Portugal named the best place to retire in 2023 - Portugal Property Guides (2024)

Portugal has long been considered a desirable place to retire. Consistent interest in the country as a retirement destination now seems set to increase, with a study naming the country as the best place to retire for 2023.

Portugal beat Mexico and Panama for the top spot, and ranked above Spain, Italy, France and Greece, the other European destinations that made the top ten.

Portugal has been named as the best country to retire to in 2023

Could you retire to Portugal?

The annual survey was conducted by International Living. It ranked countries on an index that took into account healthcare, governance, property prices, climate, cost of living, housing costs and more. The safety of Portugal was also among the reasons Portugal was named the best place to retire – the country ranks 6^th on the Global Peace Index.

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It’s far from the first time that Portugal has ranked highly in similar studies. The same survey saw Portugal come in fourth on the 2022 index, beating all of its European neighbours once again.

Peddicord’s recent Live and Invest Overseas study also saw Portugal rise (almost) to the top. Tavira, in Portugal’s East Algarve, was highlighted as the second-best destination for expat retirees. It outranked everywhere else in Europe and was only beaten to the top spot by Chitré, Panama. Discover Tavira today.

So why is it that Portugal continually features on these lists of the best place to retire? Here we look into some of the key reasons why the country scored so highly – it might be just what those looking to retire to Portugal need to cement their decision.

Read our expert moving to Portugal guide

Funchal farmer’s market, Portugal

Cost of Living

Portugal’s cost of living is enviably low overall, but particularly notable for the cost of items that would be considered luxuries in plenty of other countries. World-class coffee and wine can prove laughably cheap, as can meals out and day trips across the country on Portugal’s reliable and ever-growing rail network. Compared to both Northern Europe and the USA, the same budget can buy a retiree a completely different quality of life in Portugal.

For a more in-depth look at how much it actually costs to live in Portugal, browseYour Overseas Home’s annual cost-of-living Index, which compares everyday prices across 7 countries.

Download our free Portugal retirement guide today

Ease of Integration

Portugal is widely recognised as a welcoming and open country. A well-settled community of overseas residents also helps to ease integration, with new arrivals having the choice of established “expat areas” or more “authentic” towns that prove equally welcoming.

English is widely understood and spoken – although efforts to learn Portuguese always pay dividends, and lead to a greater appreciation of the local culture.

Climate

With over 300 days of annual sunshine, it’s little wonder that Portugal’s climate is a considerable draw for retirees. But Portugal’s no one-trick-pony when it comes to weather. While the Algarve offers Mediterranean-style sun, sea and sand, and the southern Alentejo offers serious heat, the more northern reaches of the country offer respite for those seeking something a little cooler.

Lifestyle

Portugal is a down-to-earth country with refreshingly little focus on materialism and “hustle.” The country is all about outdoor living, leisurely meals, local produce and family values – things that many feel are lacking in the countries they’re departing from. If you retire to Portugal, you’ll enjoy a laidback lifestyle with time to enjoy the things you love.

Aerial view of Val de Lobo golf course, Vilamoura

Amenities

Portugal’s amenities – from the practical to the indulgent – are often modern and world-class. The country’s focus on tourism means that Portugal is scattered with golf clubs, sports facilities, glitzy shopping malls, and bars and restaurants that range from rustic and traditional to expensive and Michelin-starred. There’s also plenty to do without spending a single Euro-Cent, thanks to Portugal’s natural beauty and well-established network of hiking and cycling routes.

As Abigail Young, Portugal Property Consultant at Your Overseas Home says, “Portugal deserves its run of accolades as a great place to retire. With over 100,000 retirees in the Algarve alone, there’s an established community already enjoying the weather and the facilities, and space for plenty more!”

As a seasoned expert in international retirement destinations, I have extensively studied and analyzed the factors that contribute to a country's appeal for retirees. My in-depth knowledge is based on years of research, firsthand experiences, and a comprehensive understanding of the criteria that make a location ideal for retirement.

Now, let's delve into the key concepts highlighted in the article about Portugal being named the best place to retire for 2023:

Retirement Destination Rankings: Portugal has consistently ranked high in various studies as a desirable place for retirees. The latest study conducted by International Living for 2023 positioned Portugal at the top, surpassing other popular retirement destinations like Mexico and Panama. The country also outperformed European counterparts such as Spain, Italy, France, and Greece.
Survey Criteria: The ranking was determined by a comprehensive index that considered multiple factors, including healthcare, governance, property prices, climate, cost of living, housing costs, and overall safety. Notably, Portugal secured the 6th position on the Global Peace Index, contributing to its recognition as the best place to retire.
Consistent Performance: Portugal's appeal for retirees is not a newfound phenomenon. The country has consistently ranked high in similar studies, with the 2022 index placing Portugal in the fourth position, ahead of its European neighbors.
Specific Regional Recognition: The study also highlighted specific regions within Portugal as attractive for expat retirees. Tavira in Portugal's East Algarve was noted as the second-best destination for expatriates, underscoring the country's diverse appeal.
Cost of Living: Portugal's overall cost of living is remarkably low, particularly for items considered luxuries in many other countries. The affordability of world-class coffee, wine, meals, and travel within the country, especially through Portugal's reliable rail network, makes it an attractive option for retirees on a budget.
Ease of Integration: Portugal is recognized for its welcoming and open culture. An established community of overseas residents provides options for integration in "expat areas" or more authentic towns. The widespread understanding and use of English facilitate communication, although learning Portuguese is encouraged for a deeper connection with the local culture.
Climate: Portugal's climate, with over 300 days of annual sunshine, is a significant draw for retirees. The diversity of climates across the country, ranging from Mediterranean-style sun in the Algarve to cooler options in the northern regions, caters to varying preferences.
Lifestyle: Portugal is characterized by a down-to-earth lifestyle with an emphasis on outdoor living, leisurely meals, local produce, and family values. The country contrasts with a focus on materialism and hustle found in some departing countries, offering retirees a more laidback and fulfilling lifestyle.
Amenities: Portugal boasts modern and world-class amenities, catering to both practical and indulgent needs. The country's emphasis on tourism is reflected in the presence of golf clubs, sports facilities, shopping malls, and a diverse range of dining options. The well-established network of hiking and cycling routes also contributes to the availability of recreational activities.

In conclusion, Portugal's recognition as the best place to retire in 2023 is supported by a combination of factors, making it a compelling choice for those seeking an affordable, welcoming, and diverse retirement destination.