Without wasting any time, our family of threepackedup our belongings and booked one-way ticketsto Portugal. If youre looking for a short-term place to rent, check out portals such as: Portugal enjoys a mild climate which significantly reduces the cost of utilities. It supposed to be 100 Mbps, but on average, its around 30 Mbps. On the other hand, if youd rather buy your booze at a supermarket, you can expect to spend as little as 0.65 for half a liter of domestic beer or up to 3 for something more special. Its peaceful, safe and has lots of opportunities to just kick back and relax. Youll pay a hefty fee for international school, but the quality of teaching is high. They offer a streamlined online application process for your NIF and Portuguese bank account, so you can get set up quickly in Portugal, and their website has answers to many questions you might have. How to retire to Portugal: A complete guide, Work in Portugal: Getting a Portuguese work visa, Rent - 3 bedroom apartment in city centre, Utilities (water, electricity, heating, refuse), Dining out for 2 people(mid-range restaurant), a letter explaining your reason for entering Portugal, proof of sufficient finances available to the applicant in Portugal, proof of reasonable net regular passive income. The benefits of living in Portugal go beyond purely financial reasons. Renting costs alone are more than 30% cheaper than the UK and US, making housing very affordable. Some of my happiest moments are when I am walking along the seashore at Guincho Beach or hiking through eucalyptus forests in the hills of Sintra and Colares. If you don't feel like cooking, several of the restaurant booths at the Mercado pick their seafood supplies from the fish counter. The retirement community in Madeira is quite large, with expats coming from all over the world, but mostly from the US and UK. Finally, you can spend your UK pension directly, using your Wise debit card, since it automatically converts currency at the mid-market exchange rate. The US State Department warns predominantly about crimes of opportunity in Portugal. According toNumbeo,the estimated monthly costs for a family of four are1,938.31without rent. Portuguese people are generally considered to be family-oriented, warm, friendly and expressive. People start the day late and end it early. A former tax and estates attorney who retired in his early 40s and expatriated to Lisbon, Portugal with his family. Even if you ultimately intend to buy a place in Portugal, renting for a while when you first arrive can be a smart move. If you receive your pension from a Eurozone country, you don't have any exchange rate to deal with. Its a popular place for retirees from Lifestyle in Portugal You should expect to find a slow pace of life in Portugal. Here are 10 ways to prepare for a move overseas in retirement. Many expat children attend private schools or international schools, which makes educating your children expensive. May 24, You wont need a visa for Portugal if you intend to stay for 90 days or less. A single persons estimated monthly costs are 529.0 without rent. "Bemeducado" means"polite" in Portuguese, which comes as very high praise. Portos beauty is in the fact that the cosmopolitan city lies along the Douro river. What it's like buying a $160,000, all-cash home in Mexico. Meanwhile, the prices in rural areas are substantially lower. A village half an hour drive from the city Faro in Portugals most southern region, the Algarve, which has an ideal climate year-round. Prescription drug prices also tend to be dramatically lower in Portugal than in the U.S.One generic prescription that would typically cost me $600 a month back home is only $21 in Portugal for the brand name medication. If youre looking for budget options, Portugal also has discount supermarkets such as Lidl, Minipreo, and Aldi. For longer stays, or if youre planning on working while youre in Portugal, youll usually need a suitable visa or permit more on Portugal visa types for US citizens coming right up. Three-course meal for 2 people at mid-range restaurant 35, International primary school 8,995.47 yearly (anywhere from 5,000 to 15,000), Rent for 1 bedroom in city center 865.95, Rent for 3 bedrooms in city center 1,091.41, Buying a house, price per square meter in city center 4,728.21, Three-course meal for 2 people at mid-range restaurant 34, International primary school 6,277.57 yearly (anywhere from 4,200 to 7,500), Rent for 1 bedroom in city center 670.59, Rent for 3 bedrooms in city center 1,184.06, Buying a house, price per square meter in city center 2,935.25, Three-course meal for 2 people at mid-range restaurant 28, International primary school 4,000 yearly (anywhere from 2,400 to 5,600), Rent for 3 bedrooms in city center 783.33, Buying a house, price per square meter in city center 966.67, Three-course meal for 2 people at mid-range restaurant 30, Preschool 400 monthly (International primary schools not available), Rent for 1 bedroom in city center 615.17, Buying a house, price per square meter in city center 2,000, Preschool 300 monthly (International primary schools not available), Rent for 1 bedroom in city center 491.67, Buying a house, price per square meter in city center 2,637.16, Three-course meal for 2 people at mid-range restaurant 32, International primary school 6,000 yearly (anywhere from 2,400 to 13,000), Rent for 1 bedroom in city center 617.86, Rent for 3 bedrooms in city center 1,066.67, Buying a house, price per square meter in city center 2,125. A 3-bedroom apartment outside the city center costs 1,109 in Madrid and 1,087 in Lisbon. Portugal is one of the best places in the world to retire, according to theInternational Livings Annual Global Retirement Index and Forbes. Portugal is also one of the safest countries in the EU, according to the Global Peace Index. Take the same precautions in Portugal as you might anywhere else, including avoiding carrying high value items and