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Your Portugal Retirement is waiting. Find information on how to retire in Portugal, including costs, benefits, destinations, and much more.
Now, more and more North Americans are looking to retire in Portugal.
For decades, Portugal been one of the most popular retirement destinations. Especially for citizens of the U.K. and Northern Europe.
And, thanks to Portugal’s strong historic and cultural links with England, English is widely spoken in the country in general and even more so in the Algarve. Retirees here are able to get by without speaking much Portuguese, but the experience is obviously better if they make an effort to learn to communicate with the locals.
As part of the European Union, Portugal has much going for it:
Reviewed By Kathleen Peddicord
Kathleen is the Live and Invest Overseas Founding Publisher. She has more than 30 years of hands-on experience traveling, living, and buying property around the world.
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People are looking harder at Portugal as a retirement destination. One of the main reasons is because of the recent introduction of legislation. It eliminates local taxes on foreign pensions and other retirement income.
Portugal has a new Non-Habitual Resident regime.
Anyone who has not been resident in Portugal for the previous five tax years receives pensions and foreign-source income. Both free from local taxes for 10 years. This if the applicant’s home country has a double-taxation treaty with Portugal.
The United States, Canada and the United Kingdom all have such treaties in place. So, you can sign up with a local tax office once you have acquired the regular residence permits.
To qualify for the NHR regime, an individual must:
There are no special visa requirements for non-European Union retirees in Portugal. And, the process is the same whether you are 26 years old or 62 years old.
Most importantly, you need to start the process in your home country and it might take some time. Most applicants opt for a Type 1 Resident Visa to retire in Portugal. This is available from a Portuguese consulate abroad. But, you must get it within three months of moving to the country.
Once in-country, applicants have six months to apply for a Resident Permit. The permit is renewable every two years. And after five years you can convert it to a permanent residency permit.
For instance, citizens of the EU must apply for a residence permit at the local town hall. Or at an office of the immigration authorities. This is if you want to remain in Portugal for more than three months. And, you must do it within 30 days of arriving in the country.
The only requirement is proof that you can support yourself and a valid EU passport. The certificate is valid for five years.
The Golden Visa residency permit is available to non-EU citizens who:
Applicants need only stay in the country 7 days during the first year. And 14 days in the following two years. Family members can tag along. The initial permit is valid for five years.
After this applicants can apply for permanent residence. After six years they can apply for full Portuguese citizenship. In short, a great opportunity for retirement in Portugal.
Deciding where to retire in Portugal depends on the lifestyle you want, your budget, and your preferred climate. From Lisbon and Porto to the Algarve and Portugal’s quieter towns, each destination offers a different retirement experience. Here are some of the best places to retire in Portugal and what makes each one stand out.
Portugal is considered to be one of the best places to retire in Europe. As a matter of fact, it is one of the best places to retire in the world. The Algarve alone offers roughly 100 miles of coast offer 3,300 hours of sunshine each year and more sunny days than anywhere else in Europe.
Portugal is among the safest country in the world, and the Algarve region is perhaps the most crime-free in the country.
Blessed with warm sunny weather all year round (roughly 300 days of sunshine a year)… ringed by the Atlantic Ocean on one side and protected on the other by the calm, deep-blue waters of the Tagus River (the longest river in the Iberian Peninsula)… this sophisticated city seems to have it all. This is why Lisbon is one of the best places to retire in Portugal.
Few other destinations can boast the sophistication of a real city while also offering its residents a clean, swimmable beach.
Lisbon offers tranquil cheap living options and an authentic view into the past. You’ll enjoy its warm hospitality, friendly atmosphere… and one of the lowest costs of living in Western Europe.
The expat community in Portugal is well established, with the country estimating a total of 1.5 million expats. Approximately 77,000 to 82,000 of these expats are English speakers
English is the second most spoken language in the country. Almost everyone speaks English, and the older generations speak French, as well.
One of the best resources for expats here are the other expats. They all connect with each other using Internations, a global expat network with a local chapter in Cascais (20 kms from Lisbon).
To get involved, there are groups that organize outings in the regions they operate in. Internations is popular with expats around the world, and the Cascais chapter is as active as any.
Lisbon’s cultural life is rich and busy.
As a European capital, the city offers a diverse selection of entertainment options. Go to concerts, art museums, music festivals, the theater, and more.
