A retirement by the sea and sun is a dream for many people. For this ideal retirement, Portugal is the ideal destination. In Portugal, retirement entails leading a happy, easy life with modest yet elegant elements. Portugal has a beautiful coastline, hospitable locals, and a vibrant culture. It greets you with a prosperous and fulfilling way of life. Portugal is quickly rising to the top of retirement destinations.
Portugal boasts beautiful architecture, pleasant weather, and quaint cities. These are excellent justifications for retiring there. Retirement visa programs are now more appealing due to recent tax adjustments for retirees. There are significant advantages to these modifications. They help foreign retirees relocate to the nation. They also aid in reducing international income taxes.
Portugal has a high standard of living. A retiree’s budget isn’t strained either. On a budget of $1,500 to $2,000 a month, a retired couple can live comfortably in charming villages and small towns. Your monthly budget would likely increase to between $2,500 and $3,000 if you choose to reside in a larger city like Lisbon or Porto.
For many people, retiring to Portugal is a tremendous present. The people in the country are kind and the cost of life is minimal. Its distinctive architecture and lengthy history contribute to its allure. Additionally, there are simple possibilities for retirement visas. For retirees, Portugal is the ideal destination. It provides a calm and satisfying new phase of life.
What You’ll Find in This Article
- Key Aspects of Retiring in Portugal
- How to Retire in Portugal: Residency and Visa Options for EU and Non EU Citizens
- Retirement Tax Rules in Portugal
- Healthcare for Retirees in Portugal
- Cost of Living in Portugal for Retirees
- Portugal Retirement Property: Costs and What to Expect in 2025
- Opening a Bank Account in Portugal for Non-Residents
- The Cost of Living in Portugal For Retirees
- Lifestyle in Portugal: What to Expect
- Best Places to Retire in Portugal
- Get Golden Visa: Who We Are and How We Can Help You
- Frequently Asked Questions
Key Aspects of ‘Retiring in Portugal’
- Portugal offers an ideal setup to retire abroad.
- It’s a delightful, European destination.
- It’s affordable.
- Your savings, social security, or pension will go a long way when retiring in Portugal.
- You will have a low cost of living and be able to rent or buy a desirable home for relatively cheap.
- A retired couple could live comfortably in Portugal for between $1,500-2,000 per month.
- Estimated cost for a single applicant: Including costs, the whole cost comes to around $244,500, depending on processing fees and due diligence.
- Recent changes made in the tax law make it attractive for foreigners to settle in the country and save on taxes for 10 years.
- You need to apply for residency; there are different methods available depending on where you are from.
- Make sure to save for start-up costs; rent deposits, moving charges, legal fees, furniture for your new place, phone, internet, and cable connections, etc.
- Also, make sure to leave a cushion as an emergency fund; you never know when you may need to move back or deal with an unexpected event.
- Food and wine are good and cheap.
- Owning a car may not be very practical, but taxis and Ubers are plentiful.
- The infrastructure, public transportation, and healthcare is very good
- Crime is low.
- Beautiful sunny weather almost all throughout the year.
- High number of English-speaking people.
How to Retire in Portugal: Residency and Visa Options for EU and Non EU Citizens
Portugal is a popular destination for foreign retirees due to its easy retirement process. One of the most popular retirement destinations in southern Portugal is the Algarve region. It is thought to be home to more than 100,000 pensioners, many of whom are British.
EU Citizens
Citizens of the European Union (EU) can retire in Portugal with little red tape. They are eligible to apply for residency and take advantage of the many advantages available to Portuguese nationals. By registering with AIMA, EU nationals can get Portugal residency as retirees. Agência para an Integração, Migrações e Asilo is what AIMA stands for. It is Portugal’s official immigration agency. AIMA has offices across the nation. Their locations are easily found on the official AIMA website.
Non-EU Citizens (Portugal Golden Visa)
Retirees from the EU must get a residency visa in Portugal. Applying for this is possible at any Portuguese consulate. Among the necessary documents are:
- A passport that is currently valid
- Evidence of income
- Evidence of health insurance
- A spotless criminal history
The typical duration of the temporary residency permit is five years. Retirees can then apply to Portugal for permanent residence.
