This video is close-captioned. Retirement is the carrot at the end of a stick. A
very long, labor-intensive stick. But once you've put in your time and have the appropriate level of
assets and financial security you need to retain your desired lifestyle, all bets are off!
Welcome back to Travel Droner - I'm Anthony, and I can't wait to talk
to you about retirement today. More and more people are looking
into destination retirement. It makes sense. More people have the financial freedom to retire early,
which means more active retirement. And why not spend those active years
exploring a new country, language, and culture? When considering a country to put down permanent
roots, it must check several boxes. Quality of life is paramount. Factors like weather,
proximity to airports, access to healthcare, and cost of living will
carry different weights for each person. You'll find that Portugal meets many of the
requirements of a comfortable retirement and consistently tops lists of most attractive
locations for ex-pats. In the coastal regions of Portugal, the weather is warm year-round,
with around 300 days of sunshine each year. Winters are mild, and the temperatures rarely
drop below freezing, even inland. You might find some snow in the northern region of Serra
da Estrela, which is perfect if you don't want to give up winter sports entirely!
Today I'll teach you everything you need to know about retiring to Portugal. How to get your foot
in the door, or...country, logistics, and pros and cons. Let's face it - nowhere is perfect,
but Portugal just might provide your little corner of paradise after you leave the workforce.
So, who can retire to Portugal? Good news: Portugal is accessible to just
about everyone. The Portuguese government has done its part to make the process as simple as can be
and is already home to more than 660,000 ex-pats. There are four main categories of applicants,
each with its own requirements for entry. All immigrants seeking residency must pass a
background check with a clean criminal record. EU Citizens
This is the most straightforward process of the four. If you are moving from one of the 26
other countries in the European Union, all you need to do is apply for residency in Portugal.
Once approved, you'll have all the benefits of being a Portuguese citizen. Any Servico
de Estrangerios e Fronteiras (SEF) office in Portugal can help you start the process.
US Citizens As a US citizen,
you can enter Portugal visa-free for 90 days and then apply for temporary residency with a D7
visa. You can also get a golden visa; if you are investing in Portugal, like buying real estate,
you must show proof of certain income thresholds. This income could be active, like a digital nomad
working from Portugal, retirees on fixed incomes like social security and investment accounts,
or passive income streams. Once you've set up shop in Portugal,
you can submit a secondary application for a year-long residence permit. At this point,
you might need some more documentation, such as proof of residence.
After your year is up, you can renew the permit for two years. This can be done twice,
for a total of a five-year stay on permits. After these five years have elapsed, you can finally
apply for permanent residency. Non-EU and Non-US Citizens
This is by far the most laborious and complicated process. You'll have to visit the
Portuguese consular office in your home country to start the process. Have your valid passport,
clean criminal record, proof of income, and proof of health coverage that extends to Portugal ready
to show. You'll receive a temporary permit valid for five years if everything is in order. Again,
once five years of residency have passed, you can apply for permanent residence.
Sephardic Jews Sometimes known as Hispanic Jews,
this group of Jewish people may have ancestors who were exiled during the Portuguese Inquisition
during the 1400s and 1500s. Tens of thousands of Jews once called this country home, and the
Portuguese government has made it possible for displaced descendants to reclaim citizenship.
You will be granted citizenship if you can prove your Jewish ancestry through documentation.
Portugal also offers a fast track to citizenship for those with appropriate financial backing. The
Golden Visa. First introduced in 2012, the program is designed to infuse the country with cash and
reward investors with a path to citizenship. There are several routes to choose from,
ranging from real estate acquisitions to capital investments in specific sectors. This particular
visa provides a two-year residence permit. The hidden benefit here is that it can be renewed,
with the only requirement being spending at least seven days in Portugal per year. Additionally,
Golden Visa holders can travel to other EU countries visa-free.
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Now, let's move on to taxes. No one likes talking about tax obligations,
let alone paying them. And holding dual citizenship can make taxes complicated.
Perspective retirees want to ensure their wealth isn't taxed in excess, and the government in
Portugal has made several changes to the law that make it attractive for foreign retirees.
Non-residents experience a discounted tax rate instead of the standard, which can reach nearly
fifty percent. The discounted rate is twenty percent. No small savings. If you can prove
that you haven't been a resident of Portugal for the five years prior to your application,
you'll qualify. This law, the Non-Habitual Resident Regime (NHR), safeguards your wealth
from taxes for ten years on several international income streams, including salaries, investment
profits, rental income, and pensions. Portugal is attractive, in part, because
of its relatively low cost of living compared to other European countries. Prices will vary,
of course, with rural countryside areas being cheaper than the big metropolitan cities. And
even within larger cities, locations like Lisbon are in much higher demand than other cities,
and the prices reflect this. You can find a single bedroom
flat in the countryside for as little as $300, but prices in more popular cities could easily
top $1000 per month. Three-bedroom apartments in favored areas can cost around $2000 per month.
Of course, rent isn't the only expense you'll have. Utilities are reasonably priced, and you
can comfortably budget about $200 per month for internet, water, gas, trash, and electricity.
Groceries aren't bad, either. And unsurprisingly, you can save money by prioritizing local and
seasonal goods. Don't forget to budget for plenty of the wine the region is famous for!
I'm certain you'll want to eat out occasionally, and I'm happy to report that it won't break the
bank most of the time. Food is one of the great treasures of this country. Make sure
to treat yourself to pastel de nata once in a while - decadent custard tarts that are a
staple of Portuguese culture. Given Portugal's proximity to the sea, dishes featuring octopus,
grilled sardines, and hearty seafood stews will be found on many menus. Another tasty
treat is Iberian black pork, a heritage breed of pig brought to the area by the Phoenicians
and still bred today in Spain and Portugal. Now I'm sure you're asking, 'will I need a car?'
Public transportation in Portugal is well established. The bus system is cheap to
use and well connected around the country. And in larger cities like Porto and Lisbon,
metro lines connect neighborhoods with city centers. And there are always taxis,
which charge less than a dollar per kilometer. You could easily own a car if you'd like,
but you can get by without one. If you do choose to drive yourself around Portugal, there are some
unique requirements for Portuguese motorists. Not only do you need a valid driver's license,
vehicle registration, and vehicle inspection report, but you need to have several safety items
available at all times. This includes a reflective jacket for the driver and every single passenger,
a first aid kit, spare bulbs for external lights, and extra contact lenses or glasses
if the driver has a prescription. While these are great items to have
anywhere you're driving, the police can request proof of these items anytime,
and you'll be fined if you don't have them readily available. Safety first!
The next big ticket item for retirees is health care. Public healthcare is only available to
foreigners with permanent residence. So, until you have established permanent residence,
you'll be forced to acquire private health care. It's not too costly and can range
from $20 to $100 per month, depending on the type and level of coverage.
Once you're a permanent resident, you can use public health care. An added
bonus is that public health care is free for qualifying individuals over the age of 65.
Portugal is one of the safest countries in the world, and crime isn't something that lives at
the forefront of residents' minds. The Portuguese people are friendly and compassionate - they are
happy to drop what they're doing to help a friend or relative in need. It's just the mindset I want
to surround myself with when I retire! That does it for today's list! If you live in
or have spent extensive time in Portugal, what are your favorite cities? Let everyone know in
the comments below! And if you have any countries you'd like to learn more about in a future video,
be sure to call them out in the comments. If you enjoyed today's video, be sure to hit
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