If retirement in Europe is your big dream, then Portugal should definitely be on your list of possible new homes. Being one of the most affordable countries, Portugal offers something for everyone for those looking for a place in the sun. You’ll be blown out by breathtaking beaches, sunny picture-perfect capital, and stunning architecture with medieval castles. That is not to mention the lowest cost of living in Europe and a range of appealing tax benefits. So how to retire in Portugal? Well, Portugal Golden Visa is your best route to a happy retirement.
According to the Annual Global Retirement Index 2022, Portugal ranks fourth best country to retire, giving a pass only to Panama, Costa Rico, and Mexico. The country also presented itself well in Natixis Global Retirement Index and ECD Better Life Index, showing an above-average score of 75% for the quality of free healthcare, housing, and work/life balance.
Last but not least is the fact that Lisbon ranks 37 out of 231 cities according to Mercer’s Quality of Living Index. This is better than Paris, Madrid, and London.
From all of the above, it is easy to understand why so many ex-pats have chosen Portugal in order to enter a new and exciting phase of life.
And if you would like to join a thriving ex-pat community and those seeking a lively retirement, here are some basics you need to know first.
Enjoy tax exemption on almost all foreign source income due to the NHR, one of the most favorable and competitive European tax regimes. A special draw of the NHR regime for high-net-worth individuals is that it is granted for 10 years!
To put it simply, everybody can spend their golden years in Portugal. However, the main difference lies in whether you are a citizen of the European Union or not.
If you are from the European Union or European Free Trade Association (EFTA) nation, then you don’t need to apply for a residence permit or visa. With the Portuguese Immigration Service, the process is quite straightforward. However, it is important that if you want to spend more than 3 months there, you must get a Registration Certificate from the Local Council of your place of residence. To start the immigration process in order to retire in Portugal, first, apply to SEF (Servico de Estrangeiros e Fronteiras).
Here the process is a bit more complicated. First, you need to get a Portuguese residence permit. You can do so with a Portugal Golden Visa, the program approved by the Portuguese government. Or you can do it by marriage, family reunification, or plenty of other methods. It’s up to you what to choose.
But if you are not lucky enough to have Portuguese relatives or a Portuguese spouse, we recommend using a Portugal Golden Visa route, as this is a fast-track route to gain residence rights and later apply for Portugal citizenship.
Well, it’s not such a big deal. Under the Portuguese law, non-EU citizens should provide the following documents:
As mentioned above, Portugal’s Golden Visa is a fast-track route to getting a temporary residence permit. Furthermore, this is the best way to start your retirement journey legally and with the best conditions.
So if you want to get Portugal Golden Visa in order to retire in Portugal, you need to choose one of the options:
If you want to know more about this program, do not hesitate to read this guide and get a free consultation!
HQA Visa is often named a hybrid between the Portugal Golden Visa and a D7 Visa. HQA Visa enables future Portuguese permanent residents to establish a company in Portugal. This is done by investing a minimum of €175,000 in a new business.
What do you need to get HQA Visa? Reach out to this guide and learn everything about the process! The minimum investment is €175,000.
We all want to retire on own terms. And money should be the last thing to worry about when going for a long rest. However, harsh retirement realities often put the cart before the horse. One reason for thinking ahead and choosing a place to retire is to protect your purchasing power and avoid running out of your retirement savings. Financial planning is truly important.
So how cheap is retirement in Portugal? Can you afford retirement in Portugal?
Most likely, yes. A couple can live comfortably at $1.500-1,700. The monthly retirement budget will be higher in larger cities like Lisbon but sometimes the Social Security benefit can cover all expenses.
Portugal and tax incentives come hand in hand. Everyone wants to get long-term financial security and financial peace of mind. This is crucial to help you enjoy your retirement years. So in Portugal, you can easily benefit from all the years of pension contributions.
First, this is about an NHR regime. The Portuguese government recently introduced a discounted 10% flat income tax rate, which will be available for those who have applied for NHR and were not tax residents in the country in recent years.
Quick note: You will be considered a tax resident if you decide to stay here for more than 183 days.
Another benefit is that Portugal has double treaties with many countries, which could help you avoid double taxation. Last but not least is the fact in Portugal, there is no wealth tax, gift tax, capital gains tax, or inheritance tax.
