The Ultimate Guide to Retiring in Portugal: Everything You Need to Know
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Table of Contents
Benefits of Retiring in Portugal: The Ultimate Guide to Everything You Need to Know
Are you dreaming of a retirement filled with sun-drenched beaches, a rich culture, and a relaxed lifestyle?
As a popular destination for retirees, particularly those from the US, Northern Europe, and Canada, Portugal offers a unique blend of old-world charm and modernity. This country stands out among the most affordable European countries, making it a haven for those seeking a comfortable and enjoyable retirement.
Retirement planning in Portugal involves understanding the country’s retirement laws, cost of living, healthcare system, and much more. It’s not just about choosing a country; it’s about preparing for a new lifestyle.
Why Retire in Portugal?
Benefits of Retiring in Portugal
Portugal offers several benefits for retirees, making it an attractive destination for many. The country has a warm Mediterranean climate, landscapes, and a high quality of life. The cost of living is relatively low compared to other European countries, allowing retirees to enjoy a comfortable lifestyle.
Portugal’s healthcare system is highly regarded, with excellent medical facilities and affordable health insurance options. Portuguese citizens are well-integrated within the country's public health system, enjoying high-quality care. The country is also known for its safety, ranking as one of the safest countries in the world. Additionally, Portugal has a large and welcoming expat community, providing a sense of familiarity and companionship for those moving from abroad. The Portugal Golden Visa Program, a residency-by-investment initiative established in 2012 for non-EU citizens, offers significant benefits for retirees, including residency rights for applicants and their families, access to Portugal’s healthcare, and the opportunity to retire in Portugal.
Is it Worth Retiring to Portugal?
When considering retirement destinations, one of the key questions is: Is it worth retiring to Portugal? The answer largely depends on your personal preferences and lifestyle. However, the majority of expats who have made the move would answer with a resounding “yes”.
The affordable cost of living, coupled with the high quality of life, makes Portugal a worthwhile choice for retirement. Compared to other Western European countries, Portugal offers significantly lower living expenses, although costs can rise in major cities like Lisbon. The country offers a relaxed pace of life, with a strong emphasis on family and leisure time.
What are the Disadvantages to Retiring in Portugal?
While there are many advantages to retiring in Portugal, it's also important to consider the potential disadvantages.
One of the main challenges for expats can be the language barrier. While English is widely spoken in tourist areas and among younger generations, it's less common among the older population. Learning Portuguese can greatly enhance your experience and make daily life easier.
Another potential disadvantage is the bureaucracy. Dealing with paperwork and administrative tasks can be time-consuming and frustrating, particularly when navigating the immigration process or buying property.
Despite these disadvantages, many retirees find that the benefits of living in Portugal far outweigh the negatives. The key is to be prepared and to have realistic expectations about the challenges you may face.
Language barrier.
Understanding Portugal's Retirement Laws
Overview of Portugal's Retirement Laws
Portugal has a set of regulations that govern pensions, taxation, and residency for retirees. These laws are designed to protect retirees and ensure they have a comfortable and secure retirement.
Portugal’s retirement laws cover a range of areas, including the age of retirement, pension entitlements, and the rights of foreign retirees. The country has agreements with several nations, including the US, Canada, and countries in the European Union, to ensure that foreign retirees can receive their pensions while living in Portugal. Citizens from the European Free Trade Association (EFTA) have the same residency privileges as EU/EEA citizens and are eligible for the Portugal Golden Visa. The Portuguese government plays a key role in setting financial requirements and overseeing immigration processes for various residency and visa options, such as the D7 Visa and the Golden Visa Program.
Types of Residency Visas
Portugal offers a variety of residency visas, each tailored to different needs and circumstances. For retirees, the most common options include the D7 Visa, Golden Visa, and D8 Visa. Understanding these options can help you choose the best path to enjoy your retirement in Portugal.
The Golden Visa Program
The Golden Visa program is a standout option for non-EU citizens looking to retire in Portugal. Introduced in 2012, this program has attracted thousands of investors due to its numerous benefits and straightforward process.
D7 Visa: Passive Income Route
The D7 Visa, also known as the passive income visa, is a popular choice for retirees who have a steady income from various sources. This visa allows you to live in Portugal without needing to work, making it ideal for those who want to enjoy a relaxed and comfortable retirement.
