Best countries to retire in: Portugal and Spain in the Top 10

Each year, the website International Living publishes its ranking of the best countries to retire in, under the premise of offering its subscribers the best information on places where they can spend their retirement living "a healthier and happier life, spending less money".

Based on reports from a network of correspondents around the world, and taking into account how to make the most of income and pensions during this stage of life, the 2024 report is now available. 

An interesting point is that Portugal and Spain are among the top 5 in the ranking. This means that the Iberian Peninsula is not only attractive to digital nomads looking for the best places to work remotely , but also to those who have already completed their working lives and want to enjoy their "golden years."

What factors are considered when compiling the ranking? According to International Living, countries are evaluated on multiple aspects, from housing quality, climate, visa requirements and benefits offered, to cost of living, health system, cultural adaptability, level of development and the efficiency of their governance. 

In this case, since the target audience is people who are in retirement, the predominant criterion is the balance between cost and quality of life, along with the availability of social benefits that ensure that pensions are adequate to allow those concerned to live peacefully and comfortably.

Spain

The factors that make this country stand out are primarily its landscapes, food, and sunny days, as well as its healthcare system. A low cost of living is also noteworthy; however, the latter is relative to the city and neighborhood where one intends to live. For example, an apartment (a "piso," as the Spanish say) in the center of Madrid of about 50 m² costs approximately €1000 per month. 

On the other hand, the real estate market is progressing very favorably for foreigners, both in terms of buying and renting. This can be an attractive option if you wish to explore investments in different regions: less touristy areas definitely offer more affordable rentals. 

Portugal

A temperate climate, a diverse and delicious cuisine, natural and still relatively untouched landscapes, and welcoming and hospitable people. This is how Portugal is described, a nation with a great variety of environments, from its traditional cities to its coastal regions.

The ranking classifies the cost of living in this country as affordable; again, this is a relative definition. To provide objective information: in Lisbon, an apartment of the same 50 m² in the city center has a rent of approximately €1200 per month.

Which visas allow me to retire in these countries?

• In the case of Portugal, there is the “Residence Visa for Non-Profit Activities”, also called Visa D7Those wishing to apply for these benefits must prove they have passive income exceeding one Portuguese minimum wage, which currently equates to approximately €820 per month. If a second adult is included in the same application, proof of income equal to 0,5 Portuguese minimum wages must be provided for this person (equivalent to approximately €410 per month).

The D7 visa grants a two-year residency period, renewable for three-year periods. However, it's important to note that after five years you can apply for Portuguese citizenship and become a Portuguese citizen with a passport.

Health insurance is also required.

• For Spain, there is the Non-Lucrative Residence VisaThis allows you to live in the country without engaging in paid, work or professional activities, provided that those interested can demonstrate that they have had economic resources of at least 28.000 EUR during the last 12 months. 

In the case of Spain, the initial maximum duration is one year and is renewable for two-year periods, provided the applicant does not spend more than six months outside the country. There are tax advantages, such as exemption from income tax for five years. It is important to note that Chileans have a significant advantage: after two years, they can apply for Spanish nationality, that is, apply for a Spanish passport.  

If you're interested in retiring in these European countries, get in touch with our team . We'll guide you through the entire process, working with you to find the best options for you and your family.

We'll help you with the legal and tax details, so you can focus on enjoying your retirement. Schedule a meeting today!