Retiring in Portugal in 2026: Complete guide for retirees

9 benefits of retiring in Portugal

1. Residency for retirees. Portugal offers special visa programs which make it comfortable for retirees to move. Non-EU citizens can take advantage of the Portuguese residence permit programs which are the D7 retirement visa and Golden Visa program.

The programs have been available since 2007 and 2012, respectively, and attract foreigners from all over the world. Since 2012, Portugal has issued more than 14,000 residence permits by investment.

EU, EEA and EFTA citizens do not need a visa to get a residence permit in Portugal. They need only to apply for a Registration certificate.

2. Low cost of living. In comparison with the US and the UK, life in Portugal is 30—50% cheaper. To maintain the same standard of living, one needs around €4,500 in Lisbon and €8,000 in Washington and London.

3. High-quality health care. According to International Living's Annual Global Retirement Index 2024, Portugal ranks first in healthcare. Life expectancy here is 81 years compared to the US, where the average lifespan is 76 years.

Due to the widespread English language in the country, physicians speak English as well, making it easier for retirees to seek treatment in Portuguese hospitals.

4. Portugal’s favourable inheritance law. Portugal has a forced heirship system, meaning that a portion of the deceased's estate in Portugal is reserved by law for legitimate heirs. Those are spouses, children, and sometimes parents of the deceased. Their share is secured, as they are entitled to receive at least 50% of the estate.

Direct family members are exempt from inheritance tax. For other heirs, the tax rate is 10%. 

A will in Portugal adheres to international standards, allowing foreigners residing in Portugal to create a valid will for assets located both domestically and abroad. A foreign retiree can draft a single document in Portugal that remains valid in their home country. Alternatively, it is possible to maintain separate wills in each country.

5. Peaceful and safe environment. According to the Global Peace Index 2024, Portugal is 7th among the safest countries in the world. Ranking takes into consideration the level of social safety and security, political instability, and level of crime.

6. Travelling around Europe visa‑free. Portuguese residents can travel to the countries of the Schengen Area without visas and spend up to 90 days out of 180 there. It takes about 6 hours by car from Lisbon to Madrid. Travel to Spain is also possible by ferry.

7. Citizenship in 5 years. Retirees can apply for citizenship after 5 years of holding residence permits in Portugal. Unlike other applicants, individuals aged 60 and above are exempt from taking the Portuguese language test. 

With a Portugal passport, one gets visa-free access to 172 countries. Portuguese citizens are free to live, work and study in any European country without limitations.

8. Mild climate. The average temperature in Portugal is +16°C in winter and +30°C in summer. Retirees benefit from the warm Mediterranean climate throughout the whole year by doing physical activities. They go jogging along the beaches, go Nordic walking, hiking, swim in the ocean, play golf, and ride bicycles.

9. Clean environment. Portugal ranks 18th among the greenest countries in the world, according to the Green Future Index 2023. Ranking takes into account carbon emissions, energy transition, green society, clean innovation, and climate policy. Being surrounded by lush trees and breathing fresh air contributes to better health.

Cost of living in Portugal

Life in Lisbon and Cascais costs around €3,500—4,000 per month, including rent. In Porto and Lagos, the sum is about €2,500. 

To maintain the same standard of living in the UK or the US, one will spend 40% more than in Lisbon or Porto. Approximately €6,500 per month is required to live in London or Washington, DC.

Average prices for products and services in Portugal, the US and the UK

Food and services	Portugal	US	UK
Renting a 3‑bedroom apartment in the city centre	€1,600	€2,900	€2,100
Utilities for an 85 m2 apartment	€115	€200	€290
Local cheese	€10	€13	€8.60
Chicken fillets	€7	€12	€8
Bottle of wine	€5	€15	€10
Eggs	€2.60	€4	€3.50
Onions, apples, tomatoes	€2	€3—5	€2—3
Loaf of bread	€1.40	€3.60	€1.50
Bananas	€1.30	€1.60	€1.40
Milk	€0.90	€1	€1.50
3-course meal for two in a mid‑range restaurant	€45	€75	€80
Cappuccino	€1.90	€5	€4
A monthly pass to the fitness club	€40	€46	€40
Ticket to the cinema	€8—9	€14	€12
Internet	€40	€70	€37
Mobile phone monthly plan	€20	€57	€15

Residential programs for retirees in Portugal

Portugal D7 Visa is also known as the Portugal Retirement Visa, or the Passive Income Visa. It is suitable for those having a passive income outside Portugal: pension, rentals, dividends, interest, or royalties. 

