Best places to retire in Portugal: Top regions and cities

Retiring in Portugal offers comfort, affordability, and quality of life that few countries can match. With a mild climate, a strong sense of community, and an efficient healthcare system, Portugal is one of the popular destinations among retirees. 

According to the latest migration report from AIMA (Agência para a Integração, Migrações e Asilo), around 1.5 million foreigners live in Portugal. Safe cities, welcoming locals, and a relaxed pace of life make it easy for newcomers to settle in and feel part of the community.

This article explores the best places to retire in Portugal and what makes each area special. Some regions are ideal for those who enjoy coastal living, while others attract retirees looking for a quieter pace or cultural immersion. 

Key takeaways

• Portugal is one of the best places in the world to retire, offering safety, affordability, and a high quality of life.

• The Algarve is ideal for retirees who love sunshine, beaches, and an active expat scene, while Lisbon and Cascais blend city living with ocean views.

• The Silver Coast offers authentic Portuguese charm and low living costs, while Porto, Braga, and Coimbra provide rich culture and excellent healthcare.

• The Douro Valley and inland towns like Amarante and Chaves offer scenic landscapes and affordable living.

• The average cost of living in Portugal ranges between €2,500 and €3,000 per month, depending on your lifestyle and location.

• Public transport is strong in the main cities like Lisbon and Porto, but smaller coastal or rural towns may require a car for convenience.

• English is widely spoken in major cities and coastal regions, though learning basic Portuguese helps you live better in rural areas.

• Retirees can apply for Portugal through the D7 Passive Income Visa, a popular route for those with stable income or pensions.

• With proper planning and visa support, retirees can enjoy a relaxed, fulfilling lifestyle in one of Europe’s most accessible and beautiful destinations.

Why retire in Portugal?

Choosing to retire in Portugal means embracing a lifestyle built around balance, comfort, and opportunity. The country offers low living costs, high-quality healthcare, and a friendly, safe environment. 

Easy residency options

The government has made retiring in Portugal more accessible through visas like the D7 (Passive Income) Visa, designed specifically for retirees and those with stable income sources. This program provides a clear path to residency in Portugal and, eventually, citizenship, while allowing retirees to enjoy the benefits of living in the European Union.

Affordable cost of living

The cost of living in Portugal ranges from €2,500 to €3,000, which is relatively low compared to other Western European countries. Housing, groceries, public transport, and healthcare are all affordable, even in major cities. 

Many retirees find that their pensions or savings stretch further here, allowing them to enjoy a higher standard of living without financial strain.

Excellent healthcare system

Portugal’s healthcare system is well-regarded for its quality, accessibility, and affordability. Both public and private options are available, and residents can access care through the National Health Service (SNS) once registered. English-speaking doctors and modern facilities make it easier for foreign residents to receive medical care with confidence.

Safety and stability

Portugal is one of the safest countries in the world, ranking consistently high for peace and political stability. Violent crime is rare, and communities are known for their friendliness and trust. This sense of security adds to the country’s overall appeal for retirees looking for peace of mind and a stable environment.

Welcoming expat community

Portugal has a strong and growing international community, with expats from the United States, the United Kingdom, Canada, and across Europe. This makes integration easier as newcomers can connect through local social clubs, language exchanges, or international groups, helping build a sense of belonging quickly.

Best cities to retire in Portugal

One of the first steps in planning your move is deciding where to retire in Portugal. Each city and region offers its own character, whether that means ocean views, historic charm, or a slower pace of life. 

Here are some of the best places in Portugal for expats to retire in the country, each offering a unique blend of lifestyle, culture, and community.

Algarve region (Algarve and Carvoeiro)

Source: Portugal Homes

The Algarve region, including the scenic town of Carvoeiro, continues to attract retirees who value sunshine, comfort, and a relaxed pace of life. With over 300 days of sunshine each year, the region’s Mediterranean climate supports an active outdoor lifestyle. 

Retirees spend their days walking along sandy beaches, playing golf on world-class courses, and enjoying fresh seafood in oceanfront cafés. 

There are three main areas in the Algarve where you can settle: 

• Lagos is known for its coastal walled city, built around a 17th-century fort.

• Vilamoura is a resort hub famed for championship golf, a large luxury marina, upscale dining, and easy access to Praia da Falésia.

