Retiring in Italy vs Portugal is both appealing, as each country offers unique benefits. Portugal tends to have a lower cost of living and easier visa processes, which can be ideal for retirees on a fixed income. Italy, on the other hand, offers an unmatched cultural experience with its world-renowned cuisine, art, and history, making it a great choice for those looking for a vibrant lifestyle.
In this article, we’ll take a look at how Portugal and Italy compare as your retirement choice, the pros and cons of each country, and how to decide where to spend your Golden Years.
You’ll also find out more about:
- Comparing Portugal to Italy for Retirees
- Retirement visa options
- Retire Portugal vs Italy: Visa Comparison
- Five best places to retire in Portugal
- Five best places to retire in Italy
Comparing Portugal to Italy for Retirees
Portugal and Italy offer distinct lifestyles shaped by their climate, affordability, safety, healthcare, and leisure opportunities. While each country boasts a rich cultural heritage and picturesque landscapes, their day-to-day living experiences can differ.
According to our Global Intelligence Unit’s annual Global Retirement Report, Portugal came in first place in 2025. It notes that European countries such as Portugal, Spain, Austria, and France feature prominently among the safest and most welcoming, while also placing an emphasis on quality of life, healthcare, and overall living conditions.
Here’s a comparative look at these two European favorites across key aspects that matter most to retirees, residents and expats alike.
Weather
The Algarve is particularly sunny, with over 300 days of sunshine annually and summer temperatures often reaching 30 to 35 degrees. Inland and island regions like Madeira offer even more climate diversity, but overall, Portugal is known for its pleasant weather year-round.
Italy has a more varied climate due to its length and geography. Northern Italy experiences cold winters, sometimes with snow, and warm, humid summers.
Central Italy, including Rome, has milder winters and hot summers, while southern Italy and the islands enjoy mild winters and very hot, dry summers, often surpassing 30 degrees. The north can be foggy and rainy, while the south is typically drier and sunnier.
Cost of living
Portugal is considered one of Western Europe’s most affordable countries. Monthly expenses for a single person typically range from €1,500–€1,700, depending on location and lifestyle.
Dining, groceries, and utilities are generally cheaper than in neighboring countries, and even private healthcare is affordable. Lisbon and the Algarve are pricier than rural areas, but overall, Portugal offers a high quality of life at a modest cost.
Italy has a slightly higher cost of living, with single-person monthly expenses averaging €1,400–€1,600, but this can rise significantly in cities like Milan or Rome. The north and central regions are more expensive than the south.
Groceries and dining are reasonably priced, but rent in major cities is notably higher than in Portugal. Still, Italy remains more affordable than much of Western Europe, especially outside the big cities.
Safety
The country’s political stability and friendly atmosphere contribute to a strong sense of security for both locals and visitors. In our Global Passport Index, it ranks 24th and comes in 6th place for quality of life.
Italy is also considered safe, with low rates of violent crime. Our Global Passport Index ranks Italy as 22nd, but in our Global Intelligence Unit’s Retirement Guide for US Citizens, Italy comes in 7th place overall, scoring 10th place for Quality of Life and 8th place for its weather.
Healthcare
Portugal provides universal healthcare through its publicly funded Serviço Nacional de Saúde (SNS), offering free or subsidized care to residents.
The system is robust, with high standards, but public facilities can be crowded. Private healthcare is available and affordable, with many English-speaking professionals. Portugal’s healthcare ranks well globally and is praised for accessibility and quality.
Italy also offers universal healthcare via the Serviço Nacional de Saúde (SSN), widely recognized as one of the best in the world. Care is free or nearly free at the point of service, though waiting times can be long in public facilities.
Private insurance is available for faster access and more options. Italy boasts high life expectancy and excellent medical outcomes, though there are some regional disparities in service quality.
Leisure and entertainment
The country’s culinary scene is rich with fresh seafood and local wines. Expats enjoy a strong sense of community, frequent festivals, and easy access to nature.
