Why Retire in Porto: The Ultimate Guide for Expats in 2025

Why retire in Porto?

There are countless reasons why retiring in Porto is a good option. Below are some of the main benefits that make Portugal’s second-largest city a standout destination for retirement abroad.

• Affordable living: The cost of living in Porto is relatively low compared to other European cities, including Lisbon. Everyday expenses, such as groceries, dining out, and public transportation, are reasonably priced, and the housing market is relatively affordable compared to other Western European cities.
• Pleasant climate: Although not as renowned for its climate as southern Portugal, Porto enjoys a mild climate with warm summers and mild winters, offering a comfortable environment year-round, where it is possible to stay active throughout the year.
• Healthcare: Porto offers high-quality healthcare services that are accessible and affordable for retirees. The public healthcare system offers extensive coverage, while private health services provide additional amenities, such as fast care and lower waiting times.
• Portuguese culture: Retirees are moving to a destination where people value connection, tradition, relaxation, and a fulfilling life. The culture focuses on family and creating a supportive social environment that helps newcomers feel welcome.
• Strong property market: The Porto real estate market is financially strong and highly desirable. According to Statistics Portugal (INE), the country recorded a 16.3 percent year-on-year increase in house prices and a 42.9 percent increase in the total value of transactions during the first quarter of 2025.
• World-class cuisine: Porto is renowned for its exquisite cuisine, featuring fresh seafood, traditional Portuguese dishes, and its world-renowned Port wine. You’ll be able to enjoy fine dining in Michelin-starred restaurants or a hearty meal in a traditional Portuguese tasca (typical restaurant).

Is Porto a good place to retire for Americans/foreigners?

Yes, Porto is often considered a comfortable destination to retire for Americans and other foreigners, but whether it is the right place for you depends on your priorities. If you prefer a northern climate with large expat communities, then Porto can be a great place for retirement.

Many retirees find the second-largest city in Portugal to be more affordable than big cities in the United States, such as New York City, San Francisco, and Boston, or even other European cities like Paris, London, and Amsterdam.

Residency Options for Retirees

The Portuguese government offers several residency visas for foreigners and Americans seeking to retire in Portugal, with the D7 Visa and the Golden Visa being the most popular options. Portugal is one of the easiest EU countries to obtain residency.

Please note that the residency options listed below are available to non-EU citizens. If you are an EU citizen, then you will simply need to register at the local town hall within three months of arriving in Portugal. EFTA (European Free Trade Association) countries are treated the same as EU citizens for residency and social security purposes when retiring in Porto.

D7 Visa (Portugal retirement visa)

The D7 Visa, also known as the Portugal retirement visa or passive income visa, is designed for retirees who can financially support themselves while living in Portugal.

To qualify, applicants must have a passive income of at least €820 ($962.47) per month from sources such as pension income, retirement savings, real estate, or financial assets.

The application process starts at the Portuguese Consulate in the applicant’s home country. After approval, applicants receive a temporary residency permit. They must schedule an appointment with the Portuguese Immigration Agency (AIMA) to obtain a two-year residency permit, renewable for an additional three years.

After five years of having a valid temporary residence permit, retirees can apply for permanent residency. You can also apply for Portuguese citizenship, provided you meet the requirements under Portuguese law, such as passing a Portuguese language test and a criminal background check.

Portugal Golden Visa program

The Portugal Golden Visa is an investment-based residency program that is a popular route for non-EU retirees who want the flexibility of a European residency permit without the high physical stay requirement of other visas (like the D7).

You are eligible regardless of age, provided you meet the financial and legal criteria. The program requires a qualifying investment, and applicants must meet the personal legal requirements.

The qualifying investments are:

• €500,000 in investment funds, like a private equity or venture capital fund
• €250,000 in cultural heritage or arts
• €500,000 in scientific research
• €500,000 in business creation with at least five permanent jobs kept for three years

The popular real estate investment route was abolished in October 2023.

How to Retire in Porto: Step-by-Step

Retiring in Porto as a non-EU citizen is a process that requires a visa application, such as the D7 (Retirement or Passive Income Visa) or the Portugal Golden Visa. While EU citizens don’t need a visa, they must obtain a Certificate of Registration at the local city council (Câmara Municipal) if they plan to stay longer than 90 days.

Here is a step-by-step on how to retire in Porto as a foreigner:

Step 1: Receive a Portuguese NIF number

NIF in Portugal, also known as Número de Identificação Fiscal, is a nine-digit tax identification number you use for every financial transaction, like applying for loans and credit, buying or renting property, paying for utilities, and filing taxes.

You obtain your NIF directly at a Finanças (tax office), or you can hire a legal representative (lawyer or service provider) in Portugal to get it remotely on your behalf.

