Retiring in Portugal: Your All-in-One Guide

Portugal has long been a retirement hotspot for retirees from all over the world. With so many advantages to retiring in Portugal, it doesn’t take long to figure out why – sun-drenched days into dreamy sunsets, golden beaches and beautiful landscapes, friendly locals, a vibrant culture, historic cities, and a killer food scene – the highly sought-after country certainly catches the eye.

There are several reasons why Portugal is regularly featured as one of the best EU countries to retire to. In International Living’s 2024 Annual Global Retirement Index, Portugal is ranked as the second-best country in the world to retire based on its excellent healthcare, affordable cost of living, fantastic housing options, and other key lifestyle factors.

In this article, we’ll cover the aspects of what makes Portugal a paradise to retire to. Following this, we’ll provide you with some of the most desirable locations to look for a property and run over practicalities that you should know, such as healthcare in Portugal.

Benefits of Retiring in Portugal

One of the greatest draws to retire to Portugal is the affordability. Portugal has garnered praise from Forbes as one of the five best affordable countries to retire in Europe. Another benefit of retiring in Portugal is that you will be pleasantly surprised by the warm welcome of the Portuguese citizens who are also a large English-speaking population.

According to the 2024 Global Peace Index, which assesses the economic stability and overall peacefulness of countries across the world, Portugal was named the seventh safest country in the world. This is due to its stable Portuguese law and socio-economic and political climate, alongside low crime rates in major cities and rural regions alike.

It’s easy to fully immerse yourself in the relaxed Portuguese lifestyle, where you can simply sit and watch the world pass by, with a coffee and pastel de nata – perhaps sitting in one of Lisbon’s charming parks. With a massive coastline, it’s easy to begin your love affair with water sports, or if you prefer to keep your feet on solid ground, you’ll find a wide selection of world-class golf courses across the country. Simply soak up the atmosphere and take in the little moments – something the Portuguese do so well.

Living in Portugal as an expat also offers the opportunity to enjoy visa-free travel to other European countries that are part of the Schengen area. With a good national healthcare system, excellent Portuguese cuisine, full-bodied wines, fresh seafood, and a balmy climate that offers over 300 days of sunshine per year, the captivating charm of Portugal is likely to continue to lure retirees to the country for many years to come.

Retiring in Portugal: Pros and Cons

As we have already discovered, the benefits of retiring in Portugal have convinced so many expat retirees to spend their golden years in the sun-soaked paradise, with very few downsides getting in the way.

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

1. A high-quality public healthcare system with world-class private healthcare options
2. Seventh safest country in the 2024 Global Peace Index
3. Low cost of living compared to the USA and other Western European countries
4. Value-for-money property options
5. Straightforward retirement visa application options
6. Ease of transportation
7. Excellent dining options
8. Pleasant weather
9. Ample entertainment and leisure activities, like golfing, kayaking, theatre, and the cinema
10. Luxury retirement villages and assisted living
11. Rich in culture
12. Modern amenities
13. Friendly locals with a large English-speaking population
14. Stunning beaches and natural landscapes
15. Ease of travel to other European destinations

Cons of retiring in Portugal

1. Older buildings might not have central heating, which could make winter nights chilly – make sure your property has good insulation.
2. 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.
3. Bureaucracy and long waiting times at government departments
4. The need to learn a little Portuguese to communicate in areas that do not see many tourists and expats

Another benefit of retiring in Portugal is that you can apply for Portuguese citizenship and permanent residency after five years of holding a temporary residence permit. Portuguese citizens have visa-free to 181 countries, plus the ability to live and work in EU countries.

Who can retire in Portugal?

Anyone can retire in Portugal, but the process varies based on nationality. Portuguese citizens, 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 within three months.

Non-EU nationals, however, must obtain a visa or residency permit to retire in the country. The upside to this is that Portugal makes getting a visa simple and straightforward, with lots of options to give you every opportunity to retire in the country. Let’s take a closer look at a few of them below.

Visa Options to Retire in Portugal

If you’re ready to leave your home country and retire in Portugal, you must apply for residency. For the residency application process, you will need to provide information and supporting documents such as your passport, proof of income, health insurance, and a clean record.

Let’s take a look at the popular Portuguese visa options for retirees, such as the D7 Visa (also known as the retirement visa) and the Portugal Golden Visa, and explore every step of the journey to becoming expat retirees in Portugal and potentially EU citizens.

How to retire in Portugal?

Portugal offers a variety of visas, including those for residency, employment, and family reunion. If you are wondering how to retire in Portugal and stay in the country long-term, you will need a Portuguese residency visa. This also applies to American retirees wondering how to retire in Portugal from the USA.