remaining aware of your surroundings at all times. This scheme allows you to get a visa if you invest 250,000 - 1,000,000 in Portugal. That said, pickpocketing is a genuine threat in congested tourist areas, so we're always on guard when we ride the tram. Since Brexit brought quite a few differences in all areas of life, its best to check if there have been any additional changes to this in the meantime. Lets go through the average cost of living in the two most populated cities, LisbonandPorto,as well as the common regions for retirement of Alentejo and Algarve. You need to spend at least 16 months in Portugal during the first 2 years. No matter where you choose to relocate to, youre likely to experience some culture shock as you adjust to your new life and get used to different processes, systems and expectations. All they need to do is register their stay with the Portuguese authorities. This system makes Portugal one of the most tax-efficient countries in the world, especially for retirees., Becoming a non-habitual resident is easy. They were inspired to move to Lisbon after vacationing there. Social Security's cost-of-living adjustment (COLA) is tasked with ensuring that benefits keep pace with inflation. Portugal shocked the world in February 2023 when the government announced an end to PortugalsGolden Visascheme Portugal shocked the world in February when the government announced an end to Portugal's Golden Visa scheme to tackle the housing crisis. You will also need a NIF if you intend to buy or sell property, open a bank account or sign long-term rental agreements. Once you arrive in Portugal, you'll also need to obtain a temporary residence permit or the Autorizao de Residncia. How to retire to Portugal: A complete guide, Work in Portugal: Getting a Portuguese work visa, Temperate warmer in the south compared to the north, with the Algarve region enjoying a particularly sunny microclimate, Research in advance where to live and the costs of living in different cities theres a broad range, Get your NIF number your taxpayer number as soon as you can, youll need it for day to day purposes like opening a bank account, Build a network in Portugal before you move by connecting with expats who already live there on social media, Range of cities, coastal resorts and rural areas to choose from, Overall cost of living is lower than other Western European countries, Youll probably need to learn Portuguese if you settle long term. He is the author of the "Investment Pancake" series onSeekingAlpha.com and has published nearly 500 articles about tax planning, investing, early retirement, and where to find the best meals in Lisbon. Its an appealing prospect for many, and there are a lot of reasons to consider it. Lisbon, the capital, is the city with the most expats in Portugal. You can move to Portugal with a pet, but there is paperwork to get in place and youll need to make sure your cat or dog is fully vaccinated. Many even say these are the best places to retire in Portugal! Its an appealing prospect for many, and there are a lot of reasons to consider it. The Algarve is one of the best places to retire, whilst the other-worldly charms of Lisbon, Porto, Coimbra, and Cascais offer a peaceful and cultural setting. Restaurant and grocery prices in Lisbon are around 20% lower than in Madrid. And if you receive your pension from a country whose currency is pegged to the Euro, youll always get the same exchange rate. From 2016 through 2020, people over 65 spent an average of $2,527 annually on entertainment, or $210.55 monthly, on fees and admissions to places like museums, theater performances, and movies. Americans flocked to Portugal for cheaper, more peaceful lives, but newcomers also brought crowds and drove up the cost of living. However, the Algarve does get quite busy in July and August, as the Portuguese travel South for vacation, as well as international tourists. Portugals cost of living is about 30 percent lower, on average, than other countries in the region. You can take a look at our Portugal Golden Visa guide that goes through each investment and all the details you need to know. Its safe, with friendly, often English-speaking locals and welcoming expat communities. 155 Responses. Still, you will pay the same income tax as ordinary tax residents for other types of domestic income. From Pastel de Nata to Bacalhau: A Food Lovers Guide to Portuguese Cuisine, Local Eats in Porto: 7 Must-Try Restaurants for Traditional Cuisine, 7 Interesting Facts About Sardines in Portugal, Portuguese Architecture: 7 Most Incredible Buildings in Portugal, 9 Cultural Differences Expats Should Be Aware of When Moving to Portugal, Portugals Dictatorship: Salazars Estado Novo, 5 Books To Better Understand Portuguese Culture. At the time of writing, the estimated cost of living in Portugal overall is: Costs of living vary between cities and regions within Portugal, so spending some time researching the best options for you before you decide where to settle is a smart move. The basic ones are usually the proof of sufficient funds and accommodation., A temporary residence permit is valid for one year, after which you can renew it for successive periods of two years. You are eligible for a Portugal Golden visa if you are a non-EU/EEA/Swiss national. Want to advertise on Portugal.com? Forget about high fees and unfair conversion rates. Living in Tenerife has offered Its also a wonderful place to spend your retirement. This will come in handy if you need to pay for rental deposits, visa fees or literally anything else. Prices throughout the country vary dramatically. The information in this publication does not constitute legal, tax or other professional advice from Wise Payments Limited or its affiliates. Apartments are more commonly available in urban areas, with villas and family homes in suburban and rural areas. Childcare services in Portugal include crches, nurseries, childminders and