Retiring in Portugal: A Comprehensive Guide for Expat Retirees

Portugal is one of Europe’s most popular destinations for retirees. It combines a pleasant climate, affordable living costs, and access to excellent healthcare. The country offers a peaceful lifestyle, modern infrastructure, and a strong sense of community, making it ideal for those looking to settle abroad.

Foreign retirees benefit from straightforward residency options such as the D7 Visa for passive income holders or the Golden Visa for investors. Both programs allow non-EU citizens to live in Portugal long-term and eventually apply for permanent residency or citizenship.

With its stable economy, safe environment, and low cost of living compared to other Western European countries, Portugal offers a comfortable and secure retirement place. Whether you prefer the coast, countryside, or city life, Portugal provides the right mix of lifestyle and opportunity for a stress-free retirement.

If you're thinking about retiring abroad, this article will give you essential information on retiring in Portugal, including:

• Why retire in Portugal?
• Benefits of retiring in Portugal
• Who can retire in Portugal?
• How to retire in Portugal

Why retire in Portugal?

Retiring in Portugal comes with numerous advantages that make it a desirable choice.

A key draw is the low cost of living, allowing retirees to maintain an affordable lifestyle without financial strain. This enables you to enjoy a rich retirement filled with activities and exploration.

Portugal also boasts a highly regarded public healthcare system, providing quality medical care that gives retirees peace of mind.

The country's reputation for safety further enhances its appeal, creating a welcoming atmosphere for those looking to settle down.

For expat retirees, the diverse range of places to live—from the lively city center to tranquil coastal areas—adds to the allure. The warm climate and friendly culture make it easy to feel at home.

The Benefits of Retiring in Portugal

Retiring in Portugal comes with many advantages that make it an appealing choice. Here are some key benefits:

• Visa-free travel: Living in Portugal gives you visa-free access to the Schengen Area. You can easily visit countries like Spain, France, or Italy without extra paperwork.
• EU citizenship: Becoming a Portuguese citizen lets you live and retire anywhere in the EU, giving you full freedom to explore and settle across Europe.
• Great weather: Portugal offers plenty of sunshine and mild winters, perfect for year-round outdoor living, especially in the south.
• Relaxed pace: Life in Portugal moves at an easy, unhurried pace—ideal for retirees who want peace, balance, and less stress.
• Affordable living: Portugal’s low cost of living allows retirees to enjoy a comfortable lifestyle without overspending on housing, dining, or leisure.
• Reasonable property prices: Property in Portugal is affordable compared to other Western countries, with options ranging from city apartments to countryside homes.
• Friendly community: The Portuguese are warm and welcoming, making it easy for newcomers to feel at home and build connections.
• Rich culture: Portugal’s cuisine, wine, music, and art make everyday life vibrant. From seafood dishes to local festivals, there’s always something to enjoy.
• Reliable health insurance: Portugal offers quality, affordable healthcare and access to public services, allowing retirees to live securely and focus on enjoying life.

Who can retire in Portugal?

The good news is that practically anybody can retire in Portugal, but there are some criteria. EU citizens have full freedom to move, live, and retire in Portugal without major legal hurdles.

However, non-EU citizens, depending on their citizenship and passport, need a visa or residence permit to stay long-term.

EU citizens

If you’re a citizen of an EU or EEA country, retiring in Portugal is simple. You do not need a visa or a residence permit to live in Portugal, and you can stay indefinitely. However, if you plan to stay for more than 90 days, you must register your residence with the local authorities.

You’ll receive a Certificate of Registration (Certificado de Registo de Cidadão da União Europeia), valid for five years. You’ll also have access to public healthcare, can open a bank account, and enjoy the same rights as Portuguese residents.

Non-EU citizens

Non-EU citizens can also retire in Portugal, but they’ll need a visa or residence permit to stay long-term. The two most common options are the Portugal D7 Visa and the Portugal Golden Visa. Both options allow you to live, access healthcare, and travel freely in the Schengen Area. After five years of legal residency, you can apply for residency on a permanent basis or Portuguese citizenship.

While most non-EU nationals need a visa to retire in Portugal, citizens from certain countries — mainly those with strong historical or linguistic ties — benefit from simplified procedures or preferential treatment under Portuguese law.

Portugal has special agreements with fellow Portuguese-speaking nations, known as CPLP countries, including Brazil, Mozambique, and Angola. This agreement makes it significantly easier for Brazilians and other CPLP citizens to live, work, or retire in Portugal without going through the full D-Visa process.

