Portugal Ranked Top Country for Retirement in 2025
Portugal, which typically appears at or near the top of various “best countries for retirement” rankings (including No. 2 on International Living’s 2025 rankings), stands out with its affordability, safety, healthcare, and welcoming lifestyle. It is located on the western edge of the Iberian Peninsula, facing the Atlantic Ocean.
Portugal topped the Global Retirement Report 2025 thanks to second place finishes in both Quality of Life and Safety and Integration. It was also 4th in Citizenship and Mobility, 15th in both Tax Optimization and Economics, and 23rd in Procedure.
“Portugal has firmly established itself as one of the leading destinations for retirement in recent years. This growing appeal is largely attributed to a favorable combination of relatively low living costs, a high standard of healthcare, strong public safety, and an overall high quality of life,” the report said. “Additionally, the country’s temperate climate and hospitable cultural environment further enhance its attractiveness, making Portugal an increasingly preferred option among expatriate retirees seeking both comfort and security.”
An increasingly attractive pathway for non-EU retirees considering relocation to Portugal is the D7 Visa, often referred to as the Passive Income Visa. It is specifically designed for individuals with a stable, recurring income, such as pensions, rental earnings, or dividends. It does not require active employment, and grants access to Portugal’s public healthcare system, permits visa-free travel within the Schengen Area, and enables applicants to pursue permanent residency or citizenship after five years of legal residence.
Another key factor contributing to Portugal’s appeal is its relatively low cost of living. Prices for consumer goods and services are significantly below Western European norms, roughly 15-20% lower than the EU average in 2024, according to Global Citizen Solutions.
Other notable countries in the rankings
A couple of countries that typically rate near the top in the annual International Living rankings finished a fair distance apart in the Global Retirement Report 2025.
Panama, which was ranked No. 1 in the International Living rankings, was 19th in the 2025 GRR. Costa Rica, which ranked third (behind Portugal) in the International Living rankings, was sixth in the 2025 GRR.
Some other notable countries popular with American ex-pats included Belize (29), Dominican Republic (38) and Mexico (41). As far as the rest of the top 10, you had Italy (6), Slovenia (7), Malta (8), Latvia (9) and Chile (10).
Check out the full Global Retirement Report 2025 here.
SEE ALSO:
• 2025’s Best Places in the World to Retire
• 6 ‘Up-and-Coming’ Retirement Destinations for 2025
• ‘Best Places to Retire in 2025’ Share Common Traits
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
