14 Best Places to Retire in Portugal

Curious what the best places to retire in Portugal are? This charming nation, favored by retirees, offers a seamless blend of rich history, breathtaking landscapes, and friendly locals.

In this guide, we’ll show you the best spots to retire in Portugal. Whether you’re looking for vibrant city life, peaceful beachside living, or quaint villages steeped in tradition. From the cost of living to the warmth of the community, we’ll cover everything you need to know to make an informed decision.

Let’s get started on this exciting journey to your possible new home!

Benefits of Retiring in Portugal

Retiring in Portugal offers more than just a sunny retreat. It’s a lifestyle upgrade that comes with a host of advantages. Here’s why Portugal is consistently favored by expats around the world:

Affordable Living

One of the most compelling reasons to retire in Portugal is the lower cost of living compared to many Western European countries. Whether you’re considering Lisbon’s bustling streets or the Azores’ serene landscapes, the affordability extends across housing, healthcare, and daily expenses. This makes Portugal especially attractive if you want a high-quality yet economical retirement.

Excellent Healthcare

Portugal prides itself on its healthcare system, renowned for both quality and accessibility. Public healthcare is available to residents, including expats, at a low cost. Additionally, private healthcare options are abundant. You can get quality care without long waits, ensuring that retirement communities in Portugal are well-supported.

Perfect Climate

With over 300 days of sunshine a year, Portugal’s climate is ideal for those looking to escape colder weather. The mild winters and warm summers allow for year-round outdoor activities. It’s a perfect destination for retirees who want to stay active and healthy.

Rich Culture and History

Portugal’s rich tapestry of history and culture offers endless exploration opportunities. Living in Portugal means having direct access to UNESCO World Heritage Sites, world-class museums, and vibrant cultural festivals, enriching your retirement years.

Welcoming Communities

Portugal is known for its friendly and welcoming people. Many communities, especially in expat-favored regions like Lisbon, the Algarve, and Porto, offer a warm welcome to newcomers. The presence of established expat retirement communities also means that it’s easy to find social groups and activities tailored to English-speaking retirees.

Delicious Cuisine

Portuguese cuisine is a delightful benefit of living in this beautiful country. Famous for its seafood, wines, and pastries, the food scene here is both diverse and accessible. Enjoy fresh, local ingredients at affordable prices—a true joy for any food lover.

These benefits show why Portugal stands out as a superb choice for retirees from around the globe. Whether you’re retiring in Lisbon, exploring the vineyards of Porto, or soaking up the sun in the Algarve, Portugal promises a fulfilling and relaxed retirement.

Now that we’ve explored why Portugal is a top destination for retirees, let’s dive into the best places in Portugal to Retire.

Top Coastal Towns in Portugal to Retire

Portugal’s coastline is dotted with stunning towns that offer retirees a serene and beautiful setting for their golden years. Here’s a closer look at some of the top coastal towns that make Portugal a top place to retire:

Retire in Cascais: Luxurious Seaside Living

Just a short drive from Lisbon, Cascais is a blend of royal history, charming streets, and breathtaking sea views. Known for its vibrant expat community, Cascais is ideal if you’re considering retiring to Lisbon but prefer the tranquility of a seaside town. The town also boasts some of the best golf courses and seafood restaurants in the region. While the cost of living in Cascais can be higher compared to other towns, its quality of life is unmatched.

Retiring in Lagos: A Haven in the Algarve

Renowned for its towering cliffs, sandy beaches, and crystal-clear waters, Lagos is one of the best places to retire in Portugal for those looking to enjoy the outdoors and mild climate. The town offers a relaxed lifestyle with a strong sense of community. It is a great choice for anyone retiring to the Algarve. The cost of living here is reasonable, allowing retirees to enjoy a comfortable lifestyle without exorbitant expenses.

Retiring in Tavira: Traditional Charm

Tavira is known for its traditional Portuguese architecture, Roman bridge, and quiet river. It’s less touristy than other parts of the Algarve, providing a peaceful setting that’s still close to major amenities. Tavira is one of the best places in Portugal to retire if you’re looking for an authentic Portuguese experience. A bonus is the lower cost of living in the Algarve compared to its more Western counterparts.

Retiring in Nazaré: Cultural Richness

Famous for its giant waves and surfing culture, Nazaré is more than just a haven for thrill-seekers. It’s a town rich in culture and traditions, where the old customs of fishing and salt making are still part of daily life. Nazaré offers a unique blend of adventure and tranquility. It is an intriguing option for those wondering where to retire in Portugal.

These coastal towns are not only beautiful but also provide all the essentials for a comfortable and engaging retirement. With their unique blend of natural beauty, community spirit, and accessibility to services, they represent some of the best places in Portugal for expats to retire. Whether you’re drawn to the upscale amenities of Cascais or the traditional charm of Tavira, each town offers a distinct experience that can enrich your retirement years.

