The 7 cons of spending retirement in Portugal

Are you thinking about spending your retirement overseas? Discover the cons of retiring in Portugal.

Article by Viv Europe - Official Legal and Relocation Partner to KipperTree

14 04 2024

Read the full article here 

7 cons of spending retirement in Portugal

1. Portuguese Bureaucracy

As an expat, you should know that processes often take longer to complete in Portugal, unlike in other European countries. 

So whether you’re applying for a job, purchasing property, or even applying for residential status. You’re likely to encounter a lot of bureaucracy, and your patience will reward you.

What occurs as a challenge is figuring out who you need to speak to or what paperwork you need to fill out. This is particularly true when applying for the D7 Passive Income Visa for the first time.

In the banking industry, there are no clear rules online. As a new expat, you’ll benefit from having a translator to help you navigate around. 

Again, it’ll be advantageous if you come mentally prepared for some of the bureaucratic slowdowns in the system.

2. Understanding double taxation is tough

The Portuguese tax system consists of local taxes and state taxes. As an expat, you’ll need to register as a taxpayer before you start earning money; it’s what the law requires. 

While you can take advantage of the NHR Tax Regime, double taxation is always a concern for most expats. Portugal has treaties with other countries aimed at preventing double taxation. 

However, as a new immigrant, it’ll be difficult at first to figure your way through the bureaucracy of the double taxation puzzle. 

Check out our FAQ on Taxation in Portugal to answer some popular concerns.

3. Winters are chilly inside

Number three on our list of pros and cons of retiring in Portugal is the few weeks of cold.

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

Depending on where you settle in Portugal, you’ll have different weather, especially during winter. If you decide to settle in northern Portugal, prepare for the rough winter conditions.

Unfortunately, most Portuguese houses weren’t built keeping cold weather in mind. That means the insulation is much weaker than in the UK or Germany.

On the contrary, winters in Portugal are not as freezing as in other countries, with the lowest average being 10°C. Although, it’s best to know where you’ll be staying and the yearly weather patterns to expect.

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

4. Learning Portuguese is hard 

As an expat in Portugal, one of the things that’ll help you live and blend in with the people is learning their language. 

While you’re not required to be fluent, understanding the basics will help you get by independently.

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

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

Learning Portuguese is, however, easier said than done. First, European Portuguese differs from Brazilian Portuguese, so you need to know the correct type.

Read Also: 10 Portuguese Habits I Adopted After Moving To Portugal.

Don’t fret so soon – you can learn from several online language training services at your own pace.

5. Cultural shock is a real thing

Before reading this one, you should know that we understand how difficult this journey is. From living in your home country to relocating to a new one, acclimatizing to an unknown environment can be sad. 

While there’s so much to be happy about, there’s no denying that culture shock is real and manifests differently for every individual. The sad part is that no one prepares you for your experience.

You’ll have to deal with this new reality on your own as you experience life in Portugal. However, there’s always a light at the end of the tunnel! Within no time, you’ll find ways to manage this emotional rollercoaster.

Being self-aware and acknowledging that cultural differences are typical will help you deal with this as you retire in Portugal.

You may also like to read our article Expat Family In Portugal: Make Adaptation Easier For Everyone.

6. High influx of tourists 

After all, Portugal is a famous tourist hub, which may get to you sometimes. Especially from June till August, the numbers increase by a wide margin. This isn’t to say that you won’t get privacy around you; some areas are very secluded, like in Faro. 

To be fair, an influx of tourists isn’t even a problem if you like interacting with people from diverse cultures. Portugal is a place where you can make new friends at any age and at any moment. 

However, people of introverted nature may feel a little out of place during these times, and rightfully so. To combat this, you can look for apartments with more privacy or visit Lisbon during summer, which is less touristy.

7. Slow pace of life

We genuinely think this is somewhere between the pros and cons of retiring in Portugal. We’ll tell you why we believe it can be classified as a con. However, most of the country’s citizens think this is a blessing, so now it’s up to you to decide. 

The Portuguese truly love enjoying every moment slowly and relishing the beauty of life. They don’t like rushing against the clock to be at a place or get a task done. Sometimes, this can mean that tasks face inefficient delays, as in the bureaucratic system in Portugal.

Decisions can take longer – slowing processes more than needed. It isn’t a prodigious con, but we thought we’d highlight it just in case.

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

Have you heard of any other pros and cons of retiring in Portugal? We might’ve missed out on a few obstacles and opportunities. The best way to confirm is by connecting to expats who’ve gone through the same experiences. Our Facebook Group – All About Portugal For Expats, can help you connect with individuals to hear their stories.

We’ve never claimed that Portugal is perfect, and we never will! Nevertheless, retiring to a country with beaches, incredible weather, and affordable living standards is nothing less than a dream. 

We advise you to set realistic expectations from the beginning. Remember, professional help always makes things easier, so feel free to book a consultation with Viv Europe before starting.