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Retiring in Portugal in 2025 has become one of the smartest lifestyle moves for anyone looking for comfort, stability, and year-round sunshine. The country blends modern living with a slower, more enjoyable rhythm—great healthcare, safe communities, friendly locals, and a cost of living that helps your retirement savings last longer.
This guide breaks down everything you’ll want to consider before making the move: the latest visa options, updated tax rules, property trends, regional highlights, and what’s new for 2025. A clear, simple path to planning your retirement in Portugal starts here.
Why Retire in Portugal?
Portugal’s unique benefits make it a highly attractive retirement destination for people worldwide. Here are some compelling reasons why Portugal should be at the top of your retirement list:
Mild Climate
Portugal boasts a temperate climate with over 300 days of sunshine a year. The mild winters and warm summers make it a perfect place for those looking to escape harsh weather.
Affordable Cost of Living
Compared to other Western European countries, Portugal offers a lower cost of living. Housing, groceries, dining out, and healthcare are all reasonably priced, allowing retirees to enjoy a comfortable lifestyle on a modest budget. Of course, the cost to retire in Portugal will depend on your lifestyle.
Excellent Portuguese Healthcare
Portugal has a high-quality healthcare system, with both public and private options available. The country is known for its well-trained medical professionals and modern facilities, ensuring retirees have access to top-notch medical care.
Welcoming Expat Community
Portugal is home to a growing expat community, making it easy for retirees to connect with others who have made the same move. Many cities and towns have social clubs and activities geared toward expats.
Safety and Stability
Portugal is one of the safest countries in Europe, with low crime rates and a stable political environment. According to the 2024 Global Peace Index (GPI), Portugal ranks as the seventh safest country in the world, following Iceland, Ireland, Austria, New Zealand, Singapore, and Switzerland. This peace of mind is invaluable for retirees seeking a secure and tranquil place to live.
Proximity to Europe
Its strategic location makes Portugal a convenient gateway to the rest of Europe. Whether you want to visit nearby countries or have family and friends visit you, travel is easy and accessible.
Who Can Retire in Portugal
EU/EEA and Swiss Citizens
Citizens of the European Union (EU), European Economic Area (EEA), and Switzerland can retire in Portugal with minimal bureaucracy.
They have the right to live, work, and retire in Portugal without needing a visa or residence permit, although registration with local authorities is required after a certain period.
Non-EU/EEA/Swiss Citizens
Non-EU citizens, including those from countries such as the United States, Canada, Australia, South Africa, and the United Kingdom, can retire in Portugal by applying for one of the residency visas designed for retirees and other long-term stays.
How to Retire in Portugal
Non-EU nationals are welcome to Portugal retirement, but they need to secure a long-stay residency visa before moving. This also applies to US citizens and UK citizens, as the UK is no longer part of the EU after Brexit. Once the requirements are met, retirees can settle in Portugal by submitting the necessary documents and proving they meet the financial and legal conditions for residency.
D7 Visa (Portugal Retirement Visa)
The D7 Visa, also known as the Passive Income Visa, is designed for non-EU citizens who have a minimum regular passive income of €870 monthly, such as pensions, rental income, or dividends. Applicants must demonstrate sufficient income to support themselves and any dependents without needing to work in Portugal. The D7 Visa is the most popular route for retiring in Portugal as an American.
Portugal Golden Visa
The Portugal Golden Visa program allows non-EU citizens to obtain residency by making a qualifying investment in Portugal. This can include investing in Portuguese companies, private equity funds, cultural donations to pre-approved projects, or even creating jobs in the country. It’s a popular option for retirees who have the financial means to invest.
Required Documents For Portugal Retirement
When applying for residency to retire in Portugal, you’ll need to prepare a set of essential documents. These typically include:
- A valid passport
- Proof of stable and regular income
- Health insurance that covers you in Portugal
- A criminal background check submitted to the Portuguese authorities
Get In Touch With a Portugal Immigration Specialist
Portugal Residency Advisors® has assisted numerous international families in successfully relocating to Portugal and securing residency. Discover how our trusted, all-in-one solution makes your move simple and successful.
How to Retire to Portugal From USA
Retiring in Portugal as an American has become increasingly common, supported by clear residency pathways such as the D7, D8, and Golden Visa options. These visas allow Americans to establish legal residence while enjoying access to Portugal’s public healthcare system once their residency is approved.
Over the past years, Portugal has seen a significant rise in citizens retire to Portugal from USA, driven by safety, climate, and cost of living. American media often refers to Portugal as “the new California,” reflecting its sunny weather, coastal lifestyle, and growing American communities across the country.
