The 10 Pros and Cons of Retiring in Portugal

The 10 Pros and Cons of Retiring in Portugal

Thinking about spending your retirement overseas? Discover the pros and cons of retiring in Portugal in the complete article!

Retirement

Retiring overseas is a good way of satisfying your wanderlust. Many retirees are choosing to live their sunset lives in Portugal for various reasons.  Whether it is the culture, weather, or even standards of living, Portugal has proven to be the go-to place for many ex-pats across the globe. Moving to Portugal is an upgrade, heck, it is ranked fourth best country to retire. While moving to a new country is an exciting experience, it is important to know that it comes with its own good and bad. So if you are considering moving to Portugal, this post is going to shed some light on the pros and cons of retiring in Portugal. Stick around to find out more.

Find out the pros and cons of retiring in Portugal

Portugal is a great country, no doubt, however, just like any other country, it comes with different advantages and disadvantages too. 

The pros and cons of retiring in Portugal

It is important to acknowledge that people experience life differently, and therefore, the challenges ex-pats face will also be different. 

With that out of the way, let’s dive into the major pros and cons of retiring in Portugal.

The 5 cons of spending retirement in Portugal

1. Portuguese Bureaucracy

As an ex-pat, you should know that unlike other countries in Europe or the west, processes often take longer to complete in Portugal. 

So whether you are applying for a job, purchasing property, or even applying for residential status, you will encounter a lot of bureaucracy along the way, you have to be patient.

What occurs as a challenge especially for anyone undergoing the process for the first time, is figuring out who you need to speak to or what paper works you need to fill. Especially when applying for the D7 Visa, or passive income visa.

A case in point is in the banking industry, there are no clear rules online and often you will need to have a translator in your early years as an ex-pat for you to navigate around. 

Again, it will be to your advantage if you come mentally prepared for some of the bureaucratic slowdowns in the system.

2. Understanding double taxation is tough

To begin, the Portuguese tax system consists of local taxes and state taxes. As an ex-pat, you will need to register as a taxpayer before you start earning money, it is what the law of the country requires. 

While ex-pats can take advantage of Non-Habitual Residency (NHR) tax codes that offer great tax benefits, double taxation is always a concern for most ex-pats. 

Portugal has treaties with other countries aimed at preventing double taxation, however, as a new immigrant, it will be difficult at first to figure your way through the bureaucracy of the double taxation puzzle. 

3. Winters can be very cold inside

One of the reasons why people move to Portugal is because of the fair weather. However, this doesn’t mean that it is summer all year round in Portugal. 

Depending on where you choose to settle in Portugal, you will have different weather, especially during winter. If you decide to settle in northern Portugal, then get prepared for rough winter conditions, even snow. You can check out live weather when using the KipperTree Property Portal by clicking on each of the districts to give you an accurate idea if your destination will have a suitable climate

Most importantly, most Portuguese houses weren’t built having cold weather in mind. That means that the houses’ insulation is much weaker than in the UK or Germany, for example.

However, winters in Portugal are not as dramatic as in other countries, but it is best to know where you will be staying and the yearly weather patterns to expect in that region.

So, even if Portugal does have higher temperatures in winter, you’ll probably have to adapt your house greatly not to freeze at home.

4. Learning Portuguese is hard 

As an ex-pat in Portugal, one of the things that will help you live and blend in with the people is learning their language. 

While you are not required to be fluent, understanding the basic conversational level of Portuguese will help you get by on your own.

Where you live also will determine whether you need to learn the language or not. If you live around the cities, then you can get away with not having to learn Portuguese because there are many English speakers.

Learning Portuguese is one of the cons of retiring in Portugal

However, if you intend to live away from the larger urban areas, then speaking Portuguese will come in handy in your daily activities. For instance, negotiating for rent, or even taking instructions from strangers.

Learning Portuguese is however easier said than done. First off, European Portuguese is different from Brazilian Portuguese, so you need to learn the right type.

However, the bright side is that you can learn at your own pace from several online language training services.

5. Cultural shock is a real thing

If you have talked to any ex-pat before, they definitely have a sad story of their process of acclimatizing to a new environment.

Culture shock is real and it manifests differently for every individual. The sad part is that no one really prepares you for what you will experience.