However, one should note that all tax residents in Portugal should pay a tax on their worldwide income.
Exploring the tax system of another country may be a great challenge. We’ll help you to break it down with this guide.
Portugal has many options for retirement, and each one has its own distinct ambiance.
Below you’ll see the TOP-5 best places to retire to with a short review of each region.
Algarve is named the World’s Number 1 Retirement Haven. This region obtained this rank 3 years in a row, so this place has a long-standing reputation as a perfect spot where you can stretch your Social Security payment!
Being very popular with English-speaking ex-pats, Algarve is chosen by 100,000 retirees living in this place alone. Many of them are British. However, Portuguese people are extremely welcoming, making you feel right at home.
With very little crime, this region is recognized as a top golf destination. And there’s plenty to do besides that.
Lisbon has everything you want in such a thriving major city near the Atlantic ocean. In fact, the cost of living in this town is just a bargain when you consider the quality of life it buys.
But keep in mind that Lisbon’s popularity stands high. From busy shopping districts in the city center to diverse local communities, this place is the most expensive to buy real estate. The cost of a square meter here is €3,252, which is higher than in other regions. Even so, expenses are lower than in the other European capitals like London or Paris.
Some cons of retiring in this city include a large number of tourists, especially in July and August, and a high cost of living compared to other Portuguese regions.
Retiring in Porto creates a sense of perpetual vacation.
There is no need to have a car, as Porto can be called a walkable city. You can get lost in the magic of century-old streets, then switch and get to the busy streets. Porto is an ideal fit for wine lovers. Here you can visit the Port wine Cellars and taste its wine.
While being the second largest in the country, it’s no surprise that you won’t have many issues speaking just English. Getting by as a non-native speaker here is easy. Porto was elected Second best city in 2021 and awarded as European Leading Destination 2018.
Of course, Porto is not such a vibrant place as Lisbon, but much like a wine, you need some time to take to appreciate it.
Madeira is the third-best island in Europe, according to the famous web page TripAdvisor. Madeira offers a taste of life with a Portuguese twist. This place combines all the benefits of island life and mainland Portugal. A laid-back lifestyle is ideal for those who seek peace and quiet. At the same time, Madeira is near the mainland, and this will keep you close to Africa and Europe for business purposes or simple tourist trips if necessary.
In Madeira, you do not need alarm clocks. Instead, a guaranteed daily vitamin D dose will fill you with energy. Last but not least is that Madeira is a TOP choice of British retirees.
Still not convinced? We want to say that all Azore Islands present a relaxing alternative Portuguese lifestyle in a beautiful island setting, and all of them are perfect for retirement.
The Centre of Portugal is similar to the northern part. There are also many beautiful beaches and natural parks, of which Serra da Estrela is the most famous. Here you can also find the highest peak in mainland Portugal and the only ski track in the country.
The biggest cities here are Santarem, Aveiro, Leiria, Viseu, Castelo Branco, Guarda, and Coimbra. It is always better to stay on the coastline and choose a place close to the big city, so you will have access to all the necessary services.
Retiring in Portugal is the best way to satisfy your wanderlust after a long time of hard tiring work. Portugal is a go-to place for many people. However, like any other country, it has its own pros and cons, and only you can decide whether you want to come here or not.
Let’s be candid with each other. We’ll show what numerous retirees love about Portugal. It is evident that it can’t all be rainbows and sunshine but stick around till the end to find everything about retiring in this country.
Yes, Portugal is one of the best options for retirement. Due to the low cost of living and tax incentives, retirees from all over the world come to settle here.
There are two main routes for non-EU citizens — the Retirement Visa and the Portugal Golden Visa.
Sure, no barriers prevent you from retiring in Portugal, even if you are from other European countries.
Nothing can prevent you from retiring in Portugal, but first, you must apply for a Portuguese residency.
Canadian citizens are entitled to spend their newfound free time in Portugal in retirement.
Lisbon is the most popular place to retire abroad. However, there are also many other good areas in Portugal.
Did you know that Portugal hosts a lot of crypto-focused events? (such as the Solana Conference and Web Summit). This helps bring more crypto luminaries and make this country literally a home for crypto-minded people!
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