Italy is a global icon of culture, art, and cuisine. From Rome’s ancient ruins to Florence’s museums and Venice’s canals, the country is a playground for history buffs and art lovers.
Italian cities are famous for their cafés, vibrant markets, operas, and festivals. The Mediterranean lifestyle emphasizes leisurely meals, social gatherings, and outdoor activities – many consider Italian food the best.
From skiing in the Alps to sunbathing on the Amalfi Coast, Italy offers endless options for entertainment and exploration.
Retirement Visa Options
Portugal D7 Passive Income Visa
The Portugal D7 Visa is a residence visa program that allows non-EU citizens with sufficient passive income to live in Portugal without working. It’s particularly popular with retirees, real estate investors, and those who rely on passive income from sources like pensions, investment income, or royalties.
Among the criteria, meeting the minimum income requirement is crucial for the Portugal D7 Visa. You must demonstrate a stable and regular passive income that is at least equivalent to the Portuguese minimum wage, which is €870.00 in 2025. This income can come from various sources, such as:
- Social Security benefits (Pensions)
- Rental income
- Dividends
- Transferable equity
- Intellectual property
Additionally, you must provide Portuguese bank statements showing a minimum balance equal to one year’s minimum wage (€10,440.00) during your two-year application period. This amount is calculated as €870.00 x 12 months.
In our Global Passport Index 2025, Portugal ranks 28th and comes in 12th place for quality of life and enhanced mobility.
Italy Elective Residency Visa
Italy doesn’t have a dedicated visa for retirees like Portugal. However, there is a similar retirement option aimed at financially independent people.
Called the Italy Elective Residency Visa or Residenza Elettiva, it is a long-term visa for non-EU citizens who have sufficient financial resources and want to live in Italy without working. It is especially suited for retirees or individuals with passive income from pensions, investments, or rental properties.
To qualify for the Italy Elective Residence Visa, applicants must prove a steady stream of passive income. The minimum financial requirement for 2025 is:
- €32,000 per year for a single applicant.
- €38,000 per year for a married couple.
- An additional €6200 per dependent child.
Savings alone do not qualify as stable passive income, but may support the application.
In our Global Passport Index 2025, Italy ranks 23rd and comes in 25th place for quality of life and 6th for enhanced mobility.
Retire Portugal vs Italy: Visa Comparison
Portugal’s D7 Visa and Italy’s Elective Residency Visa are two of the most accessible pathways for non-EU citizens looking to settle long-term. While both are designed for individuals with stable passive income, such as pensions or investments, they differ in income requirements and validity.
Here is a complete breakdown of the income requirement for each visa:
| Criteria | Portugal D7 Visa | Italy Elective Residency Visa |
|---|---|---|
| Investment Requirement | No investment required | No investment required |
| Primary Financial Requirement | Proof of stable passive income of at least €870/month (2025 rate) | Proof of passive income of at least €32,000/year for a single applicant |
| Savings/Bank Balance Requirement | A single applicant must deposit minimum €10,440 in a Portuguese bank account | Savings are not considered passive income but may support your case. Final approval depends on the overall financial profile, reviewed on a case-by-case basis by the consulate. |
| Income Types Accepted | Pensions, rental income, dividends, royalties, financial investments | Pensions, annuities, real estate, business income (not employment-based) |
| Accommodation Requirement | Own, rent (12-month lease), or live with someone providing an official letter | Must own or rent property |
Each retirement visa also has a different validity. For example, Portugal’s initial visa is valid for four months (you’ll need to convert it into a temporary residency permit after the four months), while Italy issues a visa that’s valid for a year.
