The Ultimate
Expat Retirement Guide

As of the beginning of 2021, foreign retirees seeking settlement in Portugal have various options for obtaining a residency visa and eventual permanent residence leading to Portuguese citizenship. In addition, the country’s Non Habitual Residency Program NHR offers an exceptional 10-year tax incentive to further sweeten the deal.

The Portugal Golden Visa vs the D7 Passive Income Visa For Pensioners and Financially Independent Individuals.

While the Portuguese Golden Visa has long been a firm favourite among those seeking to retire in Portugal, the relatively unknown  D7 Visa Program – essentially a passive income visa for individuals and retirees with stable, non-salaried income – has seen a significant spike in demand as well.

Whereas the Golden Visa Program requires an investment of around €280,000, €350,000 or €500,000, depending on the investment type, the D7 Visa does not require applicants to invest in a home in Portugal – unless, of course, they want to, in which case no minimum property value is prescribed.

In order to be eligible for the D7 Visa, single applicants must be able to demonstrate a minimum passive income of no less than €635 per month (€7,620 per year). For married couples, the minimum required is €1,271 per month (€15,252 per annum). Passive income typically includes rental income from movable and immovable assets, pension payouts, dividend payouts (provided that you’re not involved in the business’ management) and royalty payouts.

Given that this program’s approval is subject to a large swathe of government discretion, these amounts should be treated as minimums – additional proof of savings or additional income may be required.

For those disinclined to invest in property under the D7 Visa Program, proof of accommodation can be provided in the form of a long term rental agreement, and there is similarly no minimum value requirement in terms of the rent payable; as long as the property is deemed suitable for the number of people to inhabit it.

Are you looking for a more affordable, better quality life and an easier pace of life in your retirement? If quaint eateries, castles, cathedrals and museums appeal to you, Portugal could be an excellent choice. Compared to the cost of living in the USA, for example, living in Portugal is substantially more affordable. Whether you’re looking at property prices, healthcare, day to day living expenses or public transport costs, Portugal scores consistently high.

But the one thing expats truly enjoy about living in Portugal is the warmth of the local communities – Portugal is an incredibly multicultural country, with a strong expat community and a level of community integration that is unrivalled in most other countries in the world.

While Portugal’s key cities offer a smorgasboard of cultural options and scope for activities, many retirees prefer to settle in smaller, less urbanized centres. The Algarve and Alentejo regions have long been popular expat retirement destinations, as has Porto and many towns in northern Portugal.

By European standards, everything from accommodation to drinking and dining out is surprisingly affordable. Compared with the cost of living in South Africa, Portugal can be up to 39% more expensive.

Yet if you’re used to shopping at Woolworths as a South African, you won’t notice a material difference when shopping for groceries in Portugal. Depending on where you opt to eat out, the cost of restaurant meals can be very comparable to restaurants in Cape Town.

Eating out in the touristy centers tends to be a bit over priced, and you’re likely to find far superior cuisine a few blocks off the main tourist strips. Drinks in premium establishments can be pricey, but if you drink and eat where the locals do, you’ll be pleasantly surprised at how affordable Portugal can be.