First Impressions: Falling for Portugal
Our love affair with Portugal began by chance. Rob was invited to deliver a keynote at the University of Lisbon, and I (Susan) tagged along, eager to explore Europe for the first time. After a week in Paris, we hopped a quick flight to Lisbon. The airport was bustling yet friendly, and while the initial ride to our hotel passed blocky 1960s buildings, the charm emerged as we neared the city center.
Checking into H10 Duque de Loulé, a cheerful bellman whisked us to our room and later pointed us toward an authentic Portuguese restaurant. Language barriers didn’t dampen the experience—kind locals ensured we enjoyed fresh seafood and wine. Strolling the Avenida da Liberdade afterward, we were struck by its wide, mosaic-lined walkways and elegant shops, a calmer echo of Paris’s Champs-Élysées. That tranquility, paired with Portugal’s rich history and fairytale-like streets, hooked us. We’ve returned countless times since, uncovering why it’s a retiree’s paradise.
Why Expats Love Portugal
After several return visits we came to understand the benefits of retiring in Portugal. Here are some of the reasons why expats love Portugal.
A Calm and Joyful Lifestyle
Portugal’s pace is a balm for the soul. Unlike the U.S.’s obsession with the “hedonic treadmill” of earning and doing more, the Portuguese prioritize living well. Their patience is monk-like, their optimism infectious. We first noticed this calm on the Avenida da Liberdade—busy yet serene compared to other capitals. For retirees, this translates to a stress-free life filled with leisurely café visits and seaside walks.
Mild Mediterranean Climate
Portugal enjoys a mild Mediterranean climate — think southern Italy. The Algarve boasts 300 sunny days a year, with summers reaching 90ºF (32ºC), while Lisbon and Porto stay milder at 80-85ºF (27-29ºC). Snow is rare outside the highest mountains, and winters seldom drop below 40ºF (5ºC). The best time to visit Portugal for mild weather? November and December, when temperatures hover in the 50s-60sºF (10-18ºC). Plus, Portugal’s southern location makes May, June, and July the best months to visit Europe from Portugal, with easy access to cooler northern destinations.
Cost of Living in Portugal vs USA
One of the standout benefits is the cost of living in Portugal vs USA. Expect to pay 30-50% less for essentials. Heavily trafficked tourist areas are not always inexpensive, but everywhere else you can expect bargain prices compared to the US equivalent of meals, groceries, basic services, and the like. For example:
- Rent: A one-bedroom apartment in Lisbon costs €800-€1,200/month, compared to $1,500-$2,000 in many U.S. cities.
- Dining: A meal for two with wine is €30-€40, vs. $60-$80 stateside.
- Groceries: Fresh produce and seafood are abundant and cheap thanks to a year-round growing season—think €1 for a kilo of oranges.
Excellent Healthcare
Portugal’s dual healthcare system—public and private—caters to all needs. The public system excels in emergencies, while private care is ideal for routine visits or surgeries. Costs are a fraction of U.S. rates: a private doctor’s visit is €40, and health insurance runs €50-€100/month. Rob had foot surgery in a modern private hospital for €2,000, including full anesthesia — unthinkable in the U.S. without hefty bills. And good health insurance is a fraction of what you will pay in the US.
Fresh, Healthy Food
Food here is a delight. The nearly year-round growing season ensures fresh fruits and vegetables, while the Atlantic yields incredible seafood. The beef and lamb are top notch, and Iberian pork is some of the world’s best. The Portuguese obsession with fresh food extends all the way to the local restaurants where patrons often pick out the exact fish or steak that will be prepared for them. And prices are low—a hearty meal costs half what you’d pay in the U.S.
World-Class Wine
Portugals wines are on par with France and every other European producer. While the Douro Valley near Porto is the most famous, primarily for port wine, it is just one of many outstanding wine producing regions. The Alentejo and Setúbal areas also turn out wines that out-drink anything in Napa and so inexpensive that wine is often cheaper than (bottled) water. You can spend more, but €3-€5 per bottle is a typical grocery store price for very drinkable wine. And the sangria here rivals anything you find in Spain. Rob almost always goes for the espumante (sparkling) sangrias while Susan prefers white wine sangrias and vinho verde (green wine).
Language Ease
English is widely spoken in cities and tourist areas, a blessing for U.S. expats. Off the beaten path, the Portuguese’s kindness shines—they’ll go out of their way to help, even with a language barrier. The locals understand that Portuguese is a hard language to learn, but they really appreciate hearing you try to say please, thank you, you’re welcome and good day in their won language.
Safety and Cleanliness
Portugal ranks 7th on the 2023 Global Peace Index, making it one of the world’s safest countries. Even dated areas are spotless, a testament to local pride.
Affordable Luxury: Elevating Everyday Life
The low cost of living in Portugal vs USA unlocks affordable luxuries. Rob’s €18 haircut includes a beard trim and hot-towel shave—better than a $50 U.S. salon. Susan finds trendy European shoes and clothes at local shops for a steal. Travel perks abound: a first-class train to Porto is €40, and a private driver to the Algarve costs less than a U.S. rental car. Even Uber is so cheap we skipped owning a car, avoiding the chaos of parking and whirlwind of motorbikes that makes driving a bit terrifying. Bolt, an Uber alternative and Rob’s go-to, is often cheaper still!
