How to Retire in Portugal
How to Retire in Portugal
Portugal provides beaches, golf courses and a European lifestyle to retirees on a budget.
PORTUGAL HAS A LOW COST of living, easy residency options and tax incentives for new residents. This country also has great food, some of Europe's best beaches and golf, excellent infrastructure, and a large English-speaking population. Portugal is a great base from which to explore the rest of Europe.
The Cost of Living in Portugal
Portugal’s cost of living has been rising steadily for the past five years. However, the country remains a relative bargain compared to other Western European places. A couple could live comfortably on 1,915 euros monthly, including 1,000 to 1,250 euros for rent.
The U.S. dollar remains at historic highs versus the euro. However, suppose you’re retiring with a dollar-based nest egg or dollar-based income from Social Security or a pension. In that case, you should set aside at least four months of living expenses as a safety net if the dollar-euro exchange rate moves significantly against you.[
The Cost of Real Estate in Portugal
Property prices have risen steadily over the past five years in some Lisbon neighbourhoods and other sought-after locations in the country, particularly in the most touristed destinations along the Algarve coast. Still, buying a home for 200,000 euros or less is possible. Investing in a home of your own is a smart strategy in a country like Portugal, where the currency differs from that of your home country. Buying a home removes housing costs from your monthly retirement budget and eliminates any long-term currency risk concerns on that portion of your expenses.
Banking in Portugal
While living in Portugal, you should open a local bank account. You can use your Portugal account to pay local bills and expenses while also keeping your account back home. This will save the cost of bank transfer fees and concern over daily exchange rates. Note that banks in Portugal open at nine or 9:30 a.m. and close at 3 p.m.
Becoming a Resident of Portugal
Portugal’s Golden Visa program is one of the best residency programs in Europe. It offers multiple options for obtaining an investor’s visa in Portugal, including an investment of 280,000 or more euros in real estate. As a legal resident, you can access local public schools and health care.
Under Portugal’s Golden Visa program, you become eligible for Portuguese citizenship after five years of residency, and you can include family members as part of your citizenship application. When you qualify for citizenship in Portugal, you also gain the right to stay in other European countries in the Schengen Area.
Suppose you’re not interested in buying property or investing the required minimum to qualify for the Golden Visa. In that case, you can also be eligible for residency in Portugal by showing enough income to support yourself. The amount of payment required isn’t stipulated formally in the law. Your immigration officer has the discretion to decide whether your income is sufficient. However, 1,200 euros per month or more will generally suffice.[
Internet Access in Portugal
You can access high-speed internet in most countries, and 4G service is increasingly available. Still, if good internet is important to you, research the service available in different areas of the country before committing to a region. You’ll find excellent internet service in much of Portugal but not in the most remote spots.
Food Quality in Portugal
The emphasis for cooking and dining out in Portugal is on fresh seafood. Cod is featured on almost every menu, as are tuna and shrimp. Fast food is not typical in Portugal, so don’t be in a hurry to eat and run and expect slow and relaxed table service.
The produce in Portugal is fresh and organic, without the premium you pay for organic food in other countries. All produce is labelled to tell you where it’s from and is usually local. Portugal’s local cuisine may help with weight loss and promote good health. The Mediterranean diet is often regarded as the healthiest in the world.
Owning and Driving a Car in Portugal
You’ll need to invest in a car outside Lisbon, Cascais, or other large cities. Portuguese law requires drivers to carry with them at all times a valid license, vehicle registration, current vehicle inspection certificate, headlight converters, reflective jackets for every person in the car (within reach of the driver), spare glasses or contacts if you have a vision prescription, light bulbs and a first aid kit. The police can and do stop and ask to see these items. If you’re arrested and are missing anything, even your spare pair of contacts, you’ll be liable for a fine payable on the spot. Don’t worry if you don’t have cash to cover the penalty. The police have electronic cash machines in their cars.
Health Care in Portugal
Portugal has a high standard of health care. Hospitals are modern and well-equipped, and many doctors in both public and private facilities speak English. Public health care in Portugal is available to legal foreign residents registered with their local medical centre, and the national health care system covers basic health needs, accidents and illnesses.
Health insurance costs in Portugal are much lower than in the United States. Many ex-pats invest in a private insurance plan that allows them to visit private facilities. Your annual health care policy might cost as much as one month’s premium in the U.S.
The Lifestyle in Portugal
Life in Portugal moves at its own pace. Be prepared to run into administration and bureaucracy when setting up your new life overseas. Don’t fight it. Embrace the slower gait. If you accomplish one task in a day, consider that a win.
