Today, we dive into Retiring in Portugal. Regardless of where you are considering relocating to in retirement, this article provides valuable insight to consider.
If you’re like many of my clients who are retired or within a decade of retiring, you’re probably asking bigger questions these days. What do I really want life to look like after work? Where can I live well, affordably, and securely? And do I have the financial resources to create a retirement I love?
One of the most popular options for people retiring and wanting either a second home or a permanent one is Portugal.
Best-Kept Secrets
Retiring in Portugal has been one of the best-kept secrets in the retirement world—and for good reasons. From its warm Mediterranean climate and stunning coastline to its healthcare system and low cost of living, Portugal checks many of the boxes for pre-retirees seeking financial and lifestyle freedom.
In this article, we’ll cover the various aspects to help you determine if Portugal should be added to your bucket list.
Although I have visited neighboring Spain several times and love it, I have yet to visit Portugal. My husband and many clients have, and most of them enjoyed it.
If you plan to move to a new location for retirement, I strongly recommend spending six months visiting the community to confirm it is a great fit before you move. You don’t want to move mindlessly and find out the location is not a good fit for you or your family.
Why Consider Retiring in Portugal?
Let’s start with the basics. Portugal is considered one of the best countries to retire in 
for several reasons:
Affordable Living
From groceries and dining to property taxes and medical expenses, Portugal offers a significantly lower cost of living than many U.S. cities. Many retirees report living comfortably on an income of $1,500 to $4,000 per month. Obviously, the cost depends on your lifestyle and the location you choose.
High Quality of Life
Portugal consistently ranks high in safety, healthcare, and quality of life. Whether you’re strolling the cobblestone streets of Lisbon or watching the waves in the Algarve, life here moves slower, which for many of us is a good thing. One of my workout friends’ parents purchased a property in Portugal a few years ago; they visit every few months for a month and love it. If you can afford to maintain more than one household, a second home in Portugal may be an ideal option.
Excellent Healthcare
Portugal’s national health system is accessible and affordable for legal residents. Private healthcare is also available and remains significantly less expensive than what most Americans are accustomed to.
Residency Options
With the D7 visa and other residency programs, Portugal makes it relatively simple for retirees to establish legal residence. Retirees with wealth or passive income sources, such as Social Security, pensions, or annuities, generally find it easier as they have more options.
Portugal is worth exploring if you’re looking for a country where your dollars go further and your lifestyle expands.
As more people purchase homes and move to Portugal, the prices are increasing. Consider hiring an expert who specializes in relocating to the country you are considering and conduct thorough due diligence before making the move.
Beyond the Numbers
Retiring in Portugal or anywhere else, for that matter, is rarely just a financial move. It is much more of a lifestyle choice. Imagine waking up to the sound of ocean waves in the Algarve or enjoying a coffee in a historic Lisbon café. You’re enjoying the fruits of your hard work.
Let’s talk about what that lifestyle change looks like.
Wellness-Focused Living
In Portugal, healthy living is baked into the lifestyle—literally. With fresh produce, local seafood, daily walking, and an emphasis on community, many retirees report feeling healthier and more energized than they did when they were younger.
Slower Pace, Richer Life
One of the most common things my clients say after settling abroad is, “I finally have time to breathe.” Portugal invites you to slow down, focus on what matters, and spend more time doing what you love—whether that’s painting, writing, volunteering, or just enjoying life’s simple pleasures.
Connection and Community
Many Portuguese locals are warm, welcoming, and supportive. Many towns have a vibrant expat community, especially in places like Cascais, Porto, and Tavira. When you have an active expat community, you feel less alone and often more fulfilled. Our home outside the US has mostly Americans, which makes communication and connection easier.
Is Portugal a Good Fit for You?
A European lifestyle isn’t for everyone.
Some people dream of beachfront living. Others prefer to be closer to grandkids. Still, others want both—and with careful planning, your goal can become a reality.
Here’s how to evaluate if Portugal fits your retirement vision:
Do you value adventure and exploration?
If you’re excited about immersing yourself in a new culture, learning Portuguese, and experiencing life beyond the U.S., Portugal may be a great fit.
Are you open to a slower pace?
Portugal offers exactly that if you’re looking to simplify, reduce stress, and live with more intention.
Do you have a flexible income source?
Whether it’s 
Social Security, a pension, rental income, or guaranteed lifetime income, having a reliable stream of passive income makes transitioning to any new location easier.
The Financial Planning Side of Retiring Abroad
As a Certified Financial Planner™ who’s been helping people create secure retirements for over 35 years, I can tell you that the logistics matter just as much as the dream.
Here’s what to have in place before you buy that one-way ticket:
A Comprehensive Financial Plan
Before deciding to retire in Portugal, you must know how much you can spend, how to optimize taxes abroad, and how currency fluctuations could impact your income. A solid plan brings peace of mind and allows you to enjoy your new life.
Healthcare Coverage
Once you’ve established residency, you can access Portugal’s healthcare system. But you’ll want to have travel insurance or international coverage during the transition. And if you don’t qualify for their health coverage, you need a plan to pay for private coverage.
Tax Coordination
Portugal currently offers favorable tax treatment to many foreign retirees under the NHR (non-habitual resident) program. But you’ll need expert advice to navigate U.S. tax obligations and avoid surprises.
Estate and Legal Planning
Cross-border retirement planning is complex, encompassing everything from updating your will to ensuring your assets are properly titled. But with specialized legal support, it’s entirely manageable.
The Inner Game of Retiring in Portugal or Any New Place
Let’s not forget the emotional side of this journey. Retiring to a new country is not just a change of location; it’s a transformation of how you live and who you become.
It’s about having the courage to design a life you love and the wisdom to create a solid plan to support it. This is your opportunity to redefine retirement on your terms and expand your possibilities.
Whether Portugal becomes your forever home or just a chapter in your adventure, one thing is clear: you deserve a financially secure, joy-filled retirement that allows you to spend your time doing what you enjoy.
To create your plan so you have the freedom and choices you desire in retirement, click here:
