To retire in Portugal, you apply for the D7 passive-income visa, show a steady pension or investment income, prove savings, get health cover, and move to Portugal as a legal resident. Portugal remains one of Europe's most popular retirement homes. It offers warm weather, low costs, good healthcare, and a clear visa path for retirees. But the rules changed a lot in 2024, 2025, and 2026. This guide walks you through the current system, step by step.
Table of Contents
- The D7 retirement visa: income, savings, and steps
- Golden Visa vs the D7
- Taxes on your pension (NHR and IFICI in 2026)
- Healthcare: SNS and private cover
- Cost of living by region
- Best places for retirees
- Permanent residency and citizenship
- Portugal vs Spain for retirees
- Downsides and common mistakes
- The bottom line
The D7 retirement visa: income, savings, and steps
The D7 visa is Portugal's main route for retirees with steady passive income. It is built for people who live off a pension, rental income, dividends, or other income they do not need to work for. Most retirees use this visa, not the Golden Visa.
How much income do you need?
You must show passive income of at least the Portuguese minimum wage, which is €920 per month in 2026. That equals €11,040 for the year for one person. A spouse adds 50% (€460 per month), and each child adds 30% (€276 per month).
Income can come from a pension, Social Security, rentals, dividends, or annuities. Most retirees comfortably clear this bar with a pension alone. Officials do like to see the income is stable and will keep coming.
How much savings do you need?
On top of income, you should show savings roughly equal to one year of the minimum wage. That is about €11,040 in the bank for a single applicant. Add €5,520 for a spouse and €3,312 per child.
These numbers rise each year with the minimum wage. Always confirm the current figure before you apply. Consular staff sometimes ask for more to be safe.
The steps to apply
You apply at a Portuguese consulate in your home country, or through VFS Global. You submit proof of income, savings, a place to stay, health cover, and a clean criminal record. Learn more on our Portugal visa page.
The consulate issues a four-month entry visa. After you arrive, you attend an appointment with AIMA, Portugal's immigration agency, to get your two-year residence card. You renew that card, then move toward permanent residency.
Golden Visa vs the D7
For most retirees the D7 is the better choice, because it is far cheaper than the Golden Visa. The Golden Visa is an investment route, and the rules changed sharply in 2023.
What changed with the Golden Visa
Portugal removed the real-estate route from the Golden Visa in October 2023. You can no longer buy a home or commercial property to qualify. That route once covered about three quarters of all applicants.
Today the main routes are a €500,000 investment in an approved Portuguese fund, or a cultural donation of €250,000 (or €200,000 in low-density areas). Job-creation and research routes also exist. Read our Golden Visa explained guide for the full picture.
Which one fits a retiree?
The D7 suits retirees who plan to live in Portugal full time and have a steady income. The Golden Visa suits wealthy people who want residency without moving there, since it has very low stay rules. Compare the two below.
| Feature | D7 Visa | Golden Visa |
|---|---|---|
| Best for | Retirees living in Portugal | Investors wanting flexible residency |
| Main requirement | ~€920/month passive income + savings | €500k fund or €250k donation |
| Real-estate option | Not needed | Removed in 2023 |
| Minimum stay | Live in Portugal most of the year | About 7 days per year |
| Rough cost | Low (fees only) | High (large investment) |
Taxes on your pension (NHR and IFICI in 2026)
Foreign pensions are now taxed at Portugal's normal progressive rates, because the old NHR tax break has closed. This is the single biggest change retirees must understand. Many older guides still get it wrong.
NHR has closed
The Non-Habitual Resident (NHR) regime stopped taking new applicants at the end of 2023. A transition window let a few late cases apply until 31 March 2025, but that door is now shut. NHR once taxed foreign pensions at just 10%.
If you already hold NHR status, you keep it for your remaining years. New arrivals cannot get it.
What IFICI ("NHR 2.0") does — and does not — cover
Portugal replaced NHR with a regime called IFICI, sometimes called NHR 2.0. IFICI gives a flat 20% rate on certain professional income and breaks on some foreign income. But it is aimed at skilled workers and researchers, not retirees.
Crucially, IFICI does not give a special break on foreign pensions. So a new retiree's pension is now taxed under Portugal's standard brackets, which rise to 48% (plus a solidarity surcharge on high incomes). Model your real tax bill before you move, and see our tax-friendly countries guide for context.
Check your figures with a Portuguese tax adviser and the official Portuguese Tax Authority (Autoridade Tributária). A tax treaty with your home country may reduce double taxation.
Healthcare: SNS and private cover
Legal residents in Portugal can use the public health service, the SNS, on the same terms as locals. Access depends on legal residence, not on your nationality. Our Portugal healthcare page covers this in depth.