Step 2: Open a local bank account

You need a Portuguese bank account to support yourself financially and receive your pension. The D7 visa requires that you have funds deposited into your bank account. To choose the best bank or understand the various services, read our article on banking in Portugal.

Step 3: Secure your accommodation

You must prove to the Portuguese government that you have a place to live in Porto before you apply for a visa. If you don’t know which type of property suits your long-term goals, check our article on Porto real estate investment.

Step 4: Apply for a visa

Collect all the necessary documents to meet the requirements. Non-EU nationals, such as American retirees and British citizens, can schedule an appointment at the Portuguese consulate or a VFS Global center in their respective jurisdiction.

Step 5: Receive your legal residence card

After a second appointment, this time with the AIMA (Agency for Integration, Migration, and Asylum), you will receive your temporary Residence Permit Card (Autorização de Residência) at your Porto address. This card is typically valid for two years and can be used to register for healthcare and file taxes. You can apply for permanent residency after five years of receiving your permit.

Cost of Living in Porto for Retirees

The cost of living in Porto for retirees is approximately €1,600 ($1,878) to €2,300 ($2,710) per month for couples. Retirees spend about €786 ($923) to €1,041 ($1,223) on monthly rent, €250 ($293) to €350 ($411) on groceries, and €40 ($47) to €50 ($59) on public transport.

Portugal is one of the most affordable Western European countries, and living in Porto is cheaper than in Lisbon.

Here’s a typical monthly budget for a retired couple in Porto (2025 estimates):

Source: Numbeo

Daily expenses: utilities and groceries

A single person spends approximately €679 ($797.96) on monthly expenses, while a family of four spends around €2,459 ($2,884.97) per month, excluding rent.

Groceries for a couple on a budget are about €250 ($293.44) to €350 ($410.81) per month, while they can cost €350 ($410.81) to €500 ($586.87) or more for those who prefer a more comfortable lifestyle. Groceries in Porto are 47.5 percent cheaper compared to those in Washington, DC, in the USA, and around 31.7 percent lower than in London, UK.

To cover all household bills, retirees should budget an additional €32.34 ($37.97) for high-speed internet and €18 ($21.13) for a monthly phone plan. Basic utilities, which include electricity, heating, cooling, water, and garbage, for an 85² meter apartment are €119.15 ($139.79), but they can vary based on the type of property and lifestyle.

Here is a sample monthly budget for retirees in Porto, covering basic necessities.

Source: Numbeo

Dining out

Dining out in Porto is quite affordable for retirees. A meal at an inexpensive restaurant typically costs around €10 ($11.74), and a fast-food combo, such as McDonald’s, costs about €8 ($9.39). For drinks, a 0.5-liter draft beer usually costs €3 ($3.52). These prices make it easy for retirees to enjoy casual meals out without spending much, whether they’re grabbing a quick lunch or relaxing with a beer at a neighborhood café.

Many prefer neighborhood tascas and cafés in areas like Cedofeita, Boavista, and Bonfim. Popular choices include cozy, family-run places serving traditional dishes, as well as seafood restaurants in Matosinhos. Retirees who prefer fine dining often spend time by the riverside Ribeira or Foz do Douro. If you want to check out one of the Michelin-starred restaurants in Porto or other fine dining options, then you can expect to pay international prices.

Public transportation and driving a car

Retirees in Porto who use local public transport spend about €40 ($46.94) for a regular monthly pass or €1.60 ($1.88) for a one-way ticket. The city and its surrounding areas offer access to taxis, Uber, metro, and bus systems, allowing you to reach Lisbon quickly, with an average travel time of around 3.5 hours.

If you drive by car, gasoline costs about €1.73 ($2.03) per liter, but prices are often subject to change and can vary based on the vehicle you use. For international travelers, Porto Airport makes it easy to get around in Europe and beyond, with regular flights to the USA.

The charming city of Braga lies to the north of Porto and is easily reachable by train. The cost of living in Braga is lower than in Porto, and it could also prove to be a peaceful city in which to retire.

Senior discounts in Porto

There are different senior discounts for retirees in Porto:

• Public transport: Residents 65 years or older can get major discounts through the Andante 3ª Idade (Senior) pass. For those on a low income, the Andante Social+ program provides a 25 percent to 50 percent discount on monthly passes. To qualify for the Social+ discount in 2025, a retiree’s gross monthly income must be less than or equal to €627 (1.2 times the Social Support Index). All other seniors qualify for the standard Senior pass, which offers a 25 percent discount on the regular price of Municipal or 3-Zone Andante passes. To ride for free, a senior often needs to be a War Veteran or a resident of specific municipalities (like Porto) that offer local free transit programs for their elderly population.
• National railway: Portuguese residents and non-residents 65 and over get a 50 percent discount on long-distance trains (Alfa Pendular and Intercidades) within the country.
• Local attractions: Discounts of 30 to 50 percent of the standard entry price are common for seniors at museums, monuments, and cultural attractions, like Sandeman’s Port wine cellar.
• Accommodation: Luxury hotels in historic buildings often provide a “Golden Age” rate with up to 10 to 15 percent off for guests 55 and over.

