Retiring in Portugal: low cost of living but a high quality of life and other benefits

Portugal is considered a peaceful country with a high quality of life. It is among the safest countries in Europe, with rich history and culture, fancy cuisine and gorgeous beaches.

1. Residential programs for retirees. Portugal is a welcoming and friendly country with several immigration ways for foreigners.

How to get a Portugal Golden Visa Program

EU citizens don’t have to apply for a visa or residence permit to enter Portugal. The same as EEA and Switzerland passport holders. They need to get a Registration certificate to live in Portugal.

This certificate must be applied for at their local Council within the 30 days following their first three months in Portugal. The Registration certificate is valid for five years from the date of issue.

Retirees from non-EU countries need a visa to move to Portugal. After moving to Portugal, they must apply for a residence permit.

Amina and Talip,

A couple from Nur-Sultan

How a couple from Kazakhstan has relocated to Portugal for a peaceful retirement

Amina and Talip were looking for a perfect escape route to retire in the European Union. They wanted to live closer to water, travel through the Schengen Area visa-free and obtain second citizenship in future if they liked the country.

The couple chose between Portugal, Greece and Spain. Eventually, they participated in the Portugal Golden Visa Program and felt absolutely satisfied with the result.

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2. Free travelling through Europe. Portuguese residents visit the 26 Schengen states without a visa and spend up to 90 days out of 180.

3. Law crime rate. Portugal is in the top 10 of the Global Peace Index 2023, ranking 7th of the safest countries in the world. The locals are amiable and welcoming to expats. Families with kids feel safe and sound in Portugal.

4. Pleasant weather. It’s almost always sunny in Portugal. The warmest month is August. In Lisbon, the average daytime temperature is +27.8℃. The water is the warmest in August and September. Its average temperature throughout the year ranges from +13℃ to +19℃.

Winters are warm. The average daily temperature in January in Lisbon is +14.7℃. Snow rarely falls and melts quickly. Most often, it can be seen in mountainous areas.

5. Big expat community in Portugal. You’ll meet a lot of foreign retirees from all over the world while you live in Portugal, and the expat population is still growing.

The most well-liked retirement destination is the Algarve region in southern Portugal, where retirees from the US and Britain have already made their home.

6. Language. There are many English-speaking people in Portugal. It is the seventh most proficient country in the world when it comes to speaking English as a second language. Porto is the Portuguese city where English is best spoken, followed by Coimbra and Braga.

7. Beneficial tax system. New Portuguese tax residents can obtain a 10-year special status of a Non-Habitual Resident. Portugal introduced a flat 10% tax on the foreign pension income for non-habitual residents.

8. High healthcare quality. The Portuguese healthcare system is ranked amongst the highest in the world. Senior people generally have good access to healthcare in Portugal.

9. Opportunity to get Portugal citizenship. A retiree can apply for Portugal citizenship after five years of residency.

The Portuguese passport allows you to travel to 172 countries without visas and choose any EU country to live in. The applicant will not have to give up the passport of the country of origin if its legislation allows citizens to acquire citizenship in other states.

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The Portugal Retirement Visa offers two routes to move to Portugal. Both of them allow relatives to participate in the visa-obtaining process.

The Portugal D7 Visa, also known as the Retirement Visa, does not require fulfilling investment options.

Applicants must prove a passive income outside of Portugal. The income requirement is based on the minimum salary in Portugal. In 2024, the minimum salary is €820, so the D7 visa applicant must demonstrate a yearly income of at least €9,840.

An applicant can receive passive income like a pension or rental payments. If relatives get visas with the main applicant, they must add 50% of the income for a spouse and 30% for a child.

To show the minimum income, retirees need to open an account in a Portuguese bank. An applicant must provide a bank statement. Keeping a minimum amount equal to 12 months' income is required. You can use this money after receiving a residence permit card.

How to retire to Portugal as a UK citizen

Portugal retirement visa document requirements:

1. An international passport.

2. A medical insurance policy.

3. Two colour photos.

4. A police clearance certificate from the country of origin.

5. A lease or purchase agreement for real estate.

6. Marriage or birth certificates.

7. A Portuguese bank statement.

8. A NIF registration certificate.

Applying for a Portugal Retirement Visa takes place in your home country. The visa allows two entries in Portugal and has a 4-month validity period. After arriving in Portugal, the D7 visa holder must apply for a residency permit with the Agency for Integration, Migrations and Asylum of Portugal, AIMA.

Applicants must have accommodation and a registered address to get a residence permit. They can rent a property or buy it. There are no limits on a property’s type, age and value.

