This article looks at the 12 best places to retire in Portugal. If you want to skip our detailed analysis of how Portugal is a digital nomad hub and outsourcing hotspot, go to 5 Best Places to Retire in Portugal.
Portugal: A Digital Nomad Hub and Outsourcing Hotspot
The retirement savings figure for individual late boomers in America, on average, is $299,703 only. Since the minimum retirement savings for a comfortable retirement has boomed to a whopping $1.8 million, a traditional retirement doesn’t seem possible for the average American retiree anyway. One viable way to enjoy retirement with an alternative approach to work is adopting a digital nomad lifestyle. According to Project Untethered, 38% of American digital nomads earn over $75,000 per year while also enjoying a lower cost of living.
Portugal stands out as a country that not only provides these opportunities but also offers an affordable cost of living. The Portuguese Visa Program, or the Golden Visa program, is a residence visa issued to non-resident EU nationals having made a significant investment in the country. Investment options include purchasing real estate, creating employment opportunities, or investing capital.
Portugal is a safe country, offering an excellent yet affordable quality of life, the best climate in continental Europe with 300 days of sunshine, excellent infrastructure, and some of the best places to live in Portugal, too. So far, 11,628 investors have benefited from the Golden Visa. In return, the Portuguese economy has benefitted by receiving a total investment worth €6.7 billion (more than $7 billion).
Portugal has recently been named one of the best countries in Europe for remote workers too. It also boasts more than 60,000 remote jobs that are highly paid. The tax conditions in the country are also favorable for digital nomads in the country. Lisbon, in particular, is becoming Europe’s business haven, attracting investors, expatriates, digital nomads, and retirees alike.
Such rewarding tax conditions and favorable business climate have been attracting the world’s biggest multinationals into the country. These companies are making an entrance in Portugal to make investments in tech-oriented sectors. Examples of companies establishing tech hubs in Lisbon recently include Unilever PLC (NYSE:UL), Siemens, Google, subsidiary of Alphabet Inc. (NASDAQ:GOOG); Microsoft Corporation (NASDAQ:MSFT), Nestle, Mercedez-Benz, and IKEA, to name a few. This rise of Portugal as a preferred nearshore destination for such prominent companies has driven the country’s outsourcing market to a substantial value of $781 million in 2021.
Owing to the country’s investment in the digital economy, Alphabet Inc. (NASDAQ:GOOG)’s Google has announced Nuvem, a new transatlantic subsea cable system to connect Portugal, Bermuda, and the United States. The new cable path aims to support the development of Information and Communications Technology (ICT) infrastructure for all the continents and countries involved and improve network resiliency across the Atlantic.
“Google’s investment incorporates our vision for Portugal in the telecom and data sectors: to establish our country as a thriving connectivity gateway for Europe, fostering robust connections with other continents. The Portuguese Government considers this investment very important and it was only possible thanks to the great articulation and dialogue between the ministry, the Portuguese entities, and Google,” said João Galamba, Portugal’s Minister of Infrastructure.
Other companies that Portugal has been enjoying a surge in foreign investment from include Five9, Inc. (NASDAQ:FIVN), a leading CCaaS platform; FinTru, a finance company from Northern Ireland; Germany’s Seven Principles and Norway’s Visma; and Switzerland’s TX Group and Swiss Post. “It’s a tremendous base of technology as well as customer support-specific talent, all of it supported by an incredible university system,” says Jim Doran, Five9’s executive vice president of strategy and operations. “Portugal has a great business climate and it’s a great place for employees to live and work, which for us is really important.”
Owing to a high quality of life, favorable business climate, quality human resources, and tremendous base of technology, companies such as Five9, Alphabet Inc. (NASDAQ:GOOG)’s subsidiary Google, and Unilever are increasingly being attracted to the country. Undoubtedly, it is one of the most popular retirement destinations in the world. However, be careful of the bureaucracy, long waiting times, and central heating issues; the main downsides of retiring to Portugal.
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Methodology
To compile the list of best places to retire in Portugal, we have used sources such as International Living, Now in Portugal, Be Portugal, and Portugalist, amongst others. We also relied on forums such as Quora and Reddit to analyze the best places suggested by expat retirees living in Portugal.
A consensus approach was used to rank the places. A point was awarded to a place each time a source recommended it. Scores were summed up, and places were then ranked in ascending order from the lowest to the highest scores.
The cost of living figures discussed pertains to an individual retiree living in Portugal per month, including renting a one-bedroom apartment in the city/town center. The figures are sourced from International Living, Nomads List, amongst others.
