27 March 2025
Retiring to Portugal has become a popular choice for UK retirees, thanks to its warm climate, relaxed lifestyle, and lower cost of living. If you’re asking, Can I move to Portugal from the UK? The answer is yes, you can still move to Portugal, but since Brexit, the process has changed, so it might require some more planning.
This guide covers everything you need to know about retiring to Portugal, from visa options and buying property to financial planning, healthcare, and cultural adjustments.
Can UK residents retire to Portugal after Brexit?
Yes, UK residents can still retire in Portugal, but they no longer have automatic residency rights. This means you will need to apply for a visa, meet certain financial requirements and register as a resident once you arrive.1
The benefits of retiring in Portugal
Portugal is a top choice for UK retirees, offering a warm climate, a relaxed lifestyle, and a lower cost of living compared to the UK. Other key benefits include:
- Affordable living costs: While Portugal is generally cheaper than the UK, expenses vary by region.
- High-quality healthcare: Both public and private healthcare options are available, often at lower costs than in the UK.
- Tax system for foreign residents: Although the Non-Habitual Resident (NHR) tax scheme ended in 2024,2 Portugal still provides tax incentives depending on income type and residency status.
- Strong expat community & UK travel links: Portugal has a well-established British expat population, and frequent flights make visiting the UK easy.
Key considerations before retiring to Portugal
Before you retire to Portugal from the UK, you may want to consider the following practical factors:
- Residency & visa requirements: Post-Brexit, UK citizens can still travel without a visa within the Schengen area, which includes Portugal, for up to 90 days in any 180-day period.3 If you are staying longer than that, you will need to apply for a visa.
- Healthcare costs & access: Private health insurance is usually required for visa applications, even if you plan to use Portugal’s public healthcare system later.
- Financial & pension planning: UK pensions can be transferred to a Qualifying Recognised Overseas Pension Scheme (QROPS), which may offer tax benefits. Exchange rate fluctuations can also affect pension income.
- Cost of living differences: The cost of living varies significantly between regions like Lisbon, Porto and the Algarve, with some smaller towns offering more affordable options.
- Language & cultural adjustments: While English is spoken in expat areas, learning basic Portuguese may be useful for banking, healthcare and government services.
Who can retire to Portugal?
Portugal is a popular retirement destination for both EU nationals and retirees from non-EU countries. While citizens of EU and EFTA nations (such as Norway, Iceland, Liechtenstein, and Switzerland) can move freely, UK nationals and other non-EU retirees must apply for a visa, typically the D7 Visa. After five years of legal residence, retirees may be eligible to become permanent residents or Portuguese citizens.4
The D7 Visa (passive income visa)
The D7 Visa allows UK retirees to gain residency through passive income, such as pensions or savings. To qualify, you must show a minimum annual income of €9,120 (€13,680 per couple) and have private health insurance. This visa grants temporary residency, with the option to apply for permanent residency or citizenship after five years.5
The Golden Visa: is it still an option?
Since 2023, Portugal’s Golden Visa no longer includes real estate investment and now focuses on contributions to research, job creation and culture. While still available, most UK retirees opt for the D7 Visa, which is designed for those with passive income rather than investment funds.6
Temporary vs. permanent residency
UK retirees receive a temporary residency permit valid for two years, renewable until reaching five years of continuous residence. At that point, you can apply for permanent residency or Portuguese citizenship. Permanent residency allows indefinite stay, while citizenship provides an EU passport and Schengen travel rights, with basic Portuguese language skills required.
Rules around which VISAs will be required for you as a UK resident are complex and subject to change. For more information about applying for a visa or your visa status, you can visit Portugal’s Ministry of foreign affairs website.
Step-by-step guide to moving to Portugal from the UK
Here is a step-by-step guide for moving to Portugal from the UK:
1. Plan your move
Research different regions based on cost of living, healthcare and lifestyle. You will then want to set a budget that considers rent, healthcare and daily expenses.
