Retire in Algarve: Your Complete Guide for Easy Relocation

Why is the Algarve one of the best places to retire?

Portugal landed in first place in the 2025 Global Retirement Index by the Global Intelligence Unit. It’s no surprise as to why.

Located in southern Portugal, the Algarve is known for its:

• Mild climate: The Algarve has a year-round warm, mild climate and 300 days of sunshine per year.
• Low cost of living: Portugal’s cost of living is around 30 percent lower than in the USA.
• Beautiful beaches: The Algarve is home to more than 150 stunning beaches.
• Safety: Portugal is the seventh safest country in the world according to the 2025 Global Peace Index.
• English is widely spoken: Portugal, and the Algarve in particular, has a high English proficiency rate.
• Excellent healthcare: Healthcare is excellent in the Algarve, with medical tourism also increasing in recent years, and a testament to the quality of healthcare in the region.
• Expat communities: You’ll find thriving expat communities in Albufeira, Vilamoura, Lagoa, Portimão, Lagos, and other key cities, with quieter cities being Tavira, Silves, Aljezur, Vila do Bispo, and Olhão. Loulé, Quarteira, and the Golden Triangle are ideal for luxury condominiums.
• Activities: From golf to watersports, you’ll be able to enjoy an active lifestyle in the Algarve.

Forbes also regularly names the Algarve as being one of the most desirable places to reitre to.

What’s Life Really Like in the Algarve for Retirees?

High quality of life

Living in the Algarve, you’ll be able to enjoy a high quality of life, based around fresh food, relaxation, and be able to enjoy a warm climate throughout the year. Many retirees move to the Algarve region because of the beautiful beaches, excellent healthcare, and golfing opportunities, whereby you can enjoy your hard-earned retirement in style.

Incredible golf courses

Many retirees are drawn to the Algarve’s beautiful beaches, calmness, or climate, but the Algarve is a gem for those looking to enjoy – or try new – activities. A high concentration of golf courses ensures that golf has developed into an important tourism activity in the region, and the region now has some of the very best golf courses in the world.

Quinta do Lago was named the best golf course in Portugal in the 2024 World Golf Awards, highlighting the region’s prestige. Many courses are designed by internationally renowned architects, including the American architect William Mitchel, with many having sweeping views of the Atlantic. Whether you are a seasoned golfer or just starting out, you’ll be able to enjoy the 30+ golf courses in the region.

Wide range of activities

The Algarve offers great conditions for sports and outdoor activities. Popular recreational opportunities include hiking, golf, and water sports. Windsurf and surf enthusiasts are drawn to the Portuguese coast in droves.

The Algarve invites you to go hiking in the nature parks and the rural countryside. The region is also ideal for mountain climbing, cycling, sailing, diving, and playing tennis, among other wellness specialties. Looking for an exciting property investment to enjoy nature at its fullest? You’ll find several mountain houses for sale in the Algarve, ideal for those seeking something slightly different.

The scenic region with its imposing cliffs is also ideal for long hiking tours. The Algarve is a place with many sights, museums, chic restaurants, cafes, and bars.

Weather

With an average of 300 days of sunshine per year, the Algarve is a year-round leisure destination. The warmest season is from June to September, when you’ll be able to enjoy the beaches at their best and maximum temperatures of 30 Degrees C (86 degrees F) and above. Even in the winter months, you’ll be able to enjoy activities and the beaches, with it rarely being too cold to head outdoors.

Beaches

The Algarve is home to some of the most beautiful beaches in the world and has been named the best beach area in Europe several times, most recently as the World’s Leading Beach Destination in the 2024 World Travel Awards. 85 of the region’s breathtaking beaches have been awarded Blue Flags this year.

What makes the Algarve so special is its great variety of beaches, from the bays accessible by sea only to expansive miles of white sandy beaches of the islands off the Algarve coast. A great way to discover the Algarve’s beaches in just one day is to take a boat trip along the coast. Boat tours are available year-round from the marinas in Vilamoura, Albufeira, Portimão, Faro, Alvor, Ferragudo, and Lagos.

Transportation and connection

Using public transportion during your stay in the Algarve can be an easy way to explore the region. It is inexpensive and fairly punctual, but does require a little research before you set off. The trains in Portugal are run by CPP. They are clean, cheap, and punctual. You can travel right across the Algarve, from Lagos to Vila Real de Santo António on the Spanish border by local train. 

Although it’s not the fastest way to cover ground, the train routes often offer much better scenery than the highways, and the pace is more relaxed. To better explore the region and get to some of the more hidden beaches and towns, however, it is best to have a car.

Faro Airport is located just 4 km from the town of Faro. It serves the entire Algarve region and southern Spain. From Faro airport, you can travel across the region by taxi, airport transfer, car hire, or public transport, or arrive in a few hours at the major European capitals.