Public healthcare (SNS)
Once you have your residence card, you register at your local health center (Centro de Saúde) with your address. Public care is very cheap: a GP visit costs around €5, and care is free for residents over 65. Portugal's system is well rated for the price.
One catch: many people wait a long time for an assigned family doctor. Over 1.5 million residents lacked one at the end of 2025. You can still use walk-in clinics, the SNS 24 phone line, and emergency care.
Private insurance
Most retirees also buy private health insurance to skip long public waits. Private cover is affordable, often €40 to €100 per month depending on age and health. You need proof of health cover to get the visa in the first place.
Cost of living by region
Portugal is cheaper than most of Western Europe, but costs vary a lot by region. Lisbon and the Algarve cost the most; the interior and smaller cities cost far less. See our Portugal cost of living page for details.
Monthly budget by region
The table below shows a rough monthly budget for a retired couple, renting a one- or two-bedroom home. Your own costs will depend on lifestyle and housing.
| Region | Rent (1–2 bed) | Total monthly (couple) | Notes |
|---|---|---|---|
| Lisbon | €1,300–€2,000 | €2,600–€3,500 | Most expensive; busy capital |
| Porto | €1,000–€1,500 | €2,200–€2,900 | Cheaper than Lisbon, lively |
| Algarve | €1,100–€1,700 | €2,300–€3,100 | Coast; pricier in summer |
| Interior / small towns | €500–€800 | €1,400–€2,000 | Cheapest; quieter, rural |
What drives your costs
Housing is the biggest line by far. Groceries, transport, and dining out are all cheaper than in the US, UK, or Northern Europe. Utilities and heating can surprise you, since many older homes lack good insulation.
Best places for retirees
The Algarve is the top region for foreign retirees, thanks to its beaches, sunshine, and large English-speaking community. But it is not the only strong choice. Explore all your options on our Portugal country hub.
Popular retiree spots
The Algarve towns of Lagos, Tavira, and Cascais near Lisbon draw many retirees. Porto and the Silver Coast offer lower costs with easy city access. Inland towns like Évora and the Central region give you Portugal at its cheapest.
How to pick
Match the region to your budget and your need for services. Coastal and city areas have more English speakers and better hospitals. Rural areas cost less but need more Portuguese and a car.
Permanent residency and citizenship
You can apply for permanent residency after five years of legal residence in Portugal. Citizenship takes longer now, because the rules changed in 2026. This is a major update most guides miss.
The path to permanent residency
You renew your D7 residence card, live in Portugal, and keep clean records. After five years you can apply for a permanent residence permit. You also need a basic level of Portuguese (A2).
The 2026 citizenship change
Portugal doubled its citizenship timeline in 2026. Under Lei Orgânica 1/2026, which took effect on 19 May 2026, most applicants now need ten years of legal residence, up from five. Citizens of Portuguese-speaking (CPLP) countries and the EU need seven years.
Applications filed on or before 18 May 2026 stay under the old five-year rule. If citizenship matters to you, confirm your exact timing with a lawyer and the official gov.pt citizen services. US and UK retirees should also read our guide for US citizens and guide for UK citizens.
Portugal vs Spain for retirees
Portugal and Spain both offer sunshine, healthcare, and retiree visas, but they differ on tax and cost. Portugal's D7 is famous and simple; Spain's non-lucrative visa is similar. The table below compares the basics.
| Factor | Portugal | Spain |
|---|---|---|
| Main retiree visa | D7 passive-income visa | Non-lucrative visa |
| Income needed | ~€920/month (min wage) | Roughly €2,400/month |
| Pension tax break | NHR closed; pensions taxed normally | No special retiree break |
| Wealth tax | None | Yes, in most regions |
| Cost of living | Low | Low to moderate |
Italy is another rival worth weighing; see our Italy vs Portugal comparison.
Downsides and common mistakes
The biggest mistake retirees make is assuming the old 10% NHR pension tax still applies. It does not for new arrivals. Budget for normal Portuguese tax rates on your pension instead.
Common mistakes
People also underestimate AIMA delays, cold winter homes, and the need to learn Portuguese for citizenship. Some buy property before living there, then regret the location. Rent first, then buy.
Real downsides
Wages and services can feel slow and bureaucratic. Popular areas have rising rents and summer crowds. Weigh Portugal against sunnier-budget options like our retire in Mexico guide before you commit.
The bottom line
Portugal is still a top choice to retire, with a clear D7 visa, cheap living, and solid healthcare. But go in with eyes open: the pension tax break is gone, and citizenship now takes ten years for most people. Plan your taxes and timeline carefully before you move.
Ready to compare Portugal against other top destinations? See our ranking of the best places to retire abroad to find your perfect fit.