The Portugal Golden Visa is a popular retirement option for non-EU nationals. This initiative, which was started in 2012 to draw in foreign investors, is currently a major means for retirees to obtain residency in Portugal. One of the following must be selected by applicants in order to be eligible for a Portugal Golden Visa for retirement:
- Put at least €500,000 into a Portuguese private equity or venture capital fund that qualifies.
- Invest €500,000 in a Portuguese business and establish at least five full-time positions.
- Donate €250,000 to Portugal’s national heritage, arts, or culture.
- Make a €500,000 donation to Portuguese research and development.
Benefits of the Golden Visa for retirement include:
- Portugal’s right to live and work
- Travel throughout the Schengen Area without a visa
- Including your parents, spouse, and dependent children on your Portugal retirement visa.
- submitting an application for Portuguese citizenship following five years of law-abiding stay.
US Citizens
The Portuguese government makes it easy for US residents to retire in Portugal. Getting a 120-day stay visa, which necessitates proof of income of at least $1,070 a month, is the most typical first step. By requesting a one-year residency permit, US citizens can extend their stay. Every two years, this permit may be renewed. They are eligible to apply for permanent residency in Portugal after five years of lawful residence.
Sephardic Jews
If they have the required paperwork, applicants of Sephardic Jewish heritage can be eligible for Portuguese citizenship. Dual citizenship is permitted in Portugal. If dual nationality is permitted in their home country, retirees may retain their original nationality.
In conclusion, Portugal offers a number of easily accessible visa options that enable retirement. Portugal’s retirement visa alternatives, such the D7 Visa and the Golden Visa, draw tourists from all over the world. These programs provide a good standard of living, a thriving culture, and a reasonable cost of living. Additionally, consulates offer attractive routes for US retirees.
Retirement Tax Rules in Portugal
- Worldwide Income Taxation: You are considered a tax resident if you spend more than 183 days in Portugal annually. All of your income, including pensions, must be reported.
- The new tax system Non-Habitual Residency (NHR) is no longer an option. But in 2024, a new version begins. For Portuguese retirees, it continues to offer tax advantages.
- Portugal has agreements with both EU and non-EU nations regarding double taxation. These agreements assist in preventing your pension income from being taxed twice.
Transferring Pensions to Portugal: Key Points
- Transferring social security contributions from other EU nations is simple for EU citizens. In Portugal, these years count toward a public pension.
- Non-EU nationals should check to determine if Portugal has a tax or pension agreement with their own nation.
- Portugal’s current retirement age, as of 2022, is 66 years and 5 months for both men and women.
- In addition to being widely available, private pensions are frequently combined with state pensions.
- International Pensions: Foreign pensions may be subject to taxation if you reside in Portugal and pay taxes there. Existing agreements determine this.
Healthcare for Retirees in Portugal
- All citizens and legal residents of Portugal can receive healthcare from the National Health Service (SNS).
- Many physicians speak English, and public hospitals are up to date and well-equipped.
- Although some treatments may have a minor co-payment, healthcare is usually free.
- There might not be as many facilities in remote locations.
- Prescription and generic drugs are frequently 75% less expensive than in the United States.
For EU Citizens
With the S1 form (previously E121), which is provided by the pension office in their home country, retirees can receive free medical treatment.
For added peace of mind, several retirees from the EU also opt for private insurance.
For Non-EU / US Citizens
Only five years after becoming a permanent resident does free access to public healthcare start.
Retirees are required to have private health insurance until then.
After you arrive, you can transfer from an overseas policy to a Portuguese private health plan, which is typically far less expensive than U.S. insurance.
Private Health Insurance Costs
- Under age 55: as low as €4/month.
- For retirees over 65: can range from €100–€300/month.
Companies like Medis, Tranquilidade, and Fidelidade/Multicare cover up to age 75 and don’t cancel existing policies.
Inheritance Tax in Portugal for Retirees
- Portugal has no inheritance tax on real properties.
- Parents, children, and spouses are exempt from the 10% flat-rate stamp duty.
- The legislation of the deceased’s home country usually governs the inheritance process.
- Portuguese law may be applicable if spouses are of different nations; a properly drafted will is crucial.
Advice: If appropriate, have a skilled professional draft your will in both your own country and Portugal.
Cost of Living in Portugal for Retirees
Portugal offers one of the lowest retirement costs in Western Europe-around 30% less than in the US.
- Comfortable Living Budget: According to Numbeo’s 2025 data, the monthly cost of living for a retired couple in Portugal varies depending on their lifestyle and location. To live comfortably, a retired couple would need a monthly budget of approximately €2,500 to €3,000.