• Tavira is called the “Queen of the Algarve,” celebrated for its historic charm on the Gilão River, Roman bridge, and churches, and ferry access to Ilha de Tavira’s long sands.

Healthcare access 

Algarve’s public health system is managed by the Unidade Local de Saúde do Algarve (E.P.E.) (ULS Algarve). There are three major public hospitals in the region: Hospital de Faro, Hospital de Portimão, and Hospital de Lagos. 

English is widely spoken in both public and private facilities, especially in coastal towns. Private hospitals such as Hospital Particular do Algarve (in Alvor, Faro, and Gambelas) and Lusíadas Faro offer faster service and shorter wait times. They are especially popular among retirees and expats.

Convenience

The Algarve has buses and regional trains connecting main towns like Faro, Lagos, and Portimão. But service can be infrequent, especially outside peak season. A car makes shopping, healthcare visits, and beach trips much easier.

If you travel a lot, the Faro Airport provides direct flights to major U.K. and European cities.

Average cost of living

The average cost of living in the Algarve region ranges between €2,000 and €3,000 per month for a comfortable lifestyle, including rent, groceries, utilities, and healthcare. 

Here’s a breakdown of what is included in this:

The Algarve region is best for active retirees who enjoy sunshine, beaches, golf, and a social expat scene with strong healthcare and travel connections.

Lisbon and surrounding coast (Lisbon, Cascais, Setúbal & Sesimbra)

Source: Go2Lisbon

The Lisbon area provides the excitement of city life with the calm of the coast, making it one of the best cities to retire in Portugal. It offers world-class healthcare, cultural attractions, and excellent transport connections, including an international airport. 

Here are four main areas you can live in this region:

• Lisbon: The city’s neighborhoods each offer distinct charm, from the historic Alfama to the elegant Chiado.

• Cascais: A coastal gem just 30 minutes from Lisbon, known for golden beaches and scenic promenades.

• Setúbal: Offers an authentic Portuguese feel with excellent seafood, natural parks, and affordable property prices.

• Sesimbra: A peaceful fishing town framed by cliffs and sea, popular with retirees seeking quiet living and beautiful scenery.

Healthcare access

The public system in Lisbon is anchored by Hospital de Santa Maria, the city’s largest and most advanced public hospital. Other major facilities include Hospital São José and Garcia de Orta, which provide comprehensive specialist and emergency care across the Lisbon metropolitan area.

Private options such as CUF Cascais, Lusíadas Lisboa, and Hospital da Luz provide faster service and English-speaking doctors, especially along the coast in Cascais, Setúbal, and Sesimbra.

Convenience

Lisbon and its surrounding coast are some of the easiest places in Portugal to live without a car. The city’s metro, trams, and suburban trains connect to coastal towns like Cascais, Setúbal, and Sesimbra. This makes everyday travel simple and affordable.

The Lisbon Airport offers direct flights to major cities in the U.S., U.K., and Europe, making international travel easy for retirees.

Average cost of living

Lisbon and its surroundings are among Portugal’s higher-cost regions, but still far below major U.S. or U.K. cities. Retirees can live comfortably on €2,200–€3,200 per month, depending on neighborhood and lifestyle.

Here’s a breakdown of the cost of living area-wise:

Lisbon is the best place to retire if you want urban amenities, coastal relaxation, and direct access to international travel.

Silver Coast (Nazaré, Óbidos & Caldas da Rainha)

Source: Benoit Properties

Stretching between Lisbon and Porto, Portugal’s Silver Coast offers one of the most balanced and affordable lifestyles for retirees. With its long beaches, medieval towns, and mild climate, the region is increasingly recognized among the best places to retire in Portugal. 

It attracts those who want to live near the ocean without the crowds or high prices of the Algarve. 

The best towns for retirees on the Silver Coast are:

• Caldas da Rainha: A mid-sized, vibrant city known for its thermal hospital, local markets, and affordable homes. Excellent healthcare, shopping, and transport links.

• Nazaré: A lively fishing town with a strong sense of tradition, known for its beaches, seafood, and famous giant waves.

• Aveiro: Known as “The Venice of Portugal,” featuring canals, art nouveau buildings, and excellent healthcare options.

• Óbidos: A beautifully preserved medieval village offering a slower, storybook lifestyle surrounded by vineyards and festivals.

