Portugal has topped the retire-abroad shortlists for a decade, and even after its famous tax break closed to new arrivals it remains the easiest Western-European country for a non-EU retiree to move to. The reason is one visa — the D7 — with the lowest income bar of any major route on the continent. This is our step-by-step guide for 2026.
The D7 visa — Portugal's retirement route
The D7 (officially the residence authorisation for holders of own income or pensioners, Art. 89.º REPSAE) is designed for people who can support themselves from a pension, rental income, dividends or savings — not from working in Portugal. The core requirements:
| Requirement | Detail |
|---|---|
| Minimum monthly income | €870 (single applicant) |
| Add for a spouse | +50% of the minimum |
| Add per child | +30% of the minimum |
| Savings / means of subsistence | Required (confirm the current amount with AIMA) |
| Health insurance | Required until you register with the SNS |
| Application fee | €121 |
| Path to permanent residency | Yes — after 5 years of legal residence |
The €870/mo figure tracks the Portuguese national minimum wage, so it rises most years — always check the current number against the official AIMA source. See the full route on our D7 pathway page.
What it costs to live in Portugal
Portugal is the cheapest base in Western Europe, which is exactly why it anchors our cheapest-countries ranking. Realistic single-person monthly budgets including rent in 2026:
- Lisbon — around €2,000/mo (the priciest city; rents have risen sharply)
- Porto — around €1,600/mo
- Interior towns and the Algarve off-season — often well under €1,300/mo
A retired couple sharing one home does not pay double — most of the increase is food and a little more on utilities. See Portugal's country profile for the full cost breakdown.
Healthcare
Once you hold residency you can register with the public SNS (Serviço Nacional de Saúde), which is low-cost and universal for residents. Waiting lists and English-speaking staff vary, so most expat retirees also keep affordable private insurance — the same cover you need for the visa in the first place. Portugal's private hospitals in Lisbon, Porto and the Algarve are well regarded and inexpensive by Western standards.
Tax on your pension
This is the big 2024–25 change. The Non-Habitual Resident (NHR) regime that once exempted or lightly taxed foreign pensions is closed to new arrivals. Under the successor regime, foreign pension income is generally taxed at around 20% rather than being exempt. Whether you're taxed in Portugal or your home country depends on the double-taxation treaty between the two, so take professional tax advice before you move — this article is not tax advice.
Residency and the road to citizenship
The D7 grants an initial temporary residence permit, renewable, and leads to permanent residency after five years of legal residence. Portuguese citizenship can follow, but the qualifying residence period is being reformed in 2025–26 — confirm the current rule before you build a timeline around it. Throughout, you'll need to spend enough time in Portugal each year to keep the permit valid.
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How much income do you need for the Portugal D7 visa?
The D7 passive-income visa requires stable income of at least €870/mo for a single applicant — the level of the Portuguese minimum wage — plus proof of accumulated savings (means of subsistence) and health insurance. A couple should show roughly 150% of that, and each child adds about 30%. The application fee is €121.
How much does it cost to retire in Portugal?
A realistic single-person budget including rent runs about €1,600/mo in Porto and €2,000/mo in Lisbon in 2026, with the interior and smaller towns noticeably cheaper. A couple sharing one home does not pay double.
Is Portugal still a good place to retire after NHR ended?
Portugal remains attractive despite the end of the NHR tax regime for new applicants. Pension income is now taxed at roughly 20% under the successor regime rather than being exempt. The D7 still provides a clear residency pathway and access to the public SNS health system.
Does the D7 visa lead to permanent residency or citizenship?
The D7 grants temporary residence, renewable toward permanent residency after five years of legal residence. Portuguese citizenship can follow, but the qualifying residence period is being reformed in 2025–26, so confirm the current rule before counting on a specific timeline.
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Official sources
- Autorização de Residência para Rendimentos Próprios ou Reformados (D7, Art. 89.º REPSAE) — aima.gov.pt — last re-checked 2026-06-24
Figures are compiled from official government sources and re-checked on a rolling basis. Always confirm on the official page before applying.
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