Individual cost calculation for the Portugal Passive Income D7 Visa

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The Portugal Golden Visa Program. An investor makes a sufficient donation to the Portuguese economy using one of several options: fund contribution, business, opening company, science or culture investments. The minimum investment sum is €250,000.

Portugal Golden Visa document requirements:

1. An official Application Form.

2. A valid passport.

3. Marriage, divorce and birth certificates.

4. Two passport-size photos.

5. A medical insurance policy.

6. A certificate of having no previous criminal records.

7. Documents related to the investment.

Applying for a Golden Visa is possible through a licensed agent. Immigrant Invest lawyers provide the investor with an individual list of documents required to apply for a residence permit. They also fill out government forms, translate and notarise documents, and collect documents related to property ownership.

Individual cost calculation for residence by investment in Portugal

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If senior people want to move to Portugal without significant capital investment, it might be better to consider obtaining a D7 visa. It leads to a residence permit in the country and gives a chance to become a European citizen in the future.

The Portugal Golden Visa Program is designed for investors with intentions to get not only residency but also a profit.

Portugal is considered one of the best places for expats. Let us present several cities most suitable for expats to retire.

Lisbon. If you are looking to retire in a city full of Old World charm, check out Lisbon. The city comes alive with colourful tiles, museums, palaces, nightlife, and a tram system that navigates the steep, cobbled roads.

Porto. Head north to visit Portugal’s second-largest city, Porto. Famous for its production of port wine, stately bridges, colourful riverfront area, university vibe, and tours along the Douro River, there is much to explore. Porto also has an international airport, one of three in the country, making it easy to come and go.

James,

Retiree from Toronto, Canada

I moved to Portugal from Canada. The country has access to the Mediterranean Sea and the Atlantic Ocean with a rich underwater world. Fishing has always been my passion! I made several Portuguese friends. Spending time on the water is like second nature for them, just like for me.

One of my favourite locations is the Azores. Besides, I often go to the mountains and vineyards in Porto. I have an excellent sports complex with a swimming pool and park area near the house. 

Alentejo. South of Lisbon is the Alentejo region, which includes the cities of Beja and Évora. The country’s largest and most rural area is famous for the fields of wildflowers, stately cork oaks, historic towns, and a sparse population. Life here is slow, winters are fantastic, and summers are hot and dry.

Algarve. The southernmost region of Portugal is the Algarve. It is known for its Atlantic beaches, fishing villages, golf resorts, waterparks, hot, dry summers, and tourists. Due to its long history of British tourists coming here on holiday, English is widely spoken.

Property. Lisbon, Porto, the Algarve, and Madeira are the most expensive real estate.

The average cost of buying an apartment in Lisbon is €3,414 per m². The lowest price is on the Azore islands — €1,149 per m².

The cost of living in Portugal is one of the lowest in Europe: 34% lower than in Paris and 32% cheaper than in Berlin.

The basic expenses for a month of living in Portugal:

1. Renting housing: a three-room apartment in the city centre — €1,400 per month. Rental prices vary between regions. Lisbon’s rental price is €14.2 per m². Leasing an apartment in Albufeira will cost you €10.5 per m² and in Vila Real, €4.4 per m².

2. Utility bills for a three-room apartment of 85 m² — €110.

3. Groceries: 1 litre of milk — €0.90, a baguette — €1.30, 12 eggs — €2.50, 1 kg of local cheese — €8.50, 1 kg of rice — €1, 1 kg of chicken breast — €6.2, lettuce — €1.20, 1 kg of apples — €1.80.

4. Entertainment: a three-course dinner for two in a restaurant is about €40.

Medical insurance. Private insurance can be as low as €4 per month. These rates only apply to people who are younger than 55 years. These companies do not cater to people above the age of 55 years.

Three companies sell insurance plans to retirees up to the age of 75. These are Fidelidade/Multicare, Tranquilidade and Millennium Bank/Médis.

Transport. Portugal has an excellent road infrastructure. The total length of motor roads is 82.9 thousand km, of which 2,992 km are motorways — Autostrada. Travelling by car on the 17-kilometre Vasco da Gama bridge over the Tagus River north of Lisbon costs €3.

The Portuguese use trams, buses, subways, funiculars, and trains. You can even use an elevator in Lisbon to move between two parts of the city.

A single ticket for travel on public transport costs an average of €1.6; a monthly travel card is €40. Calling a taxi will cost €3.25; then you will have to pay €0.7 for each kilometre.

Depending on the brand, the cost of a litre of gasoline is usually €1.75.

The National Health Service in Portugal provides free health services to Portuguese citizens. Non-EU citizens do not share the same privileges. They are required to live in Portugal for 5 years and obtain permanent residency before they are eligible for free health care services.