For EU citizens, getting residency in Portugal is easy. For US citizens and citizens from non-EU countries, the process is straightforward but may take some time to complete.

The visa process

Once you decide on the option that meets your lifestyle and requirements and depending on the type of visa you apply for, you will need to provide proof of sufficient funds to live in Portugal, alongside other criteria.

Portugal D7 Visa

The Portugal D7 Visa, commonly known as the Portugal retirement visa or the passive income visa, was introduced by the Portuguese government in 2007. The retirement visa is a smart strategy for you if you want to move to Portugal but are not ready to make a significant investment in the country through the Portugal Golden Visa.

Any non-EU/EEA or non-Swiss citizen may apply for residency in the country with this residency visa as long as they have sufficient passive income and can afford retirement comfortably. Your passive income can be from an offshore pension scheme, retirement savings, or any other social security benefits in your home country.

You may be eligible to apply for the retirement visa and subsequently obtain a residence permit, regardless of whether you are a retiree, business owner, or other expat looking to live in Portugal.

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

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.

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.

Following significant changes to the investment eligibility criteria, you can no longer purchase real estate or simply make a capital transfer to a local bank account, as these are no longer eligible investment options. The current investment options are as follows:

• Scientific research: A 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.

What is the best place 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 buying in Portugal. There are many expats in Portugal – particularly in Lisbon, Porto, and the Algarve, so you should be able to find a good community of English speakers to be part of if you so desire.

Are you after glorious sun-filled days spent relaxing on the beach? Or is a quiet, historic town more to your liking, where you can roam the quaint cobbled streets? Or would you rather fill your days in a renovated farmhouse in the depths of the Portuguese countryside, with rolling hills visible through your windows? Portugal has some remarkable regions, and it is about asking yourself what exactly am I looking for?

Here, we provide some of the most desirable locations. However, with countless potential areas to consider and many different retirement communities in Portugal, be sure to take time to explore your options carefully. You can always get in touch with us to speak with an experienced Goldcrest advisor to determine the best location for you.

Retire in the Algarve region

Well known amongst the British as a favorite retirement location, more and more retirees- including American expats who choose to retire in Portugal from USA cities – are heading to the southern coast to enjoy the best things in life – sunshine, fresh seafood, and stunning landscapes and beaches. 

It is also very easy to live an active lifestyle in the Algarve, with 300 days of sunshine. Most days it is possible to enjoy golf, hiking, watersports, and the many other activities on offer. One thing is for sure, if you move to the Algarve, come wintertime, you will be asking yourself how it is possible for it to be so sunny and warm. 

If you are looking for luxury properties, consider the central Algarve, where the likes of Vilamoura and Portimão will provide buyers with incredible properties with waterfront views. Lagos in the west is perfect for nature lovers who wish to stay active, whereas those looking for peace and tranquility in the most “authentic” part of southern Portugal should consider Tavira, a picturesque, quaint, history-filled haven. 

Retirees might want to research Monte da Palhagueira, one of the best retirement villages in Portugal and one of the best options for assisted living in Portugal, located on sun-soaked hills near Faro in the Algarve. The English-speaking village is intended for those over 55 years old, with 22 acres of gorgeous, landscaped grounds, a stunning ornamental lake, fine dining, a swimming pool, a clubhouse, and the only consecrated Anglican church in the region. It offers tranquil properties for independent living with the peace of mind that qualified medical assistance is available if needed. 

What You Need to Know Before Retiring in Portugal

Moving to another country can be a hassle, and there are several things that you will need to consider. Here is some practical information about retiring in Portugal – in essence, a few things that are good to know about settling here.

Taxes for retirees in Portugal: 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 to 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.

The NHR scheme was an excellent draw card for retirees, and, 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. Although the NHR scheme has officially ended, it is still possible for some individuals to apply until the end of March 2025 under more stringent eligibility requirements.

In its place, the State Budget proposal has introduced a new program called the Incentivized Tax Status Program, or the Tax Incentive for Scientific Research and Innovation. Those who qualify will benefit from a flat tax rate of 20 percent on eligible professional income from Portugal and possibly an exemption on foreign-sourced income. However, unlike the NHR program, this excludes pension income. You can read more about the updates to NHR scheme and the new program in the NHR Portugal article from our partner, Global Citizen Solutions.

Pensions, moving retirement funds, and social security contributions to Portugal

The retirement age in Portugal is 66 years and four months for both men and women if they have paid into social security for at least 15 years while working in Portugal. They are eligible to qualify for a public pension based on their retirement contributions, and private corporate pensions are also common.