kindergartens. Wondering how the process of applying to a Golden Visa works? You will definitely live a far more comfortable lifestyle than you would in another country, or even at home. WebThat translates to 1055 per month on average. In fact, all non-EU/EEA/Swiss citizens can do so. As the official currency of the Eurozone, its used by 19 EU member states. You will only be taxed on your worldwide income after the first 10 years of residence. Although its not a retirement hotspot like the Algarve, not everyone wants to retire in a small town, surrounded by nature. Evora has an incredible cultural heritage, with its historical center being classified as a UNESCO World Heritage Site and the presence of 400 historical buildings in the city. Espinho. This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. The most affordable visa is a Portugal D7 Visa where you only need a minimum passive income of 8,460 per year (+ 50% for spouse and + 30% for dependent child). Despite these low scores, Lisbon comes in at 37th in Mercers 2019 Quality of living city ranking, higher than Paris, Milan, London, and Barcelona. There is almost constant sunshine, stunning landscapes and coastlines, delicious food, and a strong healthcare system. Instead, receive your pension in GBP and convert it to EUR using the mid-market exchange rate. Of course, like all other places in the world, living costs rise as you get closer to the most famous regions. Celebrating the Carnation Revolution With an Eye to the Future, Where to stay in Viseu: 5 Best Hotels in Viseu, SEF inspectors cancel airport strikes in Lisbon, Porto, Faro and Madeira, Third day of Maddie search in Algarve dam could be the last, Minimum passive income of 8,460 per year (+ 50% for spouse and + 30% for dependent child), Proof of residence address in Portugal (rental or purchase). Prior results do not guarantee a similar outcome. Three major private health insurance providers in Portugal are: All three providers offer a comprehensive level of cover, including specialist consultations, inpatient and outpatient care, the cost of hospital stays, diagnostic tests and even the cost of treatment (including medicines). Portugal has good healthcare facilities, with comprehensive hospitals in cities and towns, and smaller clinics and medical care options in rural areas. Check with your healthcare provider or via the SNS online portal to find exact costs. Here's how much we spend per month and why we love living in Portugal: Portugal is considered one of the cheapest countries to live in Western Europe. By the time she retired in 2015, our portfolio of high-yielding stocks and mutual funds paid roughly $130,000 a year in dividends, which covered most of our living expenses in Washington, D.C. That year, we took a family vacation to Lisbon, Portugal with our daughter, who is now 16 years old. Read on to find out about: Start your Portuguese adventure with Bordr. We spoke in depth with six retirees who relocated to France, Portugal, Spain and Costa Rica, with savings ranging from $70,000 to $1.8 million. The capital has a thriving nightlife scene, with affordable bars and clubs. Public transport in Portugal is also cheap, and all major cities have a good network of buses, underground trains, and in some places, trams. These visas also allow you to get permanent residence after 5 years and eventually become a Portuguese citizen after 6 years once you pass a Portuguese language test. The market is noticeably safe, with customers leaving their purses at their tables as they go food shopping. If you are traveling on the highways, you should expect to pay a toll, and more if you are traveling a long distance. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The requirements to be eligible for a D7 Visa in Portugal are pretty straightforward. $200. Real Estate Options If you prefer to buy a property, youll have a lot of options in the Algarve. With over 300 days of sun, can enjoy the climate in Portugal, offering warm summers and moderate winters. If youd rather your kids learned in English, and had access to an international or US based curriculum youll need to choose an international school. Foreigners buying a property in Portugal can apply for a mortgage in the same way that a Portuguese citizen may. With a budget of We pay 32,99 a month for Internet. Youll be able to check the visa options available on the website of the Portuguese Ministry of Foreign Affairs, and apply through your local Portuguese embassy or consulate. Youll need to apply for your Category D visa at your local Portuguese embassy. Its covered by the state, although patients pay some usual fees known as taxas moderadoras. Why are Americans living in Portugal? In fact, its one of the more popular places for people looking to move to Europe through investing there, thanks to its Golden Visa scheme. Youll be able to find rental properties online which is a great way to research and get some ideas about your budget and preferred type of home. If you use an agency to find an au pair, remember to factor in agency fees. If youre thinking of moving to Portugal, you wouldnt be the first. In the north of the country, Porto is another great place for expats with a range of housing options and types. Guincho Beach, located about 25 minutes by car outside of Lisbon, forms part of the Sintra National Park. With Wise, you'll be able to easily handle your finances between the UK and Portugal, but also once you settle in your destination country. Beyond being able to reside and retire in Portugal, there are many benefits to the D7 Visa. San Jose, Costa Rica. The cost of living is low compared to the rest of Western Europe, but strong infrastructure, education and healthcare make for an enviable quality of life. It depends on where in the country you live with the southern part of Portugal being even Lets take a look at the average costs of living here: This picturesque town at the west of Algarve is one of