| Criteria | Portugal D7 Visa | Italy Elective Residency Visa |
|---|---|---|
| Initial Visa Validity | 4-month entry visa | 1-year visa |
| Initial Residence Permit Validity | 2 years (first permit) | 1 year |
| Renewal Period | Renewable for 3 additional years after initial permit | Renewable annually as long as income and presence requirements are maintained |
| Maximum Absence Allowed | No more than 6 consecutive months or 8 non-consecutive months per permit | Absence from Italy must not exceed 6 months continuously or 10 months total over 5 years |
| Continuous Tax Residence Requirement | Must spend at least 183 days/year in Portugal | Must spend at least 183 days/year in Italy |
| Permanent Residency Eligibility | After 5 years of legal residence | Must not be absent from Italy for more than six continuous months or ten total months over five years. |
| Citizenship Eligibility | After 5 years of residence | After 10 years of continuous residence |
| Other Conditions | Must maintain income, housing, and healthcare coverage | Must renew proof of accommodation, income, health insurance annually |
Choosing between Portugal’s D7 Visa and Italy’s Elective Residency Visa largely depends on your financial situation, lifestyle preferences, and long-term goals.
Portugal’s D7 Visa is considered more accessible. It requires proof of sufficient passive income, set at the level of the national minimum wage, and offers a clear path to permanent residency and citizenship after several years.
In contrast, Italy’s Elective Residency Visa has higher financial requirements and does not allow you to work. While Italy does not specify an exact income threshold, applicants are expected to demonstrate a significantly higher income of €32,000 per person annually or more for couples. Owning real estate in Italy may enhance your application.
With that in mind, if your priorities are affordability and a simpler visa process, Portugal’s D7 Visa is likely the better choice. However, if you have a higher income and are attracted to Italy’s rich culture and relaxed lifestyle, the Elective Residency Visa could be a fulfilling option.
| Feature | Portugal D7 Visa | Italy Elective Residency Visa |
|---|---|---|
| Purpose | Residency for non-EU nationals with stable passive income (retirees, remote workers). | Long‑stay residence for financially independent individuals who do not plan to work in Italy. |
| Minimum Income Requirement | Minimum passive income €870/month (€10,440/year); more encouraged in practice. | €32,000/year for singles; €38,000/year for couples; +20 percent per dependent. |
| Acceptable Income Sources | Pensions, rental income, dividends, investments, royalties. | Same passive sources allowed; employment income not permitted. |
| Accommodation Requirement | Rental or ownership proof required. | Must show valid long-term rental or property ownership (no hotel stays). |
| Health Insurance | Private insurance initially; then eligible for Portugal’s public system (SNS) after permit granted. | Private health insurance (€30,000 cover minimum) required until enrollment in SSN. |
| Residency Duration and Renewal | Initial residence permit valid for two years, renewable for three more years; move to permanent after five years. | Issued for one year and renewed annually based on continued income and accommodation; permanent residency after five years, citizenship after 10 years. |
| Physical Stay Requirement | Must reside minimum of 183 days/year or 6 consecutive months; 8 months in a two-year cycle. | No published strict requirement; must maintain “actual residence” in Italy. |
| Working Rights | Permits part-time work or freelancing after residency is granted. | No work in Italy or remote work is allowed under this visa category. |
| Family Reunification | Yes, spouse and dependent children can join; additional income proof required. | Yes, spouse and eligible dependents included; increased income thresholds apply per dependent. |
| Schengen Travel Rights | Yes, visa-free travel within the Schengen zone under the 90/180 rule. | Yes, a residence permit grants visa-free Schengen access. |
| Citizenship Pathway | Eligible after five years of legal residency; dual citizenship permitted. | Citizenship is possible after 10 years of continuous legal stay. |
| Typical Processing Time | About 60–90 days from consulate submission. | Generally, around 90 days, though times may vary by consulate. |
5 Best Places to Retire in Portugal
2. Cascais: Cascais combines cosmopolitan living and coastal charm. Once a royal retreat, it’s now popular among retirees for its clean beaches, scenic promenades, and quality amenities.
3. Coimbra: Coimbra offers a cultural charm for retirees seeking an inland option. Known for its prestigious university and historic architecture, it’s more affordable than coastal areas, featuring traditional restaurants, local music, and festivals.
4. Évora: The historic city of Évora, a UNESCO World Heritage Site in Alentejo, is perfect for retirees wanting a quiet, culturally rich lifestyle with its cobblestone streets and vineyards.
