Retire to Portugal
Portugal has long been a nation that attracts explorers and travellers, so it’s no wonder that so many international buyers choose to retire to Portugal.
For more information about retiring to Portugal – from arranging your finances to paying Portuguese tax – download your free copy of the ‘How to Retire to Portugal’ guide.
The appeal of Portugal for retirees
Affordable living
For those on a fixed income, and one lower than when working, Portugal is an opportunity to live better on less. Everyday expenses like groceries and utility bills are more affordable in Portugal. In the Property Guides Cost of Living Overseas Index 2024, Portugal was the third cheapest country out of 12 surveyed countries for a range of living and household expenses.
Gorgeous climate
If it’s sun you’re after, you’ll won’t be disappointed by the weather in Portugal. The Algarve, on the south coast, enjoys average temperatures around 20°C-21°C all year round and the capital, Lisbon, isn’t far off that. The hottest temperatures are in peak summer in August and winters are relatively mild across the country.
To avoid the heat of summer, consider the island of Madeira where temperatures are moderated by sea breezes.
Easy to reach
A major benefit of living in Portugal is its fantastic connections to the rest of the world. There are three main airports in the north, middle and south of the country: Porto, Lisbon and Faro. Each offers easy access to the rest of the world and, even better, they operate international flights all year.
Some routes are seasonal, but plenty run year-round (unlike to many Mediterranean destinations). This is a huge benefit to those looking to split their time between Portugal and another country or have family visit them when they retire to Portugal.
A ready-made community
Portugal has long been a desirable location for expats from all four corners of the world. There is a large expatriate community, especially in the Algarve, but Portugal rarely feels overrun.
So while you’ll be living in a foreign country, and Portuguese is not a language that many of us learnt in school, you’ll never be far from a friendly face and someone to chat with.
Residency & visa options for retirees in Portugal
If you’re a non-EU/EEA or Swiss citizen, you’ll need a visa to live in Portugal. The most popular option for retirees in Portugal is the D7 visa which is also known as the “retirement visa”.
Requirements
Alongside the basic visa requirements and essential documents , you will need to meet the minimum “passive income” requirements to qualify for the D7. This income can come from savings, royalties, dividends, pensions or intellectual property.
The minimum requirement for an individual was just under €10,000 in 2024. For a couple, you’ll need to add an additional 50% and 30% for each dependent child.
How to apply
The D7 visa application is a two-stage process. Before applying you must get your Portuguese tax number (NIF) and open a Portuguese bank account. Therefore, you will need to have found a place to live in Portugal and have a rental document or property ownership documents. You should also provide a cover letter, explaining why you wish to move to Portugal.
Step one: To apply for a D7 visa you’ll be required to visit your nearest Portuguese consulate or embassy in your home country. They will arrange a meeting with Portugal’s Immigration and Borders Service, the AIMA.
Please note: If you’re currently living overseas, you will have to return to the country where you’re a registered citizen to apply.
Step two: When you get to Portugal, you will need to apply for a D7 residence permit. To do this you’ll need to visit your closest Immigration and Border Services (SEF) in Portugal with your visa and essential documents.
Validity
Once you’ve validated your residence permit in Portugal, it will be valid for two years and you can then extend it for another three years. After five years, you’ll be able to apply for permanent residency.
Once you’ve been granted a D7 residence permit, you’ll need to reside in Portugal for at least six months and one day for it to be valid. This can be in the form of 183 consecutive days in Portugal or eight months with various breaks throughout the year.
Cost: €80 for the entry visa application at the consulate in your home country, then €170 to submit and receive your residency permit from AIMA when you arrive in Portugal.
For insight into other visa routes for those looking to move to Portugal, check out our visa & residency page
Healthcare
If you are able to claim state healthcare by becoming a legal resident and contributing to Portugal’s social security system (paying relevant taxes), Portugal’s national health service is the Serviço Nacional de Saúde (SNS). Once you’ve registered, you’ll get a health number (número de utente de saúde). You will still have to pay small ‘user fees’ (taxas moderadoras) for everything from tests to GP visits.
For the non-EU citizens retiring there, bear in mind that you cannot rely on your Global Health Insurance Card (GHIC), as this only covers emergency treatment.
Before you move to Portugal, collate copies of your up-to-date medical records from your own doctor, so that your new care providers have access to all your accurate data straightaway. There may be an app on your phone for this, however, your records will need to be understood by a Portuguese doctor.
If you’d like to receive quicker treatment than you would under the SNS, then you may choose to pay for a private medical clinic instead. The primary reason for using private facilities in Portugal is a simple matter of convenience. If an appointment could involve waiting half a day or more, or driving to a hospital 50 miles away, it can prove cheaper for working people to pay for private care than it would to miss out on that day’s income.
Please note: Most retirees in Portugal will be on the D7 visa, which requires you to have private health insurance for the duration of its validity.
The best places to retire in Portugal
The Algarve
Planning to spend your retirement in the Algarve? You won’t be alone. It’s rapidly becoming one of the world’s favourite retirement hotspots.
