El Dorado and Europe’s Florida are just some of the terms used to describe Portugal as a destination for many European retirees to live in. Be it because of the climate, the low cost of living or the attractive tax regime, a growing number of pensioners have decided to move to Portugal. Here are five good reasons to spend your retirement years in Portugal, so start packing.
Retiring to Portugal: the advantages
1. Tax exemption
Foreign pensioners who move to Portugal are exempt from paying tax on their pensions. There are two reasons for this exemption on foreign pensions. The first has to do with the Agreement on Double Taxation celebrated between the country of residence and the country of origin. This treaty grants the country of residence the right to tax foreign pensions, rather than have them taxed in the country of origin. The second reason has to do with the Personal Income Tax regime for Non-habitual residents. According to this regime, the Portuguese state exempts foreign pensions from taxation. However, for that to apply the foreign pensioners must have acquired the status of Non-habitual Residents in Portugal and transferred their pensions to the country. This tax benefit can only be enjoyed for a limited period of ten years, however. Following this period, taxes will be levied progressively.
2. Mild climate and 300 days of sun
Unlike other European countries, where temperatures get very low and the sun rarely shines in the winter, Portugal has a mild climate and temperatures rarely drop below 10 degrees. With an average of 300 days of sun per year, the weather is, beyond a doubt, a good reason to retire to Portugal. The country has the ideal conditions for those who wish to enjoy a pleasant retirement. All through the year it is possible to enjoy outdoor activities, such as long walks along the coast, or golf. The hardest will be choosing what to do.
3. Low cost of living
Good quality of life, good food and good wine. These are only some of the things you’ll find if you decide to retire to Portugal. And the best is that you will be able to have access to all this without having to pay too much. The cost of living in Portugal is significantly lower than other European countries. Even real estate is lower. Your pension will get you much more purchasing power in Portugal than it would in your country of origin. Whether you want to eat at a good restaurant, spend a weekend away or go to shows, there is no shortage of things to enjoy, at relatively accessible prices.
4. Top notch health care
With retirement age comes the need to pay closer attention to your health, and ensure access to top notch health care. If you decide to retire to Portugal you will also be able to enjoy a quality public health system. The National Health Service (SNS) guarantees healthcare for all its beneficiaries. Outside of the public health system there is a wide ranging network of private health care and clinics. If you opt for the private hospitals, it is important to take out health insurance, so as to benefit from lower prices.
5. Landscapes for every taste
Another good reason to retire to Portugal is the beauty of the country itself. Despite its relatively small size, Portugal has a variety of unique landscapes and places to live suitable to all tastes. If it’s sun and beach you are after, then the Algarve is the best place for your retirement. Those who prefer the tranquillity of the countryside can purchase an estate in the Alentejo or in the Douro. As far as city life is concerned, Lisbon and Porto still hold the most potential, in terms of culture and access to services. It is possible to live in the capital, for instance and still be close to the beach. The Cascais coastline is, as a matter of fact, one of the preferred destinations for foreigners who move to Portugal.
