Spain's appeal to expats has declined, and the Middle East is currently less attractive for those seeking a better quality of life in a sunnier climate. Thus, it comes as no surprise that Portugal has emerged as the new hotspot for midlife expats looking to escape the cost of living crisis.
The number of British expats living in Portugal nearly tripled between 2014 and 2024, according to figures from the Portuguese immigration authority (AIMA), now reaching 48,238. Christina Hippisley, manager of the UK's Portuguese Chamber of Commerce, reports a significant increase in people in their 40s and 50s moving there, many already running businesses they can operate remotely.
Clare Bailey's Story
One such Briton is Clare Bailey, a retail expert who relocated to the Algarve in September 2023 and has never regretted the decision. 'I have always worked with retail, hospitality, and leisure. During Covid, it occurred to me that I could work from anywhere in the world,' Clare told the Daily Mail. 'My husband and I had always said that we'd retire overseas – but then we thought, why wait?'
In March 2023, Clare began investigating a move to the Algarve. She obtained residency in August and moved at the start of September that same year. Clare is following in the footsteps of many Brits who have embraced the European lifestyle Portugal offers – even Princess Eugenie divides her time between the UK and Melides in the Setúbal district.
Financial Advantages
Clare says her financial situation in Portugal is 'dramatically' better than in the UK. Her combined council tax and water bill is just €21 (£18.20) a month thanks to solar panels. 'It now costs me less to fly to the UK than it used to cost me to get a train from Lincolnshire to London,' she adds. 'My peak return train ticket from Grantham to London used to cost me £127. Now, whenever I have to fly back to London for a conference or event, it costs me between €30 (£26) and €50 (£43.50) for a return flight.'
The lower cost of living extends to food. Buying local, fresh, seasonal produce at butchers or markets can cost three to four times less than in the UK. 'You can buy a bottle of wine for less than €2 (£1.74). Eating out is absolutely, ridiculously cheap. If you go to the places that we've discovered, one of my favourites, it's €13 (£11.30) for a full menu,' Clare says. 'They always start you off with the bread and olives. Then, it's two different fillets of fish. You'll get a piece of sea bass or sea bream with chips or rice or salad or steamed vegetables, and a dessert. Half a litre of wine per person, a small coffee at the end, and potentially also a little glass of port. And that sets you back a whole €13 (£11.30).'
Private health insurance costs 'next to nothing', and full blood works cost about €6 (£5.20), compared to up to £100 in the UK.
Settling in Silves
Clare, founder of The Retail Champion, initially moved with her husband and one of her two children to Carvoeiro in the Algarve before settling in Silves. 'We first moved out to a place called Carvoeiro, because we knew that if we had a property there and didn't like it, we could rent it out. It is a very pretty town in the middle of the Algarve,' she says. 'But we quickly learned that it was incredibly touristy, so we went out of our way to start learning more Portuguese, and within a year moved to the original capital of the Algarve, which is called Silves. There's a Moorish castle, it's very historic, but it's classified as a city, because there's a cathedral. It's a very small town. We're a 20-minutes drive from numerous beaches. We're planning a road trip in early July, and every hotel I've booked, or B&B or apartment, is about €50 to €60 (£43 to £52) a night.'
While Clare would 'absolutely not' move back to the UK, her children are at university there. The advantage is that they often fly back to visit, enjoying sunny, cheap holidays in the Algarve with their friends.
Disadvantages and Advice
There are some drawbacks, such as bureaucracy – for example, needing to visit a bank branch in person to open an account. 'But the upside,' Clare says, 'is that you're dealing with better weather, better cost of living, and everyone is very friendly. There's very little animosity, despite the fact that well-off people from other countries have moved in, bought properties, and put the prices up. They welcome you with open arms, they're pleased to see you. A quick obrigado goes a long way – they're grateful that you've made the effort.'
Visa Options for Brits Post-Brexit
Several visa options exist for Brits looking to relocate to Portugal. The D8 digital nomad visa requires proof of income, accommodation, and savings. The D2 visa (entrepreneur/independent professional) is for freelancers, entrepreneurs, and those starting a business, requiring proof of income, a business plan, and economic activity. The D7 visa, often called the 'retirement visa' or 'passive income visa', is popular with Brits. Currently, income thresholds are €920 (£796) a month for the main applicant, with a 50% increase if joined by a partner. A retired couple would need to demonstrate income of €1,380 (£1,194) a month, savings of more than €11,040 (£9,558), and proof of property ownership or a long-term rental agreement. Conditions include spending at least 183 consecutive days in Portugal and maintaining it as primary residence, and visa holders cannot work.
