Many foreigners would like to move to the EU and retire in Portugal. Portugal is famous for its pleasant climate, beautiful landscapes, and inexpensive real estate. The average pension in Portugal is 550 euros.
To qualify for a pension in Portugal, you need to work for at least 15 years or pay social insurance contributions for the same period (not necessarily in a row). Foreigners have equal rights, provided that they have made contributions for at least 15 years.
Retire in Portugal: D7 visa for retirees
Portugal provides a unique opportunity to obtain European residency without investment, getting a work contract, or obtaining refugee status. It is enough to have passive income in your country of at least 665 euros per month (7980 euros per year). This program is an excellent solution for retirees who want to spend their golden years in a resort country. All you need to know about how to get a D7 visa to Portugal based on passive income.
Golden visa in Portugal for retirees
For non-EU residents, a Golden Visa scheme is also offered. Now it is available for citizens of other countries who will be able to fulfill at least one of the proposed conditions:
- purchase real estate, the value of which is estimated at least 500 thousand euros;
- purchase real estate for 350 thousand euros for reconstruction (objects that are more than 30 years old or those that are within the boundaries of urban regeneration);
- transfer the capital: at least 1 million euros;
- create 10 workplaces;
- invest 350 thousand euros in research provided by state programs for scientific and technical development;
- invest 250 thousand euros to promote local arts;
- purchase shares for 500 thousand euros (investment funds or venture capital) intended for the capitalization of small and medium-sized companies.
Pension in Portugal for foreigners
For non-EU citizens who wish to retire in Portugal, it is necessary to apply for a residence permit in Portugal at the consular department in their country. Typically, you need to present a valid passport, income statement, proof of health insurance, criminal background check.
Retired foreigners wishing to relocate to Portugal should contact the public pension office in their home country to find out what will be the situation with payments abroad.
Portugal has tax and social security agreements with some non-EU countries to facilitate relocation.
To receive a pension, a foreigner Portugal offers two ways:
In the home country or directly in Portugal through a transfer made by the Department of Pensions for Persons Living Abroad.
All residents are taxed on their income and private pensions paid from abroad may be linked to them. A person is considered a tax resident if he/she resides in Portugal for at least 183 days during the tax year or if he/she has permanent residence on December 31st.
In some cases, it is possible to transfer retirement benefits without charging fees through an offshore pension system.
Alternative option
Since 2009, Portugal has offered a non-permanent residence option to attract foreigners. It implies favorable tax conditions, including the taxation of income that would otherwise be subject to pension tax.
Non-permanent residence status is available to anyone who has not been a tax resident in the past five years if they meet certain criteria.
Medical care
The National Health Service (Servico Nacional de Saude) provides free medical care to Portuguese citizens resident, although there are some fees.
The service is funded by the government and provides health care through community health centers, hospitals, and local health facilities. The level of healthcare in the country is considered good by international standards.
Moreover, there are several social and private voluntary health insurance programs.
Expat retirees will not have to rely on free medical care until they become permanent residents of the country. Therefore, they will need to have private health insurance for the first five years. However, professional treatment can be expected to be provided for a small fee.
