Thinking About Retiring in Lisbon, Portugal? Here is What You Need to Know.

As retirement costs rise dramatically in the U.S.—especially in once-affordable destinations like Florida—many Americans aged 55 and older are rethinking their retirement strategy. A growing number are looking abroad, and Lisbon, Portugal consistently ranks as one of the best international retirement destinations.

But is it the right move for you? Below, we explore the pros and cons of retiring in Lisbon for Americans, with the goal of educating retirees on their global options while highlighting why Florida still remains a strong choice for many.

Pros of Retiring in Lisbon

1. Lower Cost of Living

Compared to many U.S. cities, including retirement hotspots like Naples or Sarasota, Lisbon offers a lower cost of living. Essentials like groceries, transportation, and dining out are considerably more affordable.

• Sample costs: A nice meal at a mid-range restaurant may cost around $30 for two people. Public transportation passes are about $45/month.
• Housing: A one-bedroom apartment in Lisbon city center might rent for $1,000–$1,500/month, and much less in nearby suburbs or smaller towns like Cascais or Setúbal.

While prices in Lisbon have risen due to growing interest from expats and digital nomads, the overall day-to-day living expenses are still often 30–40% lower than many U.S. cities.

2. High-Quality Healthcare

Portugal ranks among the top healthcare systems globally, especially when considering cost-to-quality ratio.

• Public healthcare: Residents have access to the SNS (Serviço Nacional de Saúde), Portugal’s national health service, which offers subsidized care.
• Private options: Many retirees opt for private health insurance to avoid wait times. Monthly premiums range from $75 to $150, depending on age and coverage.

Prescription medications, dental care, and specialist visits are also more affordable compared to the U.S., making it easier to maintain health on a fixed income.

3. Pleasant Climate

Lisbon enjoys a Mediterranean climate with long, warm summers and mild winters.

• Average temps: Summers hover around 80°F, while winters stay in the mid-50s.
• Sunshine: With over 300 sunny days a year, it’s perfect for outdoor enthusiasts who enjoy walking, golfing, or sitting at a café.

Compared to the high humidity and hurricane risks in parts of Florida, Lisbon offers year-round livability with fewer weather extremes.

4. Rich Cultural Experience

Lisbon offers an immersive cultural lifestyle full of old-world charm and modern sophistication.

• Activities: Museums, art galleries, historical monuments, and music festivals abound.
• Cuisine: From freshly grilled sardines to the iconic pastéis de nata, the food scene is varied and flavorful.
• Travel: Portugal’s compact size and proximity to Spain and the rest of Europe make it easy to explore new destinations affordably.

For retirees who enjoy history, arts, and culinary adventure, Lisbon delivers.

5. Safety and Stability

Portugal is one of the safest countries in the world, ranking 7th on the Global Peace Index.

• Low violent crime: Petty theft can occur (as in any large city), but violent crime is rare.
• Stable government: Portugal offers a democratic, peaceful society with relatively little political unrest or civil strife.

Safety is a top concern for retirees, and Lisbon consistently earns high marks in this area.

Cons of Retiring in Lisbon

1. Bureaucratic Challenges

Retiring abroad means dealing with a new legal system and unfamiliar processes.

• Residency: U.S. citizens can apply for the D7 Visa, which allows retirees to reside in Portugal with proof of passive income.
• Documentation: Navigating visa renewals, healthcare enrollment, and driver’s license transfers can be time-consuming and frustrating.

Hiring a relocation consultant or immigration attorney can ease the transition but adds to your initial costs.

2. Language Barrier

Portuguese is the official language, and while English is spoken in many urban areas, it’s not universal.

• Day-to-day interactions: Speaking at the pharmacy, post office, or grocery store may require some basic Portuguese.
• Healthcare: Some doctors speak English, but others may not—making communication more difficult during medical appointments.

Taking language classes or using translation apps can help, but the barrier may still feel isolating for some retirees.

3. Rising Housing Costs

Lisbon’s popularity among expats and investors has pushed real estate prices upward.

• Urban vs. rural: While Lisbon is still cheaper than most major U.S. cities, it is more expensive than other parts of Portugal.
• Ownership concerns: Property taxes and legal nuances around home ownership in Portugal require careful navigation.

Retirees on a tighter budget may find better value outside the Lisbon metro area, though that could limit access to amenities.

4. Healthcare Accessibility for Seniors

Though affordable and high-quality, healthcare accessibility can vary.

• Wait times: Public hospitals may have long queues for non-emergency services.
• Age-based limitations: Some private insurance companies limit enrollment based on age or pre-existing conditions, requiring supplemental plans or pay-per-service models.

While better than the U.S. in affordability, accessibility and ease of use might not match what some seniors are used to.

5. Distance from Family

Portugal is a long flight from the U.S., and time zone differences can add to the feeling of distance.

• Travel time: A one-way trip to the East Coast takes around 8–9 hours.
• Emotional impact: Holidays and family events can feel more difficult to coordinate.

For many, especially those with grandchildren, this distance can be a major deterrent.

Is Lisbon Right for You?

Lisbon offers retirees an attractive mix of sunshine, affordability, healthcare, and cultural richness. It’s a strong contender for those seeking a slower-paced, yet stimulating lifestyle outside the U.S.

That said, moving abroad is not for everyone. The paperwork, cultural adjustments, and physical distance from family can be significant hurdles. For most retirees exploring international options, Lisbon may be best suited for part-time living or extended visits rather than a permanent move.

If you're interested in a retirement that offers sunshine, vibrant communities, and access to quality healthcare—without leaving the U.S.—Florida still stands as one of the top retirement destinations. With dozens of 55+ communities across the state, there’s likely a perfect match for every budget and lifestyle.