9 Best Places to Retire in Portugal, According to Experts

From gorgeous islands to buzzy cities, these are the best places to retire in Portugal.

Retiring in Portugal sounds like a dream, but it’s a reality for many Americans. This European country is a popular retirement destination due to its excellent weather and low cost of living. Plus, it’s one of the safest countries in the world.

Access to healthcare is a big factor in deciding where to retire. “Portuguese healthcare is one of the best in Europe,” says Julien Faliu, founder and CEO of Expat.com, a website dedicated to helping expats move and thrive abroad. While most healthcare is free for residents, U.S. retirees will need to hold their own insurance policy. Modern hospitals, clinics, and pharmacies are widely accessible, and prices can be much more affordable than in the U.S. After five years of living in Portugal, Americans can apply for permanent residency, which comes with access to healthcare.

There are two main types of visas for retirees who want to move to Portugal. The D7 visa is also called the “Portugal retirement visa.” It requires a steady passive income (which can include things like pensions and interest from investments. The minimum requirement varies but is often under $10,000 USD per year.

The other option is the D9 or "golden visa." “For expats who can afford it, the golden visa is also interesting because it covers family members, allowing them to access education and jobs in Portugal and in all of Europe,” explains Faliu. The golden visa program, which requires investments of at least €250,000, was changed dramatically in 2023, but there are still options available.

However you choose to apply for residency, be patient. “Bureaucracy can be slow in Portugal. There seems to be a significant backlog which means that right now, it might take up to six months to get your application processed,” advised Faliu.

Now, let’s jump into the fun part — the best places to retire in Portugal.

Lagos

Lagos is a city in southern Portugal’s Algarve region. “The Algarve is a top choice for American retirees, known for its sunny weather, scenic beaches, and relaxed lifestyle,” says Pedro Branco, managing director of Portugal Residency Advisors. Lagos is a historic city full of beautiful beaches, golf courses, dining, and Portuguese charm. It offers a relaxed atmosphere that prefers al fresco cafe dinners to loud, high-spirited nightclubs.

“The region’s welcoming expat community and English-speaking locals make it easy to settle in, while the golden coastline and mild winters provide an ideal environment for outdoor activities and relaxation,” says Branco.

A robust public transport system connects Lagos to other cities in the region, making it a great base for retirees who want to explore all Portugal has to offer.

Lisbon

Lisbon is Portugal’s biggest city and capital. Located on the banks of the Tagus River, it offers retirees a more cosmopolitan lifestyle that combines historic charm with modern amenities.

“Lisbon, with its vibrant neighborhoods, historic architecture, and lively arts scene, suits retirees looking for a dynamic city life with easy access to world-class dining and cultural events,” says Branco.

Warm winters with temperatures that average almost 60 degrees Fahrenheit during the day make Lisbon a fantastic spot for outdoor adventures. There are numerous beaches, parks, and golf courses to explore. Plus, it’s a great destination for exploring on foot, and excellent public transportation allows retirees to live without the need for a car.

Retirees who love to travel will enjoy easy access to Lisbon Airport (LIS), the country’s largest international airport. It offers over 140 nonstop flights each day to destinations across the globe.

Porto

Porto is a charming city on Portugal’s west coast, about three hours north of Lisbon. It’s also the country’s second-largest city after Lisbon. In Porto, you’ll find colorful, historic buildings, cobblestoned streets, parks, and beaches. Residents enjoy walks along the Douro River, shopping on the Rua Santa Catarina, or sipping port in one of the city’s many tasting rooms.

Outdoor lovers will enjoy being within easy driving distance of Portugal’s first and only national park, Peneda-Gerês National Park, and Serra da Estrela Nature Park, the country’s largest protected area.

“Porto’s lower cost of living compared to Lisbon, along with its excellent healthcare and services, makes it a highly attractive option for retirees,” says Gonçalo Peixoto, head of real estate at Goldcrest Portugal Buyer's Agency.

Caldas da Rainha

Caldas da Rainha is a mid-sized city on Portugal’s Silver Coast and a popular spot for expats. It offers a laid-back lifestyle that’s big on art and culture. There are nine museums and lots of public art. Ceramics are king in Caldas; there’s a ceramics museum, factory, and school in the area.