Best Cities in Portugal to Retire

Exploring urban living in Portugal offers retirees a vibrant and enriching lifestyle. Here are some of the top cities to consider if you’re looking at retiring in Portugal:

Retiring in Lisbon: The Vibrant Heart of Portugal

Lisbon, the sunlit capital, is not only picturesque but also offers an exciting mix of history, culture, and relaxation. For those considering retiring in Lisbon, the city offers a cosmopolitan lifestyle complemented by a cost of living in Lisbon that remains more affordable than many Western European capitals. With excellent infrastructure and healthcare, Lisbon ensures a comfortable urban retirement.

Retiring in Porto: Traditional Charm with Modern Comforts

Porto, known for its rich tradition and port wine, is one of the best places to retire in Portugal. This city combines old-world charm with the conveniences of modern life at a lower cost of living in Porto compared to Lisbon. Porto’s vibrant cultural scene and beautiful riverside settings make it a great choice for retirees seeking a dynamic yet laid-back lifestyle.

Retiring in Faro: Gateway to the Algarve

As the capital of the Algarve region, Faro offers retirees a unique blend of historical heritage and modern living. Known for its medieval architecture, museums, and beautiful parks, Faro provides a quieter urban environment compared to the larger cities. 

Retiring to the Algarve means enjoying some of Portugal’s best weather and most beautiful beaches, with Faro providing a central hub that’s both tranquil and rich in amenities.

Retiring in Coimbra: A City Steeped in Academia and History

Coimbra, home to one of the oldest universities in Europe, offers a vibrant academic atmosphere perfect for those interested in continuous learning and cultural engagement. Retiring in Coimbra provides a unique opportunity to enjoy a lively, intellectual environment with an affordable cost of living in Coimbra, suitable for a fulfilling and active retirement.

Charming Villages and Small Towns to Retire in Portugal

Portugal isn’t just about vibrant cities and coastal retreats; it’s also home to many charming villages and small towns that offer a tranquil lifestyle amidst stunning scenery. Here’s a look at some of the best small towns and villages to consider for a peaceful retirement:

Retiring in Óbidos: A Medieval Gem

Óbidos is a captivating walled town that looks like it’s straight out of a fairy tale. Known for its medieval castle and historic architecture, retiring here means living in a place where history surrounds you every day. 

The community is welcoming, and the pace of life is slow and relaxed, making it a perfect escape for retirees. The cost of living in Óbidos is lower compared to larger towns, which helps stretch retirement savings further.

Retiring in Sintra: Enchanted Forests and Royal Palaces

Sintra, nestled in the foothills of Portugal’s Sintra Mountains, is famous for its lush landscapes and opulent palaces. This town is a haven for those who love nature and history, offering endless exploration opportunities. Retiring in Sintra provides a cooler climate and a mystical setting that’s just a short drive from Lisbon, combining convenience with tranquility.

Retiring in Évora: A UNESCO World Heritage City

Évora is one of Portugal’s most beautifully preserved medieval towns, boasting a rich history that dates back more than five centuries. The town is compact and easy to navigate, with a significant focus on culture and arts. 

Retiring in Évora means enjoying quiet days exploring ancient Roman ruins and local museums. The cost of living in Évora is attractive, especially for those seeking a culturally rich but calm retirement.

Retiring in Ponte de Lima: Traditional Portuguese Living

Ponte de Lima, known for its Roman bridge and traditional festivals, offers a slice of authentic Portuguese life. This small town is ideal for retirees who appreciate outdoor activities such as hiking and canoeing along the Lima River. The community is tight-knit, and the lifestyle is among the most traditional and slow-paced in the country, perfect for a relaxed retirement setting.

These smaller towns and villages provide a unique backdrop for a peaceful and fulfilling retirement. Each location offers distinct advantages, whether it’s the historical allure of Óbidos, the natural beauty of Sintra, the cultural richness of Évora, or the traditional charm of Ponte de Lima. 

Best Islands to Retire in Portugal

Portugal’s islands offer a unique blend of natural beauty and tranquil lifestyles, ideal for a serene retirement. Here are two top island destinations:

Retiring in Madeira: The Island of Eternal Spring

Retiring in Madeira means enjoying year-round mild temperatures in a lush, flower-rich environment. Madeira combines stunning volcanic landscapes with excellent healthcare and a strong expat community, making it a favored retirement spot. The cost of living in Madeira is also lower than in many parts of mainland Portugal, which supports a comfortable, relaxed lifestyle.

Retiring in Azores: A Haven of Natural Beauty

For those who appreciate dramatic natural scenery and a peaceful way of life, retiring in the Azores is ideal. This archipelago offers a slower pace of life amidst breathtaking landscapes, from lush hills to tranquil beaches. Each island has its charm, with modern amenities and a welcoming community. The cost of living in the Azores is reasonable, making it an attractive option for retirees looking for beauty on a budget.