You will have to deal with this sad reality on your own as you experience life in Portugal. However, the light at the end of the tunnel is that there are ways you can manage this emotional rollercoaster that is culture shock.

Being self-aware and also acknowledging that cultural differences are normal will help you a great deal in dealing with culture shock during your stay in Portugal.

The 5 pros of retiring in Portugal

1. The weather is usually fantastic

One of the many reasons why ex-pats love Portugal is the all-year-round fair weather. Unlike other European countries with crazy weather, the temperatures in Portugal barely go any lower than 10 degrees regardless of the season.

Portugal has amazing weather almost all year round

What’s more, some regions of Portugal, like the Algarve, record on average a record 300 days of sunshine all year round. For most people, this means that they get to spend time with friends and family outside most months of the year.

There are plenty of activities to enjoy outside on a warm day, whether you like golf, swimming, or a walk along the beach in the evening, it is all possible in the warm Portuguese weather.

2. You feel safe anywhere

It is paramount to ensure that whatever country you are moving to is safe enough for you. Fortunately, Portugal is one of the safest counties in the world.

According to the Global Peace Index, Portugal ranks top four as one of the most peaceful counties in the world.

Crime is highly unlikely except for some specific places. Also, the locals are quite hospitable even for foreigners and will go out of their way to help.

You will hardly experience any aggression or danger while you are in Portugal. Nonetheless, safety begins with you, always exercise caution whenever you are out and about in the city or any place for that matter.

3. The cost of living is much lower than in other European countries

If you have made up your mind that Portugal is your new home, one thing is for sure, you will enjoy the relatively lower cost of living.

Unlike most countries in Europe or the USA, you will immediately notice how the cost of most things is generally lower. According to Numbeo, the cost of living in Portugal is, on average, 32.39% lower than in the United States.

Numbeo’s estimates also show that a single person estimated monthly costs in Portugal are €528.56, while an apartment rental outside the city centre costs around €460.

This will make it possible for you to switch to a fairly lavish lifestyle if you so wish. However, you should know that the average cost of living is relative to the city you choose to settle in.

Rural towns have even lower costs of living as compared to big cities like Lisbon. The cost of living in communities where ex-pats are the major inhabitants is also relatively high because of the increase in purchasing power.

4. Public healthcare is cheap and reliable

Let’s face it, health care in Europe is considered the best in the world and Portugal is no slouch in the medical field either. 

The Sistema Nacional de Saúde (SNS) is the Portuguese health care system that features both public and private health care parcels. 

Public health care is commonly used and functions quite well compared to other nations around the world. 

The Portuguese National Hospital System is universal meaning that it is accessible to anyone whether from Portugal or not. However, to enjoy affordable prices in the private health care system, you will need a good insurance plan.

Get to know more about health care in Portugal in our complete article.

5. Portuguese cuisine is rich and delicious

As you get older, you have a duty of eating well to stay healthy. Most people however think that healthy is not tasty. 

This cannot be any further from the truth. Fortunately, Portuguese cuisine is predominantly home-cooked and prepared with natural ingredients. 

The Portuguese food is a huge pro of retiring in Portugal

This gastronomy scene in Portuguese cuisine is influenced by different cultures, for example, Asian, African, and also other European countries. 

You will quickly realize that the taste of Portuguese meals is a delight to your taste buds. Most meals are not only tasty but also healthy.

From the many ways of cooking Codfish to seafood, pork, and chicken, to the Portuguese sweets, you will not have enough of the diverse and delicious food in Portugal.

Did we miss any pros and cons of retiring in Portugal?

By no means is this list exhaustive, there are plenty of advantages and also disadvantages that we might have left out. 

However, the above 10 pros and cons of retiring in Portugal are what are most common and cut across the major cities that you may want to reside in.

Having said that, living off your retirement years in a different country might be the best decision you may ever make. 

Despite having the best weather, affordable living standards, and beautiful beaches, Portugal is not perfect. It is right for you to set reasonable expectations right from the beginning and your stay will be enjoyable. 

As you are beginning your journey to moving to Portugal, it is important you also get the perspective of other ex-pats who are already there. 

Article by Viv Europe - Official Legal and relocation Partner to KipperTree.

Read the full article here