2. Apply for a visa
Most UK retirees apply for the D7 Visa, which requires proof of passive income, accommodation and health insurance. You can apply at the Portuguese consulate in the UK before moving. Once approved, you’ll receive a four-month visa, which you must convert to a two-year residency permit after arriving.
3. Secure healthcare coverage
UK state pensioners can use Portugal’s public healthcare system with the S1 form. Otherwise, private health insurance is required, especially for visa approval. Compare plans that cover your medical needs.
4. Open a Portuguese bank account
A Portuguese bank account may be needed for residency, rent, utilities and pension transfers. Some banks allow non-residents to open an account online before moving.
5. Find housing
Renting first is a good option to explore different areas. For the D7 Visa, you must show proof of accommodation. If buying, factor in property taxes, legal fees and mortgage options.
6. Register for residency & tax purposes
Once you arrive in Portugal, you’ll need to convert your visa into a residency permit and officially register as a tax resident. If you continue earning income from your home country while you reside in Portugal, you may need to review tax obligations under the UK-Portugal Double Taxation Agreement.
Cost of living in Portugal for UK retirees
Portugal is more affordable than the UK, but costs vary by location. Here is a rough breakdown of monthly costs:
- Rent: €500–€1,200 for a one-bedroom apartment (higher in Lisbon & the Algarve, cheaper in rural areas).
- Groceries: €200–€400 per month for a couple, with fresh produce often more affordable at local markets.
- Dining out: Meals cost around €10–€25 per person, making eating out budget-friendly.
- Utilities & internet: €100–€150 for electricity, water, and gas; high-speed internet €30–€40.
- Private health insurance: Starts at €40 per month, depending on coverage.
Best places to retire in Portugal as a UK resident
Choosing the right place to retire in Portugal depends on your lifestyle, budget, and personal preferences. Here are some of the most popular destinations for UK retirees:
The Algarve
The Algarve is Portugal’s top retirement destination, offering warm weather, good healthcare, and expat-friendly towns like Lagos and Tavira. While coastal areas can be pricey, inland towns provide a more affordable alternative.
Lisbon
Lisbon combines historic charm with modern conveniences, good healthcare, and a lively atmosphere. Though living costs can be higher, many retirees find its expat culture and amenities worthwhile.
Porto
Porto offers a lower cost of living than Lisbon, with beautiful architecture, a vibrant food scene, and a relaxed pace of life. The cooler climate makes it appealing for those who prefer milder summers.
Coimbra and Évora
Coimbra and Évora provide a slower, more traditional Portuguese lifestyle with affordable housing and good healthcare. Coimbra’s university town charm and Évora’s rich history make them ideal for a relaxed retirement.
Braga, Aveiro, and Setúbal
Braga is a quieter, lower-cost alternative to Porto, with green spaces and a strong expat community. Aveiro, known as the ‘Venice of Portugal,’ offers coastal beauty and affordable property. Setúbal, just south of Lisbon, blends city life with nature and fresh seafood.
Adjusting to life in Portugal: culture and practical considerations
Retiring in Portugal means adapting to a new culture. Here are some things you can expect:
Healthcare in Portugal for UK retirees
Portugal offers high-quality healthcare through both public and private systems. UK retirees receiving a state pension can access public healthcare (SNS) via the S1 form, while others may need to arrange private health insurance.
Learning Portuguese: do you need to?
English is widely spoken in major cities and expat areas, but official paperwork, healthcare, and banking are in Portuguese. Learning basic phrases can make everyday tasks much easier.
Social life and expat communities
Portugal has large expat communities, particularly in the Algarve, Lisbon and Porto. Many retirees join social clubs, golf groups or local events to meet people, but integrating into Portuguese culture can make the experience even richer.
Safety, transportation, and daily life essentials
Portugal is widely considered one of Europe’s safest countries and offers a high quality of life. Public transport is generally reliable and affordable, though in rural areas, having a car can be more convenient for daily errands.