These are just a few examples, but the options to upgrade your lifestyle or just make a trip a but more upscale are innumerable. Couple this with the fact that Portuguese genuinely enjoy making their guests happy — undoubtedly something the culture assimilated from the Islamic Moors that occupied the Iberian peninsula — and you can find first class experiences everywhere you go.
Exploring Beyond the Basics: Portugal’s Hidden Gems
Portugal’s famous sites—Belém Tower, Sintra’s castles, Porto’s wines—are must-sees, but hidden gems elevate the experience:
- Évora: A walled city with a Roman temple and eerie bone chapel.
- Nazaré: Home to the world’s largest waves, perfect for thrill-seekers.
- Olhão: An Algarve fishing village with a vibrant fish market.
- Águeda: World renowned for its urban umbrella art installations.
Retirees also stumble across dinosaur footprints, Roman ruins, Moorish architecture, aqueducts, windmills (old and new), and medieval castles—history is alive here.
Relocating to Portugal: What U.S. Expats Need to Know
Beyond lifestyle, practical benefits of retiring in Portugal seal the deal for U.S. expats. And these benefits extend to semi-retirement as well, just in case you want to keep consulting or working remotely.
Retirement Visas
The D7 Visa is the go-to for couples that have passive income like pensions or investments. You need around €12,600 a year together (€8,400 for one of you, plus €4,200 for a spouse). Add proof of a place to stay and health insurance, and you’re on your way. After five years, you could even snag permanent residency or citizenship. It’s a laid-back option if you’re set with steady income and ready to soak up Portugal’s charm.
Then there’s the Golden Visa, which is more of a big-swing move for couples with some cash to splash. Drop €500,000 or more on something like real estate, and in return, you get residency with a shot at citizenship after five years. It’s perfect if you’ve got the funds and love the idea of owning a slice of Portugal. Plus, you only need to keep that investment going for five years.
For those not quite ready to fully retire, the Digital Nomad Visa might catch your eye. If you’re both still working remotely for a company back home, you’d need about €5,600 a month combined (€2,800 each). It’s less about kicking back and more about blending work with Portugal’s lifestyle, with residency renewable yearly. It could be a fun fit if you’re semi-retiring and want to keep some hustle going.
Each of these has its own benefits—the D7 keeps it simple, the Golden Visa brings a luxe angle, and the Digital Nomad Visa mixes work and play. After five years, you could be calling Portugal home for good. It’s worth chatting with someone who knows the ins and outs (not us, we’re not lawyers!) to see what clicks for you.
Tax Advantages
Portugal’s Non-Habitual Resident (NHR) program, a tax incentive launched in 2009 to attract foreign residents, underwent a major overhaul in 2025. The original program, which offered a 20% flat tax rate on certain income and exemptions on foreign earnings including pensions, officially ended for new applicants in January 2024. However, a transitional phase allows those with specific 2023 commitments—such as employment contracts or property agreements signed by October 10, 2023—to apply until March 31, 2025, ensuring a gradual phase-out while honoring prior plans.
In its place, the Fiscal Incentive for Scientific Research and Innovation (IFICI), dubbed NHR 2.0 or the Incentivised Tax Status Program (ITS), was introduced in January 2024. This new regime targets highly qualified professionals in scientific and innovative fields, maintaining the 20% tax rate on eligible Portuguese income and exempting most foreign income, except pensions. Unlike the broader original NHR, it excludes retirees and requires applicants to establish tax residency in 2024 without having been residents in the prior five years, reflecting Portugal’s shift toward fostering knowledge-based economic growth.
Neither of us are attorney’s and these programs are in constant flux. Please consult a local attorney that specializes in Portuguese immigration and tax law.
Expat Communities
The Algarve hosts thriving expat enclaves, easing the transition with English-speaking neighbors and social clubs. Lisbon and Porto also offer vibrant retiree networks.
Travel Logistics
If you are already planning a trip to Europe make sure you add a stop in Portugal. If you are a cruiser, Lisbon and Porto are ports of call for the major cruise lines. Train service from Spain is due to get faster in the coming years. But flying is the most common.
If you are coming directly from the United States, Lisbon and Porto will be your only options for major airlines. Lisbon’s airport is undersized for the amount of travelers it sees each year, but they do a good job managing the crowds. The major airports in Portugal are:
- Lisbon – Serving the capitol and central Portugal
- Porto – Serving the northern region – Porto, Douro Valley, Braga, Coimbra
- Faro – Serving the southern, Algarve region
Why Portugal Wins Hearts
Why expats love Portugal boils down to this: it’s a place where history, affordability, and kindness converge. For U.S. retirees, the benefits of retiring in Portugal—low costs, great healthcare, and a relaxed lifestyle—are unmatched. Whether you’re planning a visit or a move, Portugal teaches you to slow down and savor life.
Ready to explore empty nesting in Portugal?
