Retire in Portugal
To retire in Portugal from outside the EU, most people use the D7 visa: at least €920 a month in 2026. Prices run at about 65% of the US, and foreign pensions are taxed at 12.5% to 48%.
What it takes, what it costs, and where retirees settle, from Portugal's law and official data. Checked on Oct 8, 2026.
- Retiree visa
- From €920/mo (about $1,030) 100% of Portugal's minimum monthly wage (€920 in 2026, net of social security contribution…. Consular visa portal; Decree-Law 139/2025; AIMA. Checked Oct 8, 2026.
- Price level
- ~65% of the US Household consumption, 2025. World Bank. Checked Oct 7, 2026.
- Tax on a foreign pension
- 12.5% to 48% Foreign pensions are taxed. PwC Tax Summaries. Checked Oct 8, 2026.
- Travel advisory
- Level 1 of 4 Exercise Normal Precautions. US State Department. Updated Dec 22, 2025.
- Health spending
- $2,971/person Per year; US $13,473. World Bank. Checked Oct 7, 2026.
- US tax treaty
- Yes An income tax treaty with the US is in force. IRS. Checked Oct 7, 2026.
Do you qualify?
Retirees from outside the EU usually move to Portugal on the D7 residence visa, for people who live on a pension or on income from property, intellectual property or financial investments, and then exchange it for a residence permit in Portugal.
D7 visa: documents and feesRetiring in Portugal, topic by topic
Visa
D7 visa requirements
Documents, government fees and the other routes to residency.
Healthcare
Healthcare for retirees
The hospitals retirees use, what insurance covers, and Medicare abroad.
Money
Banking, pensions and tax
How US, UK and Canadian pensions reach a local bank, and what you report at home.
Budget
Cost of living
Official prices and a budget built from your own rent.
What it costs
Household prices in Portugal run at about 65% of US levels. Rent is the line nobody publishes officially, so the cost of living page builds your budget from your own rent.
Build your budgetWhere retirees settle
Lisbon
- Capital on the Tagus estuary, 545,796 people (2021)
- Hospital CUF Descobertas, 24-hour emergency care
Porto
- City on the Douro, 273,476 people (2025)
- Hospital CUF Porto, 24-hour adult emergency care
Faro
- Algarve capital on the south coast, 64,560 people (2011)
- Hospital CUF Faro, JCI accredited
Funchal
- Capital of Madeira, 112,290 people (2023)
- Hospital CUF Madeira, 24-hour adult emergency care
Wikidata; CUF Descobertas; CUF Porto; CUF Faro; CUF Madeira. Checked Oct 8, 2026.
Portugal compared
- Spain vs Portugal for Retirement
- Cost of Living in Portugal 2026
- Valencia vs Porto for Retirement in 2026
- Portugal vs Spain vs Greece vs Italy
- Algarve vs Lisbon vs Porto vs Madeira
- Bangkok vs Lisbon for Retirement in 2026
- Bali vs Lisbon
- Algarve vs Costa del Sol for Retirement in 2026
More guides on Portugal
Visiting Portugal first
Most people spend a few weeks in Portugal before they apply for anything. Two things to sort out for that trip:
Kiwi.com
Flights to Portugal
Compare routes and dates before a scouting trip.
Airalo
eSIM for Portugal
Mobile data from the day you land, without a local SIM.
Partner links: we may earn a commission if you book, at no cost to you. How this works.
Retiring in Portugal: questions
Is Portugal safe for retirees?
The US State Department rates Portugal Level 1, exercise normal precautions.
Do I pay tax in Portugal on my pension?
Yes. Portugal taxes residents on worldwide income, so a foreign pension is taxed at the normal progressive rates of 12.5% to 48%, after €4,587.09 of pension income that is tax exempt. The 10% NHR rate on foreign pensions closed to new residents from 2024, and the IFICI regime that replaced it does not cover pensions.
How do I retire in Portugal from outside the EU?
Most retirees use the D7 visa, which needs a pension or passive income of at least the minimum wage, €920 a month in 2026, plus 50% for a spouse. You apply at your consulate, then get a two-year residence permit from AIMA in Portugal.
Best place to retire: the Algarve or Lisbon?
Lisbon is the capital, with large private hospitals such as CUF Descobertas. On the Algarve, Faro has Hospital CUF Faro, accredited by Joint Commission International. Porto in the north and Funchal on Madeira also have private hospitals with 24-hour emergency care.
Is Portugal still good for retirees' taxes?
Less than before. The NHR regime, which taxed foreign pensions at 10%, closed to new residents from 2024, so a foreign pension is now taxed at the normal rates of 12.5% to 48%.