Permanent vs Temporary Residency
When retiring in Portugal, you have the option to choose between permanent and temporary residency. Understanding the differences between these two options can help you make an informed decision.
Can a UK Citizen Retire to Portugal?
Yes, a UK citizen can retire to Portugal. Despite Brexit, the process for UK citizens retiring to Portugal remains relatively straightforward. Portugal and the UK have a long history of friendly relations, and UK citizens are warmly welcomed.
UK citizens planning to retire to Portugal will need to apply for a D7 visa, which you can in turn exchange for a residence permit. The process involves demonstrating that you have sufficient income to support yourself during your retirement. It's also recommended to seek advice on how Brexit may impact your pension and access to healthcare services.
Understanding Portugal's retirement laws is a crucial step in planning your move. It's recommended to seek professional advice to ensure you have a comprehensive understanding of these laws and how they apply to your personal circumstances.
Can a US Citizen Retire to Portugal?
Yes, a US citizen can certainly retire to Portugal. The process also involves applying for a D7 visa (often referred to as a retirement or passive income visa), followed by a residence permit.
This visa allows US citizens to reside in Portugal, provided they can demonstrate a steady income or substantial savings to support themselves.
The application process involves several steps, including gathering necessary documentation, such as proof of income, health insurance, and a criminal background check. Once the application is approved, US citizens can enjoy the benefits of living in Portugal, including access to healthcare and the freedom to travel across the Schengen Area.
Retiring in Portugal as a US citizen can offer a fantastic lifestyle change, with the country's rich culture, beautiful landscapes, and friendly locals. However, it's essential to understand the legal requirements and ensure all paperwork is correctly completed to make the transition as smooth as possible.
Cost of Living in Portugal
How Much Money Do You Need to Retire in Portugal?
One of the most common questions prospective retirees ask is: How much money do I need to retire in Portugal? The answer to this question varies depending on your lifestyle, where you choose to live, and your personal needs.
On average, a couple can live comfortably in Portugal for around $2,500 to $3,000 per month. This estimate includes housing, food, healthcare, transportation, and leisure activities. However, this is just an average, and the actual amount could be lower or higher depending on your lifestyle and the region where you choose to live.
Breakdown of Living Costs for Retirees in Portugal
To give you a better idea of what to expect, here's a breakdown of the living costs for retirees in Portugal.
Housing: Rental prices vary depending on the location and size of the property. In smaller towns, you can find a comfortable apartment for as low as $600 per month. In larger cities like Lisbon or Porto, or in popular coastal areas like the Algarve, prices will likely be double this amount.
Food: Groceries in Portugal are quite affordable. A couple can expect to spend around $300 to $400 per month on groceries.
Healthcare: While healthcare in Portugal is affordable compared to the US, costs can vary depending on whether you use the public healthcare system, private providers, or a combination of both.
Transportation: Public transportation in Portugal is reliable and affordable. If you choose to own a car, you'll need to consider costs such as fuel, insurance, and maintenance. Cars, especially second-hand cars, can be more expensive than your home country.
Leisure Activities: Costs for leisure activities can vary widely depending on your interests. Portugal offers a range of affordable activities, from exploring historical sites to enjoying local cuisine and wines.
|
Expense Category |
Portugal (Average) |
US (Average) |
|
Rent for 1-bedroom apartment in city center |
$800 |
$1,200 |
|
Meal at an inexpensive restaurant |
$10 |
$15 |
|
Monthly public transportation ticket |
$40 |
$75 |
|
Basic utilities for 85m2 apartment |
$100 |
$150 |
|
1 liter of milk |
$0.60 |
$0.80 |
|
1 kg of local cheese |
$7 |
$10 |
|
1 kg of chicken breast |
$5 |
$7 |
|
1 pair of jeans (Levis 501 or similar) |
$75 |
$45 |
|
1 summer dress in a chain store (Zara, H&M,...) |
$30 |
$35 |
|
1 pair of sport shoes (Nike, Adidas, ...) |
$75 |
$80 |
|
1 liter of gasoline |
$1.60 |
$0.65 |
Source: Numbeo, June 2023
Private Health Insurance for Retirees in Portugal
Understanding the healthcare system in a new country is critical for any expat, and Portugal is no exception. Ensuring you can access high-quality healthcare can be reassuring when making such a significant life transition.
