Portugal named top retirement destination in Europe

Lisbon: Portugal has just been ranked the number one place to retire in Europe and the second-best in the world. The ranking comes from the Annual Global Retirement Index from International Living.

This report is one of the most trusted retirement guides in the world. It looks at the real-life experiences of people who have already made the move. It covers housing, visas, cost of living, health care and climate.

For many people considering retiring abroad, Portugal now stands out as a top choice. With a mix of modern cities, quiet villages, friendly locals and a mild climate all year round, it is easy to see why so many are starting a new chapter of life there.

One of the main reasons Portugal scored so highly is its affordable lifestyle. A couple can live comfortably in Portugal on around €2,300 to €2,750 a month (approximately $2,500 to $3,000). This includes rent, groceries, transport and other daily expenses. In some smaller towns and rural areas, costs can be even lower.

Groceries are generally of good value, and many expats say they have eaten healthier and better since moving to Portugal. A monthly grocery bill, including household items and toiletries, is around 400 euros. Utilities like electricity, gas and water cost between 80 and 150 euros a month. A package with two mobile phones and fast fibre internet is around 65 euros.

Some things, like owning a car, are more expensive than in the US. Petrol costs about €6.80 per gallon ($7.39). However, many retirees feel that the freedom to travel around and explore the country is worth the cost. Full auto insurance ranges from 300 to 600 euros per year, depending on your car and age.

Health care in Portugal is another big draw. The country has both a public and private system. Many expats choose private healthcare for faster and more personalised service. Doctors often speak English, and prices are much lower than in other countries.

A visit to a private doctor can cost as little as 16 euros. Private health insurance costs around 550 euros per month for two people, usually covering 80 per cent of medical expenses. For those with ongoing health needs, this can make a big difference.

Portugal’s healthcare system is ranked highly for its quality and efficiency. You can find well-trained doctors and clean medical facilities in a big city or a small village.

Portugal offers several visa options for those planning to move there. The most popular choice for retirees is the D7 visa. This visa is for people with passive income, such as pensions or rental income. You apply for it from your home country, and once it is approved, you can move to Portugal.

You can apply for Portuguese citizenship after five years of living in Portugal. This means you could travel freely in the EU without needing another visa. Some expats say they never planned to stay that long, but once they settled in, the idea of becoming a citizen felt like the natural next step.

It is essential to look at your tax situation before moving. Some people may benefit from Portugal’s Non-Habitual Resident tax scheme, which offers tax breaks for a limited time.

Portugal is known for its warm climate, friendly people and relaxed pace of life. Whether looking for peace or a lively social scene, there is something for everyone.

Cities like Lisbon and Porto offer a mix of old-world charm and modern comfort. You will find historic buildings, vibrant cafes and easy access to public transport. If you prefer nature and calm, small towns and coastal villages provide a slower pace with stunning views and fresh air.

There is plenty to do in Portugal. You can enjoy coastal walks, explore medieval towns or visit local markets. Food and wine are a big part of life in Portugal. Fresh seafood, traditional dishes and award-winning wines are easy to find and affordable.

Many expats say that settling into life in Portugal is easier than they expected. English is widely spoken in cities and tourist areas. There are also active expat communities in places like the Algarve and Silver Coast. This can be helpful when it comes to making friends or finding services like English-speaking lawyers and doctors.

Portuguese people are known for being kind and welcoming. Most retirees say they quickly felt at home. The slower pace of life also allows people to focus on their health, hobbies and quality time with loved ones.

With its high quality of life, low cost of living, good healthcare and welcoming atmosphere, it is no surprise that Portugal has been named the top place in Europe to retire. Portugal offers it all, whether you are looking for sunshine, culture, community, or just a fresh start. For many, it is not just a good place to retire. It is a great place to live.