Porto Retirement Property: Average Costs and Expenses

House prices in Porto are quite affordable, and Porto, Portugal real estate has become a hot topic in recent years, with the city providing 5.9 percent rental yields and up to 6.6 percent for the Porto Metropolitan Area.

Buying property in Porto

The average asking price for property in Porto city stands at €4,883 ($5,729.07) per square meter, while for the Porto Metropolitan Area, prices drop to €3,937 ($4,620.25) per square meter. The sales price can be considerably lower than this as the seller aims to sell the property by a set date.

If you are considering buying property in Porto, prices tend to be lower as you move away from the city center and toward rural areas. Recent data indicate an increase in the supply of houses in Portugal, particularly in Porto and Lisbon, which means homebuyers can choose between different property values.

When buying property in Portugal, you will need to obtain a Portuguese NIF (Tax Identification Number), which is required for any major transactions in the country. Additionally, we highly recommend opening a Portuguese bank account to save on transaction fees.

Renting property in Porto

When renting, if you are looking for an apartment for rent in Porto, Portugal, expect to pay around €1,041 ($1,221.71) for a one-bedroom apartment in the city center. Rental prices are more affordable outside the city center at approximately €786 ($922.38) per month. For a three-bedroom apartment in the center, expect to pay €1,876 ($2,201.21) monthly cost, while outside, factor in €1,421 ($1,667.67) into your budget.

Healthcare for Retirees in Porto

Portugal provides universal health coverage through its publicly funded National Health Service (Serviço Nacional de Saúde, SNS). For residents and Portuguese citizens aged 65 and over, most services, including hospital care, are free of charge.

According to Numbeo’s Health Care Index, Portugal ranks as having the 14th-best healthcare system in Europe, with higher-quality services than Germany, Italy, or Greece.

As a retiree, you must first register with the local Health Center (Centro de Saúde), where you will be assigned a family doctor, who will then handle referrals. The major public hospitals in Porto are the Hospital de Santo António, Hospital de São João, Instituto Português de Oncologia do Porto (IPO Porto), and Centro Materno Infantil do Norte. If you are seeking on-site healthcare, many retirement homes in Porto, Portugal, offer specialized care.

The cost of private health insurance

For additional benefits, many retirees from the European Union choose private insurance in Portugal. Average costs for retirees over $65 vary from €100 ($117.35) to €300 ($352.05) per month, depending on the coverage, while for adults under 55, the costs are €10 ($11.74) to €150 ($176.03) per month.

Private coverage provides quicker access to English-speaking specialists, avoids long waiting times, and offers comfortable private facilities. The most renowned private hospitals in the area are Hospital Lusíadas Porto, Hospital CUF Porto, Hospital de Santa Maria, and Hospital da Luz Clínica do Porto.

Retirement Tax Rules in Porto

Here are the different factors you should know about taxes in Portugal:

• Expats pay taxes after they become tax residents, which means spending 183 days or more in the country in any given year or maintaining a habitual residence there.
• Residents are taxed on their worldwide income at progressive rates unless a double taxation treaty (DTT) dictates otherwise.
• The country doesn’t have an inheritance tax on real properties.
• The popular NHR regime is closed to new applicants, though existing beneficiaries keep the benefits for their 10-year term. The tax regime was replaced with the IFICI (NHR 2.0).
• If a retiree leaves Portuguese assets (like a property or bank account) to a spouse, child, or parent, there is no tax on stamp duty (Imposto do Selo).

Note: Always consult with a tax advisor or a financial planner when navigating the tax system, as rates differ across mainland Portugal and autonomous regions like Madeira and Azores.

Lifestyle and Activities

There are many things to do in Porto for retirees. Whether you are a keen golfer or prefer to get your cultural fix in the city, you’ll find plenty of activities to get involved with.

Cultural Attractions and Events

Retiring in Porto, Portugal, offers a vibrant cultural scene. The city’s historic Ribeira district, a UNESCO World Heritage site, is perfect for leisurely strolls. Porto hosts numerous festivals, including the São João Festival, which features fireworks, music, and traditional street parties. The city has a thriving arts scene, with institutions like the Serralves Museum of Contemporary Art and the iconic Livraria Lello bookstore, plus you’ll discover an array of museums and art galleries. Regular concerts, theater performances, and film festivals provide entertainment throughout the year for retirees.

