Portugal is a popular destination for hundreds of British retirees each year, attracted by the pleasant weather, stunning scenery, and delicious food – a refreshing change from the year-round grey skies of the UK. Retirees can enjoy activities such as golf, sailing, and wine tasting, which are popular among seniors.
Retiring in Portugal also offers the added benefit of having a family base in this wonderful country. Your loved ones can visit and even turn it into a holiday experience.
Moreover, it can be a practical decision since the cost of living in Portugal is approximately 30% cheaper than it is in the UK, especially for those relocating from London. According to Forbes, the Algarve is the cheapest Euro destination for retiring Brits.
So that’s why many Brits decide to spend their autumn years in this European gem.
What are the advantages of retiring in Portugal?
Retiring in Portugal has numerous benefits, including:
Affordable living costs: With prices for food and other goods generally lower than at home, and the opportunity to enjoy the Mediterranean lifestyle, you’ll have more room to relax and enjoy your retirement.
Stunning scenery: Portugal’s rugged coastline, diverse range of beaches, verdant hills, and beautiful cities offer plenty of opportunities to explore and discover something new.
Excellent healthcare: Portugal’s healthcare system is high-quality and affordable, consistently ranked as one of the best healthcare systems in the world.
Pleasant climate: With average temperatures ranging from 18-25 degrees Celsius, Portugal has a temperate climate that allows you to bask in sunshine all year round.
Tax advantages: Portugal provides a range of tax benefits for retirees, including lower income tax rates, exemption from capital gains tax, and more.
Safe environment: Portugal is considered one of the safest countries in the world, making it an ideal place to retire with peace of mind.
The ins and outs of retiring to Portugal
Retiring to Portugal (after Brexit)
The initial step in preparing for your retirement in Portugal is determining if you require a residency visa to relocate there.
For EU/EEA or Swiss citizens
Retiring in Portugal is a breeze if you possess a passport from an EU/EEA country or Switzerland. Thanks to the EU’s freedom of movement policy, you have the flexibility to retire in Portugal whenever you like.
Upon retiring in Portugal, you can enjoy most of the same benefits as Portuguese citizens right away, with the exception of being unable to vote in national elections or hold public office unless you become a Portuguese citizen. This can be achieved after five years of temporary residency.
To register your stay in the country, visit your local municipality office with your passport within three months of arrival (or earlier, if desired). You will receive a temporary residency certificate known as the CRUE (CERTIFICADO DO REGISTO DE CIDADÃO DA UNIÃO EUROPEIA), which is valid for five years.
For Non-EU/EEA or Swiss citizens
In case you do not possess a passport from the EU/EEA or Switzerland, obtaining a residency visa is necessary to initiate your retirement process in Portugal. The following fundamental prerequisites must be met to obtain a residency visa:
- Possess a valid passport
- Provide evidence of income
- Acquire private health insurance (joining Portugal’s state healthcare system is only permitted after obtaining a residency permit)
- Provide a criminal record check from your current country of residency
Portugal provides multiple outstanding residency visa alternatives tailored to simplify immigration for retirees.
Retiring in Portugal using the D7 visa
The D7 visa, also known as the passive income or retiree visa, is an ideal option for those planning to retire in Portugal.
To be eligible, you must have a source of passive income from outside Portugal, such as your pension, equivalent to at least €1,000 per month for a single applicant.
You can apply for the D7 visa at the Portuguese embassy or consulate in your country of citizenship or legal residence. Once your D7 visa is granted, you can book your travel to Portugal and complete the process by applying for your residency permit at one of the SEF (Immigration and Borders Authority) offices located throughout the country.
Retiring in Portugal with the Portugal Golden Visa
For those who want more flexibility, the Portugal Golden Visa program is a popular option for retiring in Portugal. It offers several benefits, including lower minimum stay requirements than the D7 visa.
If you’re not yet ready to move full-time to Portugal but still want the benefits of residency, the Golden Visa may be the best option for you.
To be eligible for the Golden Visa, you must meet certain criteria, such as investing in Portuguese venture capital or private equity funds or purchasing real estate.
The standard investment amount is €500,000, although there are cheaper, more complicated options available. You can also choose the capital transfer route, which requires you to deposit €1.5 million in a Portuguese bank account.
To apply for Portuguese citizenship, you must maintain your Golden Visa investment for at least five years.
How to obtain Portuguese citizenship?
After residing in Portugal for five years during retirement, you become eligible to apply for permanent residency or Portuguese citizenship.
Obtaining Portuguese citizenship is the ideal option as it is a permanent status that does not require renewal and cannot be revoked. With one of the world’s most powerful passports, Portuguese citizenship grants visa-free travel to 187 countries.
Moreover, it provides full EU rights to freedom of movement, which enables you to reside anywhere in the EU or EEA without restriction.
To obtain permanent residency or citizenship, you must pass an exam in basic Portuguese language at A2 level, which is one of the lowest requirements in Europe.
Additionally, Portugal permits dual and multiple citizenships, allowing you to retain your original passport (subject to the laws of your country of origin).
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