The passive income must be no less than the monthly minimum wage in Portugal. In 2026, it's €920. The retiree needs to show a Portuguese bank statement indicating a balance of at least 12 times the monthly minimum wage in Portugal, totalling €11,040. After getting a residence permit, retirees can access and utilise these funds.

Another requirement for residency in Portugal is to purchase or rent a property and establish a registered address within the country. There are no stipulations regarding the cost of the housing.

A retiree can include family members in the application: a spouse, children, and parents. If relatives get visas with the main applicant, the required income increases by 50% for a spouse and 30% for each child.

Examples of real estate in Portugal

Portugal Golden Visa program aims to attract investment in the country's economy. Since the launch of the program in 2012, around 32,000 foreigners, with their families, obtained residence permits in Portugal.

There are several options to make a sufficient donation: 

1. Supporting arts and restoring cultural heritage — €250,000+.
2. Investment in research activities — €500,000+.
3. Purchase of investment fund units — €500,000+.
4. Business investment with the creation of at least 5 jobs — €500,000+.
5. Opening a company with the creation of at least 10 jobs. The minimum investment is not specified.

The most popular option involves the purchase of investment fund units. The fund invests money in selected assets, such as commercial real estate, Portuguese companies, industrial facilities or the European stock market.

Spouses and children up to 26 years old can participate together with the main applicant. This does not affect the amount of investment.

Who can retire in Portugal?

To retire in Portugal, non-EU citizens need to receive a residence permit. It takes about 4 months to obtain a residence permit through the D7 visa and 8—10 months with the Golden Visa.

Eligibility criteria for the D7 visa. Foreigners who apply for a D7 visa must be over 18, have no convictions, have a passive income of at least €920 per month from sources outside Portugal and buy or rent real estate in Portugal.

Relatives can be included in the D7 application:

• a spouse — in official marriage or registered partnership with the main applicant, with no criminal records;
• children under 18;
• children aged 18 to 21 — unmarried and unemployed;
• disabled children of any age;
• parents — financially dependent on the main applicant.

Eligibility criteria for the Golden Visa. Applicants must be over 18, with medical insurance, with no criminal records or persecutions and no debts in Portugal. They are required to confirm the legality of income and prove the money for investments is earned outside Portugal.

Relatives who can participate with the investor include:

• spouse;
• children under 18;
• children aged 18 to 26 — either financially dependent on the investor or enrolled at the university;
• parents — financially dependent on the investor;
• siblings under 26 — in the investor’s custody.

To apply for a visa, foreigners submit documents at the Portuguese consulate of their country. After arriving in Portugal, they apply for residence at the Agency for Integration, Migration and Asylum, AIMA.

The first residence permit card is valid for 2 years. It can be extended for another 3 years. After 5 years of living in Portugal, residents are eligible to apply for citizenship by naturalisation.

Requirements for the EU, EEA, and EFTA citizens. To retire in Portugal, they need to receive a Registration certificate from the AIMA. They apply for the registration certificate at the local council within 30 days after arriving in Portugal. The fee is €15.

Documents required for the retirees are health insurance and proof they have enough income to support themselves.

The Registration certificate is valid for 5 years.

Necessary documents for retirees to apply for a residence permit in Portugal

The standard package of documents includes:

1. An international passport.
2. A medical insurance policy.
3. Two colour photos.
4. A police clearance certificate from the country of origin.
5. A lease or purchase agreement for real estate.
6. NIF registration certificate.
7. Marriage, divorce or birth certificates.

Golden Visa applicants also provide documents related to the investment.

How to move to Portugal and how fast you can do it via the D7 visa

How to retire in Portugal from the UK

Portugal has become an appealing place for UK retirees, especially after Brexit. UK citizens here seek affordable living costs, which are sometimes up to 50% lower than in the UK, particularly for renting apartments. UK retirees are especially attracted to the annual sunny hours — around 3,500 in Portugal, compared to just 1,400 in the UK.

UK citizens do not need a visa if they plan to travel to Portugal as tourists. However, if they intend to stay in the country for longer than 90 days, they are required to obtain a residence permit. This is possible through a D7 retirement visa or a Golden Visa program.

Transport. The flight time from London to Lisbon is approximately 2.5 to 3 hours. Prices for tickets start at €100, including luggage.

By car, it takes about 20 to 23 hours to reach the capital of Portugal from the UK.

Moving belongings from the UK to Portugal is often carried out by shipping in a container via sea freight. The cost of shipping items from the UK to Portugal typically averages around €2,800, with variations depending on distance and volume. Popular companies include Getamover and GB Liners.

