Portugal is a top retirement spot with mild climate, affordable living, reliable healthcare, and visas like D7 or Golden Visa for non-EU citizens.
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Key Takeaways:
Portugal has become one of the most popular destinations for retirees globally for many reasons. One of them is a pleasant, mild Mediterranean climate and gorgeous views of the country that captivate everyone from tourists to expats. High safety ratings and affordability also play a huge role for those looking to get a Portuguese retirement visa. Compared to other Western European countries, you don’t need a huge budget to stay in the region.
Besides that, welcoming expat policies and friendly retiree communities make it a top choice for the elderly. In this article, we will draw an up-to-date roadmap and share relatable tips and tricks for potential retirees choosing a destination in Europe.
If you want to claim the Portugal retirement visa, you should first look into the pros and cons of staying there, as it won’t suit everyone. And while the country has its benefits, you have to consider if you can adapt to the downsides before settling.
It has a mild Mediterranean climate: one of the best for elderly people. This offers residents pleasant weather all year round, which is perfect for slow promenades and relaxing near the coast, without a doubt. Paired with high safety rankings, it makes Portugal a perfect place for retirees living. For example, it currently ranks sixth on the Global Peace Index, with cities like Lisbon being in the top for expats.
Living there is notably much more affordable, which is essential for retirees who can’t work anymore and have a limited budget. Monthly costs can be between $2,000–$3,500, which is a lot less than other Western European countries. Smaller towns away from the coast can be even cheaper in regular expenses.
Retirement in Portugal encompasses joining the local community. Thankfully, the country is very welcoming, whether you know the language or not. The expat community is huge there, so you will find friends no matter where you are from. Additionally, its public and private healthcare options are reliable and accessible.
But this option for retirees has its downsides, too. For example, some people might struggle with the language barrier. Although English is common in bigger areas popular with tourists like Porto and Lisbon, other, more rural regions lack English-speaking residents. So, communication there can be challenging, unless you know the local language.
This, paired with cumbersome bureaucracy processes, can pose a huge problem for new retirees who have just arrived in the country. When you have to manage a lot of documentation, residency, and finances, you might get confused by the local rules and regulations. If you face that, you should ask MigRun for help, where you can find a lot of experts and professionals that make an expat`s life much easier.
This is especially predominant in areas like taxes, where expats have no idea how to manage their foreign income. The local tax regime is always changing, the original Non-Habitual Resident scheme has phased out, and many retirees and immigrants are looking for guidance to navigate the niche.
The process of obtaining a retirement visa for Portugal varies depending on your current residency, goals, and budget. If you are from the EU, EEA, or Switzerland, you really don’t need much to stay here as an elderly person. There is no visa required — only minimal paperwork and official registration with the local council once you arrive.
If you are not from the EU, however, you must apply for a residency visa first. Only then can you enter the country. Thankfully, you have several options, with the non-lucrative visa Portugal being the most suitable for retirement. The D7 visa suits people with a stable passive income, such as foreign pensions, investments, or even rental income.
The minimum income requirements to retire in Portugal is €870 monthly. Additionally, you should have a balance of €10,440 in a local bank account. In case you are not coming alone, you have to increase your budget significantly. A dependent spouse or other adult mandates +50%, while a minor mandates +30% in income and on your bank account. Other requirements are:
In the process of residing, you will pay about €80 for your visa, €170 for a residence permit, and around €156 for an AIMA appointment. Please note that Portugal for retirees requires you to stay in the country for at least 16 months during the first two years, so you can’t travel much.
A Golden visa is another option for retirees with a much bigger budget. The only way you can claim this type of visa is to make huge investments in the local real estate or business. So, your financial status should match the mandated investment sums to qualify.
The cost of living in Portugal for retirees is relatively affordable, especially compared to other European countries. When it comes to housing, expect coastal cities like Lisbon and Porto to be a lot more expensive: about €2,000 per month. Smaller inland towns, on the other hand, are more feasible for the senior citizens, as the rent costs about €800 a month.
Shopping for groceries will cost you about €300 per month for one person, while couples will spend up to €600 every month. The cost of utilities like water, gas, electricity, and others varies depending on the accommodation you rent. In general, you’ll pay up to €90 a month for a small studio for one person. Internet, TV, and landline cost about €50.
You also have to include transportation expenses. The local public transport is very accessible and dependable. For example, a metro and bus monthly pass in Lisbon costs about €45. Moreover, you can travel the whole country by train by investing in a regional train pass — the “Passe Ferroviário Nacional” — for €49 a month. Retirees over 65 can claim the discounted ones for about €20 a month.
Advantages of retiring in Portugal encompass an excellent healthcare system, praised both by locals and expats. There are two options: public and private.
Retirees have to register with public healthcare (SNS) after obtaining residency to receive subsidized care. Yet, as a non-EU citizen, you’ll have to get a visa approval first, and will have to look into private insurance options to match the requirements.
Depending on your age and overall coverage, it will cost you from €400 to €1,200 a year on average. Overall, all options in the country are both high-quality and cost-effective, compared to other countries.
There are more requirements to retire in Portugal. One of them is getting the taxpayer identification number. Regardless of what you do in the country, the Portuguese fiscal number is mandatory for all financial and administrative activities. Without one, you can’t:
So, receiving a NIF is the first thing you should do once you decide to retire there. To get one, you can collaborate with a certified lawyer or tax representative and apply at the local tax authority office.
Remember to bring your passport or ID card, proof of address, and visa or residency permit, if applicable. The service itself is free, but the representatives charge up to €150 for a remote service. NIF doesn’t need to be renewed.