Quiet parks

Retiring in Porto offers access to beautiful parks perfect for relaxation and outdoor activities. Parque da Cidade, the largest urban park in Portugal, provides scenic walking trails, lakes, and picnic areas. The captivating Jardins do Palácio de Cristal offer panoramic views of the Douro River and are a tranquil spot for leisurely strolls. These green spaces, combined with the mild climate, make it easy for retirees to enjoy nature and maintain an active, healthy lifestyle.

World-class golf courses

While perhaps not as well known for its golf courses as Cascais or the Algarve, golfing in Porto offers retirees premier courses set against picturesque backdrops. The Estela Golf Club, renowned for its challenging links-style course and stunning ocean views, provides an exceptional golfing experience. Oporto Golf Club, the oldest in Portugal, combines history with a well-maintained course suitable for all levels, from beginners just starting to seasoned golfers seeking to refine their skills.

Gorgeous beaches

Porto’s coastline boasts stunning beaches, making it an ideal destination for retirees seeking to enjoy the sea. Matosinhos Beach is a favorite for its golden sands and vibrant boardwalk, perfect for relaxing or dining at seaside restaurants. Praia da Luz, with its calm waters, is excellent for swimming and spending time with the simple intention of relaxing. You will also find several stunning beaches close to Vila Nova de Gaia.

Expat Communities

Although Lisbon and the Algarve region may have more retirees than Porto, Portugal’s second-largest city, is also an outstanding choice for expat retirees and has a growing expat population. While learning some Portuguese can impress the locals and make life easier, English is widely spoken in Porto, so you should find it easy to get by. Additionally, with an array of activities, including golf, yoga, and water sports, you will quickly establish your network here. If you prefer to spend time surrounded by people, consider exploring the popular retirement communities in Portugal.

Where to Live in Porto: Top Spots for Retirees

Many top neighborhoods in Porto can catch your eye if you choose to visit.

Below, we outline some of the best neighborhoods in Porto for expats and retirees, while also providing information on the cities of Vila Nova de Gaia and Matosinhos, two cities near Porto that would also be stunning places to enjoy your golden years.

Foz do Douro

This upscale district in Porto is renowned not only for its stunning beaches, such as Praia da Luz, but also for its remarkable architecture and top-notch restaurants, which offer both traditional and international cuisine.

If you are looking to retire in Porto, here you’ll find many properties with stunning views of the Atlantic Ocean, where you will be able to enjoy your weekend stroll along the wide promenade. Foz do Douro also has all the amenities that you could want, and as you are just a short ride from the center of Porto, you can enjoy the very best of the city and the sea. A dream location for many.

Ribeira

For those seeking to reside in a historic neighborhood with UNESCO World Heritage status in the heart of the city, Ribeira is the ideal choice. Nestled by the Douro River, its charming cobblestone streets, vibrant houses, and bustling cultural and culinary scene make it a favorite among locals and expats alike. You’ll also be able to enjoy the bright lights of the Porto wine houses on the opposite side of the river.

Boavista

Boavista is known for its vibrant restaurants and rooftop bars, as well as Porto’s longest avenue, Avenida da Boavista. In this less touristy area, abundant with green spaces, you’ll also discover botanical gardens and a concert hall, providing the perfect spot for retirees looking to soak up the city’s culture and relax in one of the charming gardens.

Vila Nova de Gaia

While Porto locals joke that the only good thing about Vila Nova de Gaia is the captivating views of Porto, this is far from the truth. Vila Nova de Gaia is on the opposite side of the River Douro to Porto, home to the Port wine houses, incredible restaurants, and all the amenities that you could ask for. The fact that property prices here are more affordable than in Porto, and the beaches hugging the coast are among the best in this part of the country, are two further reasons to consider relocating to Vila Nova de Gaia.

Matosinhos

Matosinhos, a city a short journey northwest of Porto, is an ideal choice for retirees moving to this part of Portugal due to its beautiful beaches, such as Praia de Matosinhos, known for its golden sands and clean waters. The city offers a relaxed atmosphere with excellent seafood restaurants, such as Mercado Municipal de Matosinhos. Its well-developed public transport provides easy access to Porto’s vibrant cultural scene. Affordable living, good healthcare, and a welcoming community, along with lovely parks and promenades, make it a perfect retirement destination for many.

Pros and Cons of Retiring in Porto

Still wondering “Is Porto, Portugal, a good place to retire?” Life here can come with advantages and disadvantages. The table below can help you make an informed decision.

Goldcrest: How We Can Help You

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.

If you are interested in retiring to Porto and are on the hunt for your dream property, don’t hesitate to get in touch.