For good reasons, Portugal is one of the top destinations among retirees. Retirees can benefit from the low cost of living, high-quality health system, the NHR tax regime, and much more. However, retiring to Portugal might seem monotonous if you don't know what to do.
Portugal has some of the Lenient visa requirements out of EU countries and is often referred to as the gateway to Europe.
How to Retire in Portugal?
If you are not an EU citizen, you must apply for a visa to retire in Portugal. Two of the most popular visa routes which allow you to live in Portugal as a retirement are:
Retire in Portugal with a Portugal Golden Visa
If you have a pension or money from a house sale in your home country, you can get the most favorable tax conditions through Portugal’s Golden Visa Program. The scheme encourages investors to make a financial contribution to the nation — most popularly as a real estate investment — in exchange for a residence permit.
Portugal Golden Visa visa requirements
To qualify for the program, retirees must fulfill the following Golden Visa requirements for Portugal:
· Be either non-EU, non-Swiss, or non-EEA
· Make a minimum investment of €280,000 (investment routes are various)
· Have a clean criminal record
· Spend a minimum of seven days in Portugal for the first year, then no less than 14 days each subsequent two-year period
Advantages of retiring under the Portugal Golden Visa
If you’ve got funds to invest or are looking to purchase real estate in Portugal, this visa is a fantastic option to retire in Portugal. Not only will you be able to expand your portfolio, but you’ll also acquire Portuguese residency in no time.
One of the most popular investment options for the Golden Visa is through a qualifying home purchase. You can purchase a new property from €500,000 anywhere in the country or choose a government pre-approved renovation project totaling or exceeding €280,000 and rebuild the property into a second home. Since Portugal’s property market is performing so well, you can get a solid return on your investment. Do note that from 1 January 2022, investors will no longer be able to make real estate investments in Portugal’s thriving centers like Lisbon, Porto, and coastal areas of the Algarve.
How Much Money Do I Need To Retire In Portugal?
If you settle in a smaller town, you can comfortably live in Portugal with €1,500 per month; you would have a little more luxury and freedom if your income is at €2,000 or more. Naturally, busy cities such as Lisbon, Cascais, or Porto come with a higher cost of living, but you’d still be quite comfortable with a budget of €2,000 – €2,500 per month. Maybe even less than that if you don’t mind cutting some corners and luxuries.
Portugal is one of the least expensive countries to retire in Europe. However, the money you need to live there depends on where you plan to settle and your preferred lifestyle.
Retiring in Portugal with a Portugal D7 visa
Retirees can opt to apply for Portugal’s D7 visa. It gives foreign citizens wishing to live in Portugal the chance to do so, either as retirees or passive income earners.
In exchange for showing you have a regular and reliable income from your pension funds or your finances, you can get the residence permit (D7 visa), granting you special tax status for a ten-year income tax break. A D7 visa is an excellent option for ex-pats looking to retire in Portugal, and many internationals are applying for this specific residence program.
D7 visa requirements
· Be a non-EU national
· Earn a passive income of at least €760 per month(your income can come from pensions, transferable equity, real estate, intellectual property, or financial equity)
· Show proof of a place to live in Portugal
· Be willing to reside in Portugal for more than 183 consecutive days per calendar year.
Advantages of retiring under the Portugal D7 Visa
· The Portugal D7 Residency Visa is the best option for ex-pats seeking to retire in Portugal without making a significant investment.
· Renewable after one year for two successive periods of two years, the D7 visa can be converted into a permanent residence permit; after five years of holding the D7 visa, it is possible to apply for a Portuguese passport.
· Affordable, easily accessible, and family-friendly, the visa is the perfect scheme for self-sufficient individuals looking to call Portugal their new home.
Retirement visa for Portugal tax benefits
The NHR scheme is the best tax option for ex-pats retiring in Portugal. After applying to the scheme, retirees are exempt from paying local taxes for the next ten years. Currently, NHR offers a 20% income tax rate to people employed in ‘high-value’ professions and the potential to receive some foreign income, like property gains or pensions, free of specific Portuguese tax.
Portugal Retirement Visa Requirements
To apply for a retirements visa for Portugal, you must have the following documents:
· Two recent passport-size pictures of yourself, which are in line with Schengen requirements.
· Your passport must be valid for at least another six months.
· Application form for Portugal national (residence) visa. You can get the application form from the website of the Ministry of Foreign Affairs of Portugal.
· Proof of income: You have to prove that you can sustain yourself financially for the time you intend to live in Portugal, either through a pension, savings, or other legitimate sources of income.
· Proof of Accommodation: You must show that you will have a place to live once you move to Portugal, such as an apartment rental.
· Health Insurance: You need to get a travel health insurance or international health insurance plan for ex-pats before you move to Portugal. Then once you settle, you can either continue with an international insurance policy or subscribe to health insurance from a local company.
· Birth certificate, and marriage certificate, as required.
· Criminal background clearance. You must not have been charged with a crime punishable with at least one year of deprivation of freedom (imprisonment).
Applying for a Portugal Retirement Visa
The process for applying for a Portugal retirement visa is as follows:
1. Contact the Portugal Embassy or Consulate responsible for your area. See where you must apply for a visa based on where you live.
2. Make an appointment to submit your application.
3. Collect the required documents.
4. Pay the visa application fee. Sometimes, you may pay the application fee on the date of application, not before.
5. On the date of the appointment, submit the documents. If the Embassy/Consulate is in another country from which you live, you may be allowed to apply via mail. The relevant visa officials will inform you.
6. Wait for the application to be processed.
7. If the outcome is positive: You will receive a retirement visa, which the Embassy/Consulate staff will attach to your passport. You can use the visa to travel to Portugal.
8. When you arrive in Portugal: Make an appointment with the Portuguese Immigration and Borders Service (SEF) to apply for your residence permit.
Portugal Retirement Visa Fee
When applying for a retirement visa in Portugal, you must pay several different fees.
· National visa fee at the Embassy/Consulate – €90
· To process the residence permit application at the SEF – € €83
· Residence permit cost – €72
Duration of a Portugal Retirement Visa
When you receive your residence permit for retirement in Portugal, it is initially valid for one year. You can renew it twice for two years, adding up to five years. After five years, if you meet all other requirements, you can apply for permanent residency in Portugal.
How Much Money Do You Need to Retire in Portugal?
If you settle in a smaller town or on the outskirts, you can comfortably live in Portugal with €1,500 per month; you would have a little more luxury and freedom if your income is at €2,000 or more. Naturally, busy cities such as Lisbon, Cascais, or Porto come with a higher cost of living, but you’d still be quite comfortable with a budget of €2,000 – €2,500 per month. Maybe even less than that if you don’t mind cutting some corners and luxuries.
Portugal is known as one of the least expensive countries to retire in Europe. However, the money you need to live there depends on where you plan to settle and your preferred lifestyle.
Health Insurance When Retiring in Portugal
Portugal's public health insurance system, the Servicio Nacional de Saude (SNS), provides free healthcare to Portuguese citizens and permanent residents. However, you can subscribe to the SNS only when you become a permanent resident. When you first arrive in Portugal, you must get private healthcare instead.
Portugal has a very high standard of healthcare, with specialized medical staff and well-equipped and modern hospitals. When you subscribe to the SNS, most of your medical bills are covered, although some fees may apply.