The majority of theatres are located in the heart of Lisbon showing cutting edge plays almost every night.
Music also plays an important role in the day-to-day life of residents. Every year Lisbon hosts several summer festivals.
Be sure to check out the bookshop Ler Devagar, it’s an unconventional store and so much more than a place to buy a book. Here you can skim your books while enjoying a coffee and listening to music. If you’re lucky, you might even be there on one of the days when there’s an art exhibition, a play, a poetry reading, or a concert.
While it used to be completely public, austerity measures forced a huge cut in the health services budget. This resulted in the privatization of part of the system.
Every citizen and legal foreign resident who has registered with their local health center benefits from the national health care system gets coverage. This guarantees all basic health—accidents and illness.
The hospital network has modern, well-equipped units, and at least 90% of all doctors are English-speaking.
Specialty consultations at a public hospital will cost you about 7.75 euros and emergencies about 20.20 euros.
Lisbon’s lifestyle can be fast-paced… but also offers its residents quiet corners, tranquil parks, and stunning beaches to escape to. It’s also a cheap destination; a city this refined and worldly should come with a much higher price tag.
Globally known for its exquisite port wine and surrounded by the enchanting Douro Valley… this city is no stranger to accolades.
The Douro Valley itself is a UNESCO World Heritage Site. Named as such for being the first demarcated wine-producing region in the world.
Known as the Best Startup-Friendly City in Europe by the World Excellence Awards… awarded the World’s Best European Destination several times… and listed as a must-visit city by The Guardian.
You can see Porto’s broad mix of cultures and styles from one street to another, making it one of the best places to retire in Portugal.
Rental prices in Porto have increased over the past years. It’s rare to find an apartment for less than the minimum salary (580 euros), and if you do, it’ll be a loft.
Porto’s rental and property prices continue to be more affordable than Lisbon’s.
A couple’s average monthly expenses are:
The average cost of living for an individual in Porto is 1,500 euros (no luxuries but living comfortably). If you don’t own a house, you’ll need to rent a place long term while the bureaucracy of legalizing your stay takes place. And Portugal’s bureaucracy is not known for being particularly fast…
As always, your costs depend on your lifestyle.
Portugal is renowned for its health care—it’s the 12th best in the world according to the World Health Organization. Porto is no exception.
Porto’s public hospitals include Centro Hospitalar São João and Hospital de Santo António (named one of the best in the country). And in Gaia, about 1 km from the city center, there’s Centro Hospitalar de Vila Nova de Gaia.
The largest private hospitals are Hospital da Luz Arrábida and the CUF Porto Hospital. One of the most acclaimed hospitals is Lusíadas Porto (in the city center).
In Porto, the sun doesn’t shine as often as it does in other cities… You might find yourself missing it at some point. If it’s not raining, the weather here is usually gray, and the light can be a bit dull.
If you come from a big city, you might experience an adjustment period when you first arrive. Porto is like a big village full of houses… It’s peaceful and traditional but full of life. On Sundays, everyone eats in with their families, so eating out can be an issue.
Traffic is becoming chaotic in the city center—something to be aware of if moving here. Everyone knows everyone in Porto, which may be a good or bad thing depending on your preference.
Locals will become familiar with you very fast, wanting to know who you are, where you’re from, and your story.
You’ll feel right at home, and even if there’s a language barrier, they’ll overcome it without ever losing their personality.
Braga, in the far north of Portugal, is one of Europe’s oldest municipalities. It has been a city for over 2,000 years.
Today, it’s Portugal’s third-largest urban area, and it delivers an authentic Portuguese lifestyle—a tranquil and affordable way of life for expats.
Braga, in comparison, remains affordable. In fact, for its rich lifestyle, Braga is a downright bargain.
Known as the Rome of Portugal, Braga boasts numerous squares, baroque churches, and chapels… 162 in total.
The wonderfully constant sound of church bells is the soundtrack to daily life, and there’s something magical about that…
Braga’s expat community is connected and active. While not as large as in some areas of Portugal, its expat community has been organized and active for many years.
You won’t be isolated here as an expat. The community of international folks organizes social activities, like a café meetup at 11 a.m. on the second Saturday of every month.
Several Facebook groups let members know about book clubs, monthly dinners at different restaurants, hikes, wine tastings, concerts, etc., making it easy to make connections.
