Portugal is one of Europe's most popular retirement destinations, but the famous low-tax deal on pensions has ended for newcomers. Test what retiring in Portugal looks like under the 2026 rules.
The D7 is the usual route for non-EU retirees. A pension counts as passive income, and the 2026 minimum is €920 per month plus savings.
The old NHR regime, with its 10% flat rate on most foreign pensions, is closed to new applicants. People without existing NHR status cannot get it now.
IFICI applies a 20% rate to eligible professional income, but foreign pensions are excluded from its exemption. It is not a retiree regime.
Without NHR, pensions are generally taxed at Portugal's ordinary progressive IRS rates. The top marginal rate is 48%, plus a solidarity surcharge on very high incomes.
Source: Is there a tax-free allowance in Portugal in 2026? (MCS)
Under many double tax treaties, government and some public-sector pensions are taxable only in the paying country, while private and state pensions are usually taxable in Portugal. Check your specific treaty.
EU and UK state pensioners can request an S1 from their home health authority. Registering it with Portuguese social security gives SNS access, with the home country paying.
The D7 has no age requirement, despite its nickname. What matters is stable passive income at or above the threshold.
The main applicant needs €920 and a spouse adds 50% (€460), so a couple needs €1,380 per month in 2026.
This quiz is general information based on Portuguese rules in force on the review date above, not legal advice. Immigration thresholds change every January with the minimum wage, and laws change often. Confirm your case with a lawyer before applying.