Retire Portugal vs Italy: Which Destination is Best For You?

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

Portugal enjoys a mild Mediterranean climate, especially along its coastlines. Cities like Lisbon, Porto, and the Algarve region see warm, dry summers and mild, rainy winters.

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

Portugal consistently ranks as one of the world’s safest countries. Violent crime is rare, and the overall crime rate is low, with most incidents limited to petty theft in tourist areas.

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.

Pickpocketing and petty theft can be issues in tourist hotspots like Rome, Milan, and Naples, but serious crime is uncommon. Rural areas and small towns are particularly peaceful. Emergency services are reliable, and Italy’s safety rankings are high by global standards.

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

Portugal is celebrated for its vibrant outdoor lifestyle, beautiful beaches, and historic cities. Lisbon and Porto offer lively nightlife, music, and cultural festivals, while the Algarve is a hub for golf, water sports, and coastal relaxation.

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.

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.

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:

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.

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.

5 Best Places to Retire in Portugal

1. Algarve: The Algarve is a top retirement destination in Portugal, famous for its over 300 sunny days, stunning beaches, and excellent golf courses.

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

1. Tuscany (Lucca): Lucca is a charming retirement destination with Renaissance walls, cobbled streets, and proximity to Florence and Pisa. It offers a relaxed pace, vibrant culture, and excellent healthcare. Retirees can enjoy markets, concerts, and a café scene, with more affordable housing compared to nearby cities.

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. 

Frequently Asked Questions About Retiring in Portugal vs Italy

What are the key differences between retiring in Portugal and Italy?

Portugal offers a more streamlined residency path for retirees, lower living costs, and extensive English use in key cities. Italy boasts richer historical immersion, more regional lifestyle diversity, and broader healthcare networks, but tends to be more bureaucratic.

Is Portugal or Italy cheaper for retirees?

Portugal is generally cheaper. Housing, utilities, and dining out tend to cost less in Portugal, especially outside Lisbon, compared to Italian cities or tourist hubs.

What is the cost of living comparison between Portugal and Italy for retirees?

Portugal has a lower overall cost of living, especially in housing, transportation, and healthcare. Daily expenses are also typically more affordable than in Italy.

Is healthcare better in Portugal or Italy for foreign retirees?

Both have good public systems, but Italy’s healthcare ranks higher globally. However, Portugal’s healthcare is more accessible and often easier to navigate for expats, especially in cities like Lisbon or Porto.

Which country has easier residency requirements for retirees?

Portugal has more flexible and transparent residency options for retirees, including the D7 Visa, which requires proof of passive income and minimal bureaucratic hurdles.

Do Portugal and Italy offer special retirement visas?

Yes. Portugal offers the D7 Visa for passive income holders, ideal for retirees. Italy offers elective residency visas, but these often involve stricter financial thresholds and bureaucratic steps.

How does the climate compare between Portugal and Italy for retirees?

Portugal generally has milder winters and more consistent sun, especially in the Algarve. Italy varies widely by region—mild in the south, snowy in the north—offering more seasonal variety.

Which is safer for retirement: Portugal or Italy?

Portugal ranks as one of the safest countries in the world, with low crime rates and high political stability. Italy is also safe, but it sees more regional variation in petty crime.

Is Portugal or Italy better for English-speaking retirees?

Portugal is better for English speakers, especially in urban and coastal expat areas. English proficiency is lower in Italy, particularly outside major cities.

What are the pros and cons of retiring in Portugal vs Italy?

Portugal’s pros include a lower cost of living, being expat-friendly, and better tax perks. Its cons include less cultural variety compared to Italy.

Italy’s pros include a rich culture, food, and healthcare system. Its cons include more bureaucracy and higher living costs.

How do real estate prices compare in Portugal vs Italy for retirees?

Portugal generally has lower real estate prices, particularly outside Lisbon and Porto. Italian prices are higher in desirable regions but can be surprisingly low in rural or depopulated areas.

Is it easier to buy property in Portugal or Italy as a retiree?

Portugal has a more transparent and expat-friendly property market. Italy has more red tape, especially with historical properties or rural land.

Which country is better for coastal retirement: Portugal or Italy?

Portugal, particularly the Algarve, offers a mild climate, affordable coastal living, and a strong expat community. Italy has beautiful coastlines, but prices and accessibility vary more widely by region.