How Much Does It Cost to Retire Comfortably in the Algarve?

Cost of living

Many retirees are drawn to Portugal because they appreciate the local cost of living. Overall, the cost of living in the Algarve is well below the values found in other countries in Western Europe and the USA. In general, Portugal is around 30 percent cheaper than the USA.

A single person can expect to pay between €1,200 and €1,500, and a couple can easily retire to the Algarve for around €1,500 to €2,500, depending on lifestyle and location.

• Restaurants: Restaurants are affordable, with a meal in an inexpensive restaurant costing around €15, although you can find cheaper than this, and more expensive for a more pricey place.
• Groceries: The cost of food is generally very affordable, particularly if you shop local, with there being many local markets dotted across the region.
• Utilities: Algarve basic utilities (electricity, heating, cooling, water, and garbage for an 85m2 apartment) will cost around €127 per month.
• Leisure: A monthly fitness club membership will cost around €33 per month, and a cinema ticket around €7.50.

Real estate prices

How much does it cost to buy property in the Algarve?

Property prices will vary depending on the location, with average prices for the region standing at €4,385 per square meter in 2025. In general, the Central Algarve is the most expensive, while the Eastern Algarve is the most affordable.

If you are looking for land for sale in the Algarve, then this is also an option. In general, land is much more affordable than buying a new build. However, construction can take some time, so if you want to move into the property in the near future, this may not be the best option for you. Nonetheless, there is nothing like building your dream from scratch, whereby you can create the house based on your exact requirements.

How much does it cost to rent property in the Algarve?

When it comes to renting property, rental prices vary by city. Below, we share some ballpark prices.

• A one-bedroom apartment in the city center will cost around €1,000 in the city, while outside the city center, the same property will set you back around €850.
• A furnished two bedroom apartment will cost between €1,200 and €1,600 in the city center.
• A three-bedroom apartment in the city center will cost you around €1,800, with rental properties much cheaper in the surrounding area or away from the coast.

If you are on the hunt for your dream rental, our rental house service could save you valuable time, stress, and money.

Residency Options to Retire in Portugal

As an EU national

To legally retire in Algarve as a European Union (EU) citizen, applying for retirement is easy and straightforward. You will simply need to register at your local town hall (Câmara Municipal) within three months of arriving in Portugal.

As a non-EU citizen

To move to Portugal as a non-EU citizen, including Americans and UK nationals, you must first obtain a residency permit based on your circumstances.

For retirees, the Portugal D7 Visa is an appealing choice, allowing you to relocate to Portugal, provided you have a minimum monthly passive income of at least €870. This can come from intellectual property, pensions, or rental income, among other sources.

Other options include the Portugal Golden Visa, the country’s popular residency by investment program, or the D8 (Digital Nomad Visa), although this is targeted towards remote workers.

After arriving in Portugal through your chosen visa program, you will need to have an appointment with AIMA, the Agency for Integration, Migration, and Asylum, to apply for a residence permit. After this, you are legally registered to live in Portugal.

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

How to Retire in the Algarve – Step-by-Step Guide

It’s tricky to know where to begin when moving to a new country. Below, we provide a simple step-by-step guide to retiring in Algarve, Portugal.

1. Research and plan your retirement: Determine where you want to live in the Algarve and if it is the right location for you, depending on your lifestyle. Consider your finances and whether you have any commitments back home that you need to take care of before relocation. You should also plan which residency option is best for you, with the D7 (retirement/passive income visa) being the most obvious choice for retirees.
2. Get a NIF number: You will need to apply for a NIF number at your local finanças office or with a third-party provider online.
3. Consider accommodation: For residency visas, you will need to have proof of accommodation in Portugal. You should determine if you with to buy property or rent property in Portugal.
4. Secure your residency visa: Once you’ve committed to the Algarve, begin the process of applying for the relevant residency visa.
5. Arrange for belongings to be transported to Portugal: Decide whether ship, air, or car freight is the best way to move your belongings to Portgual. If you are moving to Portugal, make sure you have the right vaccines.
6. Move to Portugal: Once you have your visa and accommodation, you can enter Portugal and book an appointment with AIMA, where they will take your biometric data and arrange for your residency card to be sent to your address.
7. Settle and integration into life in the Algarve: After you’ve applied for your residency visa, the only thing left to do is to establish yourself in life in Portugal, such as registering for your healthcare number, subscribing to a gym, and so on.

Applying for the D7 Visa

To get your Portugal D7 Visa, you will begin the process at the Portuguese Consulate in your home country.

1. Schedule your appointment: Book a time to submit your visa application and required documents.
2. Pay the application fee: Pay the application fee (approximately €80) and required documents.
3. Wait for review: The review period will take between a few weeks and several months, depending on the Portuguese Consulate, which may require additional information during this time period.
4. Receive a temporary residence visa: Once approved, you will then get a 120-day visa to enter Portugal.

