Portugal named world’s best retirement destination for 2025

Portugal has been named the world’s best retirement destination for 2025 by Global Citizen Solutions’ Global Retirement Report. The index highlights quality of life, accessible healthcare and expat integration among the key factors behind the top spot.

What the 2025 Global Retirement Report says about Portugal

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The Global Citizen Solutions Intelligence Unit ranks Portugal 1st in its Global Retirement Report 2025, with an overall score of 92.61. The country’s strongest pillars are Quality of Life (2nd) and Safety & Integration (2nd), with solid results for Citizenship & Mobility (4th).

Tax Optimisation (15th), Economics (15th), and Procedure (23rd) show there’s good value and stability, even if admin can be slow and tax planning still matters. 

Why Portugal ranked number 1 for retirees in 2025

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Portugal topped the 2025 list because it balances everyday quality of life with the practicalities that matter once you actually settle. The Global Retirement Report weighs factors like quality of life, tax efficiency, relocation ease and global mobility, and Portugal performs strongly across those pillars.

• Quality of life and climate: mild weather, year‑round outdoor living, liveable city scales, and a rich cultural calendar in places like Lisboa, Porto and the Algarve.
• Healthcare access: a public system complemented by a well‑developed private network, so retirees can choose between lower costs and faster appointments.
• Safety and integration: low rates of serious crime and a reputation for welcoming international residents, with active expat communities that make day‑to‑day life feel straightforward.
• Value for money: overall living costs in Portugal remain competitive by Western European standards, with more affordable housing once you step away from the priciest coastal hotspots.
• Connectivity and mobility: good flight links to the UK, US and the rest of Europe, plus straightforward travel within the EU.
• Relocation framework: established residency pathways and clear administrative steps give retirees a predictable route to settle.

What this means for UK and US retirees in 2025

Portugal’s top billing is good news if you’re lining up a move next year: the pillars that matter most to retirees—healthcare access, personal safety and day‑to‑day value—remain solid, and there are clear residency pathways for non‑EU citizens.

Lisbon. Pedro Ribeiro Simões, CC BY 2.0 Creative commons

For UK retirees

• You’re treated as a third‑country national post‑Brexit, so routes like the D7 “passive income” visa are the usual starting point.
• Once legally resident, you can use Portugal’s public healthcare system (SNS), with many people keeping private insurance as a complement for quicker appointments.

For US retirees

• The D7 visa is the go‑to option if you can evidence steady passive income.
• The Golden Visa no longer includes a property purchase route.
• Social Security benefits are taxable in Portugal under local rules, with a tax treaty in place to reduce double taxation. You’ll likely still file in the US and may use foreign tax credits to offset Portuguese tax.

A growing cohort of retired seniors from Ireland is also making the jump for climate, safety and lifestyle reasons, as more and more Irish retirees choose Portugal for retirement. 

Residency snapshot for 2025

Vitor Oliveira CC BY-SA 2.0 Creative commons

• For retirees, processing your visa can take 6–12+ months, given consulate queues and AIMA backlogs.
• Family reunification is available.
• Citizenship was granted after five years of legal residence, but as of 2025, the Portuguese government has tightened the citizenship rules.
• Portugal recognises dual citizenship.
• There’s no general inheritance tax, and spouses, children and parents are exempt from the 10% stamp duty.
• There’s no net wealth tax, though a property‑based surcharge (AIMI) applies to high‑value real estate.

How Portugal compares with other top retirement destinations in 2025

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Portugal stands out this year for everyday ease, boasting good healthcare access, strong personal safety, and solid value by Western European standards. Comparing retirement in Portugal vs Spain, the day‑to‑day feels broadly similar—Mediterranean pace, walkable historic centres, and plenty of English spoken in major hubs—but there are a few practical differences worth clocking.

• Healthcare and daily living: both countries have universal systems with a deep private network for quicker appointments. Wait times can vary by region, so proximity to hospitals and clinics should shape your shortlist.
• Cost and housing: Portugal generally edges Spain on value outside the priciest coastal zones, though local markets move quickly in both countries.
• Residency pathways: non‑EU retirees usually find the income requirements and paperwork slightly lighter in Portugal than in Spain, though timelines can stretch in either country.
• Taxes and pensions: Portugal and Spain have tax‑residency rules that affect how state and private pensions are treated, and treaty interactions matter.

France brings extensive public services but higher ongoing costs, while Italy offers a layered history and food culture with more regional variation in bureaucracy and healthcare access. 

Best places to retire in Portugal in 2025 at a glance

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The best places to retire in Portugal for 2025 fall into a few clear camps: sunny southern coasts, culture‑rich city fringes, and year‑round spring on Madeira.

• Algarve: established expat circles and strong private healthcare.
• Cascais/Estoril (Greater Lisboa coast): seaside living near Lisboa, ocean promenades, international clinics and English widely spoken.
• Porto & the North: cooler summers, superb food and walkable coastal suburbs. Inland towns such as Braga and Guimarães offer history and lower housing costs.
• Silver Coast (Costa de Prata): breezier Atlantic living, better value, slower pace, good local markets, and a growing retiree community.
• Madeira: year‑round spring, dramatic scenery and an easy base in Funchal with solid healthcare options and frequent flights.
• Setúbal & Sesimbra: authentic coastal life within reach of Lisboa, fresh seafood, nature in Arrábida and a quieter rhythm outside peak summer.

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