12. Braga
Insider Monkey Score: 2
Braga is one of Portugal’s oldest cities, steeped richly in history and culture. Dozens of museums and art galleries are waiting to be explored in this city. Historic buildings showcase Baroque architecture, such as Bom Jesus do Monte Sanctuary, Sameiro Sanctuary, and Santa Cruz church, to name a few. Medical facilities are well-regarded, ensuring access to quality healthcare. Braga enjoys a moderate climate, with summer temperatures averaging around 69F and winters falling around 47F. The pace of life is slow, a plus for retirees who wish for a tranquil environment. The cost of living is also affordable, and an individual retiree needs an average of $1,461 monthly to live here. A one-bedroom apartment costs around $665 per month, on average.
11. Setúbal
Insider Monkey Score: 3
Nestled between the Sado River estuary and the Arrábida Mountains, Setúbal is one of the most beautiful places to retire in Portugal. Retirees enjoy plentiful opportunities to hike, bird-watch, and enjoy the serene beaches. The city enjoys a Mediterranean climate, and the yearly temperature is 18.18ºC (64.72ºF), 1.37% higher than Portugal’s average. Setúbal is also known as a seafood paradise, revered for its fresh fish and other seafood delicacies. This coastal gem also allows retirees to enjoy an active lifestyle, and the locals are friendly enough to cater easy integration into the community. An individual retiree can afford to live here for an average of $1,250 monthly. The city combines its coastal allure with affordability, making it one of the best places to retire in Portugal.
10. Lagos
Insider Monkey Score: 3
Lagos, a charming old town in the southern Algarve region, is well-known for its historic architecture, cobblestone streets, and Portuguese culture. It is blessed with a beautiful coastline, characterized by golden sand beaches and crystal clear waters. Undoubtedly, Lagos is one of the best beach towns in Portugal to retire. Like Setúbal, Lagos is also a seafood paradise, and retirees love to try the many seafood delicacies it offers them. Golf and water-based recreational activities are plenty. The Ponta da Piedade rock formations and other cliffs, grottos, and caves make it uniquely beautiful. The cost of living in Lagos is affordable. Monthly rental prices for a one-bedroom apartment are around $600 on average, while a retiree can live on $1,200 monthly.
9. Tavira
Insider Monkey Score: 4
Tavira calls out to retirees wishing to escape from the hustle and bustle of big cities to a tranquil, relaxed environment. Its scenic landscapes, mild climate, and cultural charm have earned it the luxury of being one of the best places to retire in Portugal. From the Ria Formosa Natural Park to its salt pans and stunning beaches, Tavira is a stunner with plenty to do in its natural surroundings. The historic town center is also a significant attraction for retirees, with its white-washed buildings, wrought-iron balconies, and a distinct Moorish influence. The town enjoys a Mediterranean climate, and temperatures typically vary from 46°F to 86°F over the course of the year. An individual retiree can expect to spend between $1,500 to $2,000 per month.
8. Faro
Insider Monkey Score: 5
Faro, located on the Southern coast of Portugal, is known as the gateway to the Algarve region. It plays host to numerous enchanting islands, offering the perfect escapade to the idyllic beaches of the Ria Formosa. Hailed as one of the best places to retire in Portugal for retirees, Faro also stands tall with its historic old town, cultural attractions, and natural beauty. There is an international airport, modern hospitals, and services, as well as the best Portuguese cuisine to savor. The climate is Mediterranean, and the cost of living is quite affordable. A retiree can enjoy a comfortable retirement in Faro with a monthly budget ranging from $1,600 to $2,000.
7. Algarve
Insider Monkey Score: 5
Global Citizens Solution has deemed the Algarve to be the best place to retire in Portugal in 2023. Some of its historic towns have been discussed separately in our list, but the entire Algarve region is worthy of attention. Its stunning coastlines, characterized by golden sand beaches, clear water, and scenic cliffs, make it a popular retirement destination. The region also boasts various cultural attractions, and historic towns, markets, and festivals make it even more appealing. The region has a sizeable expatriate community, and its southern location provides easy access and travel to other European destinations. A retiree can enjoy a comfortable retirement with a monthly budget ranging from $1,200-$1,600.
6. Porto
Insider Monkey Score: 6
Porto is often ranked as one of the best places to retire in Portugal for US citizens owing to its high quality of life, scenic beauty, and well-developed healthcare. It is also regarded as one of the safest cities in Europe, so retirees can live here with peace of mind. Wine cellars in Portugal are famous for their wine, and individuals living here enjoy it along with traditional Portuguese dishes. The locals are very friendly and welcoming, and the temperatures here are milder than in Southern Portugal. Monthly rents for one-bedroom apartments are $981 on average, while overall living costs $1,888/month.
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Disclosure: none. 12 Best Places to Retire in Portugal is originally published on Insider Monkey.