So let's jump into the healthcare section, learn about the differences between public and private healthcare in Portugal, and how they compare with services in countries like the UK and US.
Overview of the Portuguese healthcare system
Portugal essentially has a two-tier healthcare system - public and private.
The public healthcare system, Serviço Nacional de Saúde (SNS), was established in 1979 following Portugal's revolution, underpinning the principle that all citizens have the right to healthcare. The SNS covers only mainland Portugal, while the Azores and Madeira have separate systems.
In addition, there is a flourishing private healthcare sector, which many expats and locals alike choose for its quality and conveniences.
The public healthcare system in Portugal
The SNS offers a broad range of services, from consultations and treatments to surgeries and long-term care.
As an expat, if you're a resident (whether you are an EU and non-EU citizen), you can access these services, although the process varies a bit.
EU citizens can use their European Health Insurance Card (EHIC) for necessary care, while non-EU citizens will need to show proof of residence.
While public healthcare is essentially free at the point of delivery, there can be nominal fees called “taxas moderadoras” for certain services, such as GP visits or non-emergency hospital treatment, however, these costs are considerably lower than what you might expect to pay in the US, and for the most part it's usually free.
Despite offering broad services for almost zero cost, the public healthcare system sometimes faces criticism for lengthy waiting times, particularly for non-urgent specialist services and procedures.
Comparatively, while the UK's NHS also struggles with waiting times, Portugal's SNS may present more of a language barrier.
The private healthcare system in Portugal
Private healthcare facilities in Portugal offer a world-class and more immediate alternative, albeit at a higher cost.
With state-of-the-art equipment, shorter waiting times, and often a broader English-speaking staff, private healthcare is an attractive option for many expats.
The costs for private healthcare can vary widely depending on the treatment, but is still likely to be cheaper than the US. Private health insurance can help mitigate these costs, whether you choose to use expat health insurance, or take out local Portuguese private health insurance.
A doctor using a laptop.
Do I need health insurance?
Firstly, everybody in Portugal needs some kind of health insurance - whether that is public (to use the public system) or private.
If you require a visa to come to Portugal, it is a requirement of your visa application to have private expat health insurance for the first four months of your stay as a minimum, until you qualify for public health insurance.
Once you have arrived, secured your residency and started contributing to social security, you'll qualify for public health insurance, meaning you have the same public healthcare rights as citizens, so from that point, private health insurance is recommended, but not compulsory.
You don't need to take out a public health insurance policy, as its included in your social security, but you will need to register to get something called a ‘utente number' (more on that in a minute).
The public scheme completely covers all medical care, including doctors, specialists, and emergency services in the public system, with very few exceptions.
If you don't qualify for the public healthcare system, meaning if you are not working / contributing to social security, or are on a tourist or short-stay visa, you will need to get private health insurance in Portugal.
Approximately 25% of the Portuguese population choose to ‘upgrade' to private health care, because of the higher quality of the facilities and shorter waiting times.
Understanding the ‘Utente Number' and Public Health Centers
Your utente number is your unique healthcare number in Portugal, necessary for accessing the public health services. Public health centers, or ‘centros de saúde', are your primary access point for these services.
The utente number is essentially your patient number and is a requirement for all medical appointments.
Centros de saúde are community health centers where you can see general practitioners, pediatricians, and nurses.
Your utente number is the key to your healthcare in Portugal, and centros de saúde are where you'll receive most of your primary care.
What happens if I am not covered by health insurance at all?
If you are not a resident, or not working in Portugal, you can still receive treatment at a Portuguese hospital or emergency room without health insurance, but should expect to pay all medical costs. You won't be turned away from medical facilities, but it can get expensive.
Should I get local private health insurance or use expat health insurance?
There are benefits to both. Expat health insurance usually offers benefits such as repatriation or evacuation and direct payment for treatment in any country if you plan on travelling outside of Portugal at all. Local Portuguese private health insurance can work out a little cheaper.
With both kinds of insurance, the cost will vary depending on the level of coverage you choose and most schemes will come with a deductible before your insurance kicks in.
Be sure to compare these aspects when choosing your plan.
Expat health insurance often provides wider coverage, including international medical evacuation and repatriation, which may not be included in local private health insurance.
