How Much Money Would a Retired Person Need to Live Comfortably in Portugal?
How Much Money Would a Retired Person Need to Live Comfortably in Portugal?
" "More and more people are moving to Portugal due to the D7 visa, but they often fail to realize that it isn’t as cheap to live as they might expect, especially considering the high taxes. When planning for retirement in Portugal, it’s important to have a clear idea of how much you will need to live comfortably. Below, we will break down the costs associated with living in this beautiful European country and explore some scenarios that may help you plan your retirement.
" "Understanding the Cost of Living in Portugal
" "Expect to spend about €2,000 per month as an individual and roughly €4,000 for a family of four. This figure is based on an average cost of living in Portugal, including food, rent, transportation, and basic services. However, the exact amount can vary depending on your lifestyle and where you choose to live in the country. If you plan to retire in Portugal, you will need approximately €500,000 to €2.5 million, depending on your spending habits and the area you reside in.
" "Is It Possible to Retire Comfortably on a Lower Income?
" "While the general consensus is that individuals need to budget at least €1,500 to €2,000 per month to live comfortably in Portugal, it is indeed possible to retire on a lower income. For those who have alternative sources of income through Social Security benefits, the cost of living in Portugal might be manageable. Socioeconomic factors, lifestyle choices, and living in different regions of the country can significantly impact the required monthly budget. Let's explore a real-life example to provide clarity.
" "" "Living on €700 per Month:" "I know someone who lives very comfortably on around €700 per month. This person rents a 2-bedroom flat and occasionally hosts visits from family in the UK. Not owning a car, they rely on consistent public transport to reach the city center. Within easy walking distance are numerous supermarkets and farmers' markets, making grocery shopping convenient. Every day, they dine at the local food court for their main meal, cereal for breakfast, and enjoy a glass of wine in the evenings. They also have high-speed internet and unlimited accessibility to streaming services via fiber broadband. This lifestyle sounds minimalistic to some, but it demonstrates that you can live a comfortable life in Portugal on a lower income.
" "Adding 20 Euros for Southern Living:" "If you prefer to live in the southern parts of Portugal, particularly in cities like Lisbon or Algarve, you may find the cost of living slightly higher. However, with an additional 20 euros, you can maintain a similar quality of life. This small adjustment accounts for the higher cost of living in these more popular tourist areas. Whether you're living in the north or south, understanding the cost differences in various regions can help you plan your budget more effectively.
" "" "Key Considerations for Retirement in Portugal
" "" "High Taxes: Portugal’s tax system is designed to provide social benefits, but it means that living costs are relatively high. Depending on your income and lifestyle, you might need to budget more." "D7 Visa: The D7 visa provides residency rights but does not automatically grant you the right to work beyond a short-term job. Ensure you understand the requirements for staying and working legally in Portugal." "Low-Cost Living Areas: If you are on a tight budget, consider moving to a more affordable region in the north of Portugal, where the cost of living is lower." "" "As you plan your retirement in Portugal, remember that your individual circumstances and lifestyle choices will greatly impact your monthly requirements. Budgeting responsibly, finding the right location, and perhaps tapping into alternative sources of income, like Social Security benefits, can help you achieve a comfortable and fulfilling retirement in this beautiful country.