More and more French retirees are moving to Portugal. The geographical and cultural proximity of this country, its quality of life, its climate, its attractive real estate prices, but also its tax advantages push many French people to live their retirement in this country. Why?
Many French retirees are attracted to Portugal above all for its relaxed lifestyle. A survey conducted in 2017 ranked Portugal as the first European country for its quality of life.
The climate, in particular of its capital Lisbon and of the Mediterranean-type Algarve, is one of the attractions of this country for the French who have ceased their professional career and who wish to continue living in a country where the weather is pleasant. .
The geography of Portugal also attracts French retirees who particularly appreciate the regions close to the sea, but also the variety of landscapes of this country. In addition, moving to Portugal means staying in Europe and therefore in particular being able to continue to benefit from measures common to all Europeans in terms of health, currency, etc. Portugal is also only a maximum of 3 hours by plane from France.
The ease of settling in, the welcome and the friendliness of the Portuguese are also criteria put forward by the French who decide to retire in Portugal.
The cost of living in Portugal is much lower than in France. Consumer goods such as food, for example, can be 20% to 30% cheaper, i.e. a cost of living 1.5 times lower than in France. Recreation is also more affordable here. A significant asset, especially for French retirees who do not have very high pensions.
Real estate is also much cheaper than in France, whether to buy or rent. A good reason for French retirees who want to move abroad. It takes an average of 1,440 euros per m ² for the purchase of a house in Portugal. Depending on the region, the budget necessary for the acquisition of real estate varies between 900 euros per m ² in the center of the country at 1,960 euros per m ² in the capital. Prices that have nothing to do with the big cities or the coasts listed in France.
Similarly, prices per square meter for rentals in Portugal are much lower than in France.
Portugal has also been able to attract French retirees by offering them a special and advantageous tax status. This is the "non-habitual tax resident status", in force since 2013, which allows French pensioners who reside in Portugal to be exempt from tax on their pensions for 10 years. The tax regime applied at the end of this period is then progressive to reach a maximum tax rate of around 56%.
To benefit from this status, French retirees must reside more than half the year in Portugal and not have been domiciled there for tax purposes in the previous 5 years. This advantageous tax regime is only applicable to French private pensioners.
