Upon reaching retirement age, it’s wonderful to find out that all your efforts have been rewarded with the ability to relocate to an ideal spot tailored for older adults. Among popular choices, the Southeast Asian trinity comprising Thailand, Vietnam, and Cambodia stands prominently. Additionally, numerous Caribbean islands also feature among these top picks. Although some dream of settling down in places like Greece or southern Italy, such locations come at a higher cost. Yet, nestled along Western Europe’s coast lies another viable alternative often overshadowed by bigger, more famous European counterparts: Portugal.
Portugal ticks every box for expatriates of all ages, including those in retirement. The country boasts warm, sunny, and arid coastal zones along with mountainous inland regions covered in lush forests. Public transport here is reliable and affordable, complemented by an expansive roadway network. Generally, one can lead a comfortable lifestyle at any stage of life in Portugal for approximately $3,000 monthly; cutting costs down to around $1,500 per month becomes feasible through frugality or residing beyond metropolitan centers, according to various estimations provided.
International Living
Healthcare costs are remarkably low, particularly for seniors, with top-tier coverage for couples in their 60s costing around $300 monthly. Utility bills including internet vary based on the home’s size and energy efficiency, typically falling between $100 and approximately $215 each month. Rental prices start at roughly $450 for a one-bedroom apartment in inland areas and can go upwards of $1,000 in coastal cities such as Lisbon.
The sole drawback of retiring to Portugal might seem significant; foreign retirees previously enjoyed a flat taxation rate of just 10% on their pension income from abroad. However, this has changed, and now they must adhere to Portuguese tax brackets that could climb as high as an impressive 48%.
Kiplinger
).
Read more:
The Most Over-Touristed Spots in Europe
The Multiple Advantages of Retirement in Portugal
Portugal stands out as an excellent choice for retiring in Europe, mainly due to its balance between affordable costs and high standard of living. Picture yourself leisurely walking to a charming open-air cafe situated among narrow, ancient alleyways typical of medieval towns.
The storybook-like city of Guimarães, known as “Portugal’s cradle,”
Then you could live like this for as little as $3,000 per month, keeping certain precautions in mind.
Similar to many locations, prominent coastal cities such as Lisbon and Porto tend to have higher costs compared to rural areas. Nonetheless, if you explore Lisbon’s broader metropolitan region, you’ll discover lower prices along with additional benefits.
great, lesser-known areas such as Madragoa
. Being near the busy downtown area allows you to easily go out for meals and sightseeing.
Lisbon’s creative cocktail scene at the hidden and hip speakeasy, Mini Bar
, but it might significantly reduce your $300 monthly entertainment budget.
In every part of Portugal, you have access to equally cost-effective healthcare, a benefit that becomes increasingly significant as we grow older. Additionally, the nation boasts an extensive public transport system, simplifying travel across regions—another key advantage for those in retirement. With this infrastructure, one can explore much of the country using buses or trains, experiencing both its natural landscapes and cultural attractions.
The Unfavorable Aspects of Taxation When Retiring in Portugal
The main drawback of retiring in Portugal revolves around modifications made to the non-habitual resident (NHR) program. Previously, this scheme offered significant tax advantages to expatriates residing in the country for their initial decade. These perks involved capping taxes on locally sourced earnings at 20%, instead of facing up to 48%. Specifically beneficial for retirees was a reduced rate of just 10% applied to overseas pensions. However, as of 2024, the complete NHR regime ceased operations; nevertheless, applications were still accepted until March 2025.
The rules regarding Portuguese visas have undergone some adjustments as well. Portugal’s D7 visa remains available; this is sometimes referred to as the Passive Income Visa. Holders of the D7 can gain entry to Portugal’s healthcare system and enjoy unrestricted movement throughout the Schengen Area within the European Union, encompassing all parts of Europe along with Iceland, Liechtenstein, Norway, and Switzerland (though it does exclude both the UK and Ireland). To be eligible under these provisions, applicants must demonstrate an incoming passive revenue stream such as retirement benefits or investments amounting to at least €8,460 (approximately $9,600 when written). These changes make life particularly comfortable for those looking toward their golden years.
Nevertheless, obtaining Portugal’s Golden Visa has become more challenging. Primarily designed as an entry pass for affluent individuals, this visa now necessitates substantial investments rather than just purchasing property. The criteria involve committing at least €500,000 (more than $560,000) towards scientific research initiatives or generating ten employment opportunities. It is crucial yet disheartening to consider this reality when mapping out your retirement plans.
Eager to uncover additional concealed treasures and get insider travel advice?
Sign up for our complimentary email newsletter.
to unlock the globe’s most closely guarded travel tips.
Read the
original article on Islands
.
Leave a Reply