Things to keep in mind when retiring to Portugal from the UK
Portugal’s scenic coastlines and a slower, more relaxed way of life are just a couple of reasons that it’s an appealing retirement destination. But as with any major move, it’s not just about the lifestyle. From sorting out residency paperwork to understanding how things work day-to-day, being prepared for the practical side will help your transition feel a lot more seamless.
Bureaucracy and legal hurdles
Portugal’s bureaucratic processes can be slow, especially when dealing with visas, residency permits, taxes and healthcare registration. Many retirees hire a gestor (local administrative expert) to help navigate paperwork efficiently.
Climate variations
Portugal’s climate varies by region. Coastal areas like the Algarve can be humid, while the north experiences colder, wetter winters. Inland areas tend to have hotter summers, so choosing the right location based on personal climate preferences is key.
Potential changes to visa and tax policies post-Brexit
As non-EU citizens, UK retirees must stay updated on evolving visa and tax regulations. Recent changes to the Golden Visa programme and possible adjustments to tax benefits like the NHR scheme highlight the importance of checking official sources and seeking expert advice.
Taxation and pension considerations for UK expats in Portugal
When retiring to Portugal, it’s essential to understand how your UK state pension and taxation will be affected. Here’s an overview:
UK state pension eligibility in Portugal
UK retirees can usually continue receiving their state pension in Portugal, provided they meet National Insurance contribution requirements. Pensions can be paid into either a UK or Portuguese bank account and will increase annually in line with UK rates as Portugal remains in the European Economic Area (EEA).7
Double taxation agreements between the UK and Portugal
The UK and Portugal have a Double Taxation Agreement to prevent retirees from being taxed twice on the same income.8 Typically, UK pensions received by Portuguese residents are only taxable in Portugal. However, it’s advisable to check the latest tax rules and seek professional guidance on your specific situation.
Buying vs. renting property in Portugal
Deciding whether to buy or rent property in Portugal depends on your long-term goals, financial situation, and how familiar you are with different regions.
Buying property
UK citizens can buy property in Portugal but must obtain a Fiscal Number (NIF).9 The process involves signing a Promissory Contract, paying a deposit, and finalising the sale with a Final Deed (Escritura). Costs include various property taxes in Portugal, including Property Transfer Tax (IMT), Stamp Duty (0.8%), notary, and legal fees.
Renting property
Renting requires a deposit and first month’s rent upfront, offering flexibility to explore different areas before buying. Some rentals include maintenance fees, and landlords may prefer long-term leases.
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Frequently Asked Questions
How much money do I need to retire in Portugal?
The D7 Visa requires a minimum income of €9,120 per year (€13,680 per couple), but actual costs depend on location and lifestyle. While Portugal can be cheaper than the UK, budget for rent, healthcare and daily expenses, plus six months’ savings for emergencies.
Can I keep my UK bank account and pension while living in Portugal?
Yes, you can keep your UK bank account and receive your state pension in either a UK or Portuguese account. Be aware of exchange rate fluctuations, and consider using a foreign exchange provider to reduce transfer fees.
Do I need to hire a lawyer for visa applications or property purchases?
A lawyer is highly recommended for property purchases to handle legal checks and contracts. Visa applications can be made independently, but some retirees use immigration consultants for a smoother process.
What happens if I want to return to the UK after retiring in Portugal?
You’ll need to deregister as a Portuguese resident and update your tax status with UK and Portuguese authorities. If using the S1 scheme, you must re-register with the NHS upon return. Your UK state pension remains unaffected but check for any tax implications.
Sources used:
- UK Government – Living in Portugal
- Non-Habitual Tax Resident – Portuguese NHR regime
- UK Government – Portugal Entry Requirements
- European Union – Residence rights
- IAS Services – D7 Visa
- Get Golden Visa – Portugal Golden Visa programme – rules and updates 2025
- UK Government – State pension rates, if you retire abroad
- European Union – Residence rights
- UK Government – Portugal: tax treaties
Sources last checked on: 27/03/2025
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Lumon or its subsidiaries, and it is not intended as a substitute for obtaining advice from the relevant professional services. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