the most popular among expats. If youre thinking of moving to Portugal, you wouldnt be the first. Funchal is around 5% cheaper than Lisbon and rent is around 35% cheaper. The amount you can claim depends on your income level, the age of your child, and how many children you have. The deciding factor may be whether or not you speak Portuguese already, and if you want your kids to follow a US curriculum and take US recognized qualifications. Some services are free, while others require a small contribution. Weve included the best places to retire along with the steps towards getting a visa. Once you get your visa, you will have residence for a year. Great weather, low cost housing, strong infrastructure and friendly people contribute to this. Beyond the statistics, my family and I feel very safe in every part of Lisbon at virtually all hours. To get you started well run through some basics about life in Portugal. 3. Portugals currency is the Euro. The cost of living is one of Portugals biggest draws to baby boomer retirees from North America and other parts of Europe. It usually starts at around 400 a year for a basic plan. Look for good Here's your 2021-2022 guide. Since the UK is not a member of the EU anymore, British retirees have to apply for a visa to retire in Portugal. Not all properties are eligible for this visa type, though youll most likely need to be buying in a rural or underdeveloped area to qualify. Public schools are free for residents and taught in Portuguese with English taught as a second language. There are plenty of American retirees in Portugal so yes, you can retire to Portugal as an American citizen. $69. Alex Trias and his family bought an apartment in the city for a little over 500,000 in 2015. Portugal is a very family oriented place. Santa Maria, The Sunshine Island of the Azores, Terceira Island, The Festive Island of Azores. That marks a 1.2% increase from the average 1,199 bill in April. Temporary visas are issued for a year or less. You must have the right to be in Portugal through a work visa,Portugal Golden Visaor by being an EU/EEA/Swiss citizen. Around 250,000 people live on the island and the capital is Funchal, one of the best cities for retiring in Madeira. If you decide to use private health insurance, you can expect to pay considerably more. I also take every opportunity to travel with my family. Great international schools are available in the cities and in places with larger expat communities so finding a school before you choose a home will probably make sense. If you choose to drive in Portugal youll need to convert your US license to an international license within 6 months. Take a look at our full guide for the Portugal Golden Visa here. Income from high value-added activities in Portugal is taxed at 20%. The plan was torent out ourhouse in the U.S., cut our living expenses while living in Lisbon, then reinvest those savings into more dividend-paying stocks to compound our passive income. The cost of living in Portugal is 31% lower than in the UK, and 30% less than in the US. An investment will cost you at least between 350,000 and 500,000. Hosted by Sabrina Tavernise. Not only will this visa allow you to retire in Portugal, but the Golden Visa also comes with tax incentives and allows you to travel around the Schengen area without any restrictions. Portugals mild climate with more than 300 days of sunshine per year ranks among the top reasons Americans decide to move to the country. The account types available to you may vary a little depending on whether youre intending on being resident in Portugal or buying a place for part of the year only. Either way, Portugal is one of the cheapest countries in Western Europe.. With a low cost of living and tax incentives, retirees come from all over the world to settle down in Portugal. A great place to retire in Alentejo isthe city of Evora. For a Portugal Golden Visa, you need to make an investment of at least between 350,000 and 500,000. 2023 Update: Portugal's Golden Visa Coming to an End She treasures every moment, whether she's attending a math competition in Geneva or taking a family drive to Seville for the weekend. When registering for healthcare, youll need to show a couple of documents and then youll get your health number (nmero de utente de sade)., Most services are fairly affordable, so a visit to the GP will set you back 5 and going to A&E 15., However, UK retirees can apply for a UK S1 form and receive healthcare funded by the UK. A regular cappuccino in Lisbon costs, on average, 1.80, compared to 2.00 in Madrid, 3.50 in London, and 3.70 in Paris. Take a look at our guide to Madeira here. Jobs for expats tend to focus around major cities and tourist areas, although foreigners are involved in many industries throughout the country. With its enviable climate, stunning landscapes, and affordable cost of living, Portugal is growing in reputation amongst expats. Denver has saved a huge amount of money on food costs alone. All information should be considered informational and for entertainment purposes. Life in Portugal is surprisingly cheap. For merely 1,250 a month, a retired couple can live a modest life in this region. So, if you want to be close to the big city, but still have the peace of a beachside town, this is the place for you. Alex Trias has lived in Lisbon, Portugal with his wife and daughter since 2015. A beer in a restaurant in Portugal can cost as little as 1, which goes up to 4 for specialty brews. The two visas that non-EU/EEA/Swiss internationals can apply to so that they can retire in Portugal are the Portugal Golden Visa and the Portugal D7 Visa. A number of other countries also use the Euro or have pegged their currency to it. Youre considered a Portuguese resident if youre physically present in Portugal for more than 183 days a year. Portugals tax brackets on earnings are: You will likely pay a pensions contribution of 11% of your salary, while your employer