Braga is popular with expats from Brazil, France, Belgium, Germany, Spain, Ukraine, and the Americas.
Braga is affordable by most standards. A monthly budget of 2,645 euros ($2,855) is enough for a couple to live well.
For foreigners, especially North American retirees, Braga is considered very affordable.
Prices are completely reasonable (although our perspective comes from living near San Francisco, California—one of the most expensive cities in the world).
Braga’s main hospital within the national health system is Hospital de Braga. The modern hospital opened in 2011. It has 704 beds, 9 operating rooms, 8 delivery rooms, a midwifery area, a multipurpose intensive care unit, a neonatal intensive care unit, and an intensive care unit for neurosurgery.
Braga has several private hospitals, too:
Braga is an excellent choice in terms of health care.
Braga checks off many of the boxes that make an ideal retirement haven:
Europe’s most famous secret and our top choice for best places to retire in Portugal.
That’s how this part of the world is often described. Why? Because it has Europe’s best beaches, best golf courses, and friendliest folk.
It’s the chosen retirement destination for over 100,000 resident expats and it’s Europe’s newest tax haven.
If you’re ready to:
You have several options in eastern Algarve—one of the best places to retire in Portugal.
There’s been a huge increase in tourism in the country. Standard popular areas are getting too crowded and expensive for some. Thus, East Algarve is starting to come into its own.
Danish, Norwegians, Swedish, and French expats are buying properties up in Olhão and Tavira. A large group of British expats as well.
More Americans are also coming to Portugal and settling in this southeastern region.
Looking to meet other expats? The surest way to meet others wanting to integrate with locals is to join a language class. Consider using some of your time to volunteer for an organization that interests you.
Low cost of living comes from buying locally. Forego more expensive, imported items. That is true for everything from groceries to housewares.
Luckily, Portugal is self-sufficient as a country, so your savings will reflect that. Electronics and clothing can be exceptions. Even those are not unreasonable, given the savings elsewhere.
Private insurance means faster appointment times. It also means English-speaking health care providers to choose from. Use the public system for ongoing issues and private insurance for other situations.
Faro has two private hospitals. Loulé has one. Vilamoura has a private clinic; Olhão, as well. Tavira has both public and private medical clinics.
Eastern Algarve is perfect for those with a love of nature and the outdoors. You can enjoy the sunshine and outdoor activities in the warm weather and laid-back life near the sea. The pace is yours and can be dialed up or down, depending on your wants and needs.
There’re outdoor activities to keep all family members busy abound. Or you can find a quiet spot (yes, they still exist) and do nothing but watch and listen to the nature around you.
If that’s too quiet for you, check out the local festivals, like in Loulé. But this is not the party or nightclub area of the Algarve. If all these sounds right for you, it might be the best place to retire in Portugal.
Silves and Lagoa are a mix between the Algarve’s historical roots and its famous beaches.
These two municipalities are located in Portugal’s southernmost province. Its residents are able to experience the best the area has to offer.
Silves has two beaches, Armação de Pera and Praia Grande. They have blue flags awarded by the European Blue Flag association.
Lagoa has 17 spectacular beaches. Some need you to descend large flights of stairs into wondrous cliff-enclosed coves bathed by azure waters. Others allow you to pull up and stroll out onto the light-colored sand.
Most beaches have lifeguards during the summer season. Many have restaurants or snack bars, some of which stay open all year round.
Fatacil is the largest showground in the province. It hosts several large events during the year.
The most popular for expats is the International Algarve Fair held in June every year. It unites the local and expat community around a variety of activities, shows, services, and food and beverage.
Larger still is the summer fair held in August. It has daily live concerts by top national (and often international) artists. At a few euros a ticket per day, you won’t find better value for money on a sultry summer night.
You can make the most of the great weather by going to open-air jazz and classical concerts. They happen throughout the year, but mainly from spring through fall. Most are free.
The Algarve is an obvious option if you want:
U.S. Medicare is not honored in Portugal. But the standards of health care are excellent in most parts of the country.
The health care system ranks among the world’s top 20 in performance by the World Health Organization. And this is considered by many as a main reason to retire in Portugal.
The terms that apply to Portuguese citizens also apply to Portuguese residents.
In short, these residents must be citizens of EU countries, and they need to file an application. Non-EU residents that apply need medical insurance to retire in Portugal.
