With its warm climate, rich history, stunning coastline, and affordable cost of living, it’s no wonder many Brits dream of a retirement in under the Iberian sun. Portugal has consistently ranked as one of the best countries for retirement, particularly for UK expatriates. In 2025, UK expats are increasingly choosing to retire in Portugal due to its compelling combination of affordability, quality of life, and ease of integration.

Low crime rates, friendly locals, and sunny weather, it’s no surprise that this country is so often named as the best choice for expats. But now it has been also proved to be the quickest, easiest, and most affordable country to seek residency in Europe. Portugal has the lowest income requirement on the continent, according to Forbes. While the number isn’t set, it’s based on the country’s minimum wage, which is 903 euros (about £750) as of January 2025

Residency approval is discretionary, though, and having a minimum of 1,200 euros a month (about £1000) greatly increases your chances of success.

Visas that work well for British people looking to retire to Portugal include the D7, which is often referred to as a retirement visa (ideal for individuals with a stable passive income like a UK pension). The D7 visa costs about €100 and, on top of that, you will need to pay €90 for a residence permit once you arrive in Portugal.

There’s also the Golden Visa (ideal for people making qualifying investments in the country).

Forbes reports: “The D7 is valid for two years and renewable indefinitely. You’ll also need to stay in Portugal for at least 16 of your first 24 months of residency.

“After five years of temporary residency on the D7, you can apply for permanent residency or citizenship, making Portugal one of the best paths to an EU passport.

“Portugal also offers a Golden Visa option, but since the real estate purchase option was eliminated in 2024, it’s a less attractive option for those seeking residency.

“With an investment ranging from 200,000 to 500,000 euros in approved sectors, you’ll receive a five-year residency permit, and you’ll only be required to visit the country for two weeks every two years, meaning you wouldn’t become tax resident in Portugal.”

As Portugal is in the European Economic Area (EEA), your UK state pension will increase each year if you retire there from the UK.

Visa and residency applications are the responsibility of the Portuguese Agency for Integration, Migration and Asylum 

Yet despite the relative affordability of Portugal, Brits who do decide to make a home here can enjoy some of the best living standards in Europe.

Integrating into life in Portugal can be easy for retirees, since there are already many established communities of British expats. The government also offers EU-funded Portuguese lessons to help ease the language barrier.

And your pension will go much further. Portugal tends to be cheaper than the UK. In fact, according to Numbeo (the world’s largest cost of living database), the cost of living is 38% higher in the UK than in Portugal.

To put this into perspective, Numbeo has estimated that a meal at an inexpensive restaurant in the UK would cost £15 on average whereas in Portugal it would cost the equivalent of £8.42.

A big bonus of retiring to Portugal from the UK is the fact that it’s fairly close to the UK, with flights typically around three hours. This means that friends and family can visit without a long-haul flight.

Portugal was also ranked as the 8th best country when it comes to speaking English as a second language, by the EF English Proficiency Index 2023 report. This means that it has been placed in a “very high proficiency” bracket.

And while the weather varies from region to region, Portugal is generally hot in summer and temperate in winter. This makes it an attractive destination for British people who want to avoid cold winters.

The Global Peace Index is an annual assessment that ranks 163 countries based on how peaceful they are. A range of factors, such as levels of violence and crime, terrorism, and international conflicts are all considered. In 2024, Portugal was ranked as the 7th most peaceful country in the world by the Global Peace Index.

When it comes to air quality, Portugal was ranked as the 118th most polluted country in the 2023 World Air Quality Report, out of 134, and less polluted than the UK, which came in 112th.

So if its good enough for Cliff Richard, Madonna and Bonnie Tyler……