How to Retire to Portugal From UK
British moving to Portugal must follow post-Brexit rules, which require UK citizens who plan to stay for longer than 90 days to obtain a residency visa. The most common options are the D7 and D8 visas, both of which require proof of income, accommodation, health insurance, and a clean criminal record.
Many British nationals continue to buy property in Portugal, as the process is simple and only requires a NIF number and a Portuguese bank account. However, owning property does not grant residency rights, so anyone wishing to retire in Portugal must still apply for the correct visa to live in the country long-term.
Portuguese Citizenship For Retirees
After obtaining a retirement visa for Portugal, retirees receive a temporary residency permit valid for two years, which can then be renewed for an additional three years. After five years of legal residency, they can apply for Portuguese citizenship, provided all requirements are met.
One of the biggest advantages is that Portuguese citizenship grants full access to EU rights and freedoms, including visa-free travel across the Schengen Area, the ability to live in any EU country, and the security of a stable, long-term status for retirement and beyond.
Portugal Permanent Residency
After five years of legal residency, retirees can also apply for permanent residency. The process is typically much faster than applying for citizenship, often taking only a few weeks, while citizenship may take up to 24 months to be approved. During this period, retirees must maintain a valid residency permit if they wish to continue living in Portugal.
Portuguese Citizenship or Permanent Residency?
If your main goal is simply to live in Portugal long-term without needing political rights or an EU passport, permanent residency is usually enough and much easier to obtain. But if you’re aiming for the full advantages of EU citizenship—such as the freedom to live anywhere in the EU and full political rights in Portugal—then citizenship becomes the natural long-term objective.
One downside of retiring to Portugal is that the new nationality law is under revision, and the required period of legal residency to apply for citizenship may increase to ten years
Portugal Cost of Living for Retirees
Retirees considering Portugal will immediately notice how much further their money goes compared with major cities like Washington, DC or London.
Americans retiring in Portugal will find that everyday expenses in Washington, DC are about 62.1% higher than in Lisbon when excluding rent, and roughly 70% higher once housing costs are included.
London shows a similar pattern, with costs 60.7% higher than Lisbon (excluding rent) and 68.3% higher when rent is factored in.
Healthcare for Retirees
Public Healthcare for Retirees
Portugal’s public healthcare system, the SNS (Serviço Nacional de Saúde), is accessible to retirees once they obtain residency. It is not completely free, but consultation and treatment fees are very low compared to many other countries.
Retirees are also assigned a family doctor, who becomes their main point of contact for routine care, prescriptions, and referrals to specialists within the public system.
Private Healthcare for Foreigners
Retirees also have the option to use private healthcare, which offers faster appointments and easy access to specialists. Private health insurance in Portugal is widely available, and a basic plan typically ranges from €50 to €75 per month, significantly cheaper than private insurance costs in the United States.
This combination of affordable public care and accessible private options makes Portugal a strong choice for retirees seeking reliable healthcare.
Where to Retire in Portugal
Where to Retire in Portugal depends on your lifestyle, whether you prefer the sunny Algarve, the cultural cities of Lisbon and Porto, or quieter inland towns that offer a slower pace and lower cost of living.
Lisbon
Lisbon combines historic charm with vibrant city living, making it attractive for retiring in Portugal. Set across seven hills by the Tagus River, it offers rich culture, great food, museums, and an active arts scene—ideal for retirees who want energy, history, and comfort in one place.
Porto
Porto is a popular choice for retiring in Portugal, known for its historic architecture, riverside setting, and relaxed pace of life. With friendly locals, a strong cultural scene, lively markets, and modern amenities, it offers retirees a comfortable mix of tradition and everyday convenience.
Algarve
The Algarve is one of the top regions for retiring in Portugal, known for its beautiful coastline, warm climate, and relaxed lifestyle. Golden beaches, charming villages, and excellent golf courses, combined with affordable living and high quality of life, make it ideal for a calm, sun-filled retirement.
Cascais
Cascais is a popular choice for retiring in Portugal, offering a chic seaside lifestyle just minutes from Lisbon. With sandy beaches, upscale amenities, great dining, and a vibrant social scene, it’s ideal for retirees seeking comfort, coastal beauty, and easy city access.
Taxes For Retirees in Portugal
Under Portugal’s tax system, retirees who become tax residents are taxed according to the standard progressive income tax system. Tax residency applies when you spend 183 days or more in Portugal within a year or maintain a habitual home in the country.
Foreign pension income is now taxed at the regular Portuguese tax rates, which vary depending on the total amount of income earned. This change applies to new residents, as the former NHR regime—where pensions could be taxed at a flat 10%—is no longer available for new applicants.
Retirees must also report worldwide income, including pensions, investments, and rental earnings, although double-taxation treaties can help avoid being taxed twice on the same income. With proper planning and a clear understanding of the new tax framework, retirees can manage their obligations effectively while enjoying life in Portugal.
