Is Portugal Still A Good Place To Retire?

27.12.2023 - 18:55 / forbes.com

It’s that time of year when media companies and publishing houses (including my own) release their lists of predictions for the year to come.

My team at Live And Invest Overseas is currently putting the finishing touches on our annual retirement index, which presents our selection of top retirement destinations for the year to come.

Since I started my index series over a decade ago, one country has long stood out as one of the world’s top choices for retirement: Portugal.

What Makes Portugal An Excellent Place To Retire?

Portugal has high-quality health care. Its health system is ranked 12th-best in the world by the World Health Organization.

It’s safe, coming in at #7 in the 2023 Global Peace Index. (For comparison, the United States comes in at #131.)

It’s affordable, yet its infrastructure is well-appointed.

It’s easy to get residency and even citizenship here.

It has friendly locals who speak English fairly fluently, and it has an interesting culture and history.

And on top of all of this, it’s naturally beautiful, with stunning Atlantic coastlines and a warm, Mediterranean climate.

Portugal has all the trappings of a top retirement haven, and moving here almost always amounts to a lifestyle upgrade.

Unprecedented International Interest

In the past two or three years, more people have caught on to Portugal’s undeniable appeal, including more North Americans than ever before.

By the end of 2022, Portugal’s population of resident foreigners had increased to 782,000—a 12% year-on-year increase from 2021.

The percentage of North Americans specifically increased by more than 34%—the biggest increase of any continent group.

Not only are more people relocating to Portugal, but more people are seeking a Portuguese passport.

Requests for Portuguese citizenship reached an all-time high in 2022, up by more than 37% compared to 2021.

Portugal’s Policy Changes In 2023

Portugal made headlines in 2023 for enacting policy changes that affect its desirability as a retirement haven.

First, in February, it announced changes to its highly sought-after golden visa program. It eliminated real estate from the list of investment classes you could choose from to qualify for residency.

Real estate was not only the most affordable option on the list; it was also the most popular. Since the program was initiated in 2012, 75% of all residence permits issued through the golden visa program were based on real estate investment.

Pressure on the housing market was pegged as the reason for the program’s change. The thinking was that wealthy foreigners were flooding the market, driving up prices and pricing locals out, which was exacerbating a housing-supply crunch.

However, golden visa-related real estate transactions