Retiring to Portugal in 2026: visas, pension tax after NHR, healthcare and where retirees live

Retiring to Portugal at a glance

Question	Short answer (2026)
Visa for UK, US and other non-EU retirees	Residence visa for retirement (D7): income of at least €920 a month for one adult, €1,380 for a couple
EU, EEA and Swiss retirees	No visa; register at the town hall after three months (€15)
Visa fee	€110; the visa lasts four months, then AIMA issues a residence permit
Pension tax for new residents	Progressive rates, 12.5% to 48%; NHR is closed
UK State and private pensions	Taxed only in Portugal under the treaty in force since 29 December 2025
UK government service pensions	Taxed only in the UK (for example civil service or armed forces pensions)
Healthcare	Register with the SNS; UK State Pensioners can use an S1
Inheritance tax	None as such; 10% stamp duty on inheritances, but spouses, children and parents are exempt
Buying a home gives residence?	No. The Golden Visa property route closed on 7 October 2023

Which visa do retirees use?

The D7, for almost everyone outside the EU. Portugal’s consulates list it as residence for retirement or for people living on passive income. You show a pension statement, or proof of income from property or investments, plus a passport, travel insurance and an apostilled criminal record certificate.

The income test is the minimum wage, €920 a month in 2026, with 50% more for a second adult and 30% more per child. So:

Household	Minimum regular income	How it is worked out
One person	€920 a month	100% × €920
Couple	€1,380 a month	€920 + 50% × €920
Couple with one child	€1,656 a month	€1,380 + 30% × €920

The residence visa allows two entries and lasts four months. During that time you apply to AIMA (the immigration agency) for a residence permit, which lasts two years and is then renewable for three years at a time. After five years you can apply for permanent residence. Our D7 visa guide covers the documents in detail.

EU, EEA and Swiss citizens need no visa. If you stay more than three months, ask your town hall for a registration certificate within the following 30 days; the gov.pt guide puts the fee at €15. Retirees qualify on sufficient resources and health cover.

UK citizens who lived here before 2021 keep their rights under the Withdrawal Agreement and hold a separate card. Everyone else from the UK uses the D7 or another visa. As a visitor you are limited to 90 days in any 180.

How are pensions taxed now that NHR has closed?

At the normal progressive rates. NHR (the non-habitual resident regime) gave many pensioners a 10% flat rate, or no tax at all, for ten years. It is closed to new arrivals. Its replacement, IFICI, is for research and innovation jobs. It does not cover pensions, and anyone who has had NHR cannot use it.

A new resident’s pension is therefore added to other income and taxed at Portugal’s 2026 rates, from 12.5% to 48%, after a specific deduction for pension income of €4,587.09.

Worked example (2026 rates, single person, from our NHR guide)

	Single pensioner	Couple filing jointly, one pension
Pension	€35,000	€35,000
Approximate Portuguese income tax	about €6,404 a year	about €4,529 a year
Effective rate	about 18.3%	about 12.9%

Couples can file jointly, which applies the rates to half the combined income. That helps most when one partner has most of the pension.

If you already hold NHR status, it ends after ten years. People who became resident in 2016–2019 lose it between 2026 and 2029. See NHR ending for what that does to your tax bill and to a later sale.

What does the UK–Portugal treaty change for British pensioners?

A new UK–Portugal double tax convention came into force on 29 December 2025. It applies to Portuguese taxes from 1 January 2026 and to UK income tax from 6 April 2026.

Pension	Where it is taxed if you live in Portugal
UK State Pension	Portugal only (article 17)
Private and workplace pensions	Portugal only (article 17)
Government service pensions (civil service, armed forces and similar) for a UK national	UK only (article 18)
Lump sums and SIPP drawdown	Depends on how Portugal classifies the payment; take advice

UK pensions paid gross under a no-tax (NT) code have no Portuguese tax withheld either, so the whole bill arrives after you file your Portuguese return. Set money aside each month.

