The Main Pros And Cons Of Retiring In Portugal
Are you thinking about spending your retirement overseas? Discover the pros and cons of retiring in Portugal in the complete article!
Article by Viv Europe - Official Legal and Relocation Partner to KipperTree
14 04 2024
Read the full article here
Retiring overseas is an excellent way to satisfy your wanderlust after decades of working in the same city. Whether it’s the culture, weather, or living standards, Portugal is a go-to place for many expats across the globe. But, like any other country, there are pros and cons of retiring in Portugal too. Does that mean it’s not worth it?
We’re going to be candid with you. This article will help you apprehend what numerous retirees love about Portugal and some things that they consider as cons. Of course, it can’t all be rainbows and sunshine, can it? Stick around until the end to learn everything you need to know about retiring in the fourth-safest country globally!
Explore the pros and cons of retiring in Portugal
Portugal is a fantastic place to live, with data to support our claims! However, let’s get transparent about living here, especially as a foreigner. People experience life differently, so the challenges expats face will also be different.
The 7 pros of retiring in Portugal
Here are all the things we love about sunny southern Europe:
1. The weather is mostly fantastic
Oh boy, is this a blessing! The golden Portuguese sun does NOT disappoint. Unlike other European countries, the temperatures here barely exceed 10°C regardless of the season.
It’s pleasant all year round, with the highest average temperatures reaching 26°C in most cities of Portugal. The Algarve region has been super famous for retirees recently. Do you know why? It’s because the weather is fantastic, there are stunning beaches everywhere, and you can fully relax here.
The Algarve also experiences 300 days of sunshine all year round. This means that there are various activities retirees can indulge in to stay active.
Portugal has amazing weather almost all year round
There are plenty of ways to relish the Portuguese sun. Whether you like golf, swimming, or a walk along the beach in the evening, it’s all up to you. Who wouldn’t want to live an endless vacation while spending their retirement in the Algarve?
Read also: 8 Reasons Why Expats Retire In The Algarve. Who wouldn’t want to live an endless vacation?
2. You feel safe and welcome anywhere
It’s paramount to ensure that whatever country you are moving to is safe enough for you. Fortunately, Portugal is one of the safest countries in the world. According to the Global Peace Index 2022, it ranks as the sixth-safest.
Crime is highly unlikely except for unfortunate petty crimes during tourist seasons. On top of that, everything feels better when you interact with Portuguese people. They’re very hospitable and will go out of their way to help you if you need it. It’s like finding a family away from home.
You’ll hardly ever experience any aggression or danger while in Portugal. Nonetheless, safety begins with you; always exercise caution whenever you’re out and about in the city or any place.
3. The cost of living is much lower than in other European countries
The cost of living is a massive attraction for people looking for the perks of a developed European country. One thing’s for sure – the standard of living is exceptional compared to how affordable Portugal is.
You’ll immediately notice how most things cost less than in other European countries or the United States. As of June 2023, according to Numbeo, expenditures in Portugal are, on average, 38.2% lower than in the United States. And rent prices are 53.8% lower in Portugal.
Numbeo’s estimates also show that a retired couple can live a modest life for under €1,200. If you prefer a more lavish lifestyle, €1,800 to €2,500 will probably be enough.
The low cost of living makes it possible to switch to a reasonably lavish lifestyle. However, you should know that prices are relative to the city you choose to settle in.
Rural towns have even lower living costs compared to big cities like Lisbon. Expat hot spots have a relatively higher cost of living because of increased purchasing power.
4. Public healthcare is cheap and reliable
Next on our list of pros and cons of retiring in Portugal is healthcare. Surely, you must know that European healthcare is known to be the best globally. Portugal is no slouch in the medical field, either.
The Sistema Nacional de Saúde (SNS) is the Portuguese healthcare system with public and private healthcare parcels.
Public health care is commonly used and functions quite well compared to other nations worldwide.
The Portuguese National Hospital System is universal, meaning that it’s accessible to anyone, whether from Portugal or not. However, you’ll need a good health insurance plan to enjoy affordable prices in the private healthcare system.
5. Portuguese cuisine is rich and delicious
A healthy diet is essential at any age. But who says healthy food can’t be tasty?
Fortunately, Portuguese cuisine is predominantly home-cooked and prepared with natural ingredients. Inspired by Asian, African, and European cuisines, the food here will leave you craving more!
You’ll quickly realize that the taste of Portuguese meals is a delight to your taste buds. Each dish is diverse and delicious, from cooking fresh codfish to seafood, pork, chicken, or Portuguese sweets. Enough to brighten up your day, for sure.
6. Non-Habitual Resident tax regime
The Non-Habitual Resident Tax Regime intends to provide benefits to passive income earners. To summarize it for someone unaware of complex legal terms: you’ll pay much lower taxes!
The term “non-habitual” refers to citizens who have not had a tax residence in Portugal for the last five years. Once eligible, you can benefit from this regime for the next ten years.
You’re in luck if your passive income is from pensions, dividends, royalties, capital gains, or property gains. The tax rate is only 10%, and depending on the country you’re relocating from, you can also avoid double taxation. Keep reading to learn what double taxation is!
7. Leisure and entertainment
In Portugal, there’s something for everyone. As a retiree, you might not be into water activities as much, but you can still have fun. If fishing interests you, there really isn’t a better place to live in.
Portugal is known for some of the best seafood and world-famous Port wine; what a classic combination. It tastes even better when you’re the one prepping everything from scratch.
Then there are over a hundred golf courses and tennis courts all around the country for people who love sports. Monte Rei in Eastern Algarve and West Cliffs (an hour from Lisbon) are two of Europe’s best golf courses.
When you’re in the mood to stay in your cosy house and watch some dramas or movies, you can do that too. Most movies and TV shows are broadcast in their original language, so you won’t need to know fluent Portuguese.
Now the Cons. To read all about the downside of retiring in Portugal click here.