Specialized Healthcare Services
Aside from general healthcare, there are numerous specialized services, such as opticians and dentists.
Regular eye check-ups in Portugal can be done at opticians, typically found in shopping centers and towns. Costs can be lower than in the US, with the quality of service comparable.
Dental care, while not extensively covered by the SNS, is readily available privately with high standards and private health insurance policies with options specific to dental care are also available.
Regular check-ups, cleanings, and standard procedures in Portugal can often be more affordable than in the US and comparable to the UK.
Portuguese pharmacies
Under state health insurance in Portugal, you'll be expected to pay a portion of the cost of your medicine. How much you have to pay depends on how common the medicine is, whether it's for a serious illness, and if you belong to a vulnerable group. Again, these costs are considerably lower than in many countries, particularly the US.
Portuguese pharmacies (farmácias) are easy to identify as they have a green cross outside the building. They are usually open from Monday to Friday (closing for an hour during lunchtime) and on Saturday mornings. In larger towns, some pharmacies are available on Sundays.
For urgent medical issues, there are always 24-hour service pharmacies (farmácias de serviço) in each area, so it is worth researching this on your scouting trip.
Older adults, disabled people, and those with low incomes may qualify for financial help with pharmaceutical costs through social security. People living with chronic illnesses can access their usual medications for free through the SNS by applying online.
Portuguese pharmacies logo.
Useful resources
Instituto da Solidariedade e da Segurança Social – government agency that manages social security
Serviço Nacional de Saúde – Portuguese national healthcare service
Infarmed list of pharmacies – search for licensed pharmacies by region
Infarmed Pesquisa de Preços de Medicamentos – check the price of any prescription drug online
MySNS – mobile apps for those covered by the SNS
Getting an EHIC (European Health Insurance Card)
When you become resident in Portugal, even as a non-EU citizen, you are entitled to an EHIC card, which is a great idea if you plan on doing any other travelling in Europe.
Having an EHIC allows you to get medical treatment on the same basis as residents of the country you're visiting. You typically pay upfront and then can reclaim some or all of the costs. What you pay for, how much you pay, and what is reimbursable varies depending on the country's healthcare policy. Each family member needs their own European health card.
The EHIC, which is free of charge, is not an alternative to travel insurance.
In general, the EHIC does not cover private healthcare or being flown home after injury or illness. In some cases, though, insurers may require you to have an EHIC before they will offer you cover.
To receive the card, you must legally reside in Portugal (or elsewhere in the EU) and pay or be by covered by social security, however, you cannot use your EHIC for treatment in Denmark, Iceland, Liechtenstein, Norway, and Switzerland. When you become a Portuguese resident you can get your card here.
Buying Property in Portugal
If you’re considering buying property in Portugal, you’re in for a straightforward and transparent process, regardless of your nationality.
As the saying goes here amongst expats: “In Portugal it’s easier to buy a house than a car” (and I’ve definitely found that to be true!!)
Portugal welcomes foreigners to its property market, making it an attractive destination for real estate investment. Having a Portuguese bank account is essential for managing everyday expenses, receiving international pension payments, and facilitating property purchases.
To help you navigate the property buying process, here are the key steps involved:
Step 1: Find Your Ideal Property
Begin your property search by exploring online listings, collaborating with a trusted real estate agent, or attending property fairs and exhibitions. Portugal offers a diverse range of properties, from beachfront villas in the Algarve to city apartments in Lisbon and charming country houses in the central regions.
Step 2: Engage a Knowledgeable Lawyer
While not technically mandatory, Please enlist the services of a qualified lawyer who specializes in Portuguese property law. A lawyer can guide you through the legal intricacies, review contracts, and ensure a smooth transaction.
We can recommend some great ones so please reach out to us if you’d like a recommendation.
Step 3: Make an Offer and Sign the Preliminary Contract
Once you’ve identified a property that meets your requirements, you can make an offer. If the offer is accepted, a preliminary promissory contract, known as the “Contrato de Promessa de Compra e Venda” (CPCV), is drawn up. It outlines the terms and conditions of the sale, including the purchase price, deposit amount, and timeline.
Step 4: Finalize the Purchase
The final step involves signing the official contract, known as the ‘deed’ in the presence of a notary. At this stage, the remaining balance is paid, and the property ownership is officially transferred to the buyer. It’s crucial to conduct a final inspection of the property and ensure all necessary documents are in order before completing the sale.
