I help Britons who want to retire to Portugal - these are the questions I get asked most

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Over the past decade, I have helped over 12,000 people access the information they need to make their move to Portugal. 

 A large proportion of those people have been looking at Portugal with their retirement in mind. 

Portugal offers an incredible destination for retirees, and while we’re seeing many younger, working families also move there these days, it remains a firm favourite with those keen to get the best from their golden years.

A key part of Portugal’s appeal is the lifestyle. A culture of spending time outdoors in the sunshine, whether eating out with friends or going on long walks in nature, makes it very attractive to many retirees.

These are the questions they ask me most.  

Christina Hippisley has helped 12,000 people move to Portugal and thinks it is a great destination for retirees, often offering a lower cost of living 

Can I claim my UK state pension in Portugal?

The answer is fairly straightforward. As with many other countries, you can claim your UK state pension abroad, as long as you meet the requirements for receiving it at home. 

The UK Government has an International State Pension Centre set up to support those claiming their pension when retiring overseas. 

Retirees need to ensure they get advice on tax, as once they’re a tax resident in Portugal, they’ll pay tax on their pension there. Retirees need to complete a tax return and ensure their UK state pension income is accounted for on it. 

Tax rates for 2026 are on a sliding scale and range from 12.50 per cent to 48 per cent depending on your income. 

What is the cost of living in Portugal? 

Retirees on a budget can still enjoy a lower cost of living in many locations, finding good value at local eateries, particularly with special lunchtime menus, often served al fresco with a chilled glass of wine. It’s a relaxed pace of life with an emphasis on sociability and sunshine.

The fact that Portugal is so well connected to the UK is another bonus. Lisbon, Porto and Faro airports offer daily direct routes to a wide range of regional destinations in the UK, with excellent value flights available outside of the school holiday periods.

The cost of property has risen in recent years, however. House prices in Portugal are expected to rise another 15 per cent in 2026, according to global ratings agency Fitch, following an 18 per cent rise in 2025. 

Easy travel home: Portugal is well-connected to the UK, with Porto (pictured) Faro and Lisbon airports offering daily direct routes 

What about visas? 

Since Brexit, of course, retirees need to think about their visa options when moving abroad. Without a visa, they can only stay in the Schengen area for up to 90 days out of every 180. 

Portugal’s D7 Passive Income Visa is ideal for retirees, and we anticipate many of those attending our next Moving to Portugal Show in London on 26 March will be keen to know more about this. 

This visa allows non-EU citizens with stable, regular passive income, such as a pension, property or dividends,  to obtain residency provided they earn at least €920 (£796) per month or €12,880 (£11,145) per year. 

Does Capital Gains Tax apply in Portugal?

In Portugal your spouse, children, grandchildren, parents and grandparents all pay zero tax on inheritances and gifts including property and investments. 

A 10 per cent stamp duty (imposto do selo) applies to non-direct heirs.

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Is there anything different when buying a property?

When you buy a property in Portugal, you sign a promissory contract after agreeing the terms of the purchase. 

This is a legal commitment to buy and you pay a deposit of (usually) around 10-30 per cent of the property value when signing it. 

If you pull out of the purchase, you lose your deposit. If the seller pulls out, they must pay you double the deposit you paid. This provides excellent peace of mind for those used to the financial pain of property-buying chains collapsing in the UK.

Do you pay stamp duty on a home in Portugal? 

There is a 0.8 per cent tax applied to the purchase price, and stamp duty applies based on the size of your mortgage which can be up to 0.6 per cent. 

How does the healthcare system work?  

Many retirees are also focused on Portugal’s healthcare offering. Portugal ranks 20th globally for the quality of its healthcare, compared to the UK ranking 27th. 

It has both public and private healthcare systems, and expats who are full-time residents can access both.

When applying for a visa to move to Portugal, you’ll need to show evidence of private healthcare (something that’s very reasonably priced in Portugal), but you don’t need to maintain that once you’ve registered for healthcare as a resident of Portugal. Medicines tend to be affordable, with many available over the counter without a prescription.

The next Moving to Portugal Show takes place in London on 26 March 2026. Registration is free and bookable online in advance on our website. 

Christina Hippisley is general manager of the Portuguese Chamber of Commerce in the UK.