Healthcare access

The Centro Hospitalar do Oeste (CHO) is the main public healthcare network for the Silver Coast area. It manages three hospitals: Hospitals of Caldas da Rainha, Torres Vedras, and Peniche. 

These facilities provide full public coverage for nearby towns such as Óbidos and Nazaré, handling emergencies, specialist care, and general medicine.

English-speaking doctors are available in many local clinics and public hospitals, though access to private healthcare is more limited compared with major cities. 

Convenience

In the Silver Coast, trains and buses run between Caldas da Rainha, Nazaré, and Óbidos. Many residents also prefer having a car for flexibility. 

If you want access to the airport, the Lisbon airport is over an hour away from the coast. 

Average cost of living

The Silver Coast has the cheapest cost of living compared to Portugal’s other cities. A couple can live comfortably on €1,800 – €2,400 per month, including rent, groceries, healthcare, and transportation.

Here’s a breakdown of the cost of living area-wise:

The Silver Coast is best for retirees who want to experience authentic Portuguese culture with lower living costs and a strong community spirit.

Porto, central and northern cities (Braga, Aveiro & Coimbra)

Source: Portugal.net

Portugal’s central and northern regions offer a mix of rich culture, cooler climates, and lower living costs, making them some of the best cities to retire in Portugal for those seeking authenticity and value. 

These cities balance history and modern comfort, each with strong transport links, thriving communities, and excellent healthcare. 

The following are areas you should consider for retirement in Portugal:

• Porto: Portugal’s second city is full of character, from its UNESCO-listed old town to riverside cafés and port wine cellars. It offers a lower cost of living than Lisbon, and nearby Vila Nova de Gaia provides even more affordable housing.

• Braga: Known as Portugal’s third-largest city, Braga brings historic beauty with a youthful, modern feel. Its baroque churches, leafy squares, and lively cafés make it a pleasant place to live year-round.

• Aveiro: Often called the “Venice of Portugal,” Aveiro charms retirees with its canals, colourful boats, and Art Nouveau architecture. The town has a calm, easygoing atmosphere and is well-connected by train between Lisbon and Porto.

• Coimbra: Once Portugal’s capital, Coimbra remains a centre for education, healthcare, and culture. The city’s university heritage gives it a lively yet refined energy, with concerts, exhibitions, and traditional fado music throughout the year.

Healthcare access 

Portugal’s north and central regions have strong public healthcare. The Centro Hospitalar Universitário de São João in Porto is the main hospital and one of the country’s top medical centers for specialized treatment.

Other key facilities include Centro Hospitalar Universitário de Coimbra, Hospital de Braga, and Hospital de Aveiro.

Many doctors speak English, especially in larger cities. Retirees can use the public system for core care and private hospitals for faster appointments or English-speaking staff.

Convenience

Cities like Porto, Braga, and Coimbra have excellent public transport and pedestrian-friendly centers, so many retirees choose not to drive. English is widely spoken, especially in hospitals and cafés. 

The Porto Airport offers direct flights across Europe and seasonal routes to North America.

Average cost of living

The average cost of living in Porto, Braga, Aveiro, and Coimbra ranges from €1,600 to €2,400 per month for a couple, depending on lifestyle and city choice.

Here’s a breakdown of the cost of living area-wise:

Retirees who enjoy walkable streets, cultural experiences, and a true taste of Portuguese life often find this region the perfect fit.

Douro Valley and inland gems (Amarante, Serra da Estrela & Chaves)

Source: ArtPhotoLimited

The Douro Valley and inland regions offer some of the best places to retire in Portugal. This area is known for its rolling vineyards, thermal springs, and charming towns, providing a slower, more peaceful rhythm of life. 

Living costs are significantly lower than in coastal cities, while the sense of community and connection to nature make it ideal for those who want a quiet and meaningful retirement surrounded by beauty.

The following are some of the areas retirees choose to settle:

• Amarante: A charming riverside town with stone bridges, baroque churches, and friendly cafés. This city is perfect for countryside living, just an hour from Porto.

• Serra da Estrela: Portugal’s highest mountain region, ideal for nature lovers seeking cool air, scenic hikes, and a peaceful, low-cost lifestyle.