contributes 23.75%. Madeira is an autonomous region of Portugal, an archipelago in the North Atlantic Ocean, 400 kilometers to the north of the Canary Islands. Add to this the sunny climate and range of places to enjoy nature, and it can be a wonderful place to raise kids and enjoy life. Well move onto the pros and cons of moving to Portugal in a moment first lets take a look at some of the main places expats choose to live in Portugal. He and his wife and daughter have been living in Portugal since 2015. This means that for short term trips, US citizens do not need a visa if theyre staying in Portugal or other Schengen countries for up to 90 days in a 180 day period. Pros and cons of living in Portugal? The Algarve has the best weather in the country due to its location in the South, as well as some of the best beaches in the country. The exchange rate also depends on current market circumstances. However, water and air quality score more highly than the OECD average. A mid-range wine will set you back 2.507.40 for a bottle. This country also has great food, some of the best On the way to Algarve from Lisbon, the region of Alentejo is where many spend their summers. Your premium will depend on the level of coverage you need and whether it includes dentistry and other services. We use cookies to ensure that we give you the best experience on our website. This may be as simple as buying a flight ticket if you intend to arrive with just what you can fit in a suitcase. Youll need to get to grips with the home purchase process in Portugal to make sure the transaction goes smoothly, but in general its not a complex system. Retirees can find a welcoming Portugal has a fantastic climate, beautiful beaches, and a fun, welcoming culture - a combination which has long drawn in holidaymakers and expats. State schools are available and of a high quality but the teaching language will be Portuguese which may not suit new arrivals. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. That's when it hit us: Why not leave the U.S. and spend our retirement life in Lisbon? The average Social Security payment for a retired couple is $2,861 per month. Private schools focus on the Portuguese curriculum but are taught in dual languages. Updated May 21, 2023 5:15 pm ET. No rushing. Depending on the reason for requesting the permit, youll need to bring some additional documents. This aggregates user inputted data about the price of goods, rent, utilities and more. Awarm loaf of bread from Gleba Bakery made with itsvery own homegrown heirloom wheat costs only$4, and is worth every penny. Whether or not youll be approved does depend on the loan type and if youll be living in the property yourself. Created in 2012, the Portugal Golden Visa allows non-EU citizens to qualify for a residency permit and eventually a passport in the country through investments. Matilde Viegas for THE WALL STREET JOURNAL. Transportation. Its considered to be one of the best places in the world to retire, and for a good reason. Portugals average wage is 24,521, which is far lower than the OECD average, and below the average wage in Spain, Italy, and France. EU/EEA/Swiss citizens can retire to Portugal without needing to apply for a visa. A very sociable single person living in the center of Lisbon can expect to spend about 2,000 per month including rent, while a family of four will likely spend around 5,000 per month. Your employer should do this for you, but if you are self-employed, you will need do this yourself. Weekly maid service. Basic dental cleaning starts at about 25 euros. Social Security beneficiaries got a huge cost-of-living adjustment (COLA) in 2023, and retired workers are probably hoping for the same in 2024. Portuguese culture is celebrated in the country with drama, art and poetry featuring heavily. After residing in Portugal for five years, you can apply for long-term residency with SEF. There are additional amount available for children with disabilities. The price per liter of unleaded petrol is 1.59. An inexpensive restaurant will charge you 715 for a meal, while fast food is even cheaper. Private Health Insurance Isnt That Common. Short and long term options exist for people coming to work, study, start businesses, retire and more. The islands of the Azores and Madeira are also a great place to retire. Well-known private universities charge far more: from 2,350 per year to 5,880 per year. Even the application fees for the Golden Visa can be pricey. In fact, all aspects of everyday life are affordable in Portugal, from rent to the price of groceries. Portugal is a great expat destination, whether you want to study, work or retire. By law, childminders in Portugal have to be a minimum age of 21. Do it with Wise and youre guaranteed the real, mid-market exchange rate and low fees. BACKGROUND: Retired Texas teachers haven't received a cost-of-living raise since 2004. If youre moving to Portugal with your family you may choose to put your children in a public or private international school. This small city might not be an expat hotspot, but it is the perfect place for a countryside life that is affordable. Test out the amenities. An average retired couple can live in Portugal for under 1,500, given that theyre not living in the countrys main hub. If you prefer a luxurious lifestyle 1,800 will suffice. Not only will this visa allow you to retire in Portugal, but the Golden Visa also comes with tax Considering a post-career stint in Portugal? AlexTriasis a retired attorney. Here are the main eligibility criteria for the Portugal D7 Visa. In Lisbon, werarely use an air conditioner in the summer. Jordan Pandy. However, to give you an idea of average costs, a private school in Lisbon charges 10,000 and 20,000 a year in tuition fees, plus a 3,250 levy and a further registration fee. As a Portuguese resident, you have to pay Portuguese tax on all your income, even if its made outside of Portugal. Your pension