How to Retire in Portugal: Visas and Residence Permits

Portugal offers several visa options for retirees, each suited to different financial or lifestyle situations.

The most popular choices are the D7 Visa (also known as the Portugal Retirement Visa or the Passive Income Visa), ideal for those with passive income or pensions, and the Golden Visa program, designed for investors who want residency through qualifying investments.

Understanding the requirements, documentation, and steps involved will help ensure a smooth transition to your new life in Portugal.

The right visa not only allows you to live legally in the country but also provides access to healthcare, tax benefits, and a pathway to citizenship.

Portugal Golden Visa

The Portugal Golden Visa is aimed at non-EU citizens who wish to obtain residency through investment. While real estate investment is no longer an eligible route, applicants can qualify by investing in Portuguese funds, cultural projects, or business ventures that contribute to the local economy.

The Portugal Golden Visa program offers flexible stay requirements — you only need to spend seven days in Portugal in the first year and 14 days in the subsequent years — making it ideal for those who want residency without relocating full-time. After five years, holders may also apply for permanent residency or Portuguese citizenship, gaining full EU mobility and rights.

Portugal D7 Visa

The Portugal D7 Visa is one of the most popular options for retirees and individuals with a steady passive income. It’s designed for people who earn money from passive sources such as pensions, rental income, dividends, or investments.

To qualify, applicants must show proof of regular passive income — typically at least the Portuguese minimum wage (€870 per month) — and have suitable accommodation in Portugal. The Portugal Retirement Visa allows you to live, access healthcare, and travel within the Schengen Area. After five years of legal residence, you can apply for permanent residency or citizenship.

Portugal Citizenship for Non-EU Retirees

For non-EU retirees wishing to make Portugal their permanent residence, the D7 Visa and the Golden Visa are viable pathways to citizenship. Retirees can apply for indefinite residency after legally residing in Portugal for five years, which is an important step toward obtaining Portuguese citizenship. To qualify for citizenship, retirees must meet several key requirements set by the Portuguese government:

1. Legal residency: You must have lived in Portugal for at least five years.
2. Integration into Portuguese society: Applicants need to demonstrate some level of integration into the community. This may include basic knowledge of the Portuguese language and an understanding of local culture.
3. Criminal background check: A clean criminal record is essential, confirming your good standing in the community.

An important advantage for many retirees is the possibility of dual citizenship. Portugal allows you to maintain your original nationality while also becoming a Portuguese citizen, giving you the best of both worlds.

What You Need to Know Before Retiring in Portugal

Before moving to Portugal for retirement, it’s important to understand the key legal, financial, and lifestyle aspects of living there long-term. While Portugal is known for being welcoming and easygoing, good preparation ensures a smooth transition into your new life abroad.

Residency and visa requirements

As we've mentioned before, if you’re an EU or EEA citizen, you can live in Portugal without needing a visa, but must register your residence after 90 days. Non-EU citizens need a long-term visa such as the D7 Visa for retirees with passive income or the Golden Visa for investors. Both provide a pathway to residency and citizenship after five years. Once in Portugal, your residence permit must be issued and renewed through AIMA, the Agency for Integration, Migration, and Asylum.

Healthcare access

Portugal’s healthcare system, Serviço Nacional de Saúde (SNS or National Health Service) is affordable and of high quality. Legal residents can access it by registering at their local health center and obtaining a Número de Utente (health care number). Many retirees also choose to keep private health insurance, which offers shorter waiting times and English-speaking doctors. Even with private coverage, the overall cost of healthcare in Portugal remains low compared to other Western countries.

Taxes and pensions

Retirees who spend more than 183 days per year in Portugal become tax residents and are subject to income taxes on worldwide income, including pensions. The Non-Habitual Resident (NHR) tax regime offered reduced rates for foreign pension income, but it was phased out for new applicants in 2024. Still, Portugal maintains relatively low tax rates for retirees, and many countries have double taxation agreements that prevent income from being taxed twice.

Transferring your pension to Portugal as an expat retiree can be straightforward with some planning. As an European Union citizen, you can transfer your pension contributions from any EU country, counting towards your state pension in Portugal. If you’re a non-EU citizen, check with your home country’s pension service to see if your contributions can be transferred; many non-EU countries have agreements with Portugal.

