What do you need to do to retire to Portugal from the UK?
Portugal is a popular place for retirees for many good reasons. A sun-soaked and slow-paced lifestyle has long been a key driver, but in recent years we might add affordability.
There’s something laid-back and reassuring about moving there: Portugal is ranked as one of the safest countries in the world according to the Global Peace Index, and high-quality healthcare is another tick in the box.
It’s not surprising that Portugal’s population of foreign retirees has more than doubled in the past decade. But what are the steps to retiring there?
How should you plan your retirement to Portugal?
Know the steps you will need to take so you can plan a timeframe. Key things to consider are: when do you want to move? Do you need to sell your UK home first? Will you buy a home in Portugal first, or rent somewhere?
As parts of the UK have sluggish property markets, especially London, consider how long it will take to sell your home. Should that be your priority, and then rent an Airbnb until you make the move? Plenty of people do this.
What should you do with your finances before moving to Portugal?
Selling your UK home before you become tax resident in Portugal may be a savvy choice. Discuss this and also how you might move your assets to Portugal. What impact will a move have on your pensions? It is often wise to withdraw tax-free lump sums before you change residency.
It’s better to start planning early rather than realise too late what you should have put in place.
What should you organise before moving to Portugal?
Before you head out to view properties, there’s a lot of other useful preparation you can do. This includes knowing what the purchase process might entail, finding a lawyer, discussing mortgages and also getting set up ready to transfer funds to Portugal via A Place in the Sun Currency.
You can also find out about removals and how to move your pet to Portugal.
Virtually all of this can be achieved with a trip to A Place in the Sun Live.
Book tickets for A Place in the Sun Live
Where should you retire in Portugal?
Take a few trips out to Portugal to find out which part will suit you best. Do you want to stick with where you know or explore other parts of the Algarve, or the Silver Coast, for example?
Many retirees prefer practical locations that offer year-round communities rather than coastal resorts. Do you want to be on a development, or in a village? Do you need to be somewhere with good local transport? Where is the nearest hospital?
Take time to explore at different times of the year.
How much does property cost in Portugal?
Arrange to meet some local agents and view properties. Search properties and find agents.
The average property in Portugal is around €150,000, according to Idealista.com, but you will need to drive for 15-20 minutes away from the coast on the Algarve to find anything for that budget.
Look to central Portugal for greater affordability, for example Tomar, Coimbra and Castelo Branco. Don’t forget to budget for buying costs of around 8% on a resale property.
What visa do you need to retire to Portugal?
Unless you are lucky enough to have an EU passport, or a spouse with one, you will need to pay to get a visa, which is not a difficult or expensive process.
The D7 visa requires you to show passive sources of income of at least €11,040 per year for a single person, or €16,560 for a married couple (2026 figures). Passive income means savings interest, dividends, rental income or a pension.
The visa is applied for in the UK through the Portuguese Consulates in London or Manchester (it is easy via the VFS Global portal). The visa costs around €200 to obtain.
Beware that processing times can be long: you might need to wait two or three months to get an appointment at VFS once you have all your paperwork in place. A D7 residence permit is granted for a period of two years, then can be renewed.
What healthcare do UK retirees need in Portugal?
A condition of the visa is that you have healthcare cover. Once you are established, you can register with the public healthcare system, the SNS, and access the system as a resident of Portugal.
Those over UK State Pension age can apply for an S1 Certificate from the NHS before they leave for Portugal. This means they can use it when they register with the SNS and access subsidised healthcare from the outset.
FIND OUT MORE ABOUT HEALTHCARE IN PORTUGAL
What taxes do retirees pay in Portugal?
Once you become resident there, you will be subject to Portuguese tax rates. Portugal does not offer any special tax breaks for newly arriving foreign retirees.
Pensions will be taxed at progressive income tax rates that start at 12.5% on the first €8,342 of income, then 15.7% from €8,342 to €12,587, rising through the scale rates to a top rate of 48% on income of €81,994 or more.
Inheritance and gift tax have been abolished in Portugal, but a Stamp Duty of 10% applies to the transfer of assets on death, and only to those assets (houses, cars, etc.) located in Portugal.
Find out more about tax in Portugal
How should you plan your move to Portugal?
Make your life stress-free by getting a specialist removals company to help you. If you have sold your UK home already, removals firms can help you store your belongings until your moving day.
You might wish to make it a stress-free move for your dog or cat by using a specialist pet removals company such as PetAir.
Ready to start planning your retirement in Portugal?
From finding the right location to understanding the buying process, our properties and guides can help you plan your next steps.
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