Portugal retirement living assumes you open a local bank account. For most retirees, it’s an absolute necessity, as you have to receive pensions or passive income, pay rent and other expenses with the local bank card tied to the bank account. This is also vital to meet visa and residency requirements, such as a Portuguese bank account with at least €10,440.
To open a bank account, you need a passport or an ID card, a NIF number, any proof of address like a utility bill or a rental agreement, any proof of income, and a residency permit or a visa, if you already have one. In some cases, you will also need a local phone number. You have a lot of bank options, including both traditional and modern digital ones:
To minimize fees, always receive your passive income and pensions in euros to the local bank account. Additionally, you can try to utilize Wise, Revolut, or other currency exchange services to take advantage of their exchange rates.
Once an expat receives a residence permit and becomes an official tax resident, all their income, regardless of where it comes from, is subject to the local taxation policies. This includes pensions, various investment returns, and property income. Official tax residents have to stay in the country for most of their time, especially during the first year. At least 183 days are mandated. You can also maintain a permanent dwelling in Portugal for that purpose.
A lot of retirees came to the country because of the NHR regime, which ended in 2023. It encompassed favorable rules and regulations for all immigrants, such as 0% tax on foreign pensions for some categories of residents. As of now, the original application process is no longer accessible, and the qualified seniors are going through the transition period.
Those considering retirement in Portugal for EU citizens have to know how to avoid double taxation. Double taxation treaties, or DTTs, are also available for citizens from the UK, the US, Canada, Australia, and more.
Depending on the terms, your income might be taxed either by Portugal or the country of your citizenship. In some cases, the taxes are split into two. For example, pensions coming from the UK are usually taxed in Portugal, while the US benefits are taxable in the US.
A lot of seniors coming to Portugal to retire alone are worried that they won’t be able to join the community or enjoy their free time in a friendly atmosphere. Yet, this country is not just about a good climate and affordable healthcare.
In fact, when you choose Portuguese immigration, you fill your retirement with a wide range of social and cultural opportunities. Even if you settle in a smaller town, you’ll be able to join an expat community and meet new friends.
Furthermore, each town has local senior centers, social clubs, and other entertainment options for retirees. For example, in Lisbon, the central international communities are welcoming and friendly. They organize weekly meetups, charity events, and language exchange groups. There, even new seniors feel accepted and fully integrated. But that’s not all.
Expat retirement in Portugal also means that you will visit countless local events and branch out even more. Year-round festivals, live music concerts, art exhibitions, food fairs, and more are waiting for all seniors. You can seek out events in your region or venture out to Lisbon for fado performances, Porto for wine festivals, or the Algarve for beach concerts.
And once you get tired, you can take some time to rest in the local coffee shops or grab a brunch in the small restaurant down the block.
When you move to Portugal, you can enjoy the local outdoors, too. Active retirees will love the hiking trails scattered around the country — both accessible and extreme, for all tastes. Other senior-friendly activities include golf, coastal boardwalks, cycling, and more.
And in case you want to enter the community strictly your age, municipal senior-specific programs are available in various formats, like libraries, gyms, and cultural centers. Cheap or completely free of charge fitness classes, workshops, and courses, crafting sessions, and book clubs are waiting for you. Some cities host the Universidade Sénior: the university for retirees with discounted classes in history, languages, art, and much more.
When you receive a Portugal visa for retirees and get a residence permit, you will have to think about transferring your pension there. Most retirees will live on their pensions, so it’s an absolute necessity. The first step to legally receiving that money from abroad is opening a local bank account. Without one, you won’t get it fast and smoothly.
Yet, remember that most foreign payments will trigger high foreign exchange costs and other fees, so looking for a bank service with small rates or a currency transfer specialist is a must. You might not pay much attention at the time, but even a few percent in savings can make a difference over time.
Retirement in Portugal requires new senior citizens to understand the taxation system, including pensions. This type of income is typically declared every year, but the process really depends on the tax residency status and the treaties.
As explained above, some residents might have to tax their pensions in their home country, not in Portugal. By claiming the double taxation treaty, you will be fully exempt from double taxation, which allows you to save more money. Make sure you contact a professional in the field to stay compliant.
All Portuguese citizens have to follow the local heirship laws, and those claiming the retirement visa for Portugal and becoming residents are no exception. For most foreigners, the policy is confusing, as not all of them want to leave their estate to the closest family members. Yet, the law requires it to be divided among immediate family, such as children and spouses.
So, if you want to stay there, you will have to follow all requirements to retire in Portugal, even when the laws conflict with the inheritance practices in your home country. To avoid any issues with the government, you can create a dedicated Portuguese will. Through this document, you can make sure that your assets are distributed both according to the law and your personal wishes.
Creation of a will also helps your family members to access your local bank accounts and property after your death, which can be complicated and delayed without one. Thankfully, Portugal retirement living allows you to have both the local and foreign will. The key to maintaining both is to create two documents to complement each other. Any contradictions will make legal teams suspicious, creating unnecessary legal disputes.
Portugal is a popular destination for expats for many reasons, including amazing climate, high quality of life, safety, and a good healthcare system. The cost of living in Portugal for retirees is also exceptionally affordable, especially compared to other European countries. If you are an EU citizen, you can retire with minimal documentation, while non-EU citizens have to choose a suitable visa.
While this country has a rich cultural system and expat community, you should be mindful of the local tax policies and the language barrier in smaller cities. Upon relocation, you should learn the requirements to retire in Portugal and reach out to get legal and financial guidance.