Caldas da Rainha is a walkable city with an extensive bus system, which allows retirees to move easily without the need for a car. Plus, outdoor markets in the city center sell all of the essentials.

Retirees can rest easy knowing that Caldas da Rainha has both a public and private hospital as well as multiple clinics and pharmacies. Hospital visits and medication tend to be very affordable, even for American expats.

Cascais

For retirees who want a small-town feel that’s close to a big city, Cascais might fit the bill. This town, which began as a fishing village, is just over a 30-minute drive from Lisbon.

A moderate climate, with temperatures averaging between ​​55 and 77 degrees Fahrenheit, lots of outdoor activities, and a robust expat community make Cascais a popular spot for retirees.

“Known for its luxury resorts, seaside promenades, and sophisticated atmosphere, Cascais is perfect for those who want a mix of beach living and metropolitan amenities while remaining close to the capital,” said Branco.

Outdoor enthusiasts will love the town’s close proximity to Parque Natural de Sintra-Cascais, which offers excellent hiking and biking. Golfing, kite surfing, and sailing are also popular activities. Of course, in a place often called “​the Portuguese Riviera,” there’s nothing wrong with taking it easy on one of the city’s beautiful beaches.

Madeira

The island of Madeira is part of an archipelago of the same name located off the coast of Morocco. Although it’s closer to Africa than mainland Europe, it’s less than two hours by plane from Lisbon.

“The cost of living is lower compared to mainland Portugal, and the welcoming locals and strong expat community ensure that retirees feel at home in this stunning Atlantic haven,“ says Peixoto.

This island paradise has consistent warm, but not hot, weather with highs ranging from 61 to 73 degrees Fahrenheit, making it a perfect spot for outdoor adventures. Residents can swim in crystal-clear water, hike through forests and mountains, go birdwatching, go biking, or go golfing on one of three courses. In fact, Madeira is an up-and-coming golf destination; it’s been nominated in the "World's Best Emerging Golf Destination" category for the 2024 World Golf Awards, which will take place in November.

Faro

Faro, the capital of the Algarve region, is located at the southern tip of Portugal.

“American retirees will appreciate its blend of historic charm and modern amenities, along with a mild climate that makes it perfect for year-round outdoor activities,” said Peixoto.

Often overlooked, this resort town retains a distinctly Portuguese character with a laid-back lifestyle. Despite that, it’s still well-connected: Faro’s international airport (the main international airport in southern Portugal) offers nonstop flights to 89 destinations worldwide, including two in North America (Toronto and Newark).

Retirees can stroll through centuries-old buildings in Faro’s old town (Faro Cathedral dates back to 1251), dine on traditional dishes, explore museums and galleries, or relax on one of the area’s beautiful beaches.

Setúbal

Setúbal is a port city with an industrial history. It sits on the banks of the Sado River estuary, about an hour southeast of Lisbon. “American retirees will find it appealing for its relaxed atmosphere, affordable cost of living, and access to fresh seafood and local wines,” says Peixoto.

Pedestrian-only streets in the city center are lined with shops and historic buildings. Residents can stroll along the waterfront promenade or head to one of the area’s nature preserves including the Sado Estuary Nature Reserve and Arrábida Natural Park.

The Mercado Do Livramento is Setúbal’s main market, and it’s considered one of the best in the country. This impressive market sells fresh seafood, meat, produce, and traditional Portuguese treats.

Coimbra

Home to the country’s oldest university, which is also one of the oldest in Europe, Coimbra is a college town with a vibrant energy that’s perfect for retirees and students alike.

“The city’s affordable cost of living, combined with its beautiful riverfront and historic architecture, makes it a great option for those looking for a more intellectual and serene retirement,” said Peixoto.

Indeed, this medium-sized city offers both historic charm and the modern amenities you may find in a larger city like Lisbon or Porto. Shopping is plentiful at places like Mercado Municipal (a traditional market), Forum Coimbra (a modern shopping mall), and Continente (a supermarket), among others. Plus, the bus and train systems in Coimbra allow retirees to get around town or explore other regions of Portugal without the need for a car.

“Coimbra’s well-developed healthcare facilities and vibrant cultural scene ensure a fulfilling and comfortable lifestyle,” said Peixoto.

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