Retire in Portugal? Sim, Por Favor (Yes, Please) (2024)

FAQs

How much money do you need to retire comfortably in Portugal? ›

Portugal's living costs for retirees

You can live comfortably with an estimated €1,300-€1,500 (US$1,500-1,700) per month in small towns or €1,700 ($2,200) in larger urban areas such as Lisbon or Porto. Groceries, eating out, rent, utilities, and health care are especially affordable in Portugal.

Tips To Help You Afford Retirement in Portugal

You can comfortably retire in Portugal with an income between $1,500 – 2,000 per month. For some, the Social Security benefit alone is enough to cover the costs of living.

In order to move to Portugal as a retiree, you will need to get a residence permit. As with other countries in the European Union (E.U.), getting residency in Portugal is rather easy for E.U. citizens. But the process is also simple for U.S. citizens.

As part of the Non-Habitual Resident (NHR) tax scheme, D7 visa holders pay just a 20% tax on Portuguese-sourced income and a 10% tax on foreign-sourced income (which would include foreign retirement and social security payments).

How Much Money Do You Need to Retire in Portugal? Portugal offers arguably the lowest cost of living in Western Europe. a couple can live comfortably in Portugal's interior for about $1,700 a month. The budget for larger cities such as Lisbon is about $2,100 or $2,200 a month.

If you registered as a non-habitual resident before 31 March 2020, your foreign source pension income is generally tax-free. If you are registered from April 2020 onwards, your foreign pension income is generally taxed at 10%.

If you have social security credits in both the United States and Portugal, you may be eligible for benefits from one or both countries. If you meet all the basic requirements under one country's system, you will get a regular benefit from that country.

The main places American expats live in Portugal are Lisbon, Cascais, Porto, Algarve, and Coimbra. Lisbon: Lisbon is Portugal's capital city and offers a vibrant cultural scene, a bustling nightlife, and easy access to the rest of Europe.

Mainly yes, Portugal has a free healthcare system. It's free for all Portuguese citizens and residents. Citizens and residents of the country who contribute to the Social Security Fund can receive free medical care through the National Health Service, SNS.

Portugal has long been a top location to retire to. With dreamy sunsets over beautiful beaches, an affordable cost of living, excellent seafood, and attractive tax benefits, it is understandable why so many retirees are turning their attention to Portugal.

Can you be a dual citizen of US and Portugal? ›

Since Portugal and the US both allow dual citizenship, you may keep both your Portuguese passport and your American one.

As an American, you need to get a Portuguese residence permit if you're planning to stay there for longer than three months. If you reside in Portugal with a proper residence permit for five years, you can then apply for permanent residency or Portuguese citizenship.

In 2022, the World Health Organization (WHO) ranked Portugal in the 12th place of world healthcare systems. With both private and public healthcare options, the country offers universal health coverage through the Servico Nacional de Saude (SNS).

Non-residents are liable to income tax only on Portuguese-source income, which includes not only that portion of remuneration that can be allocated to the activity carried out in Portugal but also remuneration that is borne by a Portuguese company or permanent establishment (PE).

Portugal is actually considered one of the most affordable countries in Western Europe and is an average of 50 percent cheaper than living in the United States.

The Algarve is the most popular choice for expats and tourists alike. It too, has some stunning beaches and coastlines, with some beautiful rock formations to marvel at. The weather is always a few degrees warmer than Lisbon which makes it a popular place for retirees.

The national average price of a 2,000-square-foot home in Portugal is $278,000. Buying a house in Portugal as an American is about 40% cheaper than the U.S. median home price, which is roughly $455,000.

This agreement ensures that US expats working in Portugal will not be subject to dual Social Security taxes. Instead, expats will only have to pay into the Social Security system of their home country.

Countries Natixis ranked as secure retirement locations are mostly concentrated in Europe but also include New Zealand and Australia. The top three countries in the rankings are Norway, Switzerland and Iceland, all of which have life expectancies of 83 years, compared to 77 in the U.S. and the world average of 72.

What are the rules for retiring to Portugal? ›

Applicants must prove a passive income outside of Portugal of no less than €760 monthly. An applicant can receive passive income like a pension, rental income or a remote work salary. If relatives get visas with the main applicant, they must add 50% of the income for a spouse and 30% for a child.

If you earned Social Security benefits, you can visit or live in most foreign countries and still receive payments. Look up the country on the SSA Payments Abroad Screening Tool to be sure you can receive your payments.

To acquire the full amount, you need to maximize your working life and begin collecting your check until age 70. Another way to maximize your check is by asking for a raise every two or three years. Moving companies throughout your career is another way to prove your worth, and generate more money.

If you leave the U.S., we will stop your benefits the month after the sixth calendar month in a row that you are outside the country. You can make visits to the United States for specific periods of time, depending on how long you've been outside, to continue receiving your benefits.

Many people who move to Portugal seek a more affordable and easygoing culture and are attracted by its relatively seamless visa process. Remote workers, digital nomads, and retirees from the US flooded the Western European country during the early stages of the pandemic.

Last year, nearly 10,000 American citizens lived in Portugal, an impressive 239% increase over 2017, according to data provided by the Portuguese government. In 2019, the number of Americans attending the Carlucci American International School of Lisbon increased by 60%, The New York Times reported.

Please note: Portugal does not offer free medical treatment to visitors, and under European Union rules non-EU citizens are required to have travel medical insurance covering emergency medical, hospitalization, and repatriation (including the case of death).

