Best Places to Retire in Portugal
Is Portugal a good place to retire? Portugal is a great country to consider for retirement with its many attractions. Starting with the warm weather, it is also less expensive than almost any other place in western Europe. There is an extensive coastline on the Atlantic. And it might be easier to retire here as a non-EU resident than many other places.
Can U.S. citizens become a resident in Portugal. Anyone can live in Portugal for up to 3 months, after that it gets more complicated. If you are a citizen in the EU becoming a legal resident will be easy. In most cases you need to apply and provide proof that you can support yourself, a current passport. For non EU citizens you can apply for a 1 year temporary residency permit, which is renewable for 2 year periods. After 5 years you can apply for permanent residency. For retirees from the U.S. and non EU countries, the popular Golden Residency Permit, which applied to individuals who invest more than 1 million Euros, or create 10 jobs, or purchase real estate worth more than 500,000 Euros, was greatly modified in 2023. People who secured the permit previously are unaffected. It appears that the real estate provision will be eliminated, mainly because foreigners coming into the country have caused disruptions to the real estate market.
Is Portugal a safe place to live? In general Portugal is a very safe country. This is what the gov.UK says about crime in Portugal: “Beware of street crime. Thieves tend to target money and passports so don’t keep them all in one place.” There is a risk of terrorism. According to Wikipedia, Portugal’s security and peace indicators compare very favourably to other countries. According to the 2012 Global Peace Index rankings, Portugal is the 6th most peaceful country in the world.
What are the Taxes like in Portugal. As a resident of Portugal you are subject to Portuguese taxation. Non-residents might have to pay some taxes. Portugal subscribes to the convention on double taxation, so you won’t have to pay taxes twice on your income.
Is Portugal’s Healthcare system good? US Medicare is not honored in Portugal. However medical care is excellent in most parts of the country. Health care is provided at no cost to residents. The Portuguese Health Care System was ranked number 17 in overall performance by the World Health Organization in a 2021 report. Residents of Portugal who are citizens of EU countries are covered on the same terms as Portuguese citizens, although you have to apply. Visitors are entitled to emergency treatment. Non EU residents should have some kind of medical insurance.
What Is Portugal a good place to retire on a budget? Portugal ranks 66th highest country in the world for cost of living, so it is much cheaper than living in the U.S., or even Panama. The numbeo.com price comparison (CPI plus rent) shows with an index of 45, vs. the U.S. with 72 and UK at 62. The Cost of living in Portugal is, on average, 36.4% lower than in United States.
What are Portugal’s Best Places to Retire? See the list of the Portuguese cities we have reviewed in the top right hand column. For reasons of atmosphere plus familarity many retirees prefer to live in small towns popular with expats. Cities have plenty of attractions and living options, although they will generally be more expensive. Smaller towns like Evora and Merida feature Roman ruins and can be very nice places to retire. Coastal towns and cities are very popular with retiring expats. The Algarve is a region with at least 16 municipalities on the southeast coast famous for its beaches and rugged cliffs. See our “Portugal and Spain Adventure” article for more.
What are the Pluses and Minuses of retiring in Portugal? Portugal is definitely a cheaper alternative than the UK and France. The weather is warmer than most of Europe. There are any number of places to live where expats will feel comfortable. The economy had been under pressure with high levels of unemployment, but growing tourism is definitely helping.
Is Portugal’s Weather good?The Mediterranean climate is generally mild except in the mountainous areas of the country.
