--- title: Retire in Portugal from the UK description: Portugal is the single most popular country for British retirees right now. The D7 Passive Income Visa explicitly accepts the UK State Pension as… canonical: "https://www.retirementabroad.co.uk/destinations/portugal" format: text/markdown alternate of the HTML page at canonical published: 2026-05-18 updated: 2026-09-26 reviewed: 2026-07-22 author: Retirement Abroad UK editorial team category: Destination region: Europe climate: mediterranean keywords: - retire in Portugal from the UK - retiring to Portugal from the UK - Portugal D7 Passive Income Visa - UK State Pension in Portugal - cost of living in Portugal for British retirees --- # Retire in Portugal from the UK > Portugal is the single most popular country for British retirees right now. The D7 Passive Income Visa explicitly accepts the UK State Pension as qualifying income, the Algarve has a 50,000-strong British community, and the public SNS healthcare system is open to legal residents at low or no cost. A comfortable single-person budget starts around £1,400 a month in the interior or £1,800 on the central Algarve coast. _By Retirement Abroad UK editorial team · Published 18 May 2026 · Updated 26 September 2026 · Last reviewed 22 July 2026_ - **Applies to:** British citizens retiring permanently to Portugal - **As of:** 22 July 2026 (last full review) - **UK State Pension in Portugal:** rises every April, as in the UK — source: [GOV.UK (Department for Work and Pensions)](https://www.gov.uk/government/publications/state-pensions-annual-increases-if-you-live-abroad/countries-where-we-pay-an-annual-increase-in-the-state-pension), checked 26 September 2026 - **Full new State Pension:** £241.30 a week (2026/27) — source: [GOV.UK (Department for Work and Pensions)](https://www.gov.uk/new-state-pension/what-youll-get), checked 26 September 2026 ## Key facts - D7 Passive Income Visa: €920/month / €11,040 a year (~£780/month) — the Portuguese minimum wage from 1 January 2026 - AIMA replaced SEF in June 2023; consular decision 60–90 days, AIMA residence-card appointment 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 **UK State Pension in Portugal: uprated every April.** Portugal is in the EEA — the UK State Pension is uprated each April under DWP rules. The full new State Pension is £241.30 a week (£12,548 a year, about £1,046 a month) for 2026/27. ## Monthly cost of living | Item | Single retiree (£/month) | | --- | --- | | Rent (one-bedroom) | £650 | | Groceries | £220 | | Utilities | £110 | | Transport | £60 | | Healthcare | £80 | | Leisure and eating out | £280 | | **Total — single retiree** | **£1,400** | | **Total — couple** | **£2,100** | Indicative GBP per month for a single retiree; a one-bedroom rental averages £650. Foreign-currency figures converted at the rates fixed at the last annual review (€1 ≈ £0.85, $1 ≈ £0.79, ฿1 ≈ £0.022). ## 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 (€920/month, €11,040/year — about £780/month). - **Minimum income:** about £780/month — the full new UK State Pension (£1,046/month) meets it on its own - **Processing time:** 60–90 days for the consular visa; AIMA residence-card appointments currently 8–14 months - **Renewable:** Yes — renewable after 2 years, permanent residency after 5 years - **Difficulty:** 2/5 (1 = easiest) **How to apply** 1. Open a Portuguese bank account and deposit ~£9,400 (€11,040 — 12× the €920 minimum wage — as proof of funds) 2. Secure a 12-month rental contract or property purchase 3. Apply at the Portuguese consulate in the UK with pension statement and clean criminal record 4. On arrival, attend AIMA appointment to issue the residence card ## Tax on your UK pension - **Regime:** Standard residency (the old 10% NHR pension regime closed to new applicants in 2024) - **Rate on UK pension income:** Standard Portuguese progressive rates apply after the NHR successor (IFICI) reforms in 2024 - **UK double-tax treaty:** Yes — 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 - **Public system:** Serviço Nacional de Saúde (SNS) - **UK S1 form accepted:** Yes — UK State Pension recipients register for public healthcare on the same terms as nationals - **Private health insurance:** about £60/month - **Healthcare score:** 4/5 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 - **Algarve (Lagos, Tavira)** — Sunny coast, large British community. 300+ sunny days, English widely spoken, every pub does a Sunday roast. (about £1,800/month) - **Silver Coast (Caldas da Rainha, Nazaré)** — Quieter Atlantic coast, lower prices. Cooler summers, working fishing villages, half the property prices of the Algarve. (about £1,400/month) - **Madeira (Funchal)** — Year-round mild island climate. Average winter temperature 17°C, no extreme heat, growing British community. (about £1,500/month) Popular with British retirees: Lisbon, Porto, Algarve (Lagos, Tavira), Madeira. ## FAQ **Q: Does Portugal's D7 visa accept the UK State Pension?** A: Yes. The D7 explicitly recognises pension income — including the UK State Pension — as qualifying passive income. The 2026 threshold is €920/month (the Portuguese minimum wage, about £780), so the full new State Pension (£1,046/month) meets it on its own. **Q: Is the Portuguese NHR 10% pension tax still available?** A: 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. **Q: Can I use Portuguese public healthcare as a British retiree?** A: 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. **Q: Can a UK pensioner still get the Portugal D7 visa in 2026?** A: Yes — the D7 remains open. The qualifying threshold is €920 per month (~£780) for 2026, met by the full new UK State Pension (£1,046/month) alone. **Q: Is the NHR tax regime still available for British retirees moving to Portugal?** A: 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%. **Q: Do I keep paying UK tax on my State Pension if I move to Portugal?** A: 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. ## Portugal guides - **Full guide:** [Retiring to Portugal from the UK 2026](https://www.retirementabroad.co.uk/blog/retiring-to-portugal-from-uk-2026) - **Visa:** [Portugal D7 Visa](https://www.retirementabroad.co.uk/blog/portugal-d7-visa-guide-uk-retirees) - **Tax:** [UK Pension Tax Abroad (2026)](https://www.retirementabroad.co.uk/blog/uk-pension-tax-abroad-guide-2026) - **Healthcare:** [S1 Form UK (2026)](https://www.retirementabroad.co.uk/blog/s1-form-retire-europe-guide) - **State Pension:** [UK State Pension Uprating Countries 2026](https://www.retirementabroad.co.uk/blog/uk-state-pension-uprating-countries-2026) - **Cost:** [Cheapest Places to Retire in Europe for UK Pensioners 2026](https://www.retirementabroad.co.uk/blog/cheapest-place-retire-europe-uk-pensioner-2026) - **Compare:** [Portugal vs Spain for UK Retirees 2026](https://www.retirementabroad.co.uk/blog/portugal-vs-spain-uk-retirees-2026) - **Compare:** [UK Pension in Cyprus vs Spain vs Portugal](https://www.retirementabroad.co.uk/blog/uk-pension-in-cyprus-vs-spain-vs-portugal-2026) ## Sources - [GOV.UK — State Pension if you retire abroad](https://www.gov.uk/state-pension-if-you-retire-abroad) - [AIMA (Portugal immigration)](https://aima.gov.pt/) - [Portuguese tax authority — IFICI/NHR transition](https://info.portaldasfinancas.gov.pt/) - [GOV.UK — Countries where we pay an annual increase in the State Pension](https://www.gov.uk/government/publications/state-pensions-annual-increases-if-you-live-abroad/countries-where-we-pay-an-annual-increase-in-the-state-pension) _Last reviewed 22 July 2026 · Last updated 26 September 2026. Canonical page: https://www.retirementabroad.co.uk/destinations/portugal_