Your UK State Pension still rises each year while you live in Portugal, because GOV.UK confirms yearly increases for people living in the European Economic Area.

US retirees: the US taxes its citizens wherever they live, so you keep filing US returns. How US Social Security and pensions are split between the two countries depends on the US–Portugal treaty. This needs a cross-border tax adviser.

How do retirees get healthcare?

Register with the SNS (national health service) once you have your residence document. Take it, your passport and your NIF (tax number) to your local centro de saúde (health centre) and ask for a número de utente (health user number).

S1 for UK State Pensioners. If you get a UK State Pension, you can apply for an S1, which makes the UK pay for your Portuguese state healthcare. Apply to the NHS Overseas Healthcare Services, then register the S1 at a Segurança Social office and at your health centre. With a registered S1 you can also keep a UK GHIC for trips elsewhere in Europe. If you also receive a Portuguese state pension, Portugal becomes responsible instead. Pensioners from other EU countries use the same S1 system.

User fees apply only at hospital A&E if you arrive without a referral from the SNS 24 phone line or your health centre and are not admitted. GP visits carry no fee. Prescriptions have a co-payment and dental care is mostly private.

Private health insurance. Many retirees add a private policy for faster access to specialists and private hospitals. It is optional for residents, but the visa file needs travel insurance. Check age limits and exclusions for pre-existing conditions before you rely on a policy; we do not quote premiums because there is no official benchmark.

Where do retirees settle?

Area	Climate (IPMA 1991–2020 normals)	Price paid, €/m² (INE, 12 months to June 2026)	Nearest airport	Why retirees choose it
Algarve (Tavira, Lagos, Loulé, Carvoeiro)	Faro: 18.2 °C average, 455 mm of rain a year, 12.3 °C in January	Tavira €3,282; Lagos €3,949; Algarve €3,338	Faro	Sun and golf; 29.7% of homes bought from abroad in 2025 (INE); public hospitals in Faro, Portimão and Lagos
Lisbon coast (Cascais, Estoril)	Lisbon: 17.3 °C, 723 mm, 11.1 °C in January	Cascais €4,889	Lisbon, about 35 km	Walkable towns, train to Lisbon, big hospitals in reach
Silver Coast (Óbidos, Caldas da Rainha, Nazaré)	No IPMA station normal checked for this coast	Caldas €2,188; Óbidos €2,249; Nazaré €2,656	Lisbon, about an hour	Lower prices; hospitals in Caldas da Rainha, Torres Vedras and Peniche
Madeira (Funchal, Caniço, Calheta)	Funchal: 20.0 °C, 574 mm, 17.1 °C in January	Funchal €3,538; Madeira €2,690	Madeira airport, about 20 minutes from Funchal	The mildest winters in Portugal; lower income tax for Madeira residents

AIMA counted 48,238 British residents in Portugal at the end of 2024, plus 19,258 Americans and 6,081 Irish. It does not publish nationality by town. Among all foreign residents, Loulé (29,578) was the only Algarve municipality in the top twelve, alongside Lisbon, Cascais, Sintra and Porto.

For local estate agents, see the Algarve, the Silver Coast and Madeira. For buyer-side help, see buyer’s agents in the Algarve and in Lisbon. For a fuller comparison of hospitals, airports and costs, see the best places to live in Portugal.

Two practical points for later life. Hillside villages and rural quintas need a car, and that becomes harder with age. And Madeira’s airport is affected by wind; flights are sometimes diverted or cancelled.

Should you rent or buy?

Rent first, then buy as a resident, in most cases.

• Tax. A non-resident pays a flat 7.5% IMT (property transfer tax) on a home, since 25 May 2026. A resident buying a main home pays a sliding scale. On a €450,000 apartment the non-resident pays €33,750; a resident buying a main home pays €22,236.65 (8% × €450,000 − €13,763.35), a gap of €11,513.35. You can reclaim it if you become resident within two years, but only by applying within six months. See buy before or after residency.
• Test the place. A winter in the Algarve or on the Silver Coast is different from a summer holiday.
• The visa needs an address. A 12-month lease works.