Property Prices Across Portugal
Property prices in Portugal vary depending on the region and specific location. Here's a general overview of average property prices per square meter in some popular areas:
- Lisbon: €3,000 - €5,500 per square meter
- Algarve: €2,000 - €4,500 per square meter
- Porto: €3,000 - €4,500 per square meter
- Central and Northern Portugal: €1,000 - €2,500 per square meter
These prices serve as a rough guide and can fluctuate based on factors such as property type, location desirability, and market conditions. It's recommended to consult with local real estate professionals to obtain accurate and up-to-date pricing information.
Portugal's property market offers excellent value for money, particularly in the central and northern regions, or the islands, where you can find larger properties at more affordable prices compared to Lisbon or the Algarve.
Considering Buying a Property in Portugal? Contact us
Finding the Best Place for you to Retire in Portugal
The best place in Portugal for your retirement depends on your personal preferences and lifestyle, and we'd always recommend discussing your needs and preferences with a relocation consultant and, most importantly, taking a scouting tour.
A scouting tour is something you really shouldn't skip over. Making a scouting trip to Portugal is an invaluable opportunity to truly understand where the best place for you to live is, immerse yourself in the local culture, and make informed decisions about your future relocation.
As you begin to plan your scouting trip, we know there can be a lot to consider so it's best to break it down into stages.
1. Create yourself a relocation wish list
A good idea which will help with your itinerary planning of your scouting trip is to create a wish list of aspects about your new Portuguese life and especially the type of property you will want to live in, because that can really dictate the areas you should check out.
Include your housing preferences and budget, lifestyle and activities, weather, transport requirements, desires for community (expat or Portuguese focussed), healthcare requirements, etc.
2. Research Portuguese cities and towns
If you choose to research the towns and cities without the help of a relocation consultant, it can be easier to work through your research in a systematic order.
- After you've completed your wish list, compile a list of cities/towns of interest. Later in this section, we've got some city guides for the major cities, towns and regions that are popular for expats to live in.
- Look into the cost of living and available housing in each.
- Research the quality of healthcare facilities and community, or whatever other amenities are important to you.
- Get a sense of the cultural vibe and lifestyle in each place.
Here are a few regions to consider:
The Algarve
Known for its coastline, sunny weather, and golf courses, the Algarve is a popular choice for retirees. Towns like Faro, Lagos, and Albufeira offer a high quality of life and a large expat community.
Lisbon and Surrounding Areas
The capital city of Lisbon offers a vibrant urban lifestyle with excellent restaurants, cultural attractions, and healthcare facilities. Nearby towns like Cascais and Sintra offer a more relaxed pace of life within easy reach of the city.
Central and Northern Portugal
If you prefer a quieter lifestyle, regions like the Douro Valley and the Beiras offer beautiful landscapes, charming towns, and a lower cost of living.
Madeira and the Azores
These island groups offer a unique lifestyle with stunning natural beauty, mild climate, and a slower pace of life.
Each region in Portugal offers its unique advantages, so it's worth visiting several areas to find the one that feels like home to you.
3. Choosing the right time
Timing is crucial when planning a scouting trip. The weather, local events, and the tourist season can all affect your experience. But maybe more important is to think about how Portugal might be in the opposite season to your visit. Many towns in Portugal are very seasonal, especially the coastal resort towns, and just because a town is buzzing in August, doesn't mean there will even be anyone there in January.
4. Plan your travel itinerary
Decide on the duration of your trip and how long you'd like to spend in each of the cities/towns you want to visit.
2-3 days in each town is often good enough to get a ‘gut-feeling' on the place, however don't discount a town just because you have a bad experience from meeting a rude taxi driver or because it rains. Make sure you allow some time for leisure and not just house-hunting or research.
Decide whether it's best for your itinerary to fly into Lisbon, Porto, Faro, or the islands. (Most often it will be cheapest to fly into Lisbon, especially from outside of Europe, and get a connecting flight or train / bus from there)
Last but not least…
Wanna explore Portugal and the Portuguese lifestyle? Click below to learn more about our scouting tours.