The retirement age in Portugal is 66 years and four months for both men and women. You're eligible for a state pension if you’ve worked in Portugal for at least 15 years and contributed to social security. Many private companies also offer pension plans.

Banking and finances

To rent property, open utilities, or apply for a visa, you’ll need a Portuguese tax identification number (NIF) and a local bank account. If you're a non-EU or EEA national seeking to retire in Portugal, appoint a fiscal representative to obtain your NIF. You can book an appointment with your local tax office (Finanças) or queue for a walk-in appointment. Note that waiting times to book an appointment and queues for a walk-in appointment can be long in Portugal's bigger cities like Lisbon, and getting a NIF without speaking Portuguese can be difficult.

We offer a NIF and fiscal representation service. Simply apply online, and we'll send your NIF to your inbox in two to three weeks, ensuring you're ready to start your life in Portugal.

Opening a Portuguese bank account is straightforward and helps with managing daily expenses, paying bills, and transferring pension funds. Once you have your NIF number, other required documents are proof of address and a valid passport. Usually, you must go into a bank in person to submit these documents and open a bank account. Alternatively, we can help you open a Portuguese bank account from anywhere in the world. Just fill out our online application, and we can help you open an account with one of Portugal's leading banks.

Housing and real estate

Portugal allows foreigners to buy property freely, with no restrictions on ownership. The market varies by region — property in Lisbon and Porto is more expensive, while the Algarve, Silver Coast, and Alentejo offer excellent value for money. Many retirees start by renting for a year before purchasing, giving them time to explore different areas and find the right fit.

What to Expect When Retiring in Portugal

Moving to Portugal for retirement offers a rewarding lifestyle, but it helps to know what to expect before you arrive. Portugal provides a comfortable and welcoming environment for retirees, from the language and local culture to cost of living, transport, climate, and safety.

Cost of Living in Portugal

Portugal offers one of the lowest costs of living in Western European countries, which is a key reason it attracts so many retirees. While expenses vary depending on lifestyle and location, most retirees find Portugal affordable compared to other European countries or US cities like New York.

On average, a single retiree can live comfortably on €1,200 to €1,800 per month outside major cities. In Lisbon or Cascais, monthly living costs are typically higher, around €2,000 to €2,500 for a similar lifestyle. Smaller towns or regions like the Algarve, Alentejo, or Central Portugal can be significantly cheaper.

Here’s a breakdown of typical monthly expenses for retirees:

• Rent: €1,000–€1,500 for a one-bedroom apartment in Lisbon; €500–€800 in smaller cities or coastal towns.
• Utilities (electricity, water, internet): €120–€180.
• Groceries and dining: €250–€400 depending on habits.
• Healthcare and insurance: €50–€100 for private coverage; public healthcare costs are minimal for residents.
• Transportation: €40–€60 for public transit or around €150 for fuel and car expenses.

The table below gives an overview of basic food costs expats can expect:

Language and integration

While many Portuguese people speak English—especially in cities and coastal areas—learning a bit of Portuguese makes daily life smoother and helps you connect with locals. Simple phrases go a long way in shops, cafés, and government offices.

Retirees who make an effort to speak the language often find themselves welcomed quickly into the community. Portugal’s culture is warm and social, and getting involved in local events, volunteering, or joining hobby groups can make settling in much easier.

Transportation

Portugal boasts an efficient and affordable public transport system, making it easy to get around. The primary options include buses, trains, trams, and metros. Major cities like Lisbon, Porto, and Coimbra feature extensive metro systems, while buses and trains serve urban and rural areas.

Comboios de Portugal, the national railway company, connects key cities and tourist spots, offering low fares that can be purchased at stations or online. The modern bus network includes long-distance coaches, and the historic tram lines in Lisbon and Porto are a favorite among tourists.

A one-way ticket for metros, buses, or trams costs around €1.50, and a monthly pass budget ranges from €30 to €40. Taxis and Ubers are also affordable, starting at approximately €3.50. This accessibility helps integrate Portuguese people and visitors into the vibrant local culture.

Lifestyle and Portuguese culture

Expect a slower, more relaxed pace of life. Meals are long and social, the café culture is strong, and outdoor living is part of daily life. Portugues culture also offers a rich mix of music, festivals, art, and local traditions, making retirement both peaceful and engaging. Many retirees appreciate the balance of modern conveniences and traditional charm.