Above all, the cost of living in Portugal is among the lowest in Western Europe. On average 30% lower than in any other country of the region.
A retired couple could live here comfortably but modestly on a budget of US$1,500 per month.
With a budget of US$2,000 per month or more, you could retire in Portugal… with an appointed lifestyle in the heart of the Old World.
Real estate in Portugal is undervalued and among the most affordable in Europe. It has one of the most favorable price-to-rent ratios (a measure of the profitability of owning a house). And most favorable price-to-income ratios (a measure of affordability) in the region.
In short, housing is cheaper to buy… and investors can make more money from rentals than in many other European countries.
When it came to an overseas retirement, Mandy and Peter knew what they were looking for…
“We wanted to retire somewhere where the weather is better, the pace of life is slower, and the quality of life is higher,” says Mandy. “We’d come to Portugal for years on vacation and the whole family loved it.”
For instance, the couple chose to settle in the interior of the Algarve. The closest city is Loulé. The Algarve is famous for its long coastline and super-sunny weather, so why would anyone relocate here and not choose to live by the sea?
Mandy explains, “We wanted to live here year-round, and we were very aware that the coast could be touristy with lots of holiday-goers. It’s packed out in July and August but empty in the winter.
“Some of the housing complexes are very quiet because people have gone away. We wanted to be somewhere we could live all year with a stable community nearby. Also, we wanted to embrace the Portuguese lifestyle and its people. Most importantly, we wanted to be in authentic Portugal rather than on the coast, where you could be anywhere in Europe, really. For example, in July and August, when it’s very busy, you’ve got the option of going down there. But at the same time, even during the peak of tourist season, it’s quiet here. It’s bliss.”
“You can easily get around, too. And, we really like the people here,” Peter adds. “And it’s less expensive in this area…”
“We knew we wanted to be inland,” says Mandy. “We had been here before, as a friend retired early and introduced us to this area. It’s not too far from civilization… if you want it. In the nearest town there’s a post office, a doctor, supermarket, etc. It’s well-situated. We’re near enough to the motorway up to Lisbon, but not affected by all the traffic.
“We love the view here inland, the lifestyle is very relaxing, and it’s not expensive…
“The local people are wonderful and have embraced us. We’ve never had any issues. People couldn’t be more helpful and there are quite a few expats living near us. There are a lot of like-minded people. I think anywhere in Portugal you’ll find expats nearby, but that wasn’t why we chose to be here. It evolved.”
Peter adds: “We love the climate here. It’s peaceful, and we can be most places on the coast in 20 minutes.”
Peter chuckles when asked: What do you do in a typical day? “I get asked that a lot. It varies quite a bit. We don’t set an alarm clock anymore. It’s all about relaxation. We’ve got the time to do things for ourselves now, and we can do things more thoroughly. We’ve got a garden, which we never had time for before. We go to northern Portugal and Spain, do a bit of traveling…
“We do quite a lot of walking. We spend time down at the marina. It’s nice; the best of both worlds. You’ve got the coast if you want it, and then, if you want a break, you go to the city.
“We work out, try to keep healthy. Everything is on our doorstep, here. And the great thing is, there aren’t many people or much traffic, and most of the roads have been improved.”
Mandy continues, “We can travel throughout Europe. We’ve just got so much to choose from. We’re enjoying not being up against it, time-wise… doing the things we never had time to do. Then we have the family. We have a lot of visitors. It’s quite busy, but a nice lifestyle.
“Life is so different over here. We spend more time outdoors. Many people play golf, go to the beach… there are so many options…”.
Reviewed By Kathleen Peddicord
Kathleen is the Live and Invest Overseas Founding Publisher. She has more than 30 years of hands-on experience traveling, living, and buying property around the world.
Start Your New Overseas Life Today
A world full of fun, adventure, and profit awaits! Sign up for our free daily e-letter, Overseas Opportunity Letter, and we’ll send you a FREE report on the 12 Best Places To Retire Overseas In 2026
We Value Your Privacy! We will not share your email address with anyone else, period.
Above all, the cost of living in Portugal is among the lowest in Western Europe. On average 30% lower than in any other country of the region.
It is possible to retire in Portugal on US$2,000 a month, especially in cheaper areas. This amount can pay for basic needs like housing, food, transport, and bills. But, you may need to budget wisely and adjust your lifestyle based on your personal situation and choices.
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