5. Look into local attractions and plan some leisure activities
A website that we can strongly recommend to truly immerse yourself in local life is Eatwith - where you can eat with a local host in their home, sample some authentic Portuguese food, and discuss with a local what it's really like to live in Portugal.
Portugal Retirement Visa
How to Apply for Residency in Portugal
Applying for residency in Portugal is a crucial step for any retiree planning to move to this beautiful country. The process involves obtaining a visa and residency permit, and if you are from outside of the EU the most common route is with the D7 visa, also known as a passive income visa or (inaccurately) as the Portugal retirement visa. The Portugal Golden Visa is also a key residency option for retirees.
Here’s a brief overview on how to apply:
Gather Necessary Documents: This includes a valid passport, the documents listed below, and your completed application forms.
Submit Your Application: The application should be submitted at the Portuguese consulate or embassy in your home country.
Wait for Approval: The processing time can vary, but it typically takes 2-4 months.
Obtain a Residence Permit: Once in Portugal, you’ll need to apply for a residence permit from the Agency for Integration, Migration and Asylum (AIMA).
Renew Your Permit: The initial residence permit is valid for one year, after which it can be renewed for two-year periods, until, after 5 years you can exchange your permit for permanent residency and you can then apply for citizenship if you choose to after 6 years.
Requirements for Portugal’s Retirement Visas
The requirements for Portugal’s retirement visas are designed to ensure that retirees have the financial means to support themselves during their retirement in Portugal.
Here are the key requirements:
Proof of Income: You must demonstrate a regular income that is sufficient to support yourself. This can come from pensions, rental income, dividends, or other sources. At the time of writing, a general guideline is that the minimum passive income requirements should exceed the Portuguese minimum salary, which stands at €840 per month as of end 2024. But please bear in mind, this is the absolute minimum.
Health Insurance: You must have expat health insurance that provides coverage in Portugal.
Portuguese tax number and bank account
Criminal Record Certificate: You must provide a certificate showing that you have no criminal record.
Accommodation: You must show that you have accommodation in Portugal. This can be a property you own or rent. We have a checklist of the documents you might need to rent a property.
It’s important to note that the exact requirements can vary and may change over time, so it’s always a good idea to check the latest information from official sources or consult with a legal professional.
A passport.
Safety and Lifestyle in Portugal
Physical and Psychological Safety in Portugal
When considering a country for retirement, safety is a top priority. Portugal is known for its high level of safety, consistently ranking as one of the safest countries in the world.
Crime rates in Portugal are low, violent crime is very rare and gun crime is almost non-existent. The country has a well-trained police force, and emergency services are reliable and responsive. Of course, like anywhere, it's always important to take common-sense precautions, particularly in tourist areas.
Portugal's Ethnically Diverse and Welcoming Culture
Portugal is a blend of traditional Portuguese customs and influences from around the world. The country is ethnically diverse, with a history of welcoming immigrants from former colonies, other European countries, and more recently, from North America and Northern Europe.
Portuguese people are known for their hospitality and friendliness towards foreigners. The country has a relaxed pace of life, with a strong emphasis on family, food, and enjoying life. From the traditional Fado music to the delicious cuisine and vibrant festivals, Portugal's culture is rich and varied.
The combination of safety, welcoming culture, and high quality of life makes Portugal an excellent choice for retirement.
Retirement Planning
Preparing for retirement in Portugal involves a number of important steps. From understanding the cost of living and healthcare system, to learning about the tax implications and residency requirements, there’s a lot to consider. Additionally, obtaining Portuguese citizenship offers significant benefits, such as rights within the EU and access to broader social services.
Here are a few key steps in the preparation process:
Financial Planning: Assess your financial situation and create a budget for your retirement in Portugal. Consider factors like housing costs, healthcare expenses, taxes, and lifestyle costs.
Healthcare: Understand how the healthcare system works in Portugal and what kind of health insurance you’ll need.
Residency and Legal Requirements: Learn about the process for obtaining a retirement visa and what legal requirements you’ll need to meet.
Language: Consider taking Portuguese language lessons to help you navigate daily life in Portugal.
Cultural Adaptation: Learn about Portuguese culture and customs to help you integrate into your new community.
Wanna know more about Portugal and the Portuguese life? Thinking of moving to Portugal? Download our “Portugal Beckons - Book”, read by over 700 expats.
Portugal Beckons Book - Portugalxpert