• Chaves: A historic spa town known for its Roman heritage, thermal waters, and relaxed pace, offering affordable living and a strong community feel.

Healthcare access 

Public healthcare in this region is provided mainly through the Centro Hospitalar de Trás-os-Montes e Alto Douro (CHTMAD). This facility operates hospitals in Vila Real, Chaves, and Lamego, which are the largest towns in the area. These hospitals offer full emergency and specialist services.

Smaller towns like Amarante and communities around Serra da Estrela have local health centers and smaller hospitals that handle basic and urgent care.

But private care options in the Duoro Valley and inland areas are limited compared with coastal regions.

Convenience 

Daily life in the Douro Valley and inland towns moves at a gentler pace. Public transport is limited, so you need a car to reach shops, doctors, and nearby villages. Locals are friendly, and learning a few Portuguese phrases goes a long way. 

Internet coverage is strong, and Porto Airport, a couple of hours away, provides convenient access for international travel.

Average cost of living 

The average cost of living in inland areas is between €1,600 and €2,200 per month, depending on location and lifestyle. 

Here’s a cost breakdown for two regions, according to LivingCost.org:

The Douro Valley and inland regions are best for retirees seeking tranquillity, scenic landscapes, and an authentic Portuguese lifestyle.

Most popular places for foreigners in Portugal

According to AIMA, the majority of foreigners in Portugal live along the coast, especially around Lisbon, the Algarve, and northern cities such as Porto and Braga. Together, these areas account for more than 70% of the country’s foreign population.

The Lisbon metropolitan area dominates the list, with municipalities such as Sintra, Cascais, Amadora, Loures, Odivelas, Almada, Seixal, and Oeiras ranking among the top places where expats reside. 

Porto in the north and Loulé in the Algarve attract a mix of European, Brazilian, and North American retirees. While coastal areas remain popular among Europeans and North Americans seeking lifestyle and healthcare access.

If you’re unsure which place in Portugal best fits your retirement lifestyle, Touchdown provides immigration consultation services to make things easier. Our in-house Portuguese lawyers share a personalized visa strategy, legal review, and a written summary note, helping you retire in Portugal with clarity and confidence.

How much money do you need to retire in Portugal?

The amount you need to retire comfortably in Portugal depends on your lifestyle, location, and housing preferences. 

On average, a single retiree can live comfortably on €1,500 to €2,500 per month, while couples often find €2,500 to €3,500 per month provides a good standard of living. 

Costs vary across the country. Living in Lisbon, Cascais, or the Algarve is more expensive, while smaller inland towns or regions such as the Silver Coast and the Douro Valley offer much lower expenses.

Housing

Housing is usually the largest part of the budget. But this can depend on whether you’re buying a property in Portugal or renting out. 

The average cost of purchasing a house is around €1,951 per m² as of early 2025. When comparing cities, the real estate prices in Lisbon, Porto, and the Algarve are relatively higher than smaller cities like Braga and Central Portugal. 

If you’re considering renting out, a one-bedroom apartment in a central area may cost €1,000 to €1,500 per month. While in quieter inland towns, similar accommodation often has lower rent prices. 

Healthcare

Healthcare is another major advantage, as Portugal’s public system provides excellent care, and private insurance options are widely available and affordable. These can cost around €70 to €120 per person per month, with access to English-speaking doctors and modern facilities.

Food

Food, transport, and leisure remain affordable, and daily costs are noticeably lower than in the United States or the United Kingdom. A couple can expect to spend €350 to €500 per month in Lisbon or the Algarve, €350 to €450 on the Silver Coast and in northern cities.

The food budget in smaller inland areas costs around €250 to €350, where local markets and produce keep costs low.

Internet & Utilities

Utilities and internet usually add €140 to €200 per month nationwide. Costs are slightly higher in Lisbon and coastal areas due to air conditioning use, while milder inland climates keep bills on the lower end.

Transportation

Transportation is inexpensive and reliable. In Lisbon and Porto, public transport passes cost around €40 to €50 per month.

In smaller or rural towns, you might need to buy a vehicle and should budget around €80 to €120 monthly for fuel and maintenance.

Most retirees rely on pensions, savings, or passive income, which stretch much further in Portugal than in many other European countries. 

With sensible budgeting, it is entirely possible to enjoy a relaxed and fulfilling lifestyle in some of the best cities to retire in Portugal, while maintaining financial peace of mind.