- Accommodation: Around 50% of this budget is typically spent on housing.
Average Monthly Expenses (for a couple)
According to Numbeo’s April 2025 data, the average monthly living expenses for a couple in Lisbon, the capital of Portugal, range between €2,600 and €3,000. These estimates may vary depending on lifestyle and spending habits.
The total monthly cost of living for a couple, including rent:
- City Center: Approximately €2,180 – €2,690
- Outside City Center: Approximately €1,880 – €2,590
Portugal Retirement Property: Costs and What to Expect in 2025
Do you want to invest in real estate and retire in Portugal? This is a straightforward glance at average prices if you’re considering buying or renting a home in Portugal. It also emphasizes the factors that retirees should consider before making a decision.
Renting a Property in Portugal-2025 Prices
Do you want to invest in real estate and retire in Portugal? This is a straightforward glance at average prices if you’re considering buying or renting a home in Portugal. It also emphasizes the factors that retirees should consider before making a decision.
Rental prices vary depending on location, size, and amenities.
Buying a Property in Portugal
According to Numbeo’s April 2025 data, property purchase prices in Portugal are as follows.
These figures are based on Numbeo’s April 2025 updates and may vary depending on the location, size of the apartment, and available amenities.
What Retirees Should Watch Out For?
- Heating & Cooling: Central heating and air conditioning are absent from many apartments.
- Kitchens: Older homes rarely have open kitchens. They frequently own two-burner stoves and compact refrigerators.
- Parking is difficult in the heart of Lisbon. Seek out residences with private parking.
Why Retirees Buy Property in Portugal?
- European real estate prices that are below average
- Excellent long-term financial commitment.
- lowers the monthly cost of rent.
- Defense against changes in currency exchange rates
Are you considering retiring to Portugal? The first step to a tranquil, reasonably priced existence in Europe is to rent or purchase real estate.
Opening a Bank Account in Portugal for Non-Residents
Opening a bank account in Portugal is a straightforward process, even for non-residents. Here’s how you can do it:
Why Open a Portuguese Bank Account?
- Simplify Financial Transactions: Managing local expenses becomes easier.
- Avoid Extra Fees: Reduces currency exchange and international transfer costs.
Steps to Open a Bank Account
- Obtain a Portuguese NIF (Número de Identificação Fiscal):
What is NIF? A tax identification number required for financial activities in Portugal.
How to Get It:
In Person: Visit a local Finanças office with your passport and proof of address.
Online: Some services assist in obtaining a NIF remotely.
- Gather Required Documents:
Identification: Valid passport or national ID card.
Proof of Address: Recent utility bill or rental agreement.
Proof of Income or Employment: Recent payslip, employment contract, or proof of pension.
Portuguese NIF Number: As obtained in step 1.
- Choose a Bank:
Traditional Banks: Caixa Geral de Depósitos, Millennium BCP, Banco CTT.
Digital Banks: N26, Revolut.
- Open the Account:
In-Person: Visit a local branch with your documents.
Online: Some banks offer online account opening for non-residents.
Additional Tips:
- Language: While many bank staff speak English, knowing some Portuguese can be beneficial.
- Fees: Be aware of monthly maintenance fees and transaction charges.
- Minimum Deposit: Some banks may require an initial deposit to activate the account.
By following these steps, non-residents can efficiently manage their finances in Portugal.
The Cost of Living in Portugal For Retirees
Food in Portugal: What to Expect
- Mediterranean Diet & Portuguese Cuisine
- Fresh seafood and seasonal foods are the mainstays of Portugal’s diet, which is among the healthiest in the world.
- Local veggies, shrimp, tuna, and fish (bacalhau) are frequently used in dishes.
- Expect casual, sit-down meals with full service instead than fast food.
Local Dining Costs
- Lunch for two: €15–€25
- Dinner for two: €20–€40
Generous portions make eating out budget-friendly, especially for retirees.
Wine & Beer in Portugal
- Local wine: Excellent quality, starting from €3 per bottle.
- Beer: €1–€2 for a draft at local bars.
Coffee Culture
- Espresso (bica) is the go-to; typically €1–€2.
- Coffee is a sit-down ritual, not a takeaway.