These islands not only provide a peaceful retirement setting but also ensure a high quality of life with their low cost of living and friendly communities. Whether you choose the vibrant Madeira or the tranquil Azores, retiring on a Portuguese island offers a picturesque and rewarding experience.

Portugal’s Visa Options for Retirees: The D7 Visa

For retirees looking to relocate to Portugal, the D7 Visa offers a straightforward pathway to residency, leveraging passive income sources. This section will guide you through the essentials of obtaining the D7 Visa, making it easier to plan your move to Portugal.

Who is the D7 visa for?

The D7 Visa, also known as the Portugal Retirement Visa or Passive Income Visa, is designed for non-EU/EEA/Swiss citizens who have a stable, regular passive income. This income can be from pensions, real estate rents, investments, or other sustainable sources. It’s particularly aimed at retirees who want to enjoy their retirement in Portugal’s inviting climate and culture.

Key Requirements

• Income Requirements: To qualify for the D7 Visa, you must demonstrate a minimum yearly income of €8,460, with an additional 50% for your spouse and 30% for each dependent child.
• Proof of Accommodation: Applicants need to show they have suitable accommodation in Portugal, which could be a rental agreement or property deed.
• Health Insurance: Comprehensive health insurance coverage is required to ensure healthcare access in Portugal.
• Clean Criminal Record: A clean police record is essential for the application process.

Cost of Living in Portugal for Retirees

Understanding the cost of living is crucial for anyone considering retiring abroad. Portugal offers a relatively low cost of living compared to other Western European countries, making it an attractive destination for retirees. Here’s what you need to know about managing your finances in Portugal:

General Expenses

Portugal is known for its affordability, especially in food, utilities, and public transportation. A couple can live comfortably in smaller cities or rural areas for about €1,500 to €2,000 per month. Larger cities like Lisbon and Porto might require a slightly higher budget due to more expensive housing and entertainment options.

Housing Costs

Housing varies significantly depending on location. Coastal cities and popular expat destinations like the Algarve might have higher real estate prices, but there are still many areas where affordable housing is readily available. Renting a two-bedroom apartment in less populous interior regions can cost as little as €500 per month, while the same might cost over €1,000 in more desirable locations.

Healthcare

Healthcare in Portugal is both high-quality and affordable, especially if you qualify for the state healthcare system by being a resident. Private health insurance is also an option and is quite reasonable, often necessary for those in the process of obtaining residency.

Utilities and Miscellaneous

Utilities such as electricity, water, and internet are reasonably priced. Monthly expenses for a couple can range from €100 to €150, depending on usage and season. Eating out and entertainment are also relatively cheap compared to other Western European countries, allowing for a pleasant lifestyle that doesn’t break the bank.

This snapshot of the cost of living in Portugal shows why it’s a favored retirement destination. With its combination of affordability and quality of life, Portugal allows retirees to enjoy a comfortable and engaging lifestyle without the financial strain often found in other popular expat havens.

Frequently Asked Questions About The Best Places to Retire in Portugal

Can I work in Portugal with a D7 Visa?

Yes, the D7 Visa does not restrict you from engaging in professional activities. You can work or even start a business in Portugal as long as you meet the income requirements from passive sources to maintain your visa status.

What is the minimum stay requirement to maintain the D7 Visa?

To maintain the D7 Visa, you must not be absent from Portugal for more than six consecutive months, or eight non-consecutive months, within the overall validity period of the temporary residence. This ensures that you maintain your residency status.

Can I bring my family with me?

Yes, the D7 Visa allows for family reunification. You can apply for your immediate family members—such as your spouse, dependent children, and dependent parents—to join you in Portugal under the same visa category.

How often do I need to renew my D7 Visa?

The D7 Visa is initially granted for one year. You can then renew it for two additional years, and subsequently in two-year increments. After five years of legal residence, you can apply for permanent residency.

Can I eventually gain Portuguese citizenship?

Yes, after five years of legal residence under the D7 Visa, you are eligible to apply for permanent residency. After one additional year (a total of six years of residency), you can apply for Portuguese citizenship, provided you pass a basic Portuguese language test and meet other standard requirements.

Conclusion

Portugal offers a perfect mix of affordable living, welcoming communities, and rich cultural experiences, making it an ideal retirement destination. Whether you prefer vibrant city life, peaceful coastal towns, or serene islands, Portugal provides a backdrop for a fulfilling and relaxed retirement.

The D7 Visa offers a straightforward path to residency, complemented by Portugal’s excellent healthcare and low cost of living. With its friendly expat policies and diverse activities, Portugal is ready to be your new retirement home.

Ready to start your adventure? Lexidy’s team of friendly immigration experts is here to help you turn your golden years into some of your best! Fill out the form below to begin planning your dream retirement.