There’s a year-round sunny climate and a host of attractions and amenities – covering everything from sports to shopping. The infrastructure is well established and transport links are frequent and reliable. Best of all, there’s already a welcoming community of overseas residents to join.
Lagos
Located towards the far west of the Algarve, Lagos is perhaps the most cosmopolitan town in the area. If retirement to you means a state-of-the-art marina apartment with a boat outside, Lagos can deliver. On the other hand, if you’re seeking a bohemian lifestyle in a rustic central townhouse, that’s also an option.
You have the same variety when it comes to beaches, with both sparkling coves and wide expanses of sandy beaches. Lagos is a popular destination for tourists from all over the world and it has a level of facilities to match the demand.
Property here is hugely varied. Like many Algarve towns, there’s a mix of traditional town centre homes, modern apartments and developments. You’ll also find plenty of detached villas in the surrounding area.
Tavira
The small eastern Algarve city of Tavira is increasingly popular with international residents. Despite this, it’s never lost its authentic Portuguese feel.
Tavira is packed with history. It’s a place where you can get lost in mazes of cobbled streets and discover a new church or interesting ruin on every wander. There’s an award-winning beach just minutes away. You’ll also be pleased to find plenty of modern amenities, including a large mall, which add practicality in contrast with the very traditional old town.
The mix of ancient and modern is relevant to the property market too. The town centre has plenty of traditional townhouses and rustic renovation projects on offer. Alternatively, there are lots of modern developments on the outskirts, if you’d prefer a new home.
Olhão
Olhão is a rather less obvious choice for retirement in the Algarve. At heart, Olhão is an authentic, working Portuguese town – not an expat hotspot. If you want to truly integrate and enjoy Portuguese life, Olhão is a great place to be.
Famous for its annual shellfish festival, Olhão is a hub for fishing. It’s also a great place for boating and other water sports. Some of Portugal’s most stunning island beaches are just off the coast, accessible by ferries and water taxis.
There’s plenty of traditional property here, but more modern options are popping up too. These include a high-profile marina development at the western end of the waterfront.
Vilamoura
If an active retirement in the Algarve is what you’re looking for, Vilamoura is the perfect place for you. Purpose-built as a leisure destination, it’s one of the largest such resorts in Europe.
You can cycle around the huge network of paths, take a leisurely walk around the marina or make a beeline for any one of the world-class golf clubs in the area. Vilamoura is ideal for energetic retirees, regardless of what “active” specifically means to you.
Unsurprisingly, Vilamoura excels when it comes to other facilities too. There are dozens of bars and restaurants – ranging from rustic Portuguese to “high-end” international. There’s no shortage of shops either. Vilamoura’s location half-way between Faro and Albuferia also places the Algarve’s largest malls within very easy reach.
Carvoeiro
Carvoeiro’s cove beach exactly matches what many people expect the Algarve to look like. The town ticks all the boxes when it comes to retirement in the Algarve, too.
There’s an established community of overseas residents here, with plenty of retirees from Holland and Germany, as well as those from the UK. The attractions of the area are clear: some of the Algarve’s most spectacular rocky coastlines, fabulous sea-view golf courses and a huge range of homes on offer. Properties range from small town-centre apartments to gated villas with heaps of privacy and their own land.
If you enjoy diving and snorkelling, you’ll find some fabulous spots along this part of the coast. There are cave and grotto networks to discover and even a snorkelling trail nearby Praia de Marinha.
Cascais
Pricey by Portuguese standards but affordable when compared with elsewhere in Europe, Cascais attracts the global jetsetter, yet somehow maintains a down-to-earth feel, which might appeal to retirees. The beaches are beautiful (if rather busy in summer) and the promenade walk between Cascais and neighbouring Estoril is a daily “must” for locals. Cascais is both a suburb of Lisbon and a beach destination. Portugal’s capital is just 30 minutes away in one direction, with cliffs, surfing and solitude if you head the other way.
Funchal, Madeira
Madeira’s thoroughly shaken off its once-fusty image and emerged as a desirable island destination. With a climate described as “eternal spring,” retiring here is your best chance of having access to year-round sunshine.
Funchal is the island’s capital and within easy reach of the island’s airport. The city is compact and walkable, and dotted with green spaces. If you add in a trip to Funchal’s incredible fresh food market, you will truly feel that you’re living the good life!
Aveiro
Aveiro, often seen as the most northern part of Portugal’s Silver Coast, is a quirky and intriguing city. It’s sometimes referred to as the “Venice of Portugal” due to its canal network. The canals are dotted with “moliceiro” boats, once used to gather seaweed. A system of lagoons feeds the canals, and magnificent beaches are just a stone’s throw away.
Two well-known beach resorts in Aveiro are Costa Nova and Costa Barra. Each is a small village in itself with miles of white sand on the beach. They’re easy to reach from Aveiro thanks to frequent buses.
Aveiro is less than an hour from Porto by road. There are train connections both north to Porto and south to Coimbra and Lisbon. Although the city is relatively far north, it still enjoys a mild climate all year-round. If the heat of the Algarve is sometimes too much, you could find this area a more sensible option for retirees in Portugal.