How to retire in Portugal from the US

US citizens choose Portugal for retirement due to its relaxed pace of life, welcoming citizens, and lower cost of living. Additionally, Portugal ranks in the top 10 safest countries in the world, making it an attractive retirement destination for US citizens. In contrast, the USA ranks 132nd in the Global Peace Index 2024.

Transport. A direct flight from Washington to Lisbon takes about 7—8 hours and costs around $900, or €864, including luggage. If travelling from New York, one can find tickets for $500, or €480, although these generally include a stopover, for example, in Spain.

For those wishing to combine business with pleasure, taking a cruise from the USA to Portugal offers a romantic way to relocate to this long-desired country.

Moving belongings becomes convenient with specialised shipping companies such as SDC International Movers. They assist in transferring not only household items but also delicate ones such as pianos or artwork

If shipping a car to Portugal, the vehicle must have been in the owner's possession for a minimum of six months before importation. Required documents include registration documentation, title, international driver's licence, proof of insurance, purchase invoice, passport, and a valid visa. The cost of shipping a vehicle to Portugal from the USA typically ranges between $3,000 and $4,500, or €2,880—4,320.

How to retire in Portugal from Canada

Portugal is a popular country for Canadian retirees to settle in due to its beautiful landscapes and warm weather. It is an attractive destination for those seeking more sun compared to Canada’s colder climate. 

Portugal offers a lower cost of living compared to many Canadian cities, with estimated monthly costs without rent for a single person being around €680 compared to €960 in Canada. Renting is also more affordable in Portugal, one‑bedroom apartment in the city centre being €930 per month, while in Canada, a similar apartment is €1,230.

Canadian citizens can enter Portugal without a visa for short visits of up to 90 days. For those wishing to stay longer, a residence permit is required. Retirees often choose the D7 visa, which is designed for individuals with a stable income, such as pensions, or the Golden Visa, which provides a path to residency through investment in property or business.

Transport. A direct flight from Toronto to Lisbon takes about 7 hours, with ticket prices starting from €570, including luggage. Flights from Vancouver may take around 11—15 hours with a stopover, typically in Toronto, Montreal, or European cities such as Frankfurt or London.

Moving belongings can be easily arranged through international moving companies like AMJ Campbell, Armstrong, or Crown Relocations. Shipping costs depend on the volume and distance. For a small to medium household move, e.g., a few boxes or a partial container, the cost could fall within the €1,600 to €2,700 range. However, for larger shipments, like a full container or a large house costs can easily exceed €3,300—6,600.

For those shipping a car, the vehicle must meet Portugal’s import requirements, including ownership for at least six months, compliance with EU emissions and safety standards, and payment of VAT and customs duties. The cost of shipping a car from Canada to Portugal usually ranges from €2,000 to €3,300.

5 best cities in Portugal to retire

1. Lisbon suburbs such as Costa da Caparica and Charneca da Caparica are only 30 minutes away from Lisbon by car. They extend along Lisbon's coastline and are much more peaceful than the hectic capital of Portugal.

Settling in such areas allows one to enjoy the tranquillity of daily life while still having access to all the necessary services a big city provides, such as malls, hospitals, good restaurants, and entertainment activities.

2. Porto, the second largest city in Portugal and the birthplace of port wine, attracts both foreigners and locals to its popular wineries, such as Soalheiro, Churchill’s Lodge, and Quinta de Covela. Porto's infrastructure blends elegantly with its parks, boulevards, and gardens adorned with fountains and statues.

This city is ideal for foreigners who enjoy spending romantic evenings surrounded by locals casually walking and drinking.

3. Cascais is a wonderful place to enjoy enriching activities. It offers numerous routes for leisurely walks, golf courses, embankments with yachts, farms with animals, and spas. For retirees fond of history and art, there is a special district called the Museum Quarter.

Cascais is just a 30-minute drive from Lisbon. This proximity to the capital city means that retirees can easily access international airports, additional healthcare facilities, cultural activities, and shopping.

4. Lagos, known for its rocky cliffs and crystal-clear waters, is one of the most beautiful places in Portugal. Here, one can go kayaking or diving and enjoy the sunset while looking for dolphins in the ocean. Not only is the coastal side of Lagos charming, but also the city itself, with its narrow streets lined with colourful houses and historical sites, is cosy and pleasant for walking.

5. Coimbra, the medieval capital of Portugal, is a charming and historic city located in central Portugal. Known for its prestigious University of Coimbra, one of the oldest in Europe, the city offers a mix of academic energy and traditional Portuguese culture. Visitors and residents can explore iconic landmarks such as the Baroque Joanina Library, the Old Cathedral of Coimbra, and the picturesque Mondego River.