The short answer is: yes, you can drink the tap water in Portugal. It isn't as nice as tap water from other parts of the world (Ireland and Scotland, for example), but it's perfectly safe to drink. What is this? You'll see plenty of Portuguese people buying bottled water, but that's just because it tastes nicer.

Portugal ranks 25th in the 2023 Health Care Index by Numbeo, meaning that it has one of the best healthcare systems in the world. Healthcare in Portugal is under a hybrid system with excellent public and private services. Private healthcare is relatively affordable compared with other Western European countries.

How much is medical insurance in Portugal? ›

Health Insurance in Portugal is affordable and averages somewhere between €40 and €100 per month, depending on multiple factors like age and pre-existing conditions. To visit a private Doctor in Portugal, you would typically pay around €50 to €100 per appointment. With insurance you can pay only a fraction of that.

Home to approximately 87 different nationalities, Lisbon is the most popular place for expats to live in Portugal. The diversity of the city makes it a very dynamic and exciting place to live.

The short answer is YES! One of the most encouraging qualities of Portugal is that there are no restrictions for foreigners who want to buy a home in the country. Furthermore, the Portuguese government incentivizes foreigners to invest in real estate property in Portugal through the Golden Visa program.

U.S. citizens may enter Portugal for up to 90 days for tourism or business without a visa. Your passport should be valid for at least three months beyond the period of stay. If you plan on transiting a Schengen country, review our U.S. Travelers in Europe page.

As an American citizen, you'll need to get a residence permit in Portugal if you want to stay there for more than three months. Moving to Portugal is relatively straightforward for US citizens.

Some of them allow moving to Portugal without a job. The Portugal Golden Visa program provides an opportunity to obtain a residence permit in Portugal by investing at least €250,000 in the country's economy.

What is the cost of living in Portugal for a couple? Depending on your lifestyle, a couple should be able to get by with between $2,500 (€2,332) to $3,000 (€2,798) a month in Portugal outside the major cities. In major cities, particularly in the city center, expect to need a little more.

On average, housing in Portugal costs around 1,100 EUR (1,200 USD) in rent per month. This number grew considerably from the 800 EUR (880 USD) registered just a year before. Rent prices will vary greatly depending on the part of the country in which you choose to live and the type of housing you seek.

You need to apply for residency in order to retire in Portugal as an American. The process is straightforward, but it may take a while. You need to provide (1) your passport, (2) proof of income, (3) proof of health insurance, (4) criminal background check, in order to apply.

Portugal's living costs for retirees

You can live comfortably with an estimated €1,300-€1,500 (US$1,500-1,700) per month in small towns or €1,700 ($2,200) in larger urban areas such as Lisbon or Porto. Groceries, eating out, rent, utilities, and health care are especially affordable in Portugal.

Do doctors speak English in Portugal? ›

Doctors will often speak English, particularly in regions like Lisbon and the Algarve, but it isn't guaranteed. Nurses and other hospital staff are less likely to, making some knowledge of Portuguese essential.

Portugal provides free and subsidized healthcare facilities for all Portuguese residents including the expats. To be eligible for the subsidized healthcare plan, expats need to get themselves registered with the Instituto da Solidariedade in Portugal.

If you feel unwell, call the Portuguese health service helpline on (+351) 808 24 24 24 (press 9 for English) or go to the nearest health centre or hospital A&E department. Consider carrying an Emergency ID Card to help the health services assist you in an emergency.

How much tax will I pay? As a non-resident of Portugal you will pay tax at a rate of 28%, but only on 35% of the total rental income because the remaining 65% is deemed to be expenses in running the business. This means you are paying an effective tax rate of less than 10%.

The tax rate is determined annually and varies between 0.3% and 0.8%. This tax is due by anyone who owns the property on the last day of December of the previous year. For example, if you own a property on 31 December 2021, you will have to pay the Portuguese IMI tax in 2022.

If you're moving to (or are already in) Portugal and earning an income, you may have to pay taxes. If you reside in Portugal for 183 days or more a year, you must pay income tax on your worldwide income.

If you are single, you can get by comfortably with €1,200 a month in Porto or Lisbon, and even less in Portugal's smaller towns. With a higher income, you can live anywhere in Portugal with €3,000 a month, participate in various activities, go on weekend trips, and much more.

If you have social security credits in both the United States and Portugal, you may be eligible for benefits from one or both countries. If you meet all the basic requirements under one country's system, you will get a regular benefit from that country.

The national average price of a 2,000-square-foot home in Portugal is $278,000. Buying a house in Portugal as an American is about 40% cheaper than the U.S. median home price, which is roughly $455,000.

Can American citizens move to Portugal? Technically you're allowed to enter the country visa-free and stay there for up to 90 days. If you wish to live there long-term, then you need to get a residence permit.

Is it cheaper to live in Portugal than the US? ›

Portugal is actually considered one of the most affordable countries in Western Europe and is an average of 50 percent cheaper than living in the United States.

And now, a family will have to pay, on average, 625 euros per month for the rent of a house (+186 euros/month). Those who rented a house between August 2021 and July 2022 also paid 7.4% more than those who did so in the same period, when the average value of the rent of the house was 5.82 euros/m2.

Can You Buy Property in Portugal as a Foreigner? The short answer is YES! One of the most encouraging qualities of Portugal is that there are no restrictions for foreigners who want to buy a home in the country.

Property tax rates range from 0.3% to 0.45%. While properties in rural areas are taxed at 0.8%, properties in more urban areas are taxed within the mentioned range.