points of living in Lisbon, but below are some of the key lifestyle perks and attractions in the Portuguese capital.   

• World-class golf courses: You’ll find around 23 golf courses in and around Lisbon. Whether you are a seasoned professional or are just starting out, you’ll be spoilt for choice.
• Gastronomic delights: Lisbon’s culinary scene reflects its history and maritime influences, offering delicious seafood, iconic pastries like the Pastel de Nata, and traditional Portuguese dishes. 
• Coastal living: Situated along the Atlantic coast, Lisbon provides easy access to stunning beaches such as Carcavelos and Costa da Caparica. Coastal towns like Cascais and Estoril along the Portuguese Riviera are perfect for getting out of the city. It’s also worth bearing in mind that Cascais could also be a top location to consider retiring to, should you be after the ultimate blend of city and seaside living. 
• Cultural wonders: Lisbon is overflowing with museums and art galleries. Retirement here means the Museum of Fado, and the Museum of Art, Architecture and Technology (MAAT), are not too far away. 
• Natural escapes: The Jardim da Estrela park in Lisbon offers a peaceful break from city life with its plant-filled greenhouses and waterfalls. 

Climate in Lisbon

The climate is a massive draw for retirees. Winters seldom drop below 10 degrees Celsius (50 degrees Fahrenheit), and summer temperatures in August, the warmest month, typically hover around 29 degrees Celsius (84 degrees Fahrenheit). The city’s close proximity to the Atlantic Ocean moderates temperatures, making sure summers never get unbearably hot.

Getting Around and International Travel

Lisbon boasts an efficient public transportation network encompassing buses, trams, trains, and the iconic yellow trams. The metro system provides comprehensive city-wide connectivity, while trains offer convenient and affordable travel to other regions of the country, including Faro in the Algarve and Porto, the jewel of Northern Portugal. You can also take the train to Cascais along the Portuguese Riviera in less than an hour, while Lisbon’s airport facilitates seamless international travel for frequent flyers. 

Taxes For Retirees in Lisbon

The general rule if you retire in Portugal is that if you are a taxpayer, all your income is taxed, including pension and worldwide income. If you spend more than 183 days in Portugal during a tax year, you are considered a tax resident and must file a tax return. There are also tax laws in place to prevent double taxation.

To make living and retiring in Portugal more attractive to foreign residents, there is an NHR Portugal tax regime – or a non-habitual resident taxpayer system – that allows foreign residents to make use of a lower fixed-income tax rate. However, it is important to note that it was announced that this scheme would come to an end for new applicants in January 2024, but it is still possible for some individuals to apply up until March 2025, with stricter requirements.

If you qualify as an NHR resident, any international income you earn is exempt from taxation in Portugal for ten years, including pensions, salaries, investment returns, business revenue, capital gains, and rental income. Any income you’ve earned in Portugal will be taxed at a flat tax rate of 20 percent.

The Portuguese government has since announced in early 2024 that a new version of the NHR scheme is in development, but it still requires the parliament’s approval before coming into effect. This new version will target highly qualified professionals who want to move to Portugal.

Goldcrest: How We Can Help

Goldcrest is the first buyer’s agent in Portugal, based in Lisbon, Porto, and the Algarve. We provide local insights and impartial advice on real estate investments and have helped hundreds of expats secure their dream home in Portugal. From scouting out the perfect property through to property acquisition and aftercare, we guide you throughout the entire process. 

Should you be seeking out your perfect property to retire in Lisbon Portugal, we’d be more than happy to help. The buying process can be complicated. With an experienced real estate professional in your corner, we aim to make the process as stress-free as possible, providing a service tailored completely to your specific requirements.