Portuguese Desserts
- Don’t miss Pastéis de Nata: flaky pastries filled with creamy custard.
- Desserts are a big part of the Portuguese food culture.
Pro Tip: Refrigerators tend to be small, so locals prefer shopping fresh daily instead of bulk-storing food.
Internet Access in Portugal
- High-Speed Availability: Broadband and 4G/5G widely available in urban and suburban areas.
- Average Monthly Internet Cost: Around €35–€45 for a home broadband connection.
- Public Wi-Fi: Found in most cafes, hotels, and restaurants across the country.
- Digital Nomad Friendly: Portugal is home to the Web Summit and has strong digital infrastructure.
Entertainment in Portugal
Public Transportation and Driving Car in Portugal
- No Car Needed in central Lisbon, Porto, or Cascais — public transport is highly efficient.
- Driving Essentials: Required by law:
- Driver’s license
- Registration and inspection documents
- Reflective jackets (one per passenger)
First aid kit, spare bulbs, glasses (if applicable)
- Fuel Prices (2025):
- Gasoline: ~€1.70/liter
- Diesel: ~€1.55/liter
- Parking: Monthly costs range from €50 to €120 depending on the area.
- Car Rental: Starts from €25–€30/day.
- Tolls: Example-Porto to Lisbon costs around €30 in toll fees.
Lifestyle in Portugal: What to Expect
Portugal is one of the most well-liked retirement locations in Europe because of its laid-back, Mediterranean lifestyle. The pace of life is slower here; national holidays are observed, mornings begin late, and afternoons are long.
- Enjoying Portuguese culture is appreciating the slow pace of bureaucracy.
- Locals are friendly, accommodating, and rule-abiding. It’s part of the charm if strangers offer assistance without being asked.
- The majority of people speak English, particularly in coastal and urban areas. Learning a little Portuguese, however, will make it easier for you to fit in and gain a deeper understanding of the culture.
- Portugal has a strong feeling of community and low crime rates, making it one of the safest countries in Europe.
Best Places to Retire in Portugal
Whether you’re after beachside living or a historic city vibe, Portugal offers diverse options in some of the most affordable European countries for retirees.
Algarve: A Top Coastal Haven
- Frequently ranked as a top retirement destination in Europe by Forbes.
- Home to many English-speaking expats.
- Known for its sunny climate, scenic beaches, golf courses, and relaxed vibe.
- Towns like Faro, Albufeira, Lagoa, Tavira, Silves, and Alvor offer both coastal and inland options.
One of the most affordable regions in Portugal with excellent healthcare access and outdoor lifestyle.
Cascais & Estoril: Seaside Tranquility Near Lisbon
- Coastal towns just 30 minutes from Lisbon, combining scenic beauty with convenience.
- Well-connected to the capital and Lisbon Airport.
- Growing expat community and strong public services.
Property prices are more reasonable than Lisbon, with steady long-term value growth.
Lisbon: Urban Life Meets Culture
- The capital city is a mix of historic charm and modern amenities.
- A hub for digital nomads, students, and retirees.
- Popular neighborhoods include Chiado, Bairro Alto, Belem, and Principe Real.
- Home to many UNESCO World Heritage Sites, rich arts and dining scenes.
Offers a dynamic urban experience in one of the most affordable capital cities in Western Europe.
Porto: Tradition and Tranquility in the North
- Portugal’s second-largest city with authentic local flavor.
- Known for its riverside beauty, port wine culture, and UNESCO-listed historic center.
- More traditional and quieter than Lisbon.
- Winters can be rainy and grey, but the cost of living is lower and real estate is more accessible.
Get Golden Visa: Who We Are and How We Can Help You
Get Golden Visa is a comprehensive investment advisory and immigration business. In several nations across the world, we offer comprehensive alternatives for citizenship and residency through investment programs.
Our local team in Portugal consists of both accredited real estate professionals and legal experts.
We worked with hundreds of international clients who wanted to invest in Portuguese real estate or obtain Portugal Golden Visas, D7 Visas, or Digital Nomad Visas.
Get in Contact
Frequently Asked Questions
Is Portugal a good place to retire?
Yes. Portugal is one of the most popular retirement destinations in Europe, thanks to its affordable cost of living, pleasant climate, excellent healthcare, and rich Portuguese culture.
Can US citizens retire in Portugal?