Finding housing and buying property

Regardless of whether you are buying or renting property, finding the right place for you that you can call home can be tricky. To begin, research the real estate market in the Algarve to learn about property prices, property types, and common features. After this, we recommend working with real estate professionals to find the property that matches your requirements.

The best approach is to hire specially trained agents, such as Goldcrest, who help buyers make sure they’re getting the best and safest deal from their property purchase. It’s worth bearing in mind that real estate agents in the Algarve (and Portugal in general) work on behalf of the seller, while buyer’s agents work for the buyer. This distinction is crucial as buyer’s agents will fully protect your interests, ensuring you get the best property at the best price.

Opening a bank account

You will need a NIF number to open a bank account and for any other transactions. While you can get this number personally at a tax office in Portugal, you can also get your NIF online before entering Portugal. Non-EU nationals will need a financial representative to apply for a NIF. After you have your NIF, you can open a bank account in Portugal. It is worth having a bank account to save on transaction fees

Healthcare access

Portuguese residents will have access to the public national health service, known as the SNS. You will need to get your healthcare number (número nacional de utente) from your local healthcare center. Portugal’s public healthcare (SNS) is free for those aged over 65 and available to those younger than this at just a small cost.

Portugal’s private healthcare is excellent, with the Algarve noted as having modern facilities. Specialized care, shorter waiting times, attentive staff, and doctors fluent in English are the main advantages of choosing private healthcare, with private healthcare plans considerably more affordable than in the US or major European cities.

Taxes in Portugal

As a tax resident in Portugal, you will need to declare your worldwide income annually and pay income tax on it.

Many countries have tax treaties with Portugal to prevent double taxation. We strongly recommend seeking the assistance of a tax specialist to help with your financial planning and to best manage your tax affairs.

While the NHR (Non-Habitual Residence program) has come to an end, IFICI (Tax Incentives for Scientific Research and Innovation) is the so-called NHR 2.0. which offers tax benefits to certain professionals, although, unfortunately, it does not include pensions.

Best Places to Retire in the Algarve

Where is the best place to retire in the Algarve? The Algarve has so many great cities and villages to offer that it can be tricky to find the right place for you. So that you can invest in exactly the right place, we have put together a list of the best places to live in Southern Portugal. Whether you are seeking a traditional Portuguese market town or a more bustling coastal city, the region can deliver. 

Faro

Faro is a welcoming and peaceful city with an attractive port, well-kept parks, squares, and an old town (Vila-Adentro) full of pedestrian paths and cafés with pleasant terraces. From Faro, you can easily get around the Algarve region and take the train to Lisbon. The Faro International Airport also makes international travel seamless.

You can find out more about the capital of the Algarve in our guide on Faro, Portugal, real estate.

Portimão

Portimão has developed more as a tourist destination, largely due to the success of its famous Praia da Rocha, one of the most beautiful in Portugal, and its port. The heart of the city is filled with modern buildings, with great infrastructure, a relaxed atmosphere, and a large expat community.

Discover more about Portimão: Portimão, Portugal, Real Estate.

Lagos

Lagos, a port city in the Algarve, has various amazing beaches, such as Praia do Camilo, Praia do Porto de Mós, and Praia Dona Ana and is known for its stuning natural beauty. Buying property in Lagos, Portugal, is proving to be especially popular among expats looking for an affordable beach escape, with many American buyers struck by the stunning properties that come with waterfront views. The Western Algarve is the best place to live in Portugal, Algarve, if you are a watersports fanatic, with great surf opportunities in Lagos and nearby Sagres.

Find out more about Lagos: Lagos, Portugal, Real Estate.

Tavira

Tavira is a small city that many consider to be the most beautiful city in the Algarve. If you wander through the city, you can admire many Moorish remains, cobbled streets, and delightful tiled traditional Portuguese houses. Living in Tavira is for those seeking out an authentic and local spot in the Algarve, with fresh seafood, some of the most tranquil beaches in the region, and lemon and orange groves.

If you are asking yourself, “Is Tavira expensive?”, you’ll be pleased to know it is much more affordable than the Central Algarve. When it comes to the Algarve’s best places to retire, Portugal, Tavira is the ideal spot for those seeking authenticity and calm.

Goldcrest: How We Can Help You

Can’t stop thinking of retiring in the Algarve, Portugal? Seek help from a specialized property investment firm such as Goldcrest. As an independent local buyer’s agent, we help international buyers acquire sound property investments in their desired locations in Portugal.

Whether you are looking to move to Lisbon or retire to Porto, Portugal offers a range of stunning locations for expats seeking to relocate in style. We are here to help you uncover your ideal space that you can call home.