You must provide proof of health insurance before relocating to Portugal. Once you arrive in Portugal and have settled in, you can change to Portuguese private health insurance. The cost of private health insurance in Portugal is relatively cheaper than health insurance in the US.

A permanent resident can take advantage of Portugal’s health services and find them to be of high quality. The hospitals are modern and well-equipped, and the health system covers basic health needs, accidents, and illnesses. Many public and private health care doctors speak and understand English.

Stefany,

Retiree from the UK

I visited Portugal for treatment several times. There are excellent private clinics with modern equipment and great doctors. Then I thought about moving there, especially since there is a special D7 Passive Income Visa.

My son moved to Portugal with his girlfriend several years ago using that route and later helped me do the same. Now, I can get health insurance and treatment at a much lower cost than in London. Besides, I admire sunny weather.

Golf. Golf is hugely popular in Portugal, and golfing trips often lead people to discover the country’s charms in the first place. The Algarve is usually the first place that springs to mind. The area is renowned for golf and is home to famous courses like the Quinta do Lago South Course.

Hiking. There are many walking trails in Portugal, including one that spreads for the entire width of the Algarve. You will also find a vast community of enthusiastic walkers. If you enjoy walking, you could see it as a great way to meet other overseas residents.

Boating and kayaking. For many, a dream is to retire in Portugal and buy a boat. You could acquire a small pleasure craft to explore the local coastline or something far more impressive to head further afield. Just beware that strict laws around licences and training exist, so ensure you do your research.

One thing you won’t need a licence for is a kayak. Kayaking is incredibly popular in Portugal because it lets you explore the most stunning and often deserted islands and landscapes. It’s an extremely healthy activity. Many small companies run by expats run kayak trips around the Portuguese coast. These start at as little as around €25.

Also, locals are fond of surfing, fishing and diving.

All residents of Portugal are taxed on their global income, meaning your pension transferred from abroad could be liable to a Portuguese tax.

Retirees can apply for a Non-Habitual Resident, a status that offers expats a reduced tax rate and avoids double taxation.

The flat tax rate for pensions from other countries is 10%. The rule applies if the recipient changed his tax residence to Portuguese and received the Non-Habitual Resident status after April 1st, 2020.

Tax residents of Portugal without Non-Habitual Resident status pay a pension tax as an income tax: on a progressive scale of up to 48%.

Non-EU citizens who wish to transfer their state pension to a Portuguese bank should check the terms and conditions of their country regarding pension transfers abroad. Portugal has tax and social security agreements with several non-EU nations to make things easier for people migrating abroad.

Portuguese inheritance laws are consistent throughout the whole country. Legitimate heirs in Portugal are entitled to at least 50% of the deceased’s wealth according to compelled heirship laws. However, this share typically rises to 60% in cases with multiple genuine heirs.

Legitimate heirs include:

• spouses,

• biological and adopted children,

• grandchildren,

• parents,

• grandparents.

These family members can only be left out of the inheritance if the dead explicitly requested it due to unworthy behaviour. The request and justification might be contested in court, even in this instance.

Payments from the deceased’s pension may be available to close relatives. This can be claimed by spouses or children under 18 or under 27 enrolled in school or with a handicap. If there is no spouse or children and the recipient is financially dependent, the pension may be awarded to parents or grandparents. The survivor’s pension pays up to 60% of the initial pension.

According to Portuguese inheritance law, an expat’s native country’s rules should be followed. Thus, it must be included in your will if you wish Portuguese inheritance laws to apply to your estate. The laws of the spouse’s home country may be applied if they are of a different nationality from the deceased.

Therefore, Portuguese inheritance law can be applied if you have relocated to or retired in Portugal.

Wills in Portugal. Whether your estate is governed by Portuguese law or the laws of your native country, you are not legally required to draft a will in Portugal. Therefore, a Portuguese will is not necessary if you wish the laws of your home country to apply to your estate.

It may be less expensive to have a foreign will translated into Portuguese if you have a Portuguese will. It might also save you time since several nations need you to wait for the issuance of a Grant of Probate.

You do not need to select between a Portuguese will and one from your own nation if you want. One will is permitted in Portugal and another in your nation of origin. One must draft them to prevent one from unintentionally negating or rescinding the other. Because of this, if you wish to have many wills, it is advisable to speak with an attorney.

Two varieties of Portuguese wills exist:

1. Portuguese wills are mostly of the public will kind. A notary public is more involved since they draft the will and verify your identity. They are also in charge of ensuring that you comprehend the procedure. Typically, a will must be signed by two witnesses.

2. The testator drafts and signs closed wills in solitude. Therefore, a notary needs to verify and check it to legitimise it.

Whichever form of Portuguese you decide on, you must have it reviewed by a notary public.