AIMA replaced SEF in June 2023; D7 processing currently 8–14 months
NHR's 10% pension regime closed 31 December 2023; the IFICI successor excludes pensioners
~22,000 UK nationals officially registered on the Algarve in 2024 (Pordata)
Golden Visa property route abolished October 2023 under Lei Mais Habitação
Monthly cost of living
Typical monthly outlay for a single retiree, in pounds.
Category
£ / month
Rent (1-bed apartment)
£650
Groceries
£220
Utilities (electric, water, internet)
£110
Local transport
£60
Healthcare (private cover or co-pays)
£80
Leisure (dining, entertainment, travel)
£280
Total (single)
£1,400
Total (couple, typical)
£2,100
Retirement visa: D7 Passive Income Visa
Apply at Portuguese consulate in the UK with proof of stable passive income (pension, rental income, dividends). The 2026 threshold is the Portuguese minimum wage (€870/month).
Minimum monthly income£740+
Processing time60–90 days for the consular visa, plus AIMA appointment on arrival
RenewableYes — renewable after 2 years, permanent residency after 5 years
How to apply
Open a Portuguese bank account and deposit ~£8,000 (12× minimum wage proof of funds)
Secure a 12-month rental contract or property purchase
Apply at the Portuguese consulate in the UK with pension statement and clean criminal record
On arrival, attend AIMA appointment to issue the residence card
Tax on your UK pension
Pension tax rateStandard Portuguese progressive rates apply after the NHR successor (IFICI) reforms in 2024
Special regimeStandard residency (the old 10% NHR pension regime closed to new applicants in 2024)
UK double-tax treatyYes — UK / Portugal double-tax treaty in force
Most retirees pay Portuguese income tax on worldwide pension at progressive rates; the UK no longer taxes the pension at source for residents of Portugal once the DT-Individual form is filed.
Healthcare for UK retirees
Public systemServiço Nacional de Saúde (SNS)
UK S1 form eligibleYes
Typical private cover~£60/month
Apply for an S1 form from the UK before leaving; register at your local SNS centre on arrival to receive a utente number.
Pros and cons
Pros
D7 visa explicitly designed for retirees on pension income
Lowest violent-crime rate in Western Europe
Very large British community on the Algarve and Madeira
Direct flights to most UK airports year-round
Cons
Lisbon and Porto rents have risen sharply since 2022
The NHR 10% pension tax regime closed to new applicants in 2024
Some rural healthcare centres have long waiting lists
Bureaucracy at AIMA appointments has slowed since 2023 restructure
Where British retirees settle in Portugal
Algarve (Lagos, Tavira)
£1800/mo · Sunny coast, large British community
300+ sunny days, English widely spoken, every pub does a Sunday roast.
Silver Coast (Caldas da Rainha, Nazaré)
£1400/mo · Quieter Atlantic coast, lower prices
Cooler summers, working fishing villages, half the property prices of the Algarve.
Madeira (Funchal)
£1500/mo · Year-round mild island climate
Average winter temperature 17°C, no extreme heat, growing British community.
Frequently asked questions about retiring in Portugal
Does Portugal's D7 visa accept the UK State Pension?
Yes. The D7 explicitly recognises pension income — including the UK State Pension — as qualifying passive income. The current threshold is roughly £750/month (the Portuguese minimum wage), so the full new State Pension alone now meets it.
Is the Portuguese NHR 10% pension tax still available?
No. The 10% Non-Habitual Resident pension regime closed to new applicants in 2024. New residents pay standard Portuguese progressive income tax; existing NHR holders keep the rate until their 10-year term ends.
Can I use Portuguese public healthcare as a British retiree?
Yes. Apply for an S1 form from the UK before you move and present it at your local SNS centre to register. UK retirees with an S1 access SNS on the same terms as Portuguese citizens.
People also ask
Can a UK pensioner still get the Portugal D7 visa in 2026?+
Yes — the D7 remains open. The qualifying threshold is roughly €870 per month (~£740), met by the full new UK State Pension alone.
Is the NHR tax regime still available for British retirees moving to Portugal?+
No. NHR closed to new applicants on 31 December 2023 and the successor IFICI regime under Lei 82/2023 explicitly excludes pension income. New residents pay standard Portuguese progressive rates of 14.5–48%.
Do I keep paying UK tax on my State Pension if I move to Portugal?+
No — under Article 17 of the UK–Portugal Double Tax Treaty, UK State and private pensions are taxed only in Portugal once you are tax resident (183+ days). File the HMRC DT-Individual form to stop UK PAYE.
Sources & last reviewed
Last full editorial review: 13 June 2026. We refresh figures and visa rules annually against the following authorities.