income is taxed at a flat rate of 10%, including retirement savings and life insurance. In this case you can seek permanent residency or citizenship after 5 years, but during this period you may only need to remain in the country for around a week a year. I try to build downtime into my day and spend a lot of time in nature. Portuguese universities are much more affordable in comparison with other EU countries. Take a look at our full guide for the Portugal Golden Visa here. People aged 65 to 74 spent $3,080 per year on entertainment during the past five years. A former tax and estates attorney who retired in his early 40s and expatriated to Lisbon, Portugal with his family. Add the enviable weather and theres no surprise many expats decide to set up home there. Shop around to find the perfect bank account for your needs based on your personal preferences and location. The most affordable visa is a Portugal D7 Visa where you only need a minimum passive income of 8,460 per year (+ 50% for spouse and + 30% for dependent child). Pros and cons of living in Portugal? In2011, at 41-years-old, I retired early from mysix-figurecareer in law. General cost of living and standards of living in Portugal, Find the perfect Portuguese city for your new expat life, Discover international schools in Portugal, Learn how to make our top 10 Portuguese dishes. See if the cost of living in Portugal fits your budget. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. For up-to-date prices, use an online taxi fare finder. Expats should budget at least 200 per week for childminding services in Portugal. June 2, 2023. From its vibrant nightlife to the wonderful climate, Lagos is a full package. Schooling in Portugal is compulsory to the age of 18. According to Numbeo, the cost of living in the Portuguese capital of Lisbon is cheaper than in the Spanish capital Madrid. As a general rule, married couples are taxed separately, although you can choose to be taxed jointly. One thing you won't have to worry about when moving is managing your money. Lets have a look at what a comfortable (but not overly luxurious) lifestyle in the Algarve would cost: While this is a conservative estimate, in general, the cost of living in Portugal wont vary drastically from region to region. Would you like to write for us? Subscribe to our newsletter below to get the latest news, reviews, info and more! This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. The best place to retire in Portugal is Tavira. Have you ever dreamed of moving abroad? Entertainment expenses also include hobbies and pet costs. $52. Vets benefits poised for biggest cost of living boost in 40 years For a veteran receiving about $1,500 in monthly payouts, that level of increase would mean about $130 The minimum passive income required is 8,460 per year for the main applicant. It has a low cost of living and top-notch medical facilities. Expats in Lisbon with a family looking for buildings with modern amenities should expect to pay between 1,2002,000 a month. With Portugals temperate climate, affordable cost of living, a 36-year-old disabled U.S. Navy veteran and single mother, who in 2021 retired to Portugals capital Kristian Denver, a retired expat that moved from Canada to the Canary Islands in 2020, saves money on everyday living expenses. Our favorite Portuguese bargain: Multiple bags of fresh fruits and vegetables. As U.S. citizens, we are always liable for U.S. income taxes, but we save on state and local income taxes. The cities of Tavira, Faro,andLagos are some of our top favorites for retiring, each highlighting a unique area of the Algarve, while all having stunning long stretches of golden sandy beaches. Text. Overall the price of renting a place is relatively cheap in Portugal, which can bring down your budget significantly. Portugal.com is an independently owned and operated tourism portal about Portugal. Most of the time its pretty reliable. Portugal has a reputation for being one of the hidden gems of Europe. These benefits are usually worth 65% of your previous income. In the other states, the program is sponsored by Community Federal Savings Bank, to which we're a service provider. Social Security beneficiaries got a huge cost-of-living adjustment (COLA) in 2023, and retired workers are probably hoping for the same in 2024. Technically a city, Espinho has the atmosphere of a small seaside town, but you can jump on a train and be in Porto in just 16 minutes. Retirees can make use of the NHR regime, a quality healthcare system, and an all-around high standard of living. Self-employed tax returns should be filed online or by paper between 1 April and 31 May. The US State department warns people that Portuguese roads may not be as safe as those in the US. (Getty Images) Portugal has a low cost of living, easy residency options and tax incentives for new residents. Typically youll buy space in a shipping container these are usually 20 feet or 40 feet long, which gives enough space for furniture and most household goods. The Portuguese tend to prize good manners. Well cover this scheme in more detail later but in basic terms it allows you to purchase a property or properties in Portugal and in return get a visa which can be converted to citizenship within around 5 years. Americans flocked to Portugal for cheaper, more peaceful lives, but newcomers also brought crowds and drove up the cost of living. You can do this using the Portuguese Border and Immigration Service SEFs Brexit portal.. Entertainment expenses also include hobbies and pet costs. Its a popular place for retirees from Northern Europe seeking sunnier climate and an alternative growing in popularity for US citizens, too. While you hold a Golden Visa youre only required to stay in Portugal for around a week per year, which can make this a good option for people who want to split their time between Europe and the US. The information in this publication does not constitute