Retiring in Portugal Pros and Cons
Retiring in Portugal pros and cons often starts with the lifestyle: good weather, friendly communities, and healthcare that’s both reliable and affordable. Many people find that day-to-day life feels calmer and more enjoyable here.
But retiring in Portugal pros and cons also means looking at the challenges. Costs have risen in popular areas, and paperwork—such as visas or residency renewals—can take time. For example, someone settling in the Algarve may love the sunshine and safety but feel frustrated when dealing with slow administrative processes.
Anyone weighing retiring in Portugal pros and cons should also keep an eye on policy changes, such as tax rules or nationality laws. Even so, Portugal remains one of the most appealing retirement destinations in Europe.
5 Tips for Portugal Retirement
1. Choose the right residency visa: Most retirees use the D7 or D8 visa, so make sure your income, accommodation, and documentation meet the current requirements.
2. Understand Portugal’s updated tax rules: one of the current downside of retiring to Portugal is that foreign pension income is now taxed under the standard Portuguese tax rates, so review how this affects your overall retirement budget.
3. Compare regions before choosing where to live: Cost to retire in Portugal vary between areas like Lisbon, the Algarve, Porto, and the Silver Coast. Visit in advance to explore which region matches your lifestyle and budget.
4. Get familiar with healthcare options: Once you have residency, you can access the public SNS system, and many retirees also choose affordable private health insurance for faster access to specialists.
5. Prepare financially and culturally Open a Portuguese bank account, obtain your NIF, and learn basic Portuguese phrases. Joining local and expat communities can help you settle in more smoothly.
Why Choose To Work With Us For Your Portugal Retirement
Local Expertise
We know Portugal. Due to our extensive local knowledge, we believe that concentrating our services in a single country destination is the best way to give you the most thorough and useful information.
Honest Guidance
We recommend what’s best for you based on an extensive process experience that saves time and money to clients. Our pricing is clear and competitive, and we don’t sell services that make us more money.
All-in-One Solution
One single channel of communication for the entire process. We provide you with a comprehensive service that covers all aspects of your move, from identifying the ideal residency visa to finding your new home or helping you to settle.
Seamless Process
Technology plays a very important role in our company. We minimize our clients’ involvement in paperwork. We are customers ourselves and we know how to serve you.
Frequently Asked Questions
Is Portugal a good place to retire?
Yes, Portugal is considered one of the best retirement destinations in Europe thanks to its mild climate, safety, affordable healthcare, and relatively low cost of living.
How much money do you need to retire in Portugal?
Most retirees live comfortably on €1,500–€2,500 per month, though the amount depends on location and lifestyle. Big cities and the Algarve are more expensive.
Can I retire in Portugal as a US citizen?
Retiring to Portugal from the USA typically involves obtaining the appropriate visa or residency permit, such as the Portugal D7 Visa or the Portugal Golden Visa, and meeting the requirements set by Portuguese immigration authorities.
What taxes will I pay if I retire to Portugal?
If you are considered a tax resident in Portugal, you are required to declare your worldwide income. This means your pensions will be taxed under Portugal’s personal income tax system, which is progressive and ranges from 13% up to 48%, depending on the amount you receive.
Can you collect US Social Security and live in Portugal?
Yes, you can receive US Social Security benefits while living in Portugal without interruption.
Do retirees need to speak Portuguese to retire in Portugal?
While knowledge of Portuguese is beneficial for daily life and integration into Portuguese society, many retirees in Portugal get by with English, especially in tourist areas and expat communities.
Is Portugal still welcoming to Americans?
Yes. Americans continue to be welcomed, and Portugal remains a popular retirement and relocation destination.
How long can I stay in Portugal if I own a house?
Owning property does not grant residency. Without a visa, non-EU citizens can stay up to 90 days in a 180-day period. To live full-time, you must apply for residency.
Is healthcare free in Portugal for retirees?
Public healthcare is not fully free, but it is very affordable. Once you become a legal resident, you can access the national health system at low cost.
Does Portugal tax my US pension?
Yes, your US pension will be taxed in Portugal as personal income. Once you become a tax resident, Portugal taxes foreign pensions under its personal income tax rules, with rates depending on your total yearly income.
Can you retire to Portugal from Canada?
Yes. Canadians typically apply through the D7 residency visa to retire in Portugal. Find out more about how to move to Portugal from Canada by reading our guide.
How can I retire to Portugal from the UK?
Post-Brexit, UK citizens need a residency visa—usually the D7 or Golden Visa—to retire in Portugal.
Can you retire to Portugal from Australia?
Yes. Australian retirees can apply for the D7 visa or another suitable residency route depending on their circumstances.
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