Best places to retire in Portugal: A quick overview table

Applying for Portugal: Visa and residency options for retirees 

If you’ve decided to retire in Portugal, you can apply for the D7 Visa, also known as the Portugal Passive Income Visa. This visa is designed for retirees or individuals who can support themselves through stable income sources such as pensions, savings, or investments.

This visa allows you to live, study, and travel freely across the Schengen Zone, while offering a clear pathway to permanent residency and citizenship after five years. 

Once granted, D7 Visa holders can also access Portugal’s healthcare through SNS and enjoy many of the same rights as residents.

But relocating to Portugal can be hard if you don’t have the right expertise. You need guided help with Portugal’s visa and residency, so you and your loved one can move without any stress. 

How Touchdown helps you retire and settle in Portugal 

Touchdown is Portugal’s most trusted relocation platform. Our experienced team of Portuguese lawyers and relocation experts makes your move seamless from start to finish. 

We bring everything you need into one platform so you can relocate and start your new life in Portugal with confidence. Whether you are retiring alone or moving with family, Touchdown creates a personalized plan around your goals and lifestyle.

We manage every part of the process, from preparing your visa application and setting up your NIF and bank account to handling your taxes and supporting you once you arrive. What is often a complicated process becomes a clear and guided experience with our help, allowing you to focus on settling in and enjoying your new home.

Here is how Touchdown supports your move to Portugal:

Eligibility and planning

Start with our free Eligibility Checker to understand whether the D7 Passive Income Visa or another residency option suits your retirement plans. 

Within minutes, you receive clarity on your choices. Our team then arranges a one-on-one session to map out your next steps and design a plan that fits your situation.

Legal review and application preparation

Our licensed Portuguese lawyers review all your documents, including pension statements, proof of accommodation, and insurance. Every detail is checked to ensure your application meets consulate requirements and is ready to submit without delays.

Bank account and NIF setup

We open your Portuguese bank account and obtain your NIF remotely in partnership with trusted financial institutions. You receive all the documents required for your visa submission, along with clear instructions and ongoing support.

Consulate coordination and support

We schedule your visa appointment at the right consulate, prepare you for the interview, and make sure you have everything you need for a smooth submission. If any requirements change, our team helps you adjust quickly.

Post-arrival assistance

Our support continues after you arrive in Portugal. We help you register your address, attend your AIMA appointment, update your NIF, and set up your tax residency. You receive guidance at every stage to ensure you settle comfortably and start your retirement with peace of mind.

Ready to Retire in Portugal? 

Relocating abroad is a big step, but you do not have to do it alone. Touchdown combines expert legal advice, local knowledge, and personalized guidance so you can move to Portugal smoothly and confidently. 

Book a 1:1 consultation to get personalized support from our team.

FAQs about the best places for retirement in Portugal

Where do most American expats live in Portugal?

Many who retire in Portugal from the USA settle in Lisbon, Cascais, and the Algarve. These areas have strong English-speaking communities, excellent infrastructure, and easy access to international airports. Increasingly, smaller towns such as Setúbal, Porto, and Caldas da Rainha are also attracting Americans who want a quieter, more affordable lifestyle while staying close to major amenities.

Do American retirees pay taxes in Portugal?

Yes, American retirees living in Portugal pay taxes on their worldwide income if they become Portuguese tax residents. However, many benefit from Portugal’s double taxation treaty with the United States, which prevents being taxed twice on the same income. 

Retirees can also explore tax-efficient residency options such as the D7 Visa, which provides access to Portugal’s public healthcare system and other benefits.

Where do most Brits retire in Portugal?

British retirees are most commonly found in the Algarve, particularly in towns like Lagos, Albufeira, and Carvoeiro. The region’s warm climate, established expat community, and English-speaking services make it especially appealing.

Many also choose Cascais or the Silver Coast for their coastal scenery and easy access to Lisbon, combining comfort with authentic Portuguese living.

What taxes do retirees pay in Portugal?

If you’re tax-resident (i.e., staying for over 183 days), your worldwide income is taxed at standard progressive rates. You need to pay tax under normal brackets for your pensions and Social Security income. 

Also, the new NHR 2.0 tax regime generally doesn’t apply to passive retirees.