Donations can be easily transferred from any EU country where an EU citizen works. Donations received will be applied toward Portugal’s state pension. For non-EU citizens, it is recommended to inquire about the possibility of a transfer to Portugal with the National Pension Service in the country of work. A few non-EU nations and Portugal have formed cooperative tax and social security arrangements.

Those who live in Portugal are all subject to income tax, and therefore, pension payments received from other countries may be subject to tax in Portugal.

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 need only to pay 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.

The national healthcare system provides fundamental health, accident, and disease needs. Portugal has high-quality healthcare: the country is ranked 21st in the global Health Care Index 2024, published by Numbeo, indicating that its healthcare system is among the greatest in the world. Both public and private hospitals are contemporary and well-equipped, and many medical professionals in both institutions speak English. Instead, facilities may be limited to small health centers in rural and suburban areas.

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.

Having private health insurance in Portugal allows you to schedule an appointment, receive a consultation in less than 30 minutes, and speak with a specialist if you would like to. Additionally, all medical, dental, and pharmaceutical services are significantly less expensive in this country than in the United States and compared to other Western European countries. Depending on your age and the scope of your coverage, this could cost between €30 and €60 every month for basic healthcare plans. On the opposite end of the price range, prices for comprehensive healthcare 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 insurance and the public health service.

Travel in Portugal

While traveling by car is probably the easiest way to get around the country, Portugal has excellent transport links from the north to 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 implications 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 Civic Code. US inheritance law will be in effect if you retire from the US to Portugal. If the other spouses are Portugal permanent residents, Portuguese law may yet 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.

Portugal cost of living: How much money do you need to retire in Portugal?

One of the main factors luring so many expats to Portugal is the country’s comparatively low cost of living. Portugal is known for being one of the most affordable European countries without compromising on the overall quality of life it offers. American expats retiring in Portugal from USA soil will certainly find that local bills and living expenses are much lower compared to the same expenses in the United States.

Lisbon continues to be among the most affordable 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 €2,585, without rent or mortgage payments, and the expected monthly costs without rent for a single person are €730.

Given this information and depending on the type of housing you choose; a single person can comfortably retire in Portugal with an income between €1800 – €2,400 per month – even less if you avoid the more expensive cities and neighborhoods. For some, a Social Security benefit alone is enough to live comfortably.

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 simply 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:

Retirement property and cost of real estate in Portugal

Your home’s price is determined by its location, type, and proportions. A home in Lisbon will undoubtedly cost more than a home in a suburban or rural region, whether you rent or buy it. Portugal’s real estate costs are, however, less expensive than the norm in Europe, despite the uptick in housing prices that follows Portugal’s current real estate market growth. That is why many foreigners choose to own real estate in Portugal instead of renting, which is generally the case.  

If you decide to spend a part of the year in Portugal and rent out your home while you are away, you may possibly earn a good return on your investment. The tourist scene is still booming, and short-term rentals are highly sought after in hot spot locations, especially as the government has amended some of the previous restrictions on the issuing of new short-term rental licenses. 

Buying a property in Portugal

In Portugal, buying real estate is a far better long-term investment than renting. Renting can be a good starting point because you can try out different parts of the country, but buying a property is a smart financial investment once you find your neighborhood preference.  

The average asking price for a property in Lisbon was €6,001 per square meter in 2023. However, the costs drop considerably to €4,061 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 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. 

However, there are many other areas to buy property in Portugal than just Lisbon. Whether you’re looking to retire in luxury, or prefer a more budget-friendly home, you will be able to find exactly what you’re looking for. 

In the Algarve, for example, prices per square meter range from €1,276 for the most affordable properties, all the way up to € 6,151 per square meter for the most luxurious homes, depending on the location. 

If you’re looking to buy property in Portugal, Goldcrest has released a 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. 

Getting a NIF and opening a Portuguese bank account

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 make many financial transactions in the country. It is also highly recommended to open a Portuguese bank account to reduce international transfer costs. 

To get a NIF, you will need to bring your passport and proof of address to your local Finanças office (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. Our residency partner, Global Citizen Solutions, has an in-depth article on the best way to get your own NIF number, . 

Once you have your NIF number, you will be able to open up a Portuguese bank account. You will also need a valid photo 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. 

Retiring 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.  

Retiring in Portugal in 2024 is a dream for many—and with good reason! Whether you’re drawn to the golden beaches of the Algarve, 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 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 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.