The best places to retire in Portugal in 2024

Portugal is often referred to as one of the best countries in the world to retire to. This so called 'golden age' is the time to enjoy a hard earned life of leisure and leave the world of work behind, and with this in mind, we're going to check out the best places to retire in Portugal.

In 2024, many countries continue to go through a severe pension crisis, not to mention the added complications of Brexit, the cost of living crisis and rising inflation. However, pensioners are not being put off and moving abroad to enjoy a relaxed retirement as a British expat remains a very attractive option for retirees. There are endless options for those who have already retired or see retirement just around the corner, and if you're considering making the move to Portugal, we are here to help. 

Knowing where to retire to is one of many potential barriers for those considering moving abroad: you may find yourself with too many choices, or the idea of lots of paperwork or legal processes may be a turn off. Let's have a look at some of the best places to retire in Portugal in 2024, and see why Portugal really is one of the best countries to retire to, as well as looking at some other important questions about retiring in Portugal.

The best place to retire in Portugal

One of the main reasons that foreigners choose to retire in Portugal is due to its pleasant climate, beautiful coastline and reasonably priced property, as well as a relatively low cost of living compared to other countries. Portugal has something for everyone, from old but beautiful fishing villages to lively cities full of charm, as well as a large number of retirement communities. Let's have a look at some of the best places to live in Portugal for retirees:

The Algarve

Retire in the Algarve Unsplash

The main attraction for pensioners in Portugal is of course the stunning Algarve region on Portugal's southern coast. This region is filled with golden beaches and impressive cliffs and in recent years has been recognised as the ‘most affordable option in Europe for retirees’ by Forbes. The Algarve proves particularly popular with English-speaking expats and you'll be surrounded by other retirees depending on where you choose to move to.

Within the region itself, there is plenty to choose from in its 16 municipalities, as well as many retirement communities. Property prices in the Algarve depend on location but prices are lower than in other parts of the country (the cheapest property in the Algarve is found a little bit further away from the coast), while cost of living is also lower than in the big cities. The region is known for great safety and the Algarve is perfect for pensioners who want a lively and active lifestyle, especially for those who enjoy a round of golf, given the region's fame as home to some of the top golf courses in Portugal and Europe.

• Find property for sale in the Algarve
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Madeira

Retire in Madeira Unsplash

Madeira is a Portuguese island situated in the Atlantic, around 1,000km off the coast of mainland Portugal and 600km from Africa. This spectacular destination has a temperate climate and experiences warm weather for the majority of the year, making it another great option when it comes to places to retire in Portugal. The archipelago has fewer tourists than the Algarve but at the same time, the expat and retirement community is growing here. 

Madeira is a great place for those who want to live away from the hustle and bustle of a city as it is close to nature and is the perfect place to embrace an island lifestyle. While the cost of living is a little more expensive in Madeira than in the Algarve, there are also a great variety of properties for sale and rent at reasonable prices. 

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Lisbon

Retire in Lisbon GTRES

Another great option for those who want to retire in Portugal is the province of Lisbon. Here you will clearly find the capital city of Portugal, Lisbon, which is in many ways the beating heart of the country and welcomes pensioners from around the world. There is a thriving expat community and plenty going on for those seeking a lively retirement, while Lisbon has also recently been named as one of the top 10 cities with the best living conditions for pensioners. 

While Lisbon is one of the best places to retire in Portugal, keep in mind that real estate is more expensive in Lisbon city centre than in other parts of Portugal, and neighbourhoods can be crowded and noisy, but this is something that can be avoided by living in the outskirts. Another good option in the district of Lisbon is Setúbal, a smaller city but just as charming, which is close to nature and the region's beautiful natural parks, as well as being just a short drive from Lisbon itself. 

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Cascais

Jeroen den Otter on Unsplash

Retiring in Cascais, Portugal, offers a blend of coastal charm, cosmopolitan amenities, and a relaxed lifestyle. Located just a short drive from Lisbon, Cascais attracts retirees with its stunning beaches, historic architecture, and vibrant cultural scene, making it an appealing destination for those seeking a relaxed yet dynamic retirement lifestyle in Portugal.

Cascais is a paradise for golf enthusiasts, with several championship golf courses nearby, including the renowned Oitavos Dunes and Quinta da Marinha Golf. Retirees can also enjoy hiking and cycling along scenic coastal trails, exploring nature reserves like the Parque Natural Sintra-Cascais, or indulging in spa treatments at luxury resorts.

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Porto and Northern Portugal

Retire in Porto or Northern Portugal Unsplash

The map of Portugal and where to retire is now taking us north. Often when considering where to live, and retire, in Portugal, people overlook Northern Portugal but the charm of the region and its beautiful cities and countryside make it one of the best places in Portugal for retirees. Apart from the charming city of Porto which has a large expat community, the rest of this region also has a lot to offer for expats and pensioners. This mountainous area has beautiful countryside and vineyards and is a very affordable option for pensioners who want to live in an area with fewer tourists, including the stunning Douro Valley which is a haven of tranquillity and perfect for wine lovers.

