Cascais Docks in Lisbon, Portugal

Anyone who plans to retire abroad in Europe should give Portugal a serious look as a retirement destination. The cost of living is the most affordable in Western Europe, the climate is mild, and a Portugal retirement has been adopted by many European expatriates. Although Portugal is a developed country with a modern economy, it is one of the least of the developed countries in Western Europe. As a result, the cost of living is relatively low when compared to the United Kingdom and the Scandinavian countries.

Retire in Portugal – the Economy for Expat Living in Portugal

Portugal’s per capita GNP when adjusted for purchasing power is about $21,000 (USD) which is lower than most of the other Western European countries with per capita GNP’s hovering around the $30,000 range. This is not to say that Portugal is a “developing country”. The country has a modern infrastructure in place that most retirees will find more than adequate for their needs. Today, Portugal is an active member of the European Union.

The country’s economy is largely based on service industries. Small family owned retail outlets are still present in relatively large numbers and tourism has become an increasingly important part of Portugal’s economy. Tourists are attracted by the country’s mild Mediterranean country, the country’s lower cost of living, and the fact that Portugal is a relatively safe and stable country to visit or to select as an overseas retirement destination.

Manufacturing and agriculture have generally been declining in importance. Although in decline as a percent of generating Portugal’s national income, agriculture still has a very strong presence in the country’s physical landscape. Much of Portugal is covered with cereals, olive trees, and vinyards which helps maintain a rustic look to the country.

The biggest economic challenge to Portugal may be from the Eastern European countries in the former Soviet bloc, which offers lower cost labor that is attractive to foreign investors. However, Portugal is well located to the heart of Western Europe and has a milder climate for a retirement abroad. For many Western European expats, Portugal has become the choice for international living.

Retire in Portugal – Food for Expat Living in Portugal

Anyone who decides on Portugal for expat living will find an abundance of fine dining in any of the country’s major cities as well as an abundance of nightlife with a wide range of discos and bars. As a major wine producing country, the meals will be complete with a broad selection of fine wines. Many of the newest cuisines feature a ‘fusion’ style of cooking that is a blend of Portuguese, European, and overseas colonial cooking.

On the other hand, expat living in Portugal can also focus on more traditional foods based on simple ingredients that make common use of sausages, seafood, olive oil and tomatoes. At the extreme opposite end of the fine dining scale in terms of price, expats living in Portugal will find that street vendors can provide a wide range of specialties that feature basic seafood such as grilled sardines and hearty seafood-vegetable soups.

Selecting Portugal as a retirement destination will provide any expatriate with a wide range of culinary choices from the basic meals to world class cuisine.

Retire in Portugal – Healthcare for Expat Living in Portugal

Healthcare is most widely available in the larger cities of Portugal. Public and private hospitals and medical care are available. The quality of healthcare continues to improve overall but it is possible to obtain very high quality medical care in more private hospitals at four JCI accredited hospitals in country. The large number of British expatriates in Portugal has also resulted in the development of British hospitals in the country.

More recently, medical tourism has begun to take root in the country and promises to offer retirees truly world class medical and dental care. Medical procedure costs will typically be as low as 25% of the cost in other European countries.

A Portugal retirement in Lisbon or any major tourist center such as Algarve pretty much insures that a retirement abroad will have access to first class healthcare services.

Retire in Portugal – Housing for Expat Living in Portugal

The recent global crisis has affected Portugal in ways that will work to the advantage of a retiree deciding on Portugal for international living. There is an oversupply of housing available and over the last several years the value of homes have steadily declined by 5% on the average. This trend is expected to last into the immediate future. Retirees should be able to find affordable housing either for rent or purchase should they opt for expat living in Portugal.

Prices are highest in Algarve, Portugal’s primary upscale tourist destination for obvious reasons, but retirees will find the cost of housing somewhat lower in Lisbon. Although there is an oversupply of housing, the rental market is a bit tight, but that is slowly changing as the country changes laws to open up the rental market.

Retire in Portugal  – Social and Political Environments for Expat Living in Portugal

Although some European countries have been affected by terrorist acts (quite noticeably in neighboring Spain), Portugal ranks as one of the safest countries in Europe and the world (actually safer statistically than the United States or the United Kingdom).

Since the late 1900’s, Portugal has experienced very positive economic growth and has become a member of the European Union. For the most part, the country has benefited from this growth and has evolved into a politically stable democracy that makes for an ideal overseas retirement destination

Retire in Portugal – Transportation and Communications for Expat Living in Portugal

As a developed country, a retiree can expect a full range of communications and transportation services in Portugal’s major cities and popular tourist destinations.

Retire in Portugal – Summary for Expat Living in Portugal

Strengths:  Although a developed country, Portugal offers one of the lowest costs of living in Western Europe. Healthcare is excellent and housing prices are relatively low. Portugal’s political environment is reasonably stable for an overseas retirement. Tourism has become a big industry in regions such as the Algarve and there is good access to most amenities that a retiree would need.

Weaknesses: Although affordable in comparison to Western European countries, the cost of living in Portugal is significantly higher than a retirement in most developing countries.

Analysis: For anyone not on the tightest of budgets, the decision to retire in Portugal is one of the best, if not the best, for a European retirement. Retirees may enter Portugal on a 90 day tourist visa and then apply for residency.  Residency for retirees will require proof of some source of income to obtain Portugeuse residency.

(Photos: Francisco Antunes)

References and Bibliography

Healthcare in Portugal, Allianz

Portugal, InfoPlease

Portugeuse Cuisine, GoLisbon

Portugal Says Economy to Shrink Twice as Much Under Cuts, Bloomberg

Portugal Tourism Website, Portugal Government