Bureaucracy and administration

Expect a fair amount of bureaucracy, especially when it comes to paperwork, renewals, or registering for services. Portuguese offices often require appointments and patience, but most processes are improving with online services through AIMA and ePortugal portals. Keeping your documents organized and planning ahead helps avoid frustration.

Best Places to Retire in Portugal

Retire in the Algarve

Retiring in Portugal's southernmost region can be a dream for those seeking a relaxed, sunny, and affordable lifestyle. Known for its stunning coastline, picturesque towns, and charming villages, the Algarve offers a tranquil atmosphere and friendly people. Retirees can enjoy a comfortable lifestyle on a modest budget, with access to excellent restaurants, fresh markets, and world-class golf courses.

The region offers many activities and cultural events, such as music festivals, art exhibitions, and traditional festivals. Nature lovers can enjoy hiking trails, birdwatching, and exploring the Ria Formosa Natural Park. Retirees can also use the region's excellent infrastructure, with modern roads, public transportation systems, and Faro Airport nearby.

Retire in Cascais or Estoril

Retiring in Portugal, especially in Cascais or Estoril, offers retirees a peaceful and luxurious lifestyle along the stunning Atlantic coast. Known as the Portuguese Riviera, these charming towns feature pristine beaches, vibrant culture, and excellent healthcare services, making them popular for retirees.

Cascais and Estoril have affordable housing options, from stylish apartments to luxurious villas, allowing retirees to enjoy their golden years comfortably. The region boasts world-class golf courses, high-end restaurants, and a lively arts scene, providing a fulfilling lifestyle.

With a mild climate and proximity to Lisbon's city center, non-EU residents can easily access the city’s attractions. Compared to other European countries, this area provides a unique blend of relaxation and culture, making it an ideal retirement destination.

Retire in Lisbon

Living in Lisbon, Portugal's vibrant capital, offers an exciting experience for retirees seeking a cultural lifestyle. This charming city is known for its stunning architecture, rich history, and lively culture, making it a popular choice.

Lisbon features excellent public transport and modern infrastructure, making it a comfortable place to live. Living costs are affordable compared to other European destinations, allowing retirees to enjoy activities like museums, theaters, and festivals.

Lisbon has a pleasant environment year-round with a mild climate and proximity to the Atlantic coast. Housing options range from historic buildings to modern apartments in the city center, ensuring retirees can find an affordable home where they can live comfortably.

Retire in Porto

Porto is Portugal's second city, offering retirees a vibrant lifestyle in a historic setting. Renowned for its stunning architecture, rich culture, delicious cuisine, and famous Port wine, Porto is a delightful option.

With excellent public transportation, getting around is easy for retirees. Enjoy activities from museums and theaters to river cruises and wine tours.

The city's mild climate and proximity to the Atlantic coast create a pleasant environment year-round. The historic old town provides endless exploration opportunities. Plus, real estate in Porto is more affordable than in Lisbon, with options ranging from traditional buildings to modern apartments. This makes real estate investments in Porto attractive for those seeking an affordable cost of living.

Retire in Braga

Braga is a beautiful city in northern Portugal and a UNESCO World Heritage site. With its rich history, vibrant culture, and stunning natural landscapes, Braga is an ideal choice for retirees seeking a peaceful and fulfilling lifestyle.

The city enjoys a mild climate, making it comfortable year-round. The cost of living in Braga is relatively low compared to other European cities, making it an affordable option for retirement. Plenty of leisure activities include museums, festivals, and outdoor pursuits.

Braga is also known for its safety and friendliness. It's free healthcare for Portuguese citizens, and excellent public services ensure a high quality of life.

GetNIF: Who We Are and How We Can Help You Retire in Portugal

If you're planning to retire in Portugal, getting started and setting up your new life can be overwhelming. Fortunately, GetNIFPortugal can make the adjustment easier and less time-consuming. As experienced professionals, we specialize in helping individuals immigrate to Portugal.

Two essential steps in getting started are obtaining a Portuguese tax number (NIF) and opening a bank account. These are necessary to conduct business transactions in the country. We can assist you in obtaining both of these essential items, making the move smoother.

With our help, you can get your NIF number and open a bank account from the comfort of your home before moving overseas. This puts you ahead of the game and makes the relocation process easier since you've already dealt with the two most critical steps. To begin your journey to sunny Portugal, don't hesitate to contact us for an initial consultation, and we'll guide you through your journey to retiring in Portugal.

Frequently Asked Questions About Retiring in Portugal

Can a US citizen retire to Portugal?