5. Funchal, Madeira: Funchal, the capital of Madeira, is great for retirees seeking mild weather and a relaxed atmosphere. Surrounded by stunning mountains and ocean views, it offers good healthcare, fresh markets, and outdoor activities.
Best Places to Retire in Italy
2. Sicily (Taormina): Taormina features stunning views of the Ionian Sea and combines ancient ruins with Mediterranean culture. It’s perfect for retirees seeking warmth and tranquility, with a low cost of living and good healthcare access in nearby Catania.
3. Puglia (Lecce): Lecce, known as the “Florence of the South,” offers a slower pace and lower living costs. With beautiful beaches and traditional cuisine, it appeals to retirees who appreciate history and a vibrant cultural scene.
4. Lake Garda (Desenzano del Garda): Desenzano del Garda offers stunning Alpine views and outdoor activities. It has modern amenities, a top-rated healthcare system, and affordable housing options, making it attractive for active retirees.
5. Marche (Ascoli Piceno): Ascoli Piceno is an affordable retirement option with historic charm and a tranquil atmosphere. Its low cost of living and solid healthcare, along with close proximity to the Adriatic coast, make it ideal for those seeking authenticity and scenic beauty.
How to Choose the Best Place for Retirement
In weighing retirement in Portugal versus living in Italy, you’re comparing two of the most appealing European countries, each offering its own take on daily life, community warmth, and cultural depth. As a member of the European Union, Portugal stands near the top of the Global Peace Index, making it a safe place where expats choose tranquility alongside great weather. In contrast, Italy—often hailed as the best country for art, history, and good food—invites retirees to immerse themselves in its celebrated city center piazzas and centuries-old traditions.
Cost of living and monthly costs
Among EU countries, Portugal’s affordability is a major draw. Even in a bustling Lisbon city center, monthly costs remain reasonable: rent, groceries, and public transport average well below those in Rome or Milan. For retirees budgeting their four estimated monthly costs, a one-bedroom apartment in Lisbon’s historic core often costs less than its Italian equivalent. By contrast, most EU countries (including many other European countries) report higher living expenses, especially when factoring in double taxation agreements that retirees must navigate across two countries.
Lifestyle and daily life
Living in Portugal means unhurried cafés overlooking the Silver Coast, sunlit walks through pastel-toned neighbourhoods, and a strong focus on community festivals. Many retirees find themselves mastering Portuguese morsels yet still able to speak English in urban hubs. Living in Italy, daily life centers on family-run trattorias and animated street markets—experiences Italy’s older people treasure alongside formidable public transportation networks.
Both Portugal and Italy are developed countries where retirees can pursue dual citizenship and enjoy great quality healthcare. Whether you choose Italy’s romantic canals or Portugal’s laid-back coastlines, each offers a uniquely rewarding chapter in your retirement story.
Exploring Visa and Immigration Options for Portugal
If you’re considering making the move to Portugal, it’s essential to be informed about the various visa and residency options available. The Golden Visa Portugal program is an attractive option for many, offering residency to investors and their families. For those eyeing retirement in this beautiful country, the Portugal D7 Visa is tailored for you. Digital nomads can take advantage of both short and long-stay options with the Digital Nomad Visa (D8).
For the entrepreneurial spirit, Portugal offers the Entrepreneurship/startup Visa (D2) – Start-up Visa (open company) tailored for those looking to establish their businesses in the country. Those with specialized skills can explore the Work visa for highly qualified employees (D3). Additionally, if you have Portuguese ancestry, you might be eligible for Citizenship by descent.
However, moving to a new country isn’t just about visas. If you’re thinking of buying property, our guide on Buying Property in Portugal can offer invaluable insights. Dive deeper into the immigration process with our comprehensive Portugal immigration guide. For Americans specifically looking to relocate, we have curated information on Americans moving to Portugal. Lastly, one can’t forget the importance of the NIF (Tax Identification Number), a crucial step in any relocation process.
