Portugal has been named the world’s best retirement destination for 2025 by Global Citizen Solutions’ Global Retirement Report. The index highlights quality of life, accessible healthcare and expat integration among the key factors behind the top spot.
Portugal ranked 1st with an overall score of 92.61. The country’s strongest pillars are Quality of Life (2nd) and Safety & Integration (2nd), with solid results for Citizenship & Mobility (4th).
Portugal topped the 2025 list because it balances everyday quality of life with the practicalities that matter once you actually settle:
Quality of life and climate: Mild weather, year-round outdoor living, liveable city scales, and rich cultural offerings in Lisboa, Porto and the Algarve.
Healthcare access: A public system complemented by well-developed private networks, allowing retirees to choose between lower costs and faster appointments.
Safety and integration: Low crime rates and a reputation for welcoming international residents, with active expat communities making daily life straightforward.
Value for money: Living costs remain competitive by Western European standards, with affordable housing outside the priciest coastal areas.
“What we’re seeing is retirees choosing Portugal not just for the lifestyle, but for the practical advantages,” explains Cristina Pereira, founder of Residential Advisory Portugal. “The combination of excellent healthcare, genuine safety, and reasonable living costs creates a retirement environment that simply works better than most alternatives.”
UK and USA Citizens can Retire in Portugal
For UK retirees: Post-Brexit, you’re treated as a third-country national, so routes like the D7 “passive income” visa are the usual starting point. Once legally resident, you can access Portugal’s public healthcare system (SNS), with many keeping private insurance for quicker appointments.
For US retirees: The D7 visa remains the go-to option if you can evidence steady passive income. Social Security benefits are taxable in Portugal under local rules, with a tax treaty in place to reduce double taxation.
Key Practical Considerations for 2025
Visa processing can take 6-12+ months given consulate queues and AIMA backlogs. However, family reunification is available, and Portugal recognizes dual citizenship.
Tax advantages include no general inheritance tax, with spouses, children and parents exempt from the 10% stamp duty. There’s no net wealth tax, though a property-based surcharge (AIMI) applies to high-value real estate.
“The administrative process requires patience, but the long-term benefits make it worthwhile,” notes Cristina Pereira. “We help clients understand not just the residency requirements, but how to find the right location and property type that matches their retirement lifestyle.”
Best Places to Retire in Portugal for 2025
Algarve: Established expat circles and strong private healthcare infrastructure.
Cascais/Estoril: Seaside living near Lisboa with international clinics and English widely spoken.
Silver Coast (Costa de Prata): Atlantic living with better value, slower pace, and growing retiree communities.
Porto & the North: Cooler summers, excellent food culture and walkable coastal suburbs.
Madeira: Year-round spring climate with solid healthcare options and frequent flight connections.
Portugal’s recognition as the world’s top retirement destination reflects its unique combination of lifestyle quality and practical advantages. With established residency pathways, excellent healthcare options, and welcoming communities, Portugal continues to attract discerning retirees seeking both comfort and value.
Planning your retirement in Portugal? Our expert team specializes in helping international clients navigate the property market, residency requirements, and location selection for their ideal retirement lifestyle. Contact Residential Advisory Portugal for comprehensive guidance on making Portugal your retirement destination.