The city is full of beautiful parks, picturesque riverfronts, and cobbled streets lined with historic buildings. Retirees can enjoy a relaxed lifestyle here, with easy access to cultural activities, local markets, and cafes. Coimbra also offers a more affordable cost of living compared to larger cities like Lisbon and Porto, making it an attractive destination for those seeking a quieter, more budget-friendly retirement.

Taxes for retirees in Portugal

Retirees in Portugal may need to pay income tax, property taxes, and taxes on investment income. However, the country offers some tax exemptions for pension income.

Income taxes. Pension income up to €4,462.15 is tax-exempt. In addition, a flat tax rate of 10% is applicable on pensions from a foreign source, as well as to other payments from pension funds and similar retirement schemes. 

For income sourced locally, Portugal applies a progressive income tax system, with rates ranging from 13% to 48%.

Wealth and investment taxes. Investment income, such as dividends and interest, is taxed at a flat rate of 28%. Capital gains from selling securities are taxed at 50% of the gain. Owners of high-value properties pay an annual tax ranging from 0.7% to 1.5%, depending on the property’s assessed value.

There is no wealth tax in Portugal.

Other taxes. Retirees should also be aware of municipal property taxes, which vary by location and are based on the property’s value. These taxes can range from 0.3% to 0.8%. 

There is a 10% stamp duty on inheritance, but direct family members, such as spouses, children, and parents, are exempt.

Additionally, purchases of goods and services are subject to VAT at a general rate of 23%, with reduced rates for certain items.

Avoiding dual taxation. Portugal has signed tax treaties with 80 countries, including the US, the UK, and Canada. These agreements prevent retirees from being taxed twice on the same income. For example, pension income from these countries may be taxed at a reduced rate or exempt from taxation in one of the states, depending on the treaty’s provisions.

Tips for retirees when moving to Portugal

Portuguese society is open-minded, warm, and friendly. People lead a slow‑paced life, valuing rest, simplicity, and time with friends and family. Locals don't sweat the small stuff and often arrive late to meetings.

Local cuisine features seafood and offers a healthy Mediterranean diet. Portuguese people enjoy desserts. After the main course, they typically have the popular Pastel de nata, a custard tart flavoured with lemon and cinnamon. Black coffee is popular, and Portuguese wines, including port wine, are some of the best in the world.

Portuguese culture is vibrant and colourful, with holidays often featuring street dances and songs. Annual music festivals include NOS Primavera Sound, NOS Alive, and Super Bock Super Rock. A popular form of entertainment in Portugal is bullfighting, which, unlike in Spain, does not involve killing the bull in the arena.

Transportation in major cities like Lisbon and Porto is well‑developed, including metros, buses, and trams. Train tickets are up to 65% cheaper if booked in advance, and retirees over 65 receive a 50% discount. The monthly transportation pass costs about €40.

Owning a car makes regular travel around Portugal more convenient. To buy a car, one needs proof of Portuguese residency, valid ID, NIF, and bank account details. The average cost of a new car is €30,000. All cars must be registered with the Institute of Mobility and Transport (IMT), with registration fees ranging from €55 to €65. Car insurance costs between €150 and €600 per year, depending on the policy.

Necessary taxes include a one-off vehicle tax when the car is bought or imported and an annual circulation tax based on the vehicle type and CO2 emissions. If the car is imported, one must pay VAT at 23% and ISV, typically up to 10%.

Prominent Portuguese banks include Banco de Portugal, Caixa Geral de Depositos, Millennium BCP, Novobanco, and Banco Santander Totta. Major international banks are Deutsche Bank, N26, Oney Bank, and Citibank.

The typical interest rate for credit cards in Portugal is 11—13%. Annual service fees range from €0 to €50. Opening a bank account incurs a fee of €40, and the annual service cost for a debit card is €19.50.

Key takeaways on moving to Portugal for retirees

1. Portugal is considered one of the best places to retire, offering a mild climate, clean environment, high-quality healthcare, a slow pace of life, and a relatively low cost of living.
2. Retirees can move to Portugal with a D7 Retirement Visa, requiring proof of a passive yearly income of €11,040 and the purchase or rental of real estate. A D7 visa grants a residence permit for 2 years, with the possibility of a 3-year extension.
3. Another option is the Golden Visa program, aimed at investors who can contribute a minimum of €250,000 to Portugal’s economy, issued for 2 years with a possibility of extension for 2 years. 
4. After living in Portugal for 5 years, one may apply for permanent residence or citizenship.

Frequently asked questions