With its warm climate, rich history, stunning coastlines and affordable living costs, it's no wonder many British people dream of retirement in the Iberian sun. Portugal is consistently ranked as one of the best countries to retire, especially for expatriates in the UK. In 2025, UK foreigners are increasingly choosing to retire in Portugal due to a compelling combination of affordability, quality of life and ease of integration.
It's not surprising that low crime rates, friendly locals, sunny weather, this country is often named as the best option for expatriates. But now it has proven to be the fastest, easiest and most affordable country seeking European residency. According to Forbes, Portugal has the lowest income requirement on the continent. No numbers are set, but based on the country's minimum wage, which is 903 euros (approximately 750 pounds) as of January 2025
However, residency approval is discretionary and having a minimum monthly rate of 1,200 euros (approximately £1,000) significantly increases your chances of success.
The appropriate visa for British people about to retire to Portugal includes the D7. D7 is often referred to as a retirement visa (optimal for individuals with stable passive incomes, such as UK pensions). The cost of the D7 visa is around 100 euros, plus you will need to pay 90 euros for your residence permit once you arrive in Portugal.
There is also a Golden Visa (perfect for those who are eligible to invest in this country).
Forbes said, “The D7 is valid for two years and renewable is renewable indefinitely. You must also stay in Portugal for at least 16 months of the first 24 months of the residency.
“After five years of temporary residence at the D7, you can apply for permanent residency or citizenship, making Portugal one of the best paths to your EU passport.
“Portuguese also offers golden visa options, but in 2024 the property purchase option was eliminated, making it unattractive for those seeking residency.
“Because we have an investment of 200,000-500,000 euros in the approved sector, we receive a five-year residence permit. We only have to visit the country for two weeks every two years.
Portugal is in the European Economic Area (EEA), so once you retire from the UK, your UK state pensions increase each year.
Visa and residency applications are the responsibility of the Portuguese institutions for integration, migration and asylum.
However, despite the relative affordability of Portugal, the British who have decided to build a home here can enjoy some of the highest standards of living in Europe.
Integrating into life in Portugal will be easier for retirees as there are already many established communities of British foreigners. The government is also offering EU-funded Portuguese lessons to ease language barriers.
And your pension will go further. Portugal tends to be cheaper than the UK. In fact, according to Numbeo (the world's largest database of living expenses), living costs are 38% higher in the UK than in Portugal.
To put this in perspective, Numbeo estimates that on average, meals at cheap UK restaurants cost £15, but in Portugal it is estimated to be worth £8.42.
The big bonus of resigning from the UK to Portugal is the fact that it's pretty close to the UK, usually a flight that lasts around 3 hours. This means that friends and family can visit without long distance flights.
Portugal was ranked as the eighth best country in terms of speaking English as a second language by the EF English Proficiency Index 2023 Report. This means it was placed on a “very high proficiency” bracket.
And although the weather varies from region to region, Portugal is generally hot in the summer and mild in the winter. This makes for an attractive destination for British people who want to avoid the cold winters.
The Global Peace Index is an annual rating ranked in 163 countries based on how peaceful they are. A variety of factors, including violence and level of crime, terrorism, international conflict, and more, are all taken into consideration. In 2024, Portugal was ranked as the seventh peaceful country in the world by the World Peace Index.
In terms of air quality, Portugal ranks the 118th most polluted country in the 2023 World Air Quality Report out of 134, and is less contaminated than the UK that came on the 112th.
So if that's enough for Cliff Richard, Madonna, Bonnie Tyler…