legal, tax or other professional advice from Wise Payments Limited or its affiliates. Everything you need to know about paying property tax in Portugal, including types of tax, rates for 2021/22 and how to pay your taxes. Heres how to get a retirement visa for Portugal; The D7 visa is popular among retirees since its made for those who have means of supporting themselves. You can shop for fresh produce or pick up lunch at the Mercado de Campo de Ourique. Portugals capital is home to a large part of the expat community. Elsewhere in the country, you can find rental costs for as low 500 for a two-bedroom apartment. You'll wanna read this. However, as expected, rent is more expensive in Lisbon, Portugals capital city. Our premium is $258 per month, but our plan has a $0 deductible and $16 co-pays for doctor visits at a private hospital. During this period there are strict requirements in terms of how long you remain in the country. The visa also offers family reunification, meaning your family members get all the same rights as you. Some content may be promotional and/or have affiliate relationships where Portugal.com earns revenue promoting the content. Expat loans may require slightly higher deposits and may come with a different interest rate compared to those offered to residents. Lets go through the step-by-step process of applying for a D7 Visa. According toNumbeo,the estimated monthly costs for a family of four are1,886.40without rent. Theres plenty of detail coming up to help you if youre thinking of moving to Portugal from the USA lets start with an overview of some key facts. Lisbon is not as crowded and chaotic as many European capitals, but its certainly among the most beautiful. A typical lunch at the Mercado de Campo de Ourique, a gourmet food market, can run about $16 per person. It is not intended to amount to advice on which you should rely. You have entered an incorrect email address! Comporta: The Best Place To Retire In Portugal. The cost of a private health insurance policy can vary depending on the individual provider, your general state of health and the extent of cover you purchase. Also, the Golden Visa renewal will set you back 2,573.90.. They include the 514.80 processing fee and the initial Golden Visa which is 5,147.80. Just relax and enjoy your retirement! A combination of narrow roads, aggressive driving and speeding can mean more accidents and more fatalities compared to the US. Take a look at our guide to Algarve here. Transfers always use the mid-market exchange rate, low, transparent fees, and you can get started online or in the Wise app for convenience. Just like almost everything in Portugal, coffee prices are far cheaper than elsewhere in western Europe. If youre moving to Portugal long term youll likely become a tax resident there and will need to pay income tax on your earnings. Take a look at our guide to Alentejo here. Non-residents are taxed only on their Portuguese income at a flat rate, depending on the type of income: In an effort to attract wealthy foreigners, Portugal has developed a non-habitual resident tax regime. The scheme allows you to receive all your foreign income tax free for up to ten years. Chains include Continente, Auchan, and Pingo Doce. without rent. Meanwhile, self-employed people pay 29.6%. However, if youre staying longer or want to work in Portugal youll need a visa or permit. Bear in mind that you can also source cheap, good quality fresh fish on the coast. Please feel free to Contact Us! Plopped at the western edge of the Iberian peninsula, the compact seafaring nation used Have you ever dreamed of moving abroad? Unsure whether a move to Portugal is right for you? From 2016 through 2020, people over 65 spent an average of $2,527 annually on entertainment, or $210.55 monthly, on fees and admissions to places like museums, theater performances, and movies. However, you will have to get a Registration Certificate from the Portuguese authorities. Wise US Inc is authorized to operate in most states. Lower your cost of living. The social security system in Portugal protects contributors against costs associated with unemployment, maternity, occupational diseases, invalidity, pension and death. Rich in cultural heritage, Portugal has some of the most iconic architecture, art, and music in Europe. During most of the year, the Algarve has a slow-paced environment without overpopulation. Individual value investor with strong penchant for dividend growth. Portugal Golden Visa: Can I Still Apply and When Will it End? You cannot have been taxed in Portugal during the five years before the application. May 24, 2023, 9:57 AM PDT. For 22 years, between 80% and 90% of retired workers Thats why weve prepared an in-depth guide to the cost of retiring in Portugal. There are five types of investments you can make to qualify for a Portugal Golden Visa: a real estate acquisition, an investment fund, a capital transfer, job creation, or making a donation. However, youll most likely have to present the following documents when applying for your visa:, The D7 visa fee is between 45.90 and 276.80.. The cost of housing in Portugal is, in many cases, cheaper than elsewhere in western Europe. Private international schools are often taught in English, and may follow an international or US curriculum. The country has a strong Catholic heritage although many people no longer regularly attend church. Here are some average costs for typical grocery items in Lisbon: Dining out in Portugal is somewhat cheaper than in other nearby countries. Purchase health insurance. If you are an EU citizen, as well as an EEA or Swiss citizen you can retire in Portugal without a visa. Retirement Last Updated on April 14, 2023 by Laila Oliveira It isnt easy to make a choice between two cities as beautiful as Portugal and Costa Rica. You can find more details on the SEF website. Here are the benefits of this tax regime: Here are the conditions to follow the non-habitual residency program: Under the non-Habitual Residence tax regime, your pension income might be taxed at a flat rate of 10%, including retirement savings and life insurance. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. Portugal is a perfect destination for retirees thanks to the various benefits it offers. . Unfurnished apartments are usually the less expensive option. If you prefer the beach life to the country life, we recommend Zambujeira do Mar or Vila Nova de Milfontes. The current minimum wage in Portugal is 665 per month, lower than in neighboring Spain. Check out the average cost of living there: If you are liable to pay tax in Portugal, you should apply for a tax number (Nmero de Identificao Fiscal or NIF). If you are looking to retire in a cosmopolitan city that is less populated than Lisbon, Porto could be your next home. The Azores is a top place for American retirees in particular, as the archipelago is actually the birthplace of many Americans. The estimated cost of living in different parts of Portugal are as follows: If youre looking for a job in Portugal, salary is likely to be one of your priorities. The largest second city in Portugal, Porto has UNESCO heritage status, and is a popular tourist draw. One of our biggest monthly expenses is dining out at restaurants. Internet/Phone/TV. Receive the latest news, travel information, stories, offers and more! These visas also allow you to get permanent residence after 5 years and eventually become a Portuguese citizen after 6 years once you pass a Portuguese language test. Water we pay 40 a month but remember we have a pool. Its helpful to know that real estate investment is one way to get a Portuguese Golden Visa otherwise known as getting residency through investment. Portugal is the fourth safest country in the world, according to the 2021 Global Peace Index, which considers terrorism, violent crime and political instability, among other factors, in its methodology. This guide covers all you need to know about moving from the US to Portugal, including things to think about if youre moving to Portugal with family, or moving with a dog or other family pet. Locals even claim tables at the Mercado by leaving their purses unattended on a chair while they go food shopping. This coastal gem is only a short train ride away from Portugals capital Lisbon. Portugal is famous for its delicious seafood, and you can find some of the freshest at the Mercado de Campo de Ourique. Public universities are much cheaper: tuition fees start are around 800 per year. Espinho is on Portugals Costa Verde (green coast). This 52-year-old early retiree left the U.S. for Portugal with his familyand spends $2,450 a month: We cut our expenses by 50%. And the Portugal News reported that 2020 had the lowest crime rates in Portugal since the country started reporting its crime data in 1989. Its quick and it saves you money! This income can be from a retirement pension, as well as a financial investment, real estate, and more. Lisbon, the capital of Portugal, is a great place to retire. It is not intended to amount to advice on which you should rely. But moving with a household of belongings will be a more complex and costly affair. Once youve decided where in Portugal youd like to live youll need to budget for the move itself. If you prefer to live in larger cities, like Lisbon or Porto, this amount will go up to 1,700-1,900 a month. Before you decide to move to Portugal youll be able to get up to date information about the cost of living from a site like Numbeo. Oporto British School, meanwhile, charges 8,40012,400 per year. Renting a city apartment in Lisbon or one of the charming Algarve towns is possible from about 650 per month, while a three-bedroom serviced apartment can be as much as 2,500 a month. With a low tax on retirement pensions and various tax incentives, a low cost of living comes as an added bonus. In order to apply, youll need to open a Portuguese bank account. Moving from the US to Portugal is a big decision. This applies if your pension comes outside of Portugal. Cost of Living in Portugal . If you live in an area where there are a lot of expats, you may be able to find English-speaking brokers that will help you shop around and get the best deal. Earnings may be lower in Portugal than other comparable western European countries, but the cost of living is substantially lower, too. Its a vibrant city with many cultural offerings, including street festivals and music. without rent. The cost of seeing a general practitioner is usually less than 60 euros. If you have a Golden Visa, a D7 Visa or are an EU/EEA/Swiss citizen, you can retire in Portugal and follow the non-Habitual Resident (NHR) tax regime where you transfer your tax residency to the country. Social Security recipients and veterans this year saw the largest boost to their COLAs in nearly four decades, an 8.7% rise based on the high inflation experienced in the U.S. in 2022. I once had an overnight emergency room visit that involved multiple tests and consultations; the entire cost was covered by our insurance, and I paid nothing other than myco-pay. Tuition fees vary, so you should contact the school directly. Read more in our guide to setting up utilities in Portugal. Schools in Portugal are funded by the state and registered expats are free to send their children to a state school free of charge. You can apply for this permit by making an appointment and visiting your local immigration service office. The pace of life in Portugal tends to be a little less frenetic than in the US which makes for a perfect environment for families. What are the benefits of retiring in Portugal? Prices for internet and television packages from one of the major providers begin at 30 per month for landline, TV, and internet. Grocery stores in Portugal are relatively affordable. Take a look at our guide to the Azores here. 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