Property prices in Northern Portugal are among the lowest in the country, and living in the north doesn't mean you have to miss out on the beach, as this region of Portugal is also home to over 100km of rugged coastline. 

• Find property for sale in Porto and Northern Portugal
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The cheapest place to retire in Portugal

When looking for the cheapest place to retire in Portugal, several regions offer more affordable living costs compared to urban or coastal areas. Rural regions like the interior Alentejo, central Portugal, and Northern Portugal provide budget-friendly options with tranquil atmospheres, scenic landscapes, and a strong sense of community.

In the Algarve, inland towns and the eastern part of the region offer more affordable alternatives to the coastal tourist hubs. Factors such as housing costs, healthcare accessibility, and lifestyle preferences should be considered when determining the best fit for retirement needs and budget. It's essential to explore different regions, consult with locals, and weigh the pros and cons of each area before making a decision.

Are there retirement communities in Portugal?

Portugal is home to retirement communities, both for local residents and expats. These communities offer various amenities and services tailored to retirees, such as healthcare facilities, recreational activities, social events, and assistance with daily living tasks. Some retirement communities in Portugal are designed specifically for expats from other countries, offering services in multiple languages and catering to the needs and preferences of international retirees. These communities can be found in different regions of Portugal, including coastal areas, rural settings, and urban centres, providing retirees with a range of options to suit their lifestyles and preferences.

What you need to know if you want to retire to Portugal

In 2009, changes in Portuguese retirement tax laws made it even easier and more attractive for expats to retire in the country, especially for EU citizens. If you are planning to retire in Portugal in 2024 or beyond, there are important aspects you must consider such as the retirement residency law, healthcare, tax information and visas. For all the information, check out our guide on retiring in Portugal for expats.

Is it better to retire in Spain or Portugal?

The decision of whether it's better to retire in Spain or Portugal depends on various factors and personal preferences. Both countries offer attractive options for retirees, each with its own advantages and drawbacks. Here's a comparison to help you make an informed decision:

1. Climate: Both Spain and Portugal have generally mild climates, with plenty of sunshine. Coastal areas in both countries offer particularly pleasant weather. However, Portugal tends to have slightly cooler temperatures, especially in the northern regions, while southern Spain can get hotter in the summer months.
2. Cost of Living: Portugal is often considered to have a slightly lower cost of living compared to Spain, particularly in terms of housing and healthcare. However, the cost of living can vary significantly depending on the region within each country.
3. Healthcare: Both countries have well-regarded healthcare systems, with options for public and private healthcare. Portugal's healthcare system is often praised for its quality and affordability. Spain also has excellent healthcare, particularly in popular expat areas along the coast.
4. Culture and Lifestyle: Spain and Portugal have rich cultural heritage and offer diverse lifestyle options. Spain is known for its vibrant cities, lively festivals, and diverse cuisine. Portugal offers a more relaxed pace of life, with charming towns, scenic landscapes, and a strong emphasis on family and community.
5. Residency and Taxes: Both countries offer residency options for retirees, including special visa programs for non-EU citizens. Taxation policies vary, so it's essential to consider how your retirement income will be taxed in each country.
6. Language: Language may play a role in your decision. Spanish is widely spoken in Spain, while Portuguese is the primary language in Portugal. However, many people in both countries speak English, especially in tourist areas and larger cities.

Ultimately, the best choice depends on your personal preferences, lifestyle priorities, and individual circumstances. It's essential to visit both countries, explore different regions, and consider factors such as climate, cost of living, healthcare, culture, and language before making a decision. Additionally, consulting with financial and legal advisers can help you navigate residency requirements, taxation, and other important considerations for retiring abroad.

Potential downsides of retiring to Portugal

Retiring to Portugal offers numerous advantages, including a mild climate, affordable cost of living, and quality healthcare. However, potential downsides include language barriers, bureaucratic challenges and varying access to specialised healthcare. The cost of living can fluctuate depending on the region, and social integration may pose difficulties for those without existing connections. Despite these challenges, thorough research, seeking expatriate communities, and consulting with legal advisers can help retirees navigate the transition and enjoy a fulfilling retirement in Portugal.

Retiring in Portugal after Brexit

Brexit is now a reality and one of the biggest questions asked by British citizens who have retired overseas or who are planning to do so is what the consequences of Brexit are.

First and foremost, the UK government has stated that it will continue to pay a State Pension to those eligible in the European Union after Brexit and that despite Brexit, things shouldn’t change too dramatically for expats living abroad in the EU. If you were resident in Portugal at the end of the transition period (which ended on 31st December 2020), you will be covered by what is known as the Withdrawal Agreement, and your rights will be protected for as long as you remain resident in Portugal. Therefore, the main advice for UK pensioners living in Portugal is to legally become a resident as soon as possible. Find out more about what Brexit means for expats living in Portugal.