Yes, a US citizen can retire to Portugal by applying for a D7 visa, which requires proof of stable passive income such as Social Security or a pension. Portugal offers residency to retirees who meet financial and health insurance requirements, and many US retirees benefit from the country’s affordable living and tax incentives.

What are the pros of living in Portugal?

The pros of living in Portugal include a low cost of living, high quality healthcare, mild climate, low crime rates, and access to the EU. Portugal also offers a friendly culture, excellent food, and scenic landscapes. These benefits attract retirees, digital nomads, and families seeking a relaxed lifestyle.

What are the cons of living in Portugal?

The cons of living in Portugal include bureaucratic delays, limited English in rural areas, lower average wages, and slow public services. Some expats also face challenges with job opportunities and housing shortages in popular cities like Lisbon and Porto.

Where do most expats retire in Portugal?

Most expats retire in Portugal’s Algarve region, known for its sunny weather, coastal towns, and affordable living. Cities like Faro, Lagos, and Tavira are popular for their expat communities, quality healthcare, and relaxed lifestyle. Lisbon and Cascais also attract retirees seeking urban amenities near the coast.

Do retired expats pay taxes in Portugal?

Yes, retired expats pay taxes in Portugal, but many qualify for the Non-Habitual Resident (NHR) regime, which offers reduced tax rates or exemptions on foreign pension income for up to 10 years. Tax liability depends on residency status, income sources, and applicable tax treaties.

How much money do you need to retire comfortably in Portugal?

To retire comfortably in Portugal, you need around €1,300 to €2,000 per month for a single person, depending on location and lifestyle. Lisbon and Porto cost more, while smaller towns are cheaper. This amount covers housing, food, healthcare, and leisure for a modest but comfortable retirement.

Is it easy to retire in Portugal?

Yes, it is relatively easy to retire in Portugal due to its D7 visa program, which supports retirees with stable passive income. The process requires proof of income, health insurance, and a criminal background check. Portugal’s clear residency rules and expat-friendly policies simplify retirement relocation.

Is retiring to Portugal a good idea?

Yes, retiring to Portugal is a good idea for many due to its low cost of living, warm climate, high safety, and favorable tax options like the NHR regime. Portugal also offers quality healthcare, a relaxed lifestyle, and welcoming expat communities, making it ideal for retirement.

Do non-EU retirees need private health insurance in Portugal?

Yes, non-EU retirees need private health insurance to retire in Portugal. It is a requirement for the D7 visa and must cover medical expenses during their stay. While public healthcare becomes available after residency is granted, private insurance is essential for visa approval and initial coverage.

Can I collect Social Security if I retire in Portugal as a citizen?

Yes, you can collect U.S. Social Security benefits while living in Portugal as a U.S. citizen. The U.S. and Portugal have a bilateral agreement that allows benefit payments abroad. You must maintain eligibility and report any changes in address or status to the Social Security Administration.

What is the cheapest place to retire in Portugal?

The cheapest place to retire in Portugal is often the Alentejo region, where housing and daily expenses are lower than in Lisbon or the Algarve. Towns like Évora and Beja offer a quiet lifestyle, affordable rents, and access to healthcare, making them attractive to budget-conscious retirees.

What documents do U.S. citizens need to retire in Portugal?

U.S. citizens need a valid passport, proof of income, private health insurance, FBI background check, and a completed D7 visa application to retire in Portugal. Additional documents include a NIF number, Portuguese bank account, and proof of accommodation. All documents must be translated and apostilled.

How much does healthcare cost for retirees in Portugal?

Healthcare for retirees in Portugal costs around €50–€100 per month for private insurance, depending on age and coverage. Public healthcare is low-cost after residency, with small co-pays for doctor visits and prescriptions. Overall, healthcare in Portugal is affordable and accessible for most retirees.

Can retirees work part-time while living in Portugal?

Yes, retirees can work part-time while living in Portugal if they hold a valid residence permit, such as the D7 visa. There are no legal restrictions on part-time work for retirees, but income must be reported for tax purposes. Work must comply with Portuguese labor laws.

Can retirees eventually obtain Portuguese citizenship?

Yes, retirees can obtain Portuguese citizenship after legally residing in Portugal for at least five years. They must demonstrate basic knowledge of the Portuguese language, have no serious criminal record, and meet residency requirements. Citizenship grants full rights, including EU travel and healthcare access.