Absolutely. US citizens can apply for a D7 Visa (Portugal Retirement Visa) or the Portugal Golden Visa. Both offer a clear path to residency and eventual citizenship.
Can I retire in Portugal with $200,000 of savings?
Yes, a retired couple could live a comfortable life in Portugal for $1,500 to $2,000 a month.
What are the pros and cons of retiring in Portugal?
Pros
- Portuguese people are hospitable and welcoming
- Great, sunny weather
- Easy and straightforward retirement process
- Fantastic shorelines
- Large English-speaking community
- Low Cost of Living
- One of the Safest countries in the world
- Free Public Healthcare
Cons
- Bureaucracy
- Native language is Portuguese, not English
Can a foreigner buy a house in Portugal?
A foreigner can buy property in Portugal, by all means. There are no restrictions. The real estate sector in Portugal is quite developed. There are many foreigners who have invested in homes in Portugal and settled in the country.
Do expats pay taxes in Portugal?
If you spend 183 days or more in Portugal in a given year, you are classified as a tax resident in the country. Any tax resident in Portugal is subject to income tax on his or her worldwide income. This income includes salary, dividends, rental income, and capital gains.
Is healthcare free in Portugal?
Portugal offers national healthcare to all its residents through Serviço Nacional de Saúde (SNS). It is completely free for children under the age of 18 and seniors above the age of 65. It is mostly free for the residents in the rest of the age groups as well, subsidizing costs for many healthcare services. You can find more information in the ‘Healthcare for Retirees in Portugal’ above.
What are the best places to retire in Portugal in 2025?
- Algarve: Coastal charm, golf courses, English-speaking expats
- Cascais/Estoril: Close to Lisbon, ocean views, vibrant expat life
- Lisbon: Culture-rich capital with modern amenities
- Porto: More traditional, with a lower cost of living
What is the easiest way to retire in Portugal?
The easiest way to retire in Portugal is to apply for residence status in the country. Depending on your nationality, there are different methods to acquire residency. It is easiest if you are already an EU citizen. It is fairly straightforward to get an appropriate visa to live in Portugal if you are an American citizen. If you are a non-EU and non-US citizen, you may
Retire in Portugal vs. retire in Spain?
The major difference between retiring in Portugal and in Spain is the cost of living. Portugal offers a lower cost of living than Spain does. The climate is also more pleasing in Portugal all throughout the year. Spain, on the other hand, is slightly more accessible in terms of the number of flights and destinations. It is stunningly beautiful and full of culture. It certainly has more lively and vibrant cities than Portugal on average.
What are the benefits of retiring in Portugal?
- If you are contemplating relocating to another nation after retirement, Portugal has a lot to offer.
- The majority of the year has beautiful weather. Walking, going to the beach, and taking in the fresh air are all convenient.
- Humans are as vital. It is extremely likely that you will be welcomed in a Portuguese city when you retire.
- All of Portugal’s benefits will contribute to a calm and relaxing lifestyle, which is what many retirees from the US and the UK are seeking.
- When you want to go out and have fun, Portugal’s diverse culture, mouthwatering cuisine, and vibrant arts scene will introduce you to a wide range of possibilities.
- One of the most crucial aspects to take into account when relocating overseas as a retiree is the cost of living. This is offset by Portugal’s cheaper cost of living, which provides a more economical way of life.
- A variety of real estate possibilities are available, and accommodations are also crucial. Therefore, foreigners are also drawn to Portugal’s reasonably priced real estate market.
How can I get Portugal Retirement Visa?
Portugal Retirement Visa, or Passive Income Visa, is also called the Portugal D7 Visa. As a retiree, you can use your passive income when applying for D7 Visa. Retirees can have the opportunity to get Portuguese citizenship through visa options, either the Portugal Golden Visa or the Portugal D7 Visa (Portugal Retirement Visa). The conditions depend on each applicant and the requirements of the visa options.
Why do Americans choose to retire in Portugal?
As the seventh safest country in the EU, Portugal has become an ideal choice for Americans to retire to. It is one of the Schengen Area countries with visa-free travel access to other European Union countries and more. When you retire in Portugal, you can also have the chance to apply for Portuguese citizenship, depending on your visa options and other requirements.
How can I retire in Portugal from the UK?
Here is what you will need initially to be eligible to retire in Portugal from the UK. Initially, you will need a secure residency in Portugal to prove that you legally reside in the country.