Run your own figures in the buying cost calculator, and read how to buy property in Portugal before you make an offer. If you would like us to suggest agencies or buyer’s agents that fit your budget and area, tell us what you’re looking for.

What happens to your Portuguese home when you die?

Portugal has no inheritance tax as such. It charges 10% stamp duty on inheritances, but spouses and unmarried partners, children and grandchildren, and parents are exempt. The heirs must declare the inheritance to the tax office by the end of the third month after the month of death.

Which law applies. By default, the law of your habitual residence governs your estate under EU Regulation 650/2012. If you live in Portugal, that means Portuguese succession law, which reserves a fixed share of the estate (legítima) for a spouse, children and, in some cases, parents. The regulation lets you choose instead the law of your nationality in your will, and that choice works for British nationals too.

Wills. Many owners make a Portuguese will at a notary covering their Portuguese property, alongside a will at home. The two must not cancel each other out. A lawyer should draft both together.

For what heirs do next, see inherited property in Portugal.

Power of attorney and planning for incapacity

Two separate tools:

• A power of attorney (procuração) lets someone sign for you, for example at a property sale. If signed abroad it must be notarised and apostilled, or signed at a Portuguese consulate.
• A mandate for future incapacity. Since 2019 (Lei 49/2018, which created the maior acompanhado regime), Portuguese law lets you name in advance who will act for you if you can no longer manage your affairs.

We could not confirm whether a UK Lasting Power of Attorney is recognised in Portugal without further steps. Ask a property lawyer in Portugal to set up the Portuguese documents while you are well. This is a matter for legal advice; we do not give it.

Frequently asked questions

How much money do I need to retire to Portugal?

For the D7 visa, at least €920 a month for one person and €1,380 for a couple in 2026, from a pension or other regular income. That is a legal minimum, not a comfortable budget. In Lisbon, INE’s median new-lease rent was €17.79/m² in Q2 2026, about €1,423 a month for 80 m².

Is NHR still available for retirees?

No. NHR is closed to new residents, and its replacement, IFICI, excludes pensions. New residents pay 12.5% to 48% on pension income.

Will the UK tax my State Pension if I live in Portugal?

Not under the new treaty. Since it took effect, UK State and private pensions paid to Portuguese residents are taxable only in Portugal. Government service pensions remain taxable only in the UK for UK nationals.

Can I use the NHS once I live in Portugal?

Not as a resident. A UK State Pensioner with an S1 gets Portuguese state healthcare paid by the UK, and can use a UK GHIC elsewhere in Europe. Treatment in the UK itself follows NHS rules for people who live abroad.

Where do most British retirees live?

AIMA does not publish British residents by town. The Algarve and the Lisbon coast hold most foreign residents, and Loulé has more foreign residents than any other Algarve municipality.

Do I need a Portuguese will?

Not legally, but it makes things easier for your heirs. Without a choice of law in your will, Portuguese succession law applies to someone living in Portugal, including fixed shares for close family. A lawyer can advise you.

Key points

• Non-EU retirees usually move on the D7 visa: €920 a month for one adult in 2026, €1,380 for a couple. EU citizens register at the town hall.
• NHR is closed; pensions are taxed at 12.5% to 48%, about €6,400 a year on a €35,000 pension for a single person.
• Under the UK–Portugal treaty in force since 29 December 2025, UK State and private pensions are taxed only in Portugal; government service pensions stay in the UK.
• UK State Pensioners can use an S1 for SNS healthcare and keep yearly State Pension increases.
• Renting first and buying as a resident avoids the 7.5% non-resident IMT, worth about €11,500 on a €450,000 home.
• Make